US Food and Ag Groups Say US-EU Trade Talks Must Tackle Ag Issues

Leading U.S. food and farm groups are warning the Trump administration not to exclude agriculture from a new U.S./European Union (EU) trade deal. Led by the American Farm Bureau Federation, the Grocery Manufacturers Association and the National Pork Producers Council (NPPC), the ad-hoc coalition of more than 50 organizations says they will oppose any deal that doesn't remedy long-standing concerns about EU policies towards U.S. farm products and contend there is little support in Congress for an accord that doesn't include agriculture. "If the EU wishes to conclude a trade agreement that addresses inequities in trade between us and that ultimately will be approved by Congress, such barriers and measures that restrict U.S. agriculture’s access, as politically difficult to discuss as they may be, must be included as part of negotiations and successfully addressed in a final agreement," the groups say in a Dec. 18 letter to U.S. Trade Representative (USTR) Robert Lighthizer. The letter comes as the Trump administration and EU officials continue to work on the framework for talks over a new deal. The EU Commission is set to receive a mandate from member states in early 2019 that will lay out what issues are up for negotiations and early signs are that the Europeans are not keen to include agriculture, a move the ag interests say could "preordain failure" of the trade talks before they begin. "Our organizations could not fairly represent our members if we were to support even the launching of negotiations with the EU on those terms, let alone support Congressional approval of a deal that excludes provisions that resolve measures restricting or preventing access to the European market for high-quality, safe American farm and food products," the letter says. The groups call the U.S. trade deficit in food and agricultural goods with the EU "absurd," noting that since 2000 it has increased from $1.8 billion to nearly $11 billion. "This is not because European consumers do not want American products," according to the letter. "It is because EU tariffs and non-science-based regulations deny consumers a choice." Tax Incentive Extenders, Including Biodiesel, Could Be Up For House Action This Week A multiyear extension and phaseout of a $1 per gallon tax credit for biodiesel and renewable diesel has been added to a broad tax package that could go to the House floor as soon as this week. The bill extends the $1 per gallon credit for biodiesel retroactively for 2018 and then through 2021, then is phased out to $0.75 in 2022, $0.50 in 2023 and $0.33 in 2024, according to a summary. The House Rules Committee is scheduled to review year-end tax legislation on Wednesday. An earlier version of the tax legislation failed to get a vote on the House floor. However, the Senate has shown little interest in a broad tax package as the year winds down.