Newhouse, colleagues seek balanced ag trade with China

U.S. Rep. Dan Newhouse (R-WA) joined almost 60 of his colleagues in urging President Joe Biden to address the agricultural trade imbalance between the United States and China.

The lawmakers asked the president to work with U.S. Agriculture Secretary Thomas Vilsack and U.S. Trade Representative Katherine Tai to make the U.S.-China agricultural trade relationship “more balanced and reciprocal,” according to a Feb. 15 letter they sent to Biden, and requested that the president provide details about how his administration will move forward on this issue.

Rep. Newhouse and his colleagues pointed out that the U.S. and China in 2020 signed the two-year Phase One trade deal which, among other things, required China to make structural reforms to its trade regime and import $73.9 billion of U.S. agricultural products.

“As you know, China failed to meet their commitment to the U.S. to purchase additional agricultural goods by nearly $16 billion in 2020 and 2021 combined,” the lawmakers wrote. “We are concerned that China has not lived up to its Phase One commitments, and that your administration has not sufficiently reported to Congress on China’s compliance, brought forward enforcement actions on China shortcomings, nor sought to negotiate new commitments from China, including on agriculture.”

The members wrote that “America must vigorously enforce its trade commitments,” and should receive damages from China for its failure to perform under the recent agreement.

“America must pursue a new trade agreement with China and seek to negotiate alternative trade agreements with other countries that can expand U.S. agricultural market access abroad,” wrote Rep. Newhouse and his colleagues. “We are concerned that the lack of enforcement action will set a detrimental precedent for future trade negotiations.”

The members asked Biden to respond to several questions, including how the administration will report to Congress on areas in which China has fallen short of its obligations under the Phase One trade deal; whether the administration used the enforcement mechanism in the Phase One deal to address China’s violations of the agreement; and if the administration is considering negotiations of a new fully enforceable deal, among others.

“We urge you to take immediate steps to rectify the unbalanced agricultural trade relationship with China; work towards new enforceable commitments from China; and pursue additional trade deals with other markets amenable to U.S. agricultural goods,” they wrote.