A collective of American farm organisations, spearheaded by Farmers for Free Trade, recently voiced their unease regarding the possible repercussions for US agriculture if there’s a shift in China’s trading status. This concern arises as the US Select Committee on the Chinese Communist Party deliberates over suggesting to Congress a modification in China’s Permanent Normal Trade Relations (PNTR) status.
In a communication to the committee, this alliance, which includes several key agricultural entities, shed light on the remarkable escalation in agricultural exports from the US to China post its acquisition of PNTR status in 2000. These exports have soared to a whopping $38.1 billion in 2022, a stark contrast to earlier figures.
The correspondence underscores that China has emerged as a pivotal market for American farm produce, absorbing 19% of the US’s agricultural exports. The group emphasised the crucial role these exports play in sustaining American farmers and invigorating rural communities.
While the group acknowledges the committee’s apprehensions about China, it warns against measures that could adversely affect farmers. It pointed to the detrimental impact of the tariff hikes in 2018 and 2019, which led to a significant downturn in US agricultural exports, predominantly to China, culminating in losses nearing $25.7 billion.
The group advocates for a strategy focused on broadening and diversifying market access in the Asia-Pacific region, rather than revoking China’s PNTR status. This approach, they argue, would diminish the US’s reliance on the Chinese market and shield American workers and rural communities from adverse economic impacts.
The letter, bearing signatures from various organisations including The Almond Alliance, the American Soybean Association, and the National Milk Producers Federation, concludes with an appeal to the committee to weigh the broader economic implications for American agriculture before deciding on China’s PNTR status.
They underscore the potential for severe and enduring consequences for American farmers, ranchers, and food producers if the status is altered.
