USDA Foreign Agricultural Service
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1 USDA Foreign Agricultural Service Janet Nuzum Associate Administrator North American Meat Institute November 3, 2015
2 FAS At A Glance FAS links U.S. agriculture to the world to enhance export opportunities and global food security The eyes, ears, and voice for U.S. agriculture around the world Small agency with a global footprint 1200 employees Headquartered in Washington, DC 96 foreign offices covering 167 countries 2
3 FAS At A Glance 3 broad areas of focus: Trade Policy Trade Promotion Foreign capacity-building and development Annual program funds Up to $5.5 billion in export credits Over $235 million in export promotion Over $200 million in development 3
4 FAS Current Overseas Presence No Coverage Or Staff Moscow Hague Moscow ATO Berlin Ottawa Warsaw London Brussels Prague Toronto Kiev Astana Paris Vienna Budapest Geneva Zag Belgr Buch. Tbilisi UN Sofia Istanbul Rome Madrid Ankara Monterrey ATO Rabat Tunis Miami ATO Tel Aviv Algiers Islamabad Mexico City ATO Santo Domingo Cairo Amman Dubai Mexico City Kingston Guatemala City Tegucigalpa Riyadh New Delhi San Salvador Managua San Jose Panama City Dakar Caracas Mumbai Bogotá Quito Lagos Addis Ababa Brasilia Accra Lima Nairobi Sao Paulo ATO Luanda 2 St. Petersburg Dar es Salaam Shenyang ATO Vladivostok Beijing Tokyo ATO Beijing ATO Seoul ATO Tokyo Seoul Chengdu ATO Osaka ATO Shanghai ATO Guangzhou ATO Taipei ATO Hanoi Dhaka Hong Kong ATO Taipei Rangoon Bangkok Manila Ho Chi Minh City Kuala Lumpur Singapore Jakarta Coverage But No Staff Foreign National In Country Santiago Buenos Aires Maputo Pretoria Canberra American In Country Embassy Office Wellington Trade Office LES Only Office Foreign Agricultural Service 4
5 Global Review: Looking Ahead FY15/FY17: Net Forecast Changes Foreign Agricultural Service Europe Close 1 office (- 1 LES) + 1 LES +1 FSO W Hemisphere Open 1 office + 2 FSO + 7 LES North Asia +2 FSO + 2 LES n REGIONAL COVERAGE EUROPE NORTH ASIA ASIA SOUTH ASIA AFRICA/ MID EAST WESTERN HEMISPHERE Africa/Mid East + 2 FSO +5 LES South Asia +3 FSO +2 LES NO COUNTRY COVERAGE 5
6 120 Foreign Global Review: Agricultural FY 15-FY17 Service Years Combined FSO and LES Projected Resources by Region EUR N. Asia S. ASIA W. HEM AME 6
7 Why is TPP important? More than 95% of consumers outside the US 80% of world s purchasing power is outside the US Exports provide roughly 20% of US farm income 7
8 Source: WTO Standing Still is Falling Behind
9 TPP Agriculture Outcomes TPP is a major win for the U.S. agriculture industry. A comprehensive agreement that includes trade liberalization for every agricultural product, without exception, including tariff elimination or significant new duty-free access in Japan, Vietnam and Malaysia, New Zealand, and Brunei and important new access in the Canadian market for dairy, poultry and eggs. New rules to strengthen the operation of Sanitary and Phytosanitary (SPS) issues, geographical indications, and Technical Barriers to Trade (TBT) rules. 9
10 TPP Beef, Pork, Poultry US beef exports to Japan our largest foreign market for beef were over $1.6 billion in Under TPP, Japan will eliminate duties on 74% of its beef tariff lines within 15 years, and cut all remaining tariff lines Japan accounts for almost $2 billion in pork exports in 2014 about 1/3 of US pork exports. Under TPP, Japan will eliminate 80% of its pork tariffs in 11 years, and make steep cuts in the rest. US poultry exports to TPP countries were $2.7 billion in Under TPP, Vietnam s tariffs, currently as high as 40%, will be eliminated within 13 years, and Japan s tariffs will also be eliminated within 6-13 years. 10
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16 TPP: Next steps Legal scrub and public release of text Congressional notification of intent Trade Advisory committee reports Congressional debate and vote under TPA Influence of US agriculture: 150 of 218 votes for TPA came from agriculturally oriented districts 16
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