Ag Trade Deficit Down
From the Ag Information Network, I’m Bob Larson. Big news from the USDA that America’s ag trade deficit has dropped significantly in the past year.
Luke Lindberg, USDA Undersecretary for Trade and Foreign
Agricultural Affairs, says that’s big because the U.S. has historically benefited from having a trade surplus in agricultural goods with the world …
LINDBERG … “Unfortunately, when President Trump came into office last year, we were facing a historic break in that trend, which was a $50 billion agricultural trade deficit, where we were buying more products from overseas than we were selling.”
It’s been a high priority at USDA to get that $50 billion deficit under control …
LINDBERG … “We're pleased one year later that we have knocked 42% off that trade deficit. It's now at $29 billion. We're optimistic that this year is going to get even better as we progress, and we see new trade agreements come into place.”
But what does that mean for farmers? …
LINDBERG … “It means the farmers are winning again in the global marketplace. It means their products are in high demand again, and we're doing a better job promoting them and the products they're raising, which gives them more places to sell, hopefully at a higher price point that brings more dollars here to rural America.”
Lindberg says new trade deals with other countries, like the recent one between the U.S. and U.K., are an important way to continue lowering the ag trade deficit.
##
LINDBERG … “One of the deals we wanted to highlight today is the US-UK Economic Prosperity Agreement that the President signed. It was the first trade agreement that we got inked in this administration, and it provides new access to the United Kingdom, which, for farmers and cattle ranchers, has been an elusive market for decades. We really changed the game with this opportunity, and we're now seeing real results. So, I was just with Greater Omaha packing last week in Nebraska, toured their plant, and heard that they were the first packing house to get their beef sold into the United Kingdom, with packages arriving last week, as well. Great story, and again, all of their beef is born, raised, and processed right here in the United States of America.”
