Boustany: Rice study proves need for strong trade agreements

Following the release of a study last week by the International Trade Commission (ITC) regarding the nation’s rice production, U.S. Rep Charles Boustany (R-LA) discussed the need for strong trade agreements to support the industry.

The study, “Rice: Global Competitiveness of the U.S. Industry,” was requested by Boustany more than a year ago, along with then-House Ways & Means Committee Chairman Dave Camp (R-MI). The lawmakers asked the ITC to review and investigate the effects of fluctuations in the market resulting from government support programs in other rice-producing countries such as Vietnam, Thailand, India, China and Brazil.

“The United States rice industry depends on exports, which account for about half of the U.S. rice crop each year,” the report revealed. “U.S. exports of medium grain refined rice are shipped mainly to Japan, but also to Taiwan and South Korea, where trade agreements give U.S. rice guaranteed minimum access. Tariff elimination would have led to a significant increase in global rice trade, but only a small increase in production and consumption. However, of the policy changes considered, eliminating tariffs would have had the greatest impact on U.S. production and exports.”

The export of U.S.-produced rice is a major issue in the ongoing negotiations of the Trans-Pacific Partnership (TPP), a trade agreement with a dozen Asian nations. Boustany, co-chairman of the Friends of the TPP Caucus, has remained a strong advocate for Louisiana rice farmers, pushing for their ability to compete in the Asian marketplace on a level playing field.

“This ITC study clearly demonstrates that the U.S. rice industry is well-positioned to compete and grow with new export opportunities in Asia, particularly in Japan,” Boustany said. “As negotiations on free trade agreements with Asia continue, this study should empower our negotiators to reach a deal that will support this important industry. I’ll continue to push for low tariff barriers and a level playing field for Louisiana agriculture that will support growth and job creation at home.”

Boustany’s position is supported by several leaders within the rice export industry.

“The study shows precisely what we suspected all along,” Betsy Ward, president & CEO of the USA Rice Federation, said. “The U.S. rice industry is playing by the rules, but is at a decided disadvantage from some of our trading partners who do not play by the rules.”