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1 1 (July 5, 2022)

handle is hein.crs/govehyg0001 and id is 1 raw text is: Congressional Research Servite informing the legislative debate since 1914 S July 5, 2022 Farm Bill Primer: Trade and Export Promotion Programs Agricultural exports are significant to farmers and the U.S. economy. With the productivity of U.S. agriculture growing faster than domestic demand, farmers and agriculturally oriented firms rely heavily on export markets to sustain prices and revenue. The trade title of the 2018 farm bill (P.L. 115-334) authorizes programs to expand foreign markets for U.S. farmers and food manufacturers through export market development programs and export credit guarantee programs. These market expansion programs derive their statutory authorities from the Agricultural Trade Act (P.L. 95-501). The trade title of the farm bill also includes international food assistance programs and international science and technical exchange programs and provisions, which are not addressed in this In Focus. Trade Situation Overview U.S. food and agricultural exports totaled $177 billion, and U.S. imports totaled nearly $171 billion in 2021, resulting in a trade surplus of more than $6 billion (Figure 1), according to U.S. Department of Agriculture (USDA) data. Bulk commodities, such as wheat, rice, coarse grains, oilseeds, cotton, and tobacco are the leading U.S. exports. Leading consumer-oriented products include dairy products, meat and poultry products, oilseeds, vegetable oils, fruits, vegetables, and beverages. About one-half of the value of U.S. agricultural exports in 2021 were destined for China, Mexico, Canada, Japan, and the European Union. Figure 1. Value of U.S. Agricultural Trade biijon s of current U.S. dollars 20(3 e C (,0 12Q Source: CRS from USDA's Global Agricultural Trade System data (FATUS product group). Data are calendar year. The once sizable U.S. agricultural trade surplus, which reached $40.1 billion in 2011, shrunk to below $10 billion in 2018. The United States posted a deficit in 2019 before returning to a surplus in 2020 and 2021. This trend reflects both rising U.S. imports and generally slower growth in U.S. exports (Figure 1). As the margin of exports over imports has narrowed, some producer groups have sought enhanced export promotion and market development. Some U.S. government officials and industry representatives have expressed an interest in countering regulatory policies of some U.S. trading partners that may be impeding U.S. food and agricultural exports. The Office of the U.S. Trade Representative in its annual National Trade Estimate Report on Foreign Trade Barriers highlights a range of tariff and nontariff concerns, including sanitary and phytosanitary (SPS) and technical trade barriers. These and other potential issues for Congress are discussed below. Trade Provisions in the 20 18 Farm Bill The 2018 farm bill reauthorized several export market development programs and export credit guarantee programs, administered by USDA's Foreign Agricultural Service. The 2018 farm bill included other trade and export promotion provisions aimed at developing overseas markets and addressing nontariff barriers. See CRS Report R46760, U.S. Agricultural Export Programs: Background and Issues for more background on these programs. Export Market Deveoprent Programs The 2018 farm bill consolidated four existing USDA export promotion programs under a single Agricultural Trade Promotion program and added to it a newly created Priority Trade Fund, with mandatory funding of $255 million annually through FY2023 (7 U.S.C. §5623). * Market Access Program (MAP) provides cost-sharing of overseas marketing and promotional activities that help build commercial markets for U.S. agricultural exports ($200 million per year). * Foreign Market Development Cooperator Program funds projects that address long-term opportunities to reduce foreign import constraints or expand export growth opportunities ($34.5 million per year). * E. (Kika) de la Garza Emerging Markets Program provides cost-sharing for technical assistance to support generic U.S. agricultural exports ($8 million per year). * Technical Assistance for Specialty Crops funds projects addressing SPS and technical trade barriers to U.S. specialty crop exports ($9 million per year). * Priority Trade Fund supports activities to access, develop, maintain, and expand markets for U.S. agricultural exports ($3.5 million per year). Funding allocations by program are available at USDA's Directory of Market Development Program Participants (https://apps.fas.usda.gov/pcd/PCDHelpSearch.aspx), which lists agricultural commodities and export destinations. The 2018 farm bill also allows USDA to fund export promotion activities in Cuba (7 U.S.C. §5623(f)(4)). Separately, the Quality Samples Program, which promotes U.S. agricultural products, is authorized under the Commodity Credit Corporation Charter Act and is funded through its borrowing authority (15 U.S.C. §714c(f)).

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