White House plans to send a report to Congress before the end of Friday stating that the U.S. reached a trade deal with Mexico

OMAHA (DTN) -- The White House plans to send a report to Congress before the end of Friday stating that the U.S. reached a trade deal with Mexico, but it will not include Canada.Talks with Canada were more strained Friday after the Toronto Star reported comments Trump made to Bloomberg News that Trump said were "off the record." The Star reported Trump said any deal between the U.S. and Canada would have be "totally on our terms."Trump later tweeted Friday, ""Wow, I made OFF THE RECORD COMMENTS to Bloomberg concerning Canada, and this powerful understanding was BLATANTLY VIOLATED. Oh well, just more dishonest reporting. I am used to it. At least Canada knows where I stand!"Speaking on background, senior White House officials on Friday afternoon said they gave Congress the proper notice under Trade Promotion Authority to send an agreement on Mexico with intentions to follow up with Canada.The White House then sent a brief notice to Congress with the president stating, "I have notified the Congress of my intention to enter into a trade agreement with Mexico -- and with Canada if it is willing, in a timely manner, to meet the high standards for free, fairy and reciprocal trade contained therein."President Trump has criticized in comments and tweets Canada's supply management on dairy policy and its after-quota tariffs that can be as high as 300% on some dairy products. Supply management is highly political among Canadian provinces and the country's dairy industry is determined to keep its policies.Another area Canada and the U.S. have been unable to reach a deal on is keeping, eliminating or replacing Chapter 19 of the NAFTA trade agreement that deals with arbitration panels by industries or companies hit with anti-dumping duties from one of the other trade partners. This has been a major battle in areas such as lumber trade between the U.S. and Canada.Congress gets 90 days to review an updated North American Free Trade Agreement under Trade Promotion Authority. Getting a trade deal to Congress on Friday gives Congress its 90 days, but would still allow the U.S. and Mexico to complete a trade deal before Mexico's new president takes office Dec. 1. The Trump administration will send the full language of the deal to Congress within the next 30 days.White House officials said they continue holding talks with Canada "on whether they want to be part of this historic agreement, but that remains our intention."Shortly after on Friday, Canadian Foreign Minister Chrystia Freeland, in a livestreamed press conference, reiterated that progress was being made "but we're not there yet." Freeland said the Canadian government would not sign a deal that wasn't good for Canadian citizens. She said her government believes the trade deal should benefit all three countries in NAFTA now."We know that a win-win-win agreement is within reach and that's what we're working towards," Freeland said.Freeland declined to talk about specific sticking points in the talks such as dairy trade, saying she and U.S. Trade Ambassador Robert Lighthizer agreed not to talk about such topics in public during the heat of talks. Freeland declined to comment on Trump's comments, but also said Lighthizer and his team "are negotiating in good faith and goodwill."She added, "As I said, it's going to take flexibility on both sides to get a deal in the end."After being asked multiple questions about dairy supply management, Freeland said she understands the frustration of reporters asking about specific issues. She then reiterated that Canadian national interests and values were at the core of the government's negotiating priorities."The core Canadian positions are well-known, I think, by everyone, and certainly by our negotiating partners," Freeland said.Freeland did note autoworkers in both the U.S. and Canada have feared how a deal might go. She said it was important to work out a deal that is good for workers in both countries. She said Mexico agreeing to make changes on rules of origin for automobiles was a significant piece in completing a three-way trade deal.In a statement issued by Lighthizer, the ambassador called the agreement with Mexico "the most advanced and high-standard trade agreement in the world. Over the next few weeks, Congress and cleared advisors from civil society and the private sector will be able to examine the agreement. They will find it has huge benefits for our workers, farmers, ranchers, and businesses."Lighthizer added, "We have also been negotiating with Canada throughout this year-long process. This week those meetings continued at all levels. The talks were constructive, and we made progress. Our officials are continuing to work toward agreement. The USTR team will meet with Minister Freeland and her colleagues Wednesday of next week." 

Trump Threatens to Add $200 Billion in More Tariffs

Bloomberg says President Trump wants to proceed with another $200 billion in tariffs on Chinese imports as soon as the public comment period wraps up next week. Six people familiar with the matter spoke anonymously with Bloomberg for the article. Companies and people have until September 6th to submit comments on duties that will cover everything from semiconductors to selfie sticks. Some sources say the president will implement the tariffs and others say there hasn’t been a final decision yet. It’s possible that the tariffs will either come in installments or several weeks after an official announcement. Bloomberg says the latest tariff threat is causing heated debate within the administration. U.S. Trade Rep Robert Lighthizer and trade adviser Peter Navarro are pushing for quick action. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) and economic adviser Larry Kudlow are asking for more time. If implemented, the $200 billion in additional tariffs would be the biggest number imposed to date and mark a major escalation in the trade war between the worlds’ two biggest economies.

Lawsuit Filed Over Oil Refinery Waivers

Two of the biggest ethanol groups in America have sued both the Environmental Protection Agency and Energy Secretary Rick Perry. The focus of the suit is dozens of hardship waivers granted to oil refineries that allowed them to not blend ethanol into the fuel supply. Growth Energy and the Renewable Fuels Association filed the suit to get access to records that detail how the decisions to grant the waivers were made, exempting some refineries from the Renewable Fuels Standard. The ethanol industry says the waivers were granted in secret, without the knowledge of stakeholders, and left billions of gallons of ethanol out of the nation’s fuel supply. The ethanol industry, farm groups, and others are suing the EPA separately for issuing the waivers, which they say is illegal under the law. The lawsuit targets Rick Perry because the EPA must consult with the Energy Department to grant a refinery waiver under the RFS. “EPA should come clean and provide the public with what it deserves,” says Growth Energy CEO Emily Skor. “That’s a full accounting of the stark increase in the number of small refinery exemptions it has granted in recent years.”

Ag Trade Surplus to Shrink

Agriculture is consistently one of the few areas of the American economy that sells more overseas than it buys. However, Farm Journal’s Ag Web Dot Com says that’s going to drop in the upcoming year. The surplus is set to shrink as shipments to China collapse because of the trade war with the U.S. A government forecast says the world’s biggest ag exporter will see a surplus of $18 billion in the fiscal year that starts October 1st. The USDA says that number is almost eight percent lower than in 2017. USDA forecasts $144.5 billion in exports and projects $126.5 billion in imports. China was the largest buyer of U.S. farm products last year. They’ll fall to third this year, behind Canada and Mexico. The forecast says China will fall to fifth in fiscal year 2019, behind the European Union and Japan. Shipments to China are expected to drop by 37 percent to $12 billion in the next fiscal year. Other trading partners are expected to step up their purchases, which should lead to exports increasing by $500 million, coming in at $144.5 billion.

China Suspends Hog Transportation Due to Swine Fever

China has suspended transportation of live hogs from provinces infected with African Swine Fever. Reuters says the Chinese Ag Minister will also shut down all live hog markets in the infected provinces. Pork is a staple meat in China, which has reported five cases of swine fever in five different provinces over the past month. The outbreak is prompting Chinese authorities to cull hogs at farms in an effort to contain the outbreak. The Chinese ag ministry released a statement on its website that said the prevention and containment of African Swine Fever are proving to be complicated and serious. The Agriculture and Rural Affairs Minister is asking local authorities in the different provinces to do everything they can to ensure safe production at animal farms in their provinces and secure the country’s meat supplies. U.S. Ag Secretary Sonny Perdue wonders if China hasn’t been forthcoming in sharing the seriousness of the outbreak. “We think it’s probably been underreported in China because of the way they’re able to control their media there,” Perdue says. The most recent outbreak affected 185 pigs on a farm in an eastern Chinese province.

USDA Provides Help for Rural People Recovering From Opioid Misuse

Anne Hazlett, the USDA Assistant to the Secretary for Rural Development, announced that the agency has formalized an agreement to aid rural Americans in fighting the opioid epidemic. A nonprofit organization will purchase homes from the Department and convert them to transitional housing for people recovering from opioid misuse. “From the quality of life to workforce and economic opportunity, the opioid crisis is impacting rural prosperity in communities across our country,” Hazlett says. “Under the leadership of President Trump, we are committed at USDA to building innovative partnerships and driving greater collaboration of rural partners to address the crisis at the local level.” Isaiah House is the nonprofit that provides residential and outpatient treatment services. Misuse of prescription opioids is a major public health challenge facing rural communities across America. The Centers for Disease Control reported in October 2017 that death rates from drug overdoses in rural areas have now surpassed drug overdose rates in urban areas. For rural communities that are struggling to attract new businesses, or even maintaining existing ones, opioid abuse can have an enormous impact on the quality of life and economic prosperity.

State Officials Talk Dicamba in 2019

State pesticide regulators sent a letter to the Environmental Protection Agency with recommendations on re-registering three dicamba products for 2019. A DTN report says the American Association of Pesticide Control Officials want the EPA to set an early-season cutoff date, but only if states are permitted to use Special Local Needs labels to adjust those dates. These recommendations will carry special weight with the EPA. These officials are “boots on the ground” as the people that carry out enforcing herbicide labels. Dicamba complaints have overwhelmed them for the last two years. Tony Cofer is President of the American Association of Pesticide Control Officials. He said they understand why these products are needed in some states to help control herbicide-resistant weeds. Many states have reported problems with off-target dicamba movement. He says most of the states tend to be in the mid-South or Eastern Corn Belt. For example, Indiana has seen a 300 percent rise in dicamba complaints since the product was first registered there.