Sugar Producer

www.SugarProducer.com 7 The negotiating team at the USDA and USTR has a proven track record of getting concessions from other countries on agriculture issues that were once thought untouchable. $375 $71 $69 $64 $38 $38 $32 $25 $23 $23 $20 $18 $17 $15 $14 Largest U.S. Trade Deficits, By Country, 2017 -- Billion dollars -- Total Deficit = $566 billion Source: U.S. Department of Commerce, Deficit = Exports minus Imports. These countries are offset by trade surplus countries in arriving at the total U.S trade deficit. $375 $71 $69 $64 $38 $38 $32 $25 $23 $23 $20 $18 $17 $15 $14 Largest U.S. Trade Deficits, By Country, 2017 -- Billion dollars -- Total Deficit = $566 billion Source: U.S. Department of Commerce, Deficit = Exports minus Imports. These countries are offset by trade surplus countries in arriving at the total U.S trade deficit. China; 22% Mexico; 13% Canada; 13% Japan; 6% Germany; 5% Korea, South; 3% United Kingdom; 2% Italy; 2% France; 2% Ireland; 2% India; 2.10% Vietnam; 2.00% Taiwan; 2% Malaysia; 2% Switzerland; 2% Others; 21% U.S. Total Imports by Country, 2017 Top 15 Countries Represent 79% of Total Imports Total Imports = $2.34 trillion Source: U.S. Department of Commerce. time or patience for the typical delays in traditional negotiations. President Trump imposed import tariffs on steel and aluminum (in some cases, many other products) on many of our trading partners to create immediate economic leverage to quickly renegotiate existing agreements or forge new ones. It forces the other party to the table to resolve the differences as quickly as possible because of the economic implications and pain of delays. These are very bold and controversial moves objected to by many, but essential to force parties to accelerate the negotiations. You will continue to witness tough, ugly and bruising rhetoric until the deals are struck. From an agriculture perspective, the President personally understands the importance of the American farmer both economically and politically. He has a first-rate negotiating team at the USDA and USTR with a proven track record of getting concessions from other countries on agriculture issues that were once thought untouchable. Senator Chuck Grassley of Iowa is a farmer and chairman of the Senate Finance Committee, which is responsible for overseeing trade agreements. The U.S. ambassador to China is former longtime Iowa governor Terry Branstad, who clearly knows the importance of agriculture and has a longstanding relationship with China's leadership. They clearly understand the pain farmers are suffering right now and are anxiously working to resolve the core problems that will put farm trade on a new and stronger trajectory. So the simple message from the administration to agriculture is, "You may hate the journey, but you will love the destination." Only time will tell how this plays out, but I remain optimistic. From a sugar perspective, as the world's third- largest importer, we always have a defensive position in any trade negotiation. Market access to any foreign market is not an objective for us, but limiting access from a foreign supplier is critical. The renegotiated NAFTA or U.S.-Mexico-Canada Agreement (USMCA) did not provide any additional access from Mexico and minimal amounts of sugar and sugar-containing products from Canada. The North American trade with these two countries account for 34 percent of our country's total global exports and 26 percent of our total global imports. Together, they are our largest trading partners and neighbors, and the trade agreement needs to pass Congress this year. The sugar industry will support the agreement. n

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