Republicans' team writes to Trump, seeks tariff parity to boost exports

Republican members in the House of Representatives representing the US ‘rural economy’ had shot off a letter to President Donald Trump on March 20 urging him to negotiate “strong and effective trade agreements” that will boost America’s agricultural exports.

 

They have demanded “removal of unfair trade barriers” so that it could significantly increase market demand and revenues for producers who have faced a difficult four years.

 

The letter signed by 16 Republican Congressmen in the House of Representatives comes at a time when the US has already sounded out India as having among the highest tariffs on agriculture and farm products.

 

 

It is also a key condition in the India-US talks for a bilateral trade agreement.

 

The letter raises concerns that rural America is experiencing challenging times.

 

It points out that while the US maintains an average tariff of 5 per cent on agricultural imports, the average agricultural tariff rate of the 20 largest economies (including India) is 16.5 per cent.

 

Further, it has complained that agricultural exports face a litany of non-tariff barriers like unscientific regulatory standards, restrictions on genetically modified products and complex certification requirements.

 

In the letter to Trump, the representatives raised concern that agricultural exports have not kept pace with imports since 2022, resulting in the US agricultural deficit reaching $32 billion.

 

FY24 saw the highest record ever. The steep and non reciprocal barriers imposed by foreign nations suppress demand for American products, harming US farmers.

 

They requested Trump to take decisive action and negotiate in a manner so that it opens export markets and reverses the trend.

 

Clearly, India’s average applied tariffs on agriculture imports is a high 39 per cent compared to 5 per cent in the US.

 

The Trump administration has also highlighted the 100 per cent duty on some agricultural imports.

 

The United States Trade Representative (USTR) report of 2024 already brought to the fore some concerns — 50 per cent duty on apples and corn, 60 per cent on flowers, 100 per cent on coffee, raisins and walnuts.

 

It has also noted that high tariff barriers impact a bevy of agricultural goods and processed foods.

 

They include poultry, citrus fruits, almonds, apples, grapes, canned peaches, chocolates, frozen French fries, and other prepared foods used in fast food restaurants.

 

The report also highlighted that the World Trade Organization (WTO)-bound tariff rates in agriculture was an average 113 per cent and as high as 300 per cent.

 

The report has also highlighted various non-tariff barriers in agriculture like onerous requirements on dairy imports, which include health certificate reports.