The recent proposal by the US Select Committee on the Chinese Communist Party to suggest to Congress the revocation of China's Permanent Normal Trade Relations (PNTR) status has, in fact, generated intense discussions. Additionally, a representative coalition of U.S. agricultural organizations, led by Farmers for Free Trade, expressed serious concerns about the adverse effects of this measure on American farmers. This article explores the implications of this proposal, based on information reported by World Grain.
Growth of US Agricultural Exports to China
The coalition highlighted in its letter to the committee that in 2022, the US exported a staggering US$38.1 billion worth of food and agricultural products to China. This figure represents substantial growth since China gained PNTR status in 2000. Furthermore, the Chinese market now accounts for 19% of US agricultural exports, making it the largest buyer of these products.
Concerns about the Revocation of the PNTR
The coalition understands concerns about China, but sees sanctions on farmers as ineffective. The 2018/2019 tariffs caused losses of US$25.7 billion in US agricultural exports.
Proposed Alternatives
Instead of revoking China's PNTR status, the coalition suggests that Congress focus on strengthening and diversifying access to alternative markets in the Asia-Pacific region. Furthermore, this would help reduce dependence on the Chinese market and therefore mitigate the risks associated with this dependence.
China-US Call to Action
In concluding, the coalition calls on the committee not to recommend revoking China's PNTR status. They highlight that the negative consequences would profoundly impact American farmers, ranchers and food producers, economically affecting workers and rural communities for years.
This article highlights the U.S. agriculture coalition's concerns about the proposed removal of China's PNTR status. The consequences of such action, according to them, would have a negative impact on the entire agricultural chain and on rural American communities. Therefore, the proposed alternatives aim to achieve a more sustainable balance in international trade, protecting the interests of American farmers.
Source: Oils & Fats International
