Welcome
Wednesday, June 24, 2020
Farm Groups Launch Free Stress Management Course
A group of farm organizations just launched free online training focusing on farm stress. The training course is funded by Farm Credit, with partnership from the American Farm Bureau Federation and National Farmers Union. The groups say the course will help farmers, their families and neighbors identify and cope with stress. It provides participants the skills to understand the sources of stress, manage their own stress, learn the warning signs of stress and suicide, identify effective communication strategies, and connect farmers and ranchers with appropriate mental health and other resources. The challenges of ongoing low commodity prices, trade wars and extreme weather events have dramatically affected farmers and ranchers for years. Add the COVID-19 pandemic and its economic disruptions and that stress multiplies. The groups say stress among farmers and ranchers is felt throughout farm operations and seeps into cities and towns across the country. Anyone can register for the free online training course. Visit FarmCredit.com to learn more.
Washington Insider: USTR Policy Cure-All, More Tariffs
Bloomberg is reporting this week that with COVID-19 cases spiking in nearly a dozen U.S. states, this may seem like a strange time to constrain America’s ability to obtain critical medical supplies and drugs. However, “new tariffs are exactly the strategy that America’s top trade official says is the best way to combat the coronavirus pandemic.”
The report cites Robert Lighthizer, the U.S. Trade Representative, who says he is a “firm believer that the things we need to fight the pandemic should be made in America,” The U.S. official was addressing members of the House Ways and Means Committee last week.
“I’m not in favor of reducing tariffs on the things we need. I would be far more in favor of increasing tariffs on the things we need.”
Lighthizer’s comments come at a pivotal moment in the health crisis as fresh outbreaks spark fears that a second wave may cross the globe and force governments into a dilemma where they must consider whether it is better to hoard critical medical supplies while redoubling their ability to produce them domestically, or help expand global access to medical goods so all nations can collectively fight the pandemic.
Bloomberg says Lighthizer is in the first camp while the European Union, Canada, Japan, Brazil and nearly a dozen others are in the second, “working to lower trade barriers that harm other nations’ ability to fight the virus.”
The emerging alliance, which calls itself the “Ottawa Group,” is discussing an EU-led initiative to eliminate tariffs on pharmaceuticals and medical supplies in order to “help ensure that the world is better prepared to deal with similar future crises."
The U.S. administration’s preference for protectionism remains clear, Bloomberg says.
In his testimony, Lighthizer flatly rejected the idea of joining the EU’s medical goods deal and blamed the World Trade Organization for hindering America's access to essential medicines,"casting specific ire on a 1994 agreement that eliminated tariffs on pharmaceutical goods.”
“Countries got together and said we will all agree to have zero tariffs on a certain list of pharmaceutical products and then we will just give that benefit to the rest of the world, which struck me as really, really crazy,” Lighthizer said.
Also, in yet another trade policy action, the administration says it is considering re-imposing tariffs on aluminum imports from Canada. Bloomberg says it expects an announcement by the end of the week.
Bloomberg says the U.S. is threatening Canada with new tariffs if it “refuses to impose export restrictions on aluminum.” It expects those to be 10% tariffs on Canadian aluminum, to be implemented by July 1 – just days before the new U.S.-Mexico-Canada trade deal enters into force. It follows Lighthizer’s expressions of concern about recent struggles by American aluminum producers as demand evaporated amid the global pandemic.
Lighthizer told the Senate Finance Committee in a hearing last week that recent surges in metal imports from North American neighbors are “of genuine concern to us now,” and that his office was looking at the issue.
“I would say there have been surges on steel and aluminum, substantially from Canada, some from Mexico, and it is something that we’re looking at and talking to both Mexico and Canada about,” he told the panel’s top Republican, Senator Chuck Grassley, R-Iowa.
Under the May 2019 agreement, which resulted in initial tariffs being lifted, Canada has to limit its retaliation to the U.S. metals sector and cannot hit American agriculture, Lighthizer told Grassley.
Ironically, the only three U.S. aluminum producers -- Alcoa Corp., Century Aluminum Co. and Magnitude 7 Metals LLC -- disagree whether tariffs should be re-imposed, Bloomberg said.
The American Primary Aluminum Association, which represents Century Aluminum Co. and Magnitude 7 Metals LLC., has asked Lighthizer to reimpose a 10% tariff on imports of Canadian aluminum, saying a rise in metal coming from the country has caused the price to collapse.
However, the Aluminum Association of the U.S., which represents Alcoa Corp., Rio Tinto Group and dozens of other aluminum parts makers, argues that imports are virtually unchanged since 2017.
Alcoa CFO William Oplinger said at a virtual bank conference in June that China’s overcapacity subsidized by the government is the real problem, and that he supports free trade with “those who trade freely, especially the Canadians.”
So, we will see. Clearly, the administration is continuing to rely on “get tough tariff policies” which likely will continue to lead to retaliation from trading partners, as well as higher prices for domestic products. These strategies are continuing to be debated in the U.S. even amid anti-coronavirus strategies and should be watched closely by producers as they intensify, Washington Insider believes.
The report cites Robert Lighthizer, the U.S. Trade Representative, who says he is a “firm believer that the things we need to fight the pandemic should be made in America,” The U.S. official was addressing members of the House Ways and Means Committee last week.
“I’m not in favor of reducing tariffs on the things we need. I would be far more in favor of increasing tariffs on the things we need.”
Lighthizer’s comments come at a pivotal moment in the health crisis as fresh outbreaks spark fears that a second wave may cross the globe and force governments into a dilemma where they must consider whether it is better to hoard critical medical supplies while redoubling their ability to produce them domestically, or help expand global access to medical goods so all nations can collectively fight the pandemic.
Bloomberg says Lighthizer is in the first camp while the European Union, Canada, Japan, Brazil and nearly a dozen others are in the second, “working to lower trade barriers that harm other nations’ ability to fight the virus.”
The emerging alliance, which calls itself the “Ottawa Group,” is discussing an EU-led initiative to eliminate tariffs on pharmaceuticals and medical supplies in order to “help ensure that the world is better prepared to deal with similar future crises."
The U.S. administration’s preference for protectionism remains clear, Bloomberg says.
In his testimony, Lighthizer flatly rejected the idea of joining the EU’s medical goods deal and blamed the World Trade Organization for hindering America's access to essential medicines,"casting specific ire on a 1994 agreement that eliminated tariffs on pharmaceutical goods.”
“Countries got together and said we will all agree to have zero tariffs on a certain list of pharmaceutical products and then we will just give that benefit to the rest of the world, which struck me as really, really crazy,” Lighthizer said.
Also, in yet another trade policy action, the administration says it is considering re-imposing tariffs on aluminum imports from Canada. Bloomberg says it expects an announcement by the end of the week.
Bloomberg says the U.S. is threatening Canada with new tariffs if it “refuses to impose export restrictions on aluminum.” It expects those to be 10% tariffs on Canadian aluminum, to be implemented by July 1 – just days before the new U.S.-Mexico-Canada trade deal enters into force. It follows Lighthizer’s expressions of concern about recent struggles by American aluminum producers as demand evaporated amid the global pandemic.
Lighthizer told the Senate Finance Committee in a hearing last week that recent surges in metal imports from North American neighbors are “of genuine concern to us now,” and that his office was looking at the issue.
“I would say there have been surges on steel and aluminum, substantially from Canada, some from Mexico, and it is something that we’re looking at and talking to both Mexico and Canada about,” he told the panel’s top Republican, Senator Chuck Grassley, R-Iowa.
Under the May 2019 agreement, which resulted in initial tariffs being lifted, Canada has to limit its retaliation to the U.S. metals sector and cannot hit American agriculture, Lighthizer told Grassley.
Ironically, the only three U.S. aluminum producers -- Alcoa Corp., Century Aluminum Co. and Magnitude 7 Metals LLC -- disagree whether tariffs should be re-imposed, Bloomberg said.
The American Primary Aluminum Association, which represents Century Aluminum Co. and Magnitude 7 Metals LLC., has asked Lighthizer to reimpose a 10% tariff on imports of Canadian aluminum, saying a rise in metal coming from the country has caused the price to collapse.
However, the Aluminum Association of the U.S., which represents Alcoa Corp., Rio Tinto Group and dozens of other aluminum parts makers, argues that imports are virtually unchanged since 2017.
Alcoa CFO William Oplinger said at a virtual bank conference in June that China’s overcapacity subsidized by the government is the real problem, and that he supports free trade with “those who trade freely, especially the Canadians.”
So, we will see. Clearly, the administration is continuing to rely on “get tough tariff policies” which likely will continue to lead to retaliation from trading partners, as well as higher prices for domestic products. These strategies are continuing to be debated in the U.S. even amid anti-coronavirus strategies and should be watched closely by producers as they intensify, Washington Insider believes.
US Meat Industry Mulls China’s Ban On Imports From One Tyson Foods Plant
China’s action to bar imports of poultry from the Springdale, Arkansas, Tyson Foods plant continues as a discussion point in the U.S. meat industry, with most agreeing that it will not have a significant impact unless it is expanded.
"Hopefully it's not going to mean anything," said Jim Sumner, president of the USA Poultry & Egg Export Council. "If it remains at just one plant, it will not have any meaningful impact, but we don't know what's going to happen."
He also noted that the product is frozen and spends some 30 days in a container traveling to China. “So there is zero possibility of a live virus from the U.S. showing up in frozen poultry as it has been shipped by ocean carrier halfway around the world.”
A spokesman for Tyson said their products are safe and hoped the issue can be resolved in talks between the two countries.
"Hopefully it's not going to mean anything," said Jim Sumner, president of the USA Poultry & Egg Export Council. "If it remains at just one plant, it will not have any meaningful impact, but we don't know what's going to happen."
He also noted that the product is frozen and spends some 30 days in a container traveling to China. “So there is zero possibility of a live virus from the U.S. showing up in frozen poultry as it has been shipped by ocean carrier halfway around the world.”
A spokesman for Tyson said their products are safe and hoped the issue can be resolved in talks between the two countries.
Phase One Trade Deal Intact, Says Trump
Financial and commodity markets swooned Monday evening after reports of White House trade adviser Peter Navarro saying the phase-one agreement with China was “over.”
Navarro made the comments in a Fox News interview that focused heavily on the coming book by John Bolton, with the interviewer throwing a “last question” at Navarro asking him if the deal was over. He responded that “it is,” adding he thought a turning point on the matter came after the COVID-19 news came out almost immediately after the phase-one agreement was signed.
As financial and commodity markets reacted, Navarro sought to pull his remarks back.
And, President Donald Trump tweeted, “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!”
From China, Foreign Ministry spokesman Zhao Lijian said of Navarro, "He consistently lies and has no honesty and trustworthiness.” As for the phase one agreement, Zhao told reporters at a briefing, "China's stance on the issue has been consistent and clear."
Navarro made the comments in a Fox News interview that focused heavily on the coming book by John Bolton, with the interviewer throwing a “last question” at Navarro asking him if the deal was over. He responded that “it is,” adding he thought a turning point on the matter came after the COVID-19 news came out almost immediately after the phase-one agreement was signed.
As financial and commodity markets reacted, Navarro sought to pull his remarks back.
And, President Donald Trump tweeted, “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!”
From China, Foreign Ministry spokesman Zhao Lijian said of Navarro, "He consistently lies and has no honesty and trustworthiness.” As for the phase one agreement, Zhao told reporters at a briefing, "China's stance on the issue has been consistent and clear."
Wednesday Watch List
Markets
The latest weather forecasts continue to earn the attention of traders as well as any export news that surfaces. The U.S. Energy Department will have its weekly report of energy inventories, including ethanol at 9:30 a.m. CDT.
Weather
Wednesday features shower and thunderstorm activity in the Delta and Deep South. Other primary crop areas will be dry with seasonally warm temperatures. This combination will favor row crop progress and Southern Plains wheat harvest.
The latest weather forecasts continue to earn the attention of traders as well as any export news that surfaces. The U.S. Energy Department will have its weekly report of energy inventories, including ethanol at 9:30 a.m. CDT.
Weather
Wednesday features shower and thunderstorm activity in the Delta and Deep South. Other primary crop areas will be dry with seasonally warm temperatures. This combination will favor row crop progress and Southern Plains wheat harvest.
Tuesday, June 23, 2020
China Suspends Exports from Tyson Foods Plant
China Sunday suspended poultry exports from an Arkansas Tyson Food's processing plant where workers tested positive for COVID-19. China’s General Administration of Customs announced the suspension after Tyson Foods confirmed a cluster of COVID-19 cases at its facility in Springdale, Arkansas. A Tyson spokesperson told Reuters the company is investigating the matter, adding, “It is important to note that the World Health Organization, the Centers for Disease Control and Prevention, USDA and the U.S. Food and Drug Administration agree that there is no evidence to support transmission of COVID-19 associated with food." China also halted exports from a pork processing facility in Germany following an outbreak of COVID-19 at the plant. China has stepped up food inspections for the novel coronavirus in recent weeks. Reuters says Beijing began testing meat, seafood and fresh produce for the coronavirus last week, and some ports were opening all containers of meat to carry out coronavirus tests.
New WOTUS Rule Becomes Law
The Trump Administration's new and scaled-back Waters of the U.S. rule became law Monday after last-minute attempts to block the rule. A federal judge late last week denied an effort to prevent implementation of the new regulation, called the Navigable Waters Protection Rule. The challengers claim the new rule removes protection from many U.S. waterways. WOTUS, now NWPR, has been the subject of multiple lawsuits, including some examined by the Supreme Court. In the order denying the motion for temporary relief, the Judge writes, “In the prior cases, the issue was always whether the agencies had gone too far in extending the scope of federal regulation. Now, the question is whether the agencies have not gone far enough.” That judge ultimately sided with the EPA. However, a federal judge in Colorado rejected the Section 404 permit process included in the new rule, which refers to the Corps of Engineers' authority to issue permits for the discharge of dredged or fill material into navigable waters.
Subscribe to:
Posts (Atom)