The American Soybean Association (ASA) recently submitted comments to the U.S. Trade Representative (USTR) and Department of Commerce on the analysis of the trade deficits in goods with 13 countries.

The U.S. is the world’s largest soybean producer and exporter, with more than 60 percent of the soy crop exported globally. Soybean exports globally totaled nearly $25 billion in the 2015-16 marketing year and made up 17.5 percent of agricultural export sales. Thanks to trade agreements, including the North American Free Trade Agreement (NAFTA), other Free Trade Agreements, and agreements under the World Trade Organization (WTO), U.S. soy exports have grown significantly over the past 25 years. These agreements reduced or eliminated tariffs and other market access barriers, and have allowed us to challenge unfair market restrictions.

ASA’s comments outlined how exports are critical to farmers, ranchers, the rural economy and jobs.

“Economic growth in America’s heartland is inextricably linked to the long-established productivity and growing success of U.S. food and agriculture, which is an American success story,” ASA states in the comments. “Our sector employs millions of hard working Americans, has improved the nutrition and economic wellbeing of generations of American families and is one of our nation’s most efficient and competitive industries. America’s food and agriculture sector is poised to grow internationally, building upon its well-deserved reputation for high quality products, trusted brands and continual innovation.”

However, ASA states the ability to continue to create jobs and support economic growth in rural America depends on maintaining and increasing access to markets outside the United States through existing and future trade agreements.

“With more than 95 percent of our customers living outside our borders, expanding access to international markets - including in growing regions in the Asia Pacific - is essential for our future success,” ASA states.

ASA also emphasized how trade agreements have greatly benefited U.S. soy growers and U.S. agriculture.

“The U.S has 20 free trade agreements with countries that account for 10 percent of the global economy. Yet these deals are the basis for nearly one-half of America’s exports,” ASA states in the comments. “In the first five years after the U.S. has concluded free trade agreements, U.S. exports have increased three times as rapidly as overall export growth. Over the past five years the U.S. has, with its free trade partners, run a trade surplus for manufactured goods of about $230 billion. Those agreements have helped open U.S. markets and have contributed to the strong growth in agricultural exports during the last 30 years. Importantly, in calendar year 2014, U.S. agricultural exports to these countries account for 41 percent of total U.S. agricultural exports, according to USDA data.”

According to ASA, overall, the U.S., the U.S. agricultural sector, and the U.S. soy industry have greatly benefited from WTO agreements.

The WTO has helped U.S. agricultural trade by finding solutions to the below three trade issues:

• Market access — various trade restrictions confronting imports,
• Domestic support — subsidies and other programs, including those that raise or guarantee farm gate prices and farmers’ incomes,
• Export subsidies -- and other methods used to make exports artificially competitive.

In the WTO, the United States has been highlighting and discouraging the use of trade distorting policies. Export competition in the WTO covers ag export subsidies, ag export credits, food aid, and the operation of agricultural exporting state trading enterprises (STEs).  WTO export competition rules aim to preserve well-functioning markets by facilitating competition amongst market actors.

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