INTERNATIONAL TRADE
- Doha Development Agenda Negotiations – The U.S. economy as
a whole is tied to continued growth in worldwide income and
demand, which is stimulated by trade liberalization and market
access gains. NOPA is a staunch supporter of multilateral
trade reform and believes the level of ambition in
“commercially meaningful” market access is rightly the focal
point for U.S. agriculture. NOPA urges clarification on the
issue of sensitive products to ensure that there is increased
market access for all commodities. In addition, to prevent
erosion of market access commitments, the Sanitary and
Phytosanitary Agreement must not be modified. Differential
export taxes (DETs) must be included in the export competition
pillar, as elimination of these practices is vital to leveling
the playing field for all exporting nations. Finally, once
modalities on agriculture have been agreed to, NOPA supports
the pursuit of sectoral initiatives, such as the Level Playing
Field for oilseeds and oilseed products, as the most effective
way to achieve significant global trade reform in the oilseed
sector.
Click here for NOPA DET Fact Sheet (in .pdf format)
- Andean Free Trade Agreement (FTA) – NOPA supports the
Andean FTA. Negotiations with Peru and Columbia have been
completed and negotiations with Ecuador are expected to be
completed in the near future. U.S. soybean and soybean meal
will receive immediate duty-free access to Peru and Columbia
markets. In Peru, crude soybean oil will have immediate
duty-free access, while refined soybean oil will have a tariff
phase-out period of 10 years. With the tariff reductions and
the proximity to the U.S., U.S. soy and soy products should
see an immediate increase in soy exports to the region.
- U.S. Peru Trade Promotion Agreement (PTPA) – NOPA strongly
supports the PTPA, which will provide U.S. agriculture
producers and exporters the opportunity not only to preserve
but to increase market share. More that two-thirds of current
U.S. agricultural exports to Peru will immediately receive
duty-free treatment upon entry into force of the agreement. We
urge you to vote for it.
Click here for NOPA's Peru Backgrounder (in .pdf format)
- Bilateral Free Trade Agreements (FTAs) – NOPA supports the
start of the Malaysia and Korea FTAs and the conclusion of the
Thailand FTA. While these FTAs are expected to have little
impact on U.S. soy exports, the benefit of the trade
agreements will be to maintain U.S. competitiveness against
foreign competition and increase transparency in trade
requirements between the trading partners.
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DOMESTIC FARM POLICY
- 2007 Farm Bill – NOPA encourages design
of U.S. government support programs for agriculture that (1)
comply with U.S. obligations under the WTO, (2) minimize any
distortion in the market signals that drive production
decisions, (3) encourage further liberalization of
agricultural trade policy, and (4) support conservation
programs that minimize reliance on idling of productive land
resources to achieve environmental and other policy goals.
- NOPA Policy – NOPA supports (1) eliminating non-market
incentives to plant crops to receive program benefits, (2)
allowing market forces to reward and foster enhanced quality
or specialty crop production, (3) reforming the Conservation
Reserve Program to eliminate the retirement of all non-erodible,
non-environmentally sensitive farm land, and (4) providing a
safety net that is not subject to the uncertainty of
continual challenge from trading partners through the WTO.
- Increased Government Investment – NOPA supports the U.S.
government playing a strong role in promoting U.S.
competitiveness through aggressive public investment in
agricultural research, transportation infrastructure, rural
development and biotechnology.
- Conservation Reserve Program – Conservation programs
need to be balanced so as not to impede the productivity and
opportunities for the U.S. agricultural sector to grow and
compete. To put the size of CRP in perspective, if CRP were
a crop, it would be the fourth largest crop behind corn,
soybeans and wheat in the U.S. The size of the CRP has an
impact on the availability of land to build and grow an
economic foundation for the grain and oilseed sectors of the
economy.
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TRANSPORTATION AND INFRASTRUCTURE
- Water Resources Development Act (WRDA) – NOPA supports
legislation providing funding for maintenance/improvements and
construction of new locks on the upper Mississippi and
Illinois Rivers. We encourage Congress to support
authorization and appropriation for maintenance and
improvements of our waterway and navigations systems. U.S.
water resources systems contribute significantly to our
nation’s competitiveness and well-being. Over 75% of U.S. soy
exports move to world ports via the upper Mississippi and
Illinois River systems. Ports and waterways are the backbone
of our transportation system – ensuring domestic and
international trade opportunities and a safe and eco-friendly
transportation alternative.
- Rail Service – NOPA encourages the Surface Transportation
Board to focus on addressing shipper/receiver needs. It has
become increasingly uncertain to know when rail equipment will
arrive for loading, when it will be furnished with locomotive
power, train size, fuel surcharges and when the shipment will
reach destination.
- Waterway and Navigation Systems – NOPA supports providing
additional appropriations/funding for maintenance and
improvements of U.S. waterway and navigations system. Barge
transportation on these waterways is not only the most
economical means of transportation, but also the most
environmentally-friendly way to move U.S. products to foreign
and domestic markets.
- Transportation Infrastructure Study – NOPA encourages the
USDA and Department of Transportation to initiate a
comprehensive study of our current U.S. transportation
infrastructure and capacity to determine if the U.S. has the
ability to meet the needs of increased production for export
and commercial needs in order for the U.S. to be a more
competitive supplier. The study should also identify economic
consequences of the inefficiencies of our transportation
infrastructure.
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IMPORTANCE OF THE LIVESTOCK INDUSTRY TO THE
OILSEED SECTOR
- Soybean Meal Consumption – The domestic livestock
industries are the largest source of demand for U.S. soybean
meal. With over 82% of U.S. soybean meal used for livestock
feed, a healthy and growing livestock sector is vital to our
industry. During 2004-05, the domestic livestock sector
consumed 1.4 billion bushels of soybeans. Based on 3.1 billion
bushels of production, over 44% of domestic soybean production
went for domestic livestock feed (poultry, swine, beef, dairy,
pet food, fish). Increased burdens of regulatory, disease,
financial and structural patterns will impact the demand and
consumption of soybean meal.
U.S. Soybean use by
Livestock (Click to see chart)
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BIOTECHNOLOGY
- NOPA recognizes the promise of biotechnology in meeting
production, health and environmental goals. NOPA members at
times are caught in the middle of disputes between governments
and technology providers, as well as approval processes that
are not synchronized. Increasingly, standards are being used
to manage the adoption and use of GMO products. As such, the
U.S. government’s commitment to and participation in the Codex
is critical. In addition, we encourage steps to be taken to
coordinate efforts in support of biotechnology based on
internationally accepted sound scientific principles.
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RENEWABLE FUELS
- NOPA members represent over approximately 90% of the U.S.
oilseed crush and will be the major suppliers for biodiesel
production. The current environment of incentives seems to
work, as the market will be able to ration demand to serve the
food and energy markets.
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REGULATORY AND ENVIRONMENTAL POLICY
- EPA's Proposed Revisions to Fine PM NAAQS - NOPA has
joined with numerous other trade associations in urging the
EPA Administrator not to increase the stringency of the
existing fine Particular Matter (PM) standards. The
Environmental Protection Agency (EPA) proposed revisions to
the existing National Ambient Air Quality Standard (NAAQS) for
fine particulate matter (PM2.5). The proposed revisions would
greatly increase the stringency of the PM2.5 NAAQS at a time
when implementation of the current standard is just beginning
and despite the fact that key uncertainties remain regarding
the underlying science.
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APPROPRIATIONS
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