TRADE UPDATE: Food & Agriculture March 7, 2023

HIGHLIGHTS

• USMCA: USTR announced the initiation of USMCA technical consultations with Mexico on agricultural biotechnology products, after several months of calls for enforcement action from industry stakeholders and some Members of Congress. The formal technical consultations were requested under the Sanitary and Phytosanitary Measures (SPS) Chapter of the USMCA, the first ever SPS-related consultation.
• USMCA: Earlier last week, bilateral tensions rose over Mexico’s GM corn ban as Mexico’s Ministry of Economy released a statement claiming that U.S. opposition to the decree is politically, rather than commercially, motivated. In response, USTR spokesperson Sam Michel stated, “These concerns are not politically motivated. In fact, Mexico’s policies are not based on science; threaten to disrupt billions of dollars in agricultural trade, causing serious economic harm to U.S. farmers and Mexican livestock producers; and could stifle innovation that is necessary to respond to urgent climate and food security challenges. We continue to press Mexico for a full and prompt resolution of U.S. concerns.”
• U.S. - China: The Office of USTR’s recently released its 2022 Report to Congress On China’s WTO Compliance condemning China’s trade practices that “run counter” to the global trading system and characterizing China’s adherence to WTO commitments as “poor.” Ambassador Katherine Tai said in statement that “China’s approach makes it an outlier and continues to cause serious harm to workers and businesses in the United States and around the world.”
• Trade Policy: The Office of the USTR delivered President Biden’s 2023 Trade Policy Agenda and 2022 Annual Report to Congress last week, again with strong focus on enforcement of existing trade agreements and a more inclusive trade policy. Ambassador Tai noted, “From enforcing the USMCA to creating innovative trade arrangements with our allies and partners, we will continue to pursue an agenda that will deliver sustainable and inclusive economic prosperity for all.”
• U.S. – U.K.: Bipartisan legislation was recently introduced that provides a two-year extension of Trade Promotion Authority (TPA) for the White House to conclude free trade agreement negotiations with the U.K. The legislation, Undertaking Negotiations on Investment and Trade for Economic Dynamism (UNITED) Act, would require the Administration to launch FTA talks within 180 days of passage to address “tariff and nontariff barriers affecting any industry, product, or service sector,” according to the text.
• WTO: The WTO released a note entitled “A Year of Turbulence on Food and Fertilizers Markets” in the context of export restrictions in the wake of the war in Ukraine. The WTO reported that “96 export restrictions on essential agricultural commodities were identified to have been applied by 29 WTO members and six observers.” While several restrictions have been lifted, the WTO said that export “restrictions currently in force cover approximately USD 85 billion of total world exports.”
• WTO: Discussions in Geneva on WTO dispute settlement reform are moving to the next phase according to reports. The new phase of reform will include proposals and text-based negotiations, with the goal of reaching a final resolution.

“In this time and place and in this current situation, the traditional approach to free trade agreements — which isn't just that they do tariff cuts, but that they do tariff cuts on a fully comprehensive basis — isn't what we need right now.” - Ambassador Katherine Tai commenting on free trade agreements as reported by Politico.

USMCA

USTR announces USMCA technical consultations with Mexico on agricultural biotechnology

On March 6, The Office of the USTR announced requesting formal technical consultations with the Government of Mexico under the Sanitary and Phytosanitary Measures (SPS) Chapter of the USMCA. The consultations focus on Mexico’s policies and measures surrounding agricultural biotechnology products, including the recently revised Decree to ban certain GM corn imports. In announcing the action, Ambassador Katherine Tai said, “The United States has repeatedly conveyed our serious concerns with Mexico’s biotechnology policies and the importance of adopting a science-based approach that complies with its USMCA commitments,” Tai continued, "Mexico’s policies threaten to disrupt billions of dollars in agricultural trade and they will stifle the innovation that is necessary to tackle the climate crisis and food security challenges if left unaddressed. We hope these consultations will be productive as we continue to work with Mexico to address these issues.” 

USDA Secretary Tom Vilsack said, “Mexico is an important partner, and we remain committed to maintaining and strengthening our economic and trade ties. A robust, transparent agricultural trading relationship, founded on rules and science, is vital to ensuring food security, mitigating the lingering effects of food price inflation, and helping to address the climate crisis. Innovations in agricultural biotechnology play a key role in advancing these critical, global objectives.” Vilsack continued, “While we appreciate the sustained, active engagement with our Mexican counterparts at all levels of government, we remain firm in our view that Mexico’s current biotechnology trajectory is not grounded in science, which is the foundation of USMCA.”

• As reported earlier, on January 30, 2023, USTR sent a formal, written request to Mexico under the USMCA SPS Chapter seeking “an explanation of the reasons for” and “pertinent relevant information regarding” certain Mexican measures concerning biotech products. Mexico’s written response on February 14 will help inform technical consultations, according to the Office of the USTR.
• Under Article 9.19 – Technical Consultations in the SPS Chapter of USMCA, involved parties “shall meet within 30 days” of the request for technical consultations, “with the aim of resolving the matter cooperatively within 180 days of the request if possible.”

Several industry stakeholders applauded USTR’s action and continued to express support for a full resolution to the bilateral issue under the USMCA framework.

• National Corn Growers Association President Tom Haag said, “We are pleased USTR is taking the next step to hold Mexican officials accountable for the commitments they made under USMCA, which include accepting both biotech and non-biotech commodities.” “Mexico’s position on biotech corn is already creating uncertainty, so we need U.S officials to move swiftly and do everything it takes to eliminate this trade barrier in the very near future.”
• Corn Refiners Association President and CEO John Bode said, “Thanks to Ambassador Katherine Tai and USDA Secretary Tom Vilsack for their leadership and continued insistence upon full compliance with USMCA. While we are disappointed that it was necessary for the U.S. to take this first formal step under USMCA, we are pleased that the scope of this controversy has been dramatically narrowed and both parties are working within the framework of USMCA to resolve differences. Keeping the commitment to USMCA is the key to advancing science and risk-based policies that are essential to North America’s standing as the world’s leader in food security and sustainability. I hope for a swift resolution to the dispute.”
• U.S. Grains Council President and CEO Ryan LeGrand issued the follow statement, “The U.S. Grains Council thanks the Office of the U.S. Trade Representative for initiating the consultation with Mexico under USMCA because it undermines U.S. corn’s access to the Mexican market” “We have had a long and productive relationship with Mexico. It is our number one market for U.S. corn, and we support this action because it will likely be the most expedient way to ensure that positive relationship continues.”

USTR reaffirms that U.S. concern with GM corn ban is not politically motivated

Earlier, U.S. Trade Representative Katherine Tai and Mexican Economy Minister Raquel Buenrostro met virtually last week to continue discussions regarding Mexico’s biotechnology policies. Following the meeting, Mexico released a statement claiming that U.S. opposition of the decree is politically motivated rather than commercially motivated.

• In response, USTR spokesperson Sam Michel stated, “These concerns are not politically motivated. In fact, Mexico’s policies are not based on science; threaten to disrupt billions of dollars in agricultural trade, causing serious economic harm to U.S. farmers and Mexican livestock producers; and could stifle innovation that is necessary to respond to urgent climate and food security challenges. We continue to press Mexico for a full and prompt resolution of U.S. concerns.”
• According to an unofficial summary of the statement, the Mexican government contends the Decree does not have a commercial impact, since Mexico produces much more corn than it requires for dough and tortillas, while the corn imported from the U.S., whether white or yellow, is complementary and is used for industry and animal feed. The U.S. dispute over the decree regulating transgenic corn has no commercial basis, its motivation, in reality, is political. As U.S. Secretary of Agriculture Tom Vilsack himself publicly acknowledged, it is a matter of principle.

Prior to the statement, U.S. Secretary of Agriculture Tom Vilsack expressed dissatisfaction with the new decree: “The U.S. believes in and adheres to a science-based, rules-based trading system and remains committed to preventing disruptions to bilateral agricultural trade and economic harm to U.S. and Mexican producers…We are carefully reviewing the details of the new decree and intend to work with USTR to ensure our science-based, rules-based commitment remains firm."

Secretary Vilsack earlier indicated new conversations with Mexico regarding biotech issues will “begin very soon. Vilsack on more than one occasion noted the U.S. seeks full USMCA compliance from Mexico. “This is not a situation that lends itself to compromise.” “From our perspective, you’re talking about a fundamental principle of our trade…which is you need a science-based, rules-based system. And if you begin to inject things that are not scientific, it’s a very slippery slope,” he emphasized.

Recall that Mexico released a new decree on Feb. 13 addressing the GM corn ban, superseding the 2020 decree. Effective immediately, the new decree maintains the prohibition of the use of GM corn for human consumption, in products such as flour, dough, and tortillas. In contrast to the 2020 decree, the new decree allows the use of GM corn for industrial use for human consumption and animal feed while Mexico seeks to pursue self-sufficiency in all corn consumption needs.

U.S. – China

USTR report – China trade compliance poor

USTR’s recently released the 2022 Report to Congress On China’s WTO Compliance which condemns China’s trade practices that “run counter” to the global trading system and states that China’s adherence to WTO commitments remains “poor.” Commenting on the report release, Ambassador Katherine Tai noted in a statement that for “More than 20 years after it acceded to the World Trade Organization, China still embraces a state-led economic and trade approach that runs counter to the open, market-oriented principles endorsed by all members of the organization.” She continued, “China’s approach makes it an outlier and continues to cause serious harm to workers and businesses in the United States and around the world.”

One of the highlights of the report focuses on “new strategies” to tackle the challenges posed by “China’s state-led, non-market approach to the economy and trade, including solutions independent of the WTO.” Components of the strategy include:

• The United States take steps domestically to invest in, and build policies supportive of, the industries of today and tomorrow. Important steps taken to date include the passage of the CHIPS and Science Act, the Inflation Reduction Act and the Infrastructure Investment and Jobs Act.
• The U.S. continue to pursue bilateral engagement with China. China is an important trading partner, and every avenue for obtaining real change in its economic and trade regime must be utilized. However, the U.S. will work to hold China accountable for its existing commitments, including under the Phase One Agreement.
• Utilize new domestic trade tools to level playing field for U.S. workers and businesses. The United States is exploring how best to use and improve domestic trade tools to achieve that end.
• U.S. should work more intensely and broadly with allies and likeminded partners in order to build support for solutions to the many significant problems that China’s state-led, non-market approach to the economy and trade has created for the global trading system.

U.S. – UK

Senators introduce bill to resume FTA talks with UK

Senators Chris Coons (D-DE) and John Thune (R-SD) introduced legislation last week to provide a two-year extension of Trade Promotion Authority (TPA) for the White House to conclude free trade agreement negotiations with the UK. The legislation, Undertaking Negotiations on Investment and Trade for Economic Dynamism (UNITED) Act, would require the administration to launch FTA talks within 180 days of passage to address “tariff and nontariff barriers affecting any industry, product, or service sector,” according to the text. This authority would be terminated in two years, March 1, 2025. The bill also references USMCA as the standard for bilateral negotiations, “Congress passed the USMCA with over whelming bipartisan support, setting high standards in North America with respect to labor rights, the environment, intellectual property, non-market practices, and services, and those standards should inform future negotiations.

• In a press release Senator Thune stated, “Now is the time to strengthen our economic and strategic relationship with the United Kingdom in order to create new opportunities for American workers, farmers, ranchers, and businesses.” Thune continued, “A comprehensive free trade agreement with the U.K., one of our closest allies, would reduce costs for consumers, improve supply chain resilience, and open new markets for U.S. producers. This bipartisan bill marks an important step toward a strong and hopefully long-standing trade agreement with the world’s fifth-largest economy, and it serves to advance the historic and special relationship between our two countries into the 21st century.”
• Senator Coons added, “The United Kingdom is one of our largest trading partners and closest allies. A comprehensive free trade agreement with the United Kingdom would advance our country’s strategic and economic interests while creating new economic opportunities for Delaware workers, businesses, and consumers.” “This bill demonstrates bipartisan congressional support for restarting negotiations with the U.K., and would pave the way for a trade deal that sets ambitious international standards for our shared priorities on climate, labor protections, digital trade, intellectual property rights, and many other areas.”

Notably the bill reflects some aspects of a bill introduced by Senator Coons and former Senator Rob Portman (R-OH) in the last Congress, Trading System Preservation Act, that would have provide limited TPA authority to pursue a comprehensive trade agreement with the U.K., Kenya, Taiwan and Ecuador.

The Senators’ legislation emerges shortly after the UK and EU announced the “Windsor Framework” regarding trade rule and border policy for Northern Ireland, a contentious issue since Brexit between the two trade partners. The agreement promises to uphold the Good Friday Agreement, a major concern for several U.S. lawmakers, and seeks to advance peace, stability and prosperity in North Ireland. The White House released a statement noted the Windsor Framework could preserve and strengthen the peace secured under the Good Friday Agreement.

As an aside, the USDA recently released a report on the UK’s post-Brexit agriculture production and trade policy.

U.S. – Indo-Pacific

IPEF trade pillar round two set for Indonesia

The Office of USTR continues preparations for the second round of talks on the IPEF Pillar I (Trade), scheduled for March 12-19 in Bali, Indonesia. The U.S. delegation, led by USTR, joined by Department of Commerce and other agency officials will be “led by Sarah Ellerman, IPEF Pillar I Chief Negotiator and Assistant United States Trade Representative for Southeast Asia and the Pacific (Acting), and Sharon H. Yuan, Department of Commerce Counselor and Chief Negotiator for Pillars II-IV,” according to a USTR and Commerce Department statement. The agencies noted that additional details regarding the Indonesia negotiating round will be provided at a later date.

Last December, the first round of IPEF trade talks were held in Brisbane, Australia. The first round of talks on IPEF Pillars II-IV were recently held in New Delhi, India.

Trade Trends

U.S. goods trade deficit expands on strong import demand

The U.S. trade deficit in goods increased $1.8 billion in January, propelled largely by increased imports. The international trade deficit registered at $91.5 billion in January, increasing 2.0% from $89.7 billion in December. Exports of goods for January were $173.8 billion, $7.0 billion more than December exports. Imports of goods for January were $265.3 billion, $8.8 billion more than December imports.

Trade Policy

Free trade agreements not off the table in the future according to Katherine Tai

In an interview, U.S. Trade Representative Katherine Tai stated that while the Biden Administration maintains the belief that negotiating new free trade agreements is not appropriate under current economic conditions, they remain open to the possibility in the future.

• Ambassador Tai stated, "In this time and place and in this current situation, the traditional approach to free trade agreements — which isn't just that they do tariff cuts, but that they do tariff cuts on a fully comprehensive basis — isn't what we need right now... that neither puts workers at the center of our trade policy, nor does it solve for the challenges that we have with respect to resilience and sustainability”
• Ambassador Tai specifically addressed the possibility of negotiating a free trade agreement with the U.K., noting that while the Biden Administration hasn’t made a final decision on the matter, she remains open to the possibility. For now, the U.S. and U.K. will continue the dialogue established last year on the future of Atlantic trade.
• Section 301 tariffs were another topic of discussion during the interview. In response to a question on how she will handle the tariffs currently under statutory review, Tai stated, “If you take a couple steps back and you look at the policy landscape, I think that better question is, what has China done to deserve our dialing back the tariffs?”

USTR releases annual trade policy agenda

The Biden Administration 2023 trade agenda will continue to lean into enforcing existing trade agreement and pursuit of trade arrangements and partnerships, rather than traditional comprehensive Free Trade Agreements. The Office of USTR delivered last week delivered President Biden’s 2023 Trade Policy Agenda and 2022 Annual Report to Congress. In releasing the report Ambassador Tai touched both enforcement and new trade arrangements stating, “From enforcing the USMCA to creating innovative trade arrangements with our allies and partners, we will continue to pursue an agenda that will deliver sustainable and inclusive economic prosperity for all.”

The Office of USTR noted key elements of the trade policy agenda, including, enforcing existing trade agreements, addressing trade challenges with China, and promoting resilient supply chains, among others. On agriculture the USTR fact sheet reads:

• Supporting U.S. Agriculture: The Biden Administration recognizes that farmers, ranchers, producers, processors, fishers, and food manufacturers are central to our worker-centered trade policy. From 2000 to 2022, annual U.S. agricultural exports grew from $58 billion to a record $202 billion, and we are achieving economically meaningful wins for this important sector. We are also creating new opportunities for American agriculture, including through our new initiatives and existing agreements.

Biden appoints new members to the President’s Export Council

On Tuesday, the White House released an announcement detailing the appointment of 25 new members to the President’s Export Council. The council is responsible for advising the President on policies and programs that impact U.S. trade performance. In addition, the council promotes export expansion and serves as a forum to discuss various trade-related challenges.

• New members include high-level executives from United Airlines, Disney, Ford Motor Company, Walgreens Boots Alliance, CVS Health, 3M, Qualcomm, Citi, Land O’Lakes and FedEx.

Ways & Means Chair outlines trade priorities

Representative Jason Smith (R-MO), new Chairman of the Ways and Means Committee outlined legislative and oversight ambitions in several Committee policy areas, including social security, tax and trade. In a February 28th letter to Budget Committee Chair, Jody Arrington (R-TX), Chairman Smith outlined the following ambitions on trade.

• “Trade – The Committee seeks to protect and increase economic opportunities for American workers, farmers, and small businesses by improving the effectiveness of U.S. trade laws that address unfair trade practices, strengthening the resilience of key supply chains, opening new markets to U.S. goods, especially U.S. agriculture, eliminating unfair foreign trade barriers to our goods and services, and enforcing U.S. rights under trade agreements. With respect to trade negotiations, the Committee intends to vigorously oversee trade initiatives including the Indo-Pacific Economic Framework for Prosperity, the Americas Partnership for Economic Prosperity, the United States-Taiwan Initiative on 21st Century Trade, and the U.S.-Kenya Strategic Trade and Investment Partnership.”
• “The Committee will continue its oversight related to enforcement of trade agreements, including the United States-Mexico-Canada Agreement, other bilateral and regional free trade agreements, and the World Trade Organization (WTO) Agreements, to hold trading partners accountable and render commitments secured from trading partners meaningful. The Committee intends to closely scrutinize implementation of the Uyghur Forced Labor Prevention Act to ensure products manufactured wholly or in part by forced labor in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China do not enter the United States.”
• “Given concerns over China’s disrespect for American intellectual property protections and otherwise aggressive posture, the Committee will need to monitor such activities to protect America’s interests and vital supply chains. In addition, the Committee will continue its oversight over ongoing trade negotiations under the auspices of the WTO, other plurilateral efforts, and bilateral investment treaties, as well as the U.S. role in the WTO, including U.S. goals, negotiations, dispute settlement, and accessions. The Committee will continue oversight and consider legislation regarding the operation of U.S. preference programs for developing countries. Finally, the Committee will continue its oversight over the budgets and activities of agencies within its jurisdiction, including the Office of the U.S. Trade Representative, U.S. Customs and Border Protection, and the U.S. International Trade Commission.”

Supply Chains

Container Shipping rates hit new low

Increased new vessel capacity coupled with a decline in cargo demand continue to push ocean container trade prices for transpacific routes. Rates are expected to soften further as importers and retailers seem poised to dictate price points for new shipping contracts according to Bloomberg.

Ukraine

Ukraine calls upon UN and Turkey to initiate talks to extend Black Sea deal

With the looming deadline to renew the Black Sea grain deal, set to expire March 19th, Ukraine has called about the United Nations and Turkey to initiate negotiations with Russia to renew the grain export deal.

In a speech at the United Nations Conference on Least Developed Countries, Turkish Foreign Minister Mevlut Cavusoglu stated "We are working hard for the smooth implementation and further extension of the Black Sea grain deal."

Ukraine’s Deputy Minister of Restoration Yuriy Vaskpov stated that Ukraine is calling for at least a one-year extension of the deal. In addition, Ukraine wants the extension to include the ports of Mykolaiv. The current deal includes three Ukrainian ports: Chornomorsk, Odesa and Yuzhny/Pivdennyi. There are currently 26 ships stuck in Mykolaiv. If the ports of Mykolaiv are added to the deal, Ukraine’s capacity to export would increase from 6 million tons per month to 8 million tons.

WTO

The WTO released a note — entitled “A Year of Turbulence on Food and Fertilizers Markets” in the context of export restrictions in the wake the war in Ukraine. The WTO emphasized the note is “to provide a brief factual overview of trade policy developments following the outbreak of the war in Ukraine on 24 February 2022. In the document, the WTO reported that, “Since the beginning of the war and up to 28 February 2023, 96 export restrictions on essential agricultural commodities were identified to have been applied by 29 WTO members and six observers. Of these, 88 applied to food and feed and eight specifically targeted fertilizer exports. Over the past 12 months, some 28 measures were phased out, thus bringing to 68 the total number of measures currently applied (63 on food and five on fertilizers) by 27 WTO members and five observers. The export restrictions currently in force cover approximately USD 85 billion of total world exports.

New phase of WTO dispute settlement reform begins

In January, informal dispute settlement reform discussions concluded. These initial meetings gave members a forum to discuss what they’d like to see in an improved WTO dispute settlement system. While initial discussions were U.S. led, further reform discussions will be led by Guatemala. The new phase of reform will include proposals and text-based negotiations, with the goal of reaching a final resolution.

• Recall that during MC12 held during June 2022, members agreed to establish a fully functioning dispute settlement system by 2024.

Food Security

Global food prices continue declining for the 11th consecutive month

The Food and Agriculture Organization’s (FAO) Food Price Index averaged 129.8 points in February, falling modestly at 0.6 percent compared to January. February’s price index decline marks the 11th consecutive month of receding prices and has declined 30 percentage points (18.7 percent) since the peak level in March 2022. Decreases in the price indices for vegetable oils and dairy were the primary drivers and offset a sharp rise in the sugar price index, according to FAO. Other highlights from the report include:

• The Vegetable Oil Price Index “averaged 135.9 points in February, down 4.5 points (3.2 percent) from January and marking the lowest level since the beginning of 2021. The continued weakness of the index was driven by lower world prices across palm, soy, sunflower seed and rapeseed oils. International palm oil prices dropped for the third consecutive month in February, chiefly weighed by lingering sluggish global import demand, despite seasonally lower production from major growing regions in Southeast Asia.” 
• The Cereal Price Index “averaged 147.3 points in February, down fractionally (0.1 percent) from January and 2.0 points (1.4 percent) above its level one year ago. After falling for three consecutive months, international wheat prices rose marginally (0.3 percent) in February. The slightly firmer tone mostly reflected ongoing concerns over dry conditions in key production areas of Hard Red Winter wheat in the United States of America, and robust demand for supplies from Australia, while strong competition among exporters helped to cap price gains.”
• The Dairy Price Index “averaged 131.3 points in February, down 3.6 points (2.7 percent) from January and standing 10.2 points (7.2 percent) below the corresponding month last year. In February, the decline in the index was driven by lower prices across all dairy products, with the steepest falls in butter and skim milk powder (SMP). The continued weakness in global import demand, especially for near-term deliveries underpinned the price declines, despite a noticeable increase in purchases in recent weeks by North Asia.”
• The FAO Sugar Price Index “averaged 124.9 points in February, up 8.1 points (6.9 percent) from January, reaching the highest level since February 2017. The February rebound was mostly related to the downward revision to the 2022/23 sugar production forecast in India, which dampened export prospects for the current season. Concerns over lower export availabilities from India amid strong global import demand lent additional support to world sugar prices. However, the good harvest progress in Thailand and abundant precipitation in the key growing areas of Brazil prevented a larger monthly price increase.”

U.S. – Brazil

More lawmakers call for Brazilian beef import restrictions

Last week Senator Steve Daines (R-MT) and Representative Mary Miller (R-IL) voiced safety concerns with Brazilian beef imports following reports of bovine spongiform encephalopathy (BSE). “I believe recent concerns with Brazil’s food safety practices justify the immediate suspension of Brazil’s fresh beef imports until USDA can ensure livestock producers that Brazilian beef does not pose a risk to spread BSE or other potentially dangerous livestock diseases,” Senator Daines (R-MT) wrote in a letter to President Biden. Separately, Representative Miller (R-IL), in letter to USDA Secretary Tom Vilsack wrote, “Brazil has already halted their beef exports to China, and I am concerned that Brazilian beef will be re-directed to the U.S. market where Brazilian beef imports have spiked in recent years.”

Recall that earlier Senators Jon Tester (D- MT) and Mike Rounds (R-SD) reintroduced a bipartisan bill to temporarily suspend U.S. imports of Brazilian beef imports to examine such imported products’ impacts on food safety and animal health. “Folks shouldn’t have to worry about whether the products they buy at the grocery store are safe to eat, and that’s why we need to halt Brazilian beef imports until Brazilian producers can prove that their products meet our health and safety standards,” Tester said.

• Senator Rounds (R-SD) emphasized that “Producer’s livelihoods are being compromised by Brazilian beef imports that fail to meet our country’s food safety and animal health standards, as Brazil has a history of failing to report, in a timely and accurate manner, diseases found in their herds.” “This poses a significant threat to both American producers and consumers. Consumers should be able to confidently feed their families beef that has met the rigorous standards required in the United States. Our bipartisan legislation would make certain Brazilian beef is safe to transport and eat before it is brought into our markets, neutralizing Brazil’s deceptive trade tactics.”
• The bill would create a “working group to determine if Brazilian beef and poultry are up to U.S. quality standards,” according to a joint statement. The Senators initially introduced the bill in November 2021 after Brazil detected two cases of atypical bovine spongiform encephalopathy (BSE) or “mad cow disease” earlier that year.