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Trade

Increased production and a consistent product make the United States a reliable supplier of soybeans and corn to the world market. Developing new markets for soybean, soybean meal and oil, corn and corn co-products help the agriculture sector lead the nation in economic growth and international competitiveness. Over the last four years, U.S. soy exports have hit record levels. In 2010, the United States exported 1.9 billion bushels of soy to customers around the globe, many of whom are poultry and livestock farmers. The result: increased export demand that leads to increased profit potential for every U.S. soybean farmer. In the U.S. 50 percent of soybeans are exported, of those, half goes directly to China.

The use of the latest technologies both in equipment and seed ensures that the United States will continue to be the largest corn producer and exporter in the world. During the 2010 marketing year, the United States exported 1.8 billion bushels of corn worldwide. In addition, the United States exported 281 million of distillers grains. Farm exports in fiscal year 2011 reached a record high of $137.4 billion, exceeding the previous high by $22.5 billion. This supported 1.15 million American jobs. Today’s top markets worldwide for U.S. corn are Japan, Mexico, South Korea, Egypt and Taiwan.

 

Indiana Specific

Indiana agricultural products are too valuable to keep to ourselves. Exporting agricultural products is good for farmers and those working to get the products exported. Large portions of agricultural products are exported throughout the world, producing important economic benefits for our state. Leading the export list is soybeans with a total value of $1.7 billion and feed grains accounted for another $800 million.

Indiana Soybean Alliance partners with the United States Soybean Export Council (USSEC) and the Indiana Corn Marketing Council partners with the U.S. Grains Council on developing and expanding market opportunities with foreign partners. Both of these organizations receive funding through the USDA’s Market Access Program (MAP) and the Foreign Market Development (FMD) program.
 

Background

Russia PNTR Legislation: Russia was formally invited to join the World Trade Organization (WTO) in December 2011. In order for the U.S. to take advantage of the many market opening commitments that form Russia’s accession package to the WTO, Congress must pass legislation to graduate Russia from the Jackson-Vanik amendment made to the Trade Act of 1974. Senate Finance Committee Chairman Max Baucus (D-MT), John Thune (R-SD), John Kerry (D-MA) and John McCain (R-AZ) introduced legislation establishing permanent normal trade relations (PNTR) with Russia and repealing the 1974 Jackson-Vanik Amendment.

 

These steps are required for American businesses to fully benefit from Russia’s World Trade Organization (WTO) accession. The House of Representatives has not yet introduced a bill but it intends to sometime in early summer. Since no other WTO member has a law similar to Jackson-Vanik, all of Russia’s trading partners except the United States will immediately benefit when Russia joins the WTO, which is expected to happen by mid-summer 2012. Trans-Pacific Partnership Negotiations: ISA and ICMC support Trans-Pacific Partnership (TPP) negotiations that achieve new market access for soy, corn and meat. We support a high-standard and 21st-century TPP Agreement that covers every commercial sector and sub-sector of the U.S. economy. We oppose measures that are protectionist and which encourage our trading partners to take similar actions. This support includes the inclusion of Japan, Mexico and Canada in the TPP negotiations, which would help to achieve one of the Administration’s long-term objectives at the outset of the talks, which was to eventually establish a broader Asia-Pacific trade arrangement based on the TPP’s 21st-century principles.

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