WASHINGTON, D.C. (RFD-TV) — The agriculture sector remains cautiously optimistic following trade talks with China. While full details of the deal are still pending, new agreements with Southeast Asian countries are providing additional opportunities for U.S. farmers.
American Farm Bureau Federation (AFBF) economist Faith Parum joined us on Thursday’s Market Day Report to discuss key outcomes for U.S. agriculture from the China trade talks.
In her interview with RFD-TV News, Parum explained the potential benefits of expanding sales in Southeast Asian markets, recent deals and frameworks in the region, and challenges producers face when other countries maintain barriers to U.S. goods. In the last few weeks, news broke of new trade agreements between the U.S. and Malaysia, Cambodia, Thailand, and Vietnam.
“Southeast Asia is going to be one of our fastest-growing ag markets,” Parum explained. “Right now, they already spend over $12 billion on US ag goods, so continuing trade negotiations and expanding deals with them would be really great. This week we’ve heard of four: Malaysia, Cambodia, Thailand, and Vietnam. So those will continue to help provide stability in the region and keep prices steady here at home.”
Not only do these new markets provide overall stability for U.S. agriculture, but they also significantly expand market access for key industries.
“Like I mentioned, those four countries, we’ve seen reductions of tariff barriers and commitment to purchase more ag products. Malaysia has opened the door to purchase more U.S. dairy, poultry, rice, pork, and ethanol, and they’ve cut some non-tariff trade barriers on meat. So that’s a really great sign. Cambodia has eliminated some tariffs on farm products, which will open up the market for our goods. And then Thailand and Vietnam have both signed agreements to remove tariff barriers and increase their purchasing.”
Parum says that reductions in both tariff- and non-tariff-related barriers with smaller trade partners across Asia really benefit the bottom line for U.S. farmers and ranchers. The first is to expand access to new buyers and improve their ability to efficiently ship fresh products to international customers quickly, without sacrificing quality or costs.
“Non-tariff barriers really hit farmers directly. They can cause delays in shipping. When you’re talking about fresh produce or goods that can’t stay for very long when they’re held up in ports or held up on ships, that can really greatly reduce the value of those goods. That really directly impacts farmers. On top of that, we’ve seen just reduced market access due to non-scientific barriers — different meat standards, different labeling standards, that aren’t based on the science — and so, anytime we can reduce those non-tariff barriers, it really does help our U.S. farmers and ranchers.”
Shaun Haney joined RFD News to discuss the potential impact of the Trump-Xi summit uncertainty, ongoing agricultural trade talks, and why geopolitical developments could carry important implications for farmers and global commodity markets.
