A coalition of major agricultural organizations has expressed concerns about potential changes in trade relations with China. The group sent a letter to the U.S. Select Committee on the Chinese Communist Party outlining reservations about the revocation of China’s Permanent Normal Trade Relations (PNTR) status. A variety of negative impacts would be felt within the agricultural industry if China’s PNTR status was removed.
Signatories of the letter include The Almond Alliance, Farmers for Free Trade, and the National Council of Farmer Cooperatives. The letter emphasizes the lessons learned from the 2018 and 2019 tariff increases, which resulted in significant consequences for American farmers. The signatories are worried that revoking China’s PNTR status could invite retaliation from China, putting the livelihoods of U.S. farmers, ranchers, and food producers at risk.
The letter cites an estimate from Oxford Economics, suggesting that revoking China’s PNTR status could result in a more than 30 percent reduction in U.S. agricultural exports to China. The U.S. agricultural sector has greatly benefited from access to the Chinese market, with exports soaring from $1.73 billion in 2000 to a staggering $38.11 billion in 2022.
The letter urges the Committee to consider alternative approaches to address concerns about China’s trade practices. It suggests that members of Congress should focus on providing alternative market access in the Asia-Pacific region to reduce reliance on the Chinese market. Diversifying markets not only mitigates risks for U.S. farm goods but also strengthens diplomatic ties and diminishes China’s global influence.
As the House Select Committee on China finalizes its report, the coalition is urging the committee not to recommend revoking China’s PNTR status. The ag groups emphasize the need for a thoughtful and sustainable approach to maintain crucial trade relations with China. A copy of the letter was also sent to the House Ways and Means Committee and House Committee on Agriculture.
Brian German
Ag News Director / AgNet West