The U.S. Trade Representative’s Office (USTR) has launched an investigation into China’s dominance in maritime, logistics, and shipbuilding. As a result, the agency has proposed new measures, including fees of up to $1.5 million on Chinese-built, operated, or flagged ships arriving at U.S. ports.
A public comment period is open, and U.S. farmers are voicing strong concerns. They warn that these fees will drive up costs for agricultural imports like seed and fertilizer while also making it more expensive to export crops. The American Soybean Association estimates that a $1 million fee on soybean exports could raise shipping costs from the Pacific Northwest to China from $11.90 per bushel to $12.29.
Farmers also argue that competitors like Brazil and Argentina, which are not subject to these regulations, will gain a competitive edge in global markets.
Iowa Senator Chuck Grassley says he’s all for helping the U.S. shipbuilding industry and standing up to Chinese bullying, however he says the USTR’s proposed $1.5-million port fee for Chinese-built vessels could impose a steep price on U.S. farmers.
“Right now, our lower shipping costs make Ag products like Iowa corn and soybeans competitive with Brazilian corn and beans. If a maximum fee were put in place, our farmers would lose their edge and cede even more market share to competitors in South America,” he said. “I hope that Ambassador Greer and the administration take these farmers’ concerns seriously as they decide their next steps.”
The increased fee to at least 1-thousand dollars per ton could go even higher when other proposed fees are included and some requirements to ship on U.S.-flagged ships are considered.