Secretary Vilsack arrives in China this weekend. Over the past decade, the United States' agricultural exports to China have risen sharply, propelling China into its position as the fastest-growing and highest-value export destination for U.S. farm and food products. In 2011, China surpassed Canada to become the top U.S. market and it has since retained that position. In fiscal year (FY) 2015, U.S. agriculture and related exports to China totaled $25.9 billion, comprising approximately 16 percent of all U.S. agricultural exports.

While the rapid growth in U.S. farm exports to China has plateaued in recent years, many macroeconomic conditions signal the potential for continued long-term growth and trade expansion in China. An increasingly urban population, a growing middle class, and higher disposable incomes have increased Chinese consumers' ability to diversify their diets and purchase high-value, protein-rich foods.

USDA forecasts a considerable increase in China's imports of coarse grains, soybeans, cotton, beef, and pork by 2024. Furthermore, growth in U.S. exports of horticultural goods, dairy, and alcoholic beverages to China bode well for future opportunities within the consumer-oriented products sector. Provided the U.S.-China trade partnership remains strong, U.S. agricultural producers are well positioned to capitalize on China's economic development and consumer demand into the foreseeable future.

The value of U.S. agricultural and related exports to China has more than tripled over the last 10 years, reaching a record $29.6 billion in FY 2014 before declining slightly in FY 2015.

View the U.S. Agricultural and Related Exports to China chart.

Due to China's severe cropland shortage and inexpensive labor force, U.S. exports to the country have traditionally been dominated by land-intensive bulk commodities that China then processes for domestic consumption or export. More recently, China's booming demand for luxury items and ready-to-eat foods has created new opportunities for the United States, particularly for exporters of intermediate products such as oils, fats, flour, meal, and sweeteners, and consumer-oriented products such as processed foods, meats, dairy, eggs, tree nuts, and wine and beer. U.S. exports of bulk, intermediate, and agricultural-related products, such as forest and fish products, have each increased approximately 250 percent since 2006. Exports of consumer-oriented products grew 150 percent over the same period.

View the U.S. Agricultural Exports to China, 2006-2015 (FY) table.

A variety of agricultural goods have made significant contributions to U.S. export totals, many gaining first-time market access to China in the last couple of years. For example, U.S. sorghum and distiller's dried grains used for animal feed have become billion-dollar exports to China despite being almost non-existent prior to 2008. Sales of these lower-cost feed substitutes have helped offset recent declines in U.S. corn exports caused by China's restrictive trade policies. Similarly, exports of U.S. hides and skins, seafood, and wood products have recently surpassed the $1 billion mark. While these numbers are significant, soybeans continue to dominate U.S. agricultural exports to China, historically accounting for approximately half the total value of U.S. exports. In FY 2015, U.S. soybean exports to China were valued at $12.7 billion, the second-highest level on record.

View the U.S. Products with More Than $1 Billion in Exports to China (FY 2015) chart.

The tremendous expansion of U.S. agricultural trade with China has not come without challenges. Chinese consumers recognize the United States as a supplier of high-quality agricultural and food products that are both trusted and desired. However, U.S. exports are limited by Chinese policies that promote agricultural self-sufficiency and protect domestic industries. China's lack of regulatory transparency, inconsistent product review and approval processes, and erratic distribution of import quotas all distort trade and create uncertainty for U.S. exporters. This environment has prevented the United States from achieving its full potential in exports to China.

The size of the agricultural trade relationship for both the United States and China, as well as U.S. agricultural exports' support for China's food security through trade, provides incentives for both sides to address these issues. Recent engagements have shown that negotiations between the two countries can achieve positive results. For instance, a series of agreements on sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT) for horticultural goods has greatly benefited U.S. almond, citrus, and apple producers. In FY 2015, U.S. exports of these goods to China were valued at $87 million, $34 million, and $20 million, respectively.

Ample opportunities for expansion continue to exist within China's food and agricultural markets. Growth in China's food consumption is forecast to outpace its domestic output by more than two percent per year between 2015 and 2020, resulting in increased demand for imports (IHS Global Insight). In order to address the growing demand for food, China is pursuing a number of economic and regulatory reforms to bolster its domestic agricultural production and efficiency. Additionally, according to Chinese officials, these reforms are designed to be market-oriented and consumer-driven. As China moves forward with this process, U.S. agricultural stakeholders must be fully engaged with the Chinese in order to avoid unwarranted restrictions of U.S. exports and to promote policies that are mutually beneficial to the trade partnership.

For more information, contact Neil Mikulski, USDA-FAS Office of Global Analysis, Neil.Mikulski@fas.usda.gov or (202) 690-0139

#

Secretary Vilsack arrived in Japan today to meet with agricultural counterparts. The United States recently concluded negotiations on the Trans-Pacific Partnership (TPP) with Japan and 10 other nations. Countries in the Trans-Pacific Partnership currently account for up to 42 percent of all U.S. agricultural exports, totaling $63 billion. Thanks to this agreement and its removal of trade barriers, American agricultural exports to the region are poised to expand even further.

Japan as a Market. Japan is already an important market for U.S. agricultural products. In 2014, Japan ranked as our fifth largest market (behind China, Canada, Mexico and the European Union) accounting for over $13 billion in U.S. agricultural exports. With a population of 127 million, high per capita income, an affinity for U.S. products, and a well-developed marketing infrastructure, Japan is an attractive market for U.S. exporters. The total food and drink market in Japan is valued at over $650 billion.

Reducing tariffs in Japan has been a long-held U.S. trade policy objective, and we have not made progress toward this objective since the World Trade Organization (WTO) agreement in 1995. Japan's average tariff on agricultural products is 14 percent. (For comparison, the average U.S. agriculture tariff is 5 percent.) Japan's average hides significant tariff peaks: for many products Japanese tariffs exceed 100 percent and significantly restrict trade.

FTA Negotiations. Japan has concluded free trade agreements (FTAs) with a number of other countries, including key U.S. competitors such as Chile, India, Indonesia, Mexico, Thailand, Vietnam, and Australia. In addition to the TPP, Japan is in the process of negotiating agreements with the European Union, Canada, and China. In these negotiations, Japan has agreed to tariff reductions on many agricultural products, putting U.S. exporters at a disadvantage. Japan has largely (but not completely) excluded from market opening its most import sensitive products, such as rice, pork, dairy, beef, wheat, and sugar.

TPP. Under the Trans Pacific Partnership (TPP) agreement, most agricultural tariffs in Japan will be eliminated. Tariff phase-outs vary by product: some tariffs will be eliminated immediately when the agreement comes into force, others will be phased out over a period of years. Tariff elimination will put U.S. exports on a level playing field in Japan with respect to Japanese and third-country products and well ahead of non-TPP competitors. The TPP will also significantly improve access opportunities for the most sensitive products in Japan through a mixture of tariff cuts and expansion of access under tariff-rate quotas. President Obama has notified the U.S. Congress of his intention to sign the TPP agreement after the legal text has been thoroughly reviewed and approved by each TPP country. The agreement will be eligible for a Congressional vote, under provisions of Trade Promotion Authority, in 2016.

TPP delivers benefits for all sectors of U.S. agriculture. New opportunities in Japan account for a significant share of these benefits. Opportunities by product group are summarized below.

Beef: Japan is the United States' top export market for beef and beef products, with sales totaling $1.6 billion in 2014. The TPP agreement will dramatically reduce tariffs on U.S. beef. Japan will eliminate duties on 74 percent of its beef and beef product imports within 16 years, with substantial cuts to the remaining tariffs.

Japan will reduce its tariff on fresh, chilled, and frozen beef cuts from the current applied tariff of 38.5 percent - which can be as high as 50 percent under WTO rules - to 9 percent in 16 years. Tariffs on beef offal (including livers and tongue), which are currently as high as 21.3 percent, will be eliminated in six to 16 years, in some cases with an immediate 50-percent cut in the tariff rate. Tariffs on processed beef products (including beef jerky and meat extracts), currently as high as 50 percent, will be eliminated in six to 16 years.

Pork: Japan is the top market for U.S. pork and pork products, with exports totaling $1.9 billion in 2014. For those products subject to Japan's "Gate Price" system, an ad valorem tariff is applied. A variable, specific duty is also charged on imports below a specified threshold, with the intention of bringing the price of Japan's pork imports up to the higher domestic price. Because Japan is highly protective of its pork industry, in previous bilateral trade agreements it has either excluded pork altogether or provided only minor tariff reductions and very small tariff-rate quotas. Under the TPP agreement, Japan will eliminate tariffs on more than 65 percent of its pork and pork product tariff lines within 11 years and on nearly 80 percent of tariff lines within 16 years. For those products on which the tariffs are not eliminated, the associated tariffs will be significantly reduced.

Japan's 20-percent tariff on ground seasoned pork and 10-percent tariff on sausages will be eliminated in six years. Japan's current 4.3-percent tariff on fresh, chilled, and frozen pork cuts will immediately be reduced by 50 percent, with the residual duty eliminated in 10 years. The "Gate Price" system will remain, but Japan will immediately reduce the specific duty on pork cuts from its previous maximum charge of 482 yen per kilogram to 125 yen per kilogram, with a further reduction to 50 yen per kilogram by year 10. This development could open up Japan's lucrative market for less expensive pork cuts to U.S. exporters.

Poultry and Eggs: The United States exported over $120 million of poultry and poultry products to Japan in 2014. Japan's tariffs are currently as high as 21.3 percent, or 48 yen per kilogram, whichever is greater (approximately 24.1 percent ad valorem equivalent). Under the TPP agreement, tariffs on all poultry, eggs, and egg products will be eliminated in six to 13 years.

Japan's 8.5-percent tariff on frozen poultry legs will be eliminated within 11 years. Tariffs on fresh and frozen cuts, as high as 11.9 percent, will be eliminated in six to 11 years. Japan will immediately eliminate the 3 percent tariff on turkey and turkey offal. For egg yolks, the most important category for the United States, tariffs that are as high as 24.1 percent will be eliminated within six years. Japan will immediately eliminate its current 8-percent tariff on egg albumin products, while tariffs on other egg products, as high as 21.3 percent, will be eliminated in 6-13 years. Japan's 21.3-percent tariff on dried eggs, other than yolks, will immediately be cut to 10.6 percent and eliminated in year 13. Japan's 17-percent tariff on fresh, chilled, and frozen eggs will immediately be cut to 13.6 percent and eliminated in year 13.

Dairy: Japan is the sixth-largest market for U.S. dairy exports, with shipments valued at $409 million in 2014. Most dairy imports are subject to high tariffs and WTO TRQs, where in-quota tariffs are as high as 35 percent and out-of-quota tariffs are much higher. With the exception of its recent trade agreement with Australia, Japan has excluded dairy products from its previous bilateral trade agreements. Under the TPP agreement, Japan will create new TRQs and reduce tariffs to significantly expand market access for dairy products.

Under the TPP agreement, many of Japan's cheese tariffs, currently ranging up to 40 percent, will be eliminated in 16 years. This includes tariffs on cream cheese, pizza cheese, powdered and grated cheese (parmesan), cheddar and many other ripened cheeses. All whey tariffs will be eliminated in 21 years or less, resulting in full liberalization of Japan's whey market. Tariffs on whey for food use are as high as 660.7 percent. These tariffs will be eliminated in 21 years. Japan will establish transitional CSQs for U.S. exports of mineral concentrated whey, prepared infant formula, and whey permeate that total a combined 5,000 tons in year one and increase to 9,000 tons by year 11. Japan will immediately eliminate its 8.5-percent tariffs on lactose and lactose syrup and its 2.9-percent tariff on milk albumin that includes whey proteins, which are often used in high-protein supplements. Tariffs on whipped cream, frozen yogurt, and various dairy- and cocoa-containing food preparations, as high as 29.8 percent, will fall to zero in six to 11 years. Tariffs on ice cream, yogurt, blue cheese, and whole milk powder, as high as 35 percent, will be reduced 50 to 90 percent, to duty levels ranging from 3 percent to just under 10 percent. For butter and milk powder, Japan will create two TPP-wide TRQs of 3,188 tons each. Over five years, both of these TRQs will grow to 3,719 tons. For evaporated milk, Japan will establish a 1,500-ton, duty-free TRQ, which will grow to 4,750 tons in six years, and for condensed milk, a duty-free TRQ of 750 tons. Both TRQs will be available to all TPP partners.

Fruit: Japan is the fifth-largest market for U.S. fruits and nuts (including prepared products and juices), with shipments valued at over $1 billion in 2014. Japan's tariff on fruits and nuts are as high as 68 percent. They will be eliminated for all products of interest to the United States.

The 8.5-percent tariff on fresh cherry imports will be cut in half as soon as the agreement enters into force, and then eliminated in six years. The 17-percent tariff for fresh apples will immediately fall by 25 percent and be eliminated in 11 years. The 4.8-percent tariff on fresh pears will be eliminated immediately. The 32-percent tariff on oranges will be eliminated over eight years. Japan's 43-percent tariff on orange juice will be eliminated in 11 years. The 30-percent tariff on grapefruit juice will be eliminated in eight years. The 6-percent tariff on lemon juice and 12-percent tariff on lime juice will be eliminated immediately. The 10-percent tariff on grapefruit will be eliminated in six years. For other fresh fruits, tariffs are as high as 17 percent. They will be immediately eliminated for many products, including grapes, avocados, strawberries, raspberries, blueberries, cranberries, kiwifruit, watermelon, pomegranates, and papaya. Tariffs for the vast majority of other fresh fruit products will be eliminated in 11 years. The 2.4-percent tariff on shelled and in-shell almonds will be eliminated immediately, as will the 10-percent tariff on shelled and in-shell walnuts, and the 4.5-percent tariff on pecans. The tariff on pistachios will be locked in at zero. Tariffs on processed fruit products are currently as high as 21.3 percent. They will be immediately eliminated for many products including grape juice, prune juice, dried cranberries, essential citrus fruit oils, dried plums, raisins, and fruit cocktail. Tariffs on a wide range of other processed fruit products will be eliminated over periods ranging up to 11 years.

Vegetables and pulses: Japan is the second-largest market for U.S. vegetables (including prepared products), with shipments valued at over $680 million in 2014. Japan's tariffs on vegetables and pulses are as high as 1,000-percent out-of-quota. They will be eliminated for all products of interest to the United States.

Tariffs will be eliminated immediately on many products, including fresh/chilled broccoli, frozen sweet corn, fresh tomatoes, fresh celery, fresh asparagus, cabbage, lettuce, chickpeas, garlic, and shallots. The 6-percent tariff on fresh sweet corn will be eliminated in four years. For fresh onions, the 8.5-percent and price-based variable tariffs will be eliminated in six years. Tariffs, currently as high as 17 percent, on vegetable juices and canned and other prepared vegetable products including canned and prepared sweet corn, tomatoes, and pickles will be eliminated immediately. The tariffs on carrot juice, tomato paste, and tomato juice, ranging from 7.2 to 29.8 percent, will be eliminated in six years. The 21.3-percent tariff on tomato ketchup and 17-percent tariff on tomato sauces will be eliminated in 11 years. Japan will immediately eliminate its current 10-percent tariff on adzuki, kidney, white pea, and other beans within its WTO dried leguminous vegetables tariff-rate quota. The 13.6-percent tariff on dried peas, beans, and lentils will be eliminated in 11 years.

Potatoes: Japan is an important market for U.S. potatoes and potato products, which will benefit significantly from the TPP agreement. The United States enjoys a 78 percent share of the Japanese market, with imports totaling more than $400 million in 2014.

Under the TPP agreement, the current 3-percent tariff on seed potatoes and 4.3-percent tariff on fresh/chilled potatoes (other than seed) will be eliminated immediately. The 8.5-percent tariff on frozen whole potatoes will be eliminated in six years. The 20-percent tariff on dehydrated potato flakes, granules, and pellets will be eliminated in six years. The 20-percent duty on flour, meal, and powder will be eliminated in 11 years. Japan's imports of frozen French fries from the United States totaled nearly $201 million in 2014. Under the agreement, Japan will eliminate its 8.5-percent duty in four years. In addition, the 9-percent tariff on "other prepared/preserved frozen potatoes" will be eliminated in six years.

Wheat: Japan is the largest export market for U.S. wheat, valued at $915 million in 2014. Japan currently imports wheat via a state-administered, 5.7 million-ton WTO TRQ. While wheat is imported at a zero tariff, Japan's state-trading entity, the Ministry of Agriculture, Forestry, and Fisheries (MAFF), assesses a "mark-up" of 17 yen per kilogram (equivalent to $150 per ton) that is charged to the buyer (typically a miller) of the state-purchased wheat. Japan's out-of-quota duty for wheat is 55 yen per kilogram (up to 250 percent ad valorem equivalent). This TRQ accounts for 90 percent of Japanese wheat consumption, with the United States enjoying a market share of approximately 60 percent in recent years. Japan excluded wheat from its previous bilateral trade agreements, including with Australia.

Under the TPP agreement, Japan will establish a new 114,000-ton, CSQ for U.S. wheat that grows to 150,000 tons in seven years, an action that will create new export opportunities exclusive to U.S. wheat suppliers. Japan will provide duty-free access for feed wheat outside of the current WTO TRQ mechanism, which will have the secondary effect of creating additional space for duty-free imports of food wheat under the WTO quota. For imports under the WTO quota, Japan will reduce its current 17 yen per kilogram mark-up on imported wheat by 45 percent over nine years, from $150 per ton to approximately $83 per ton. This action is expected to lower the cost of imported wheat for Japan's millers and strengthen the market for imported wheat in the years ahead. For processed wheat products such as biscuits, cookies, crackers, and other bread products, Japan will eliminate the existing tariffs, as high as 26 percent, in six years. For uncooked spaghetti and macaroni, Japan will reduce the existing 30-percent tariff by 60 percent over nine years. Japan will establish a new, duty-free CSQ for processed wheat products imported from the United States, including mixes, doughs, and cake mix, with an initial volume of 10,500 tons that expands to 12,000 in six years. Additionally, the United States and other TPP partners will have access to four new duty-free TRQs for processed wheat products that initially total 27,600 tons and grow to 40,100 tons in six years.

Barley: Japan is the world's third-largest barley importer. Japan's 2014 barley imports totaled $362 million, of which more than $43 million came from the United States. Japan currently maintains a 1.37- million-ton WTO TRQ for barley and processed barley. This includes barley for feed, which is imported duty-free within the TRQ.

Under the TPP agreement, Japan will immediately eliminate its barley for feed tariff of 255 percent. Japan will create a new 25,000-ton, TPP-wide TRQ for barley not for feed that grows to 65,000 tons in nine years. Japan will reduce the mark-up on barley imports under the TRQ by 45 percent in nine years. Japan will also create two additional TPP-wide TRQs for barley flour, groats, pellet, and food preparation products, which will grow to 615 tons. Japan will establish a new CSQ for imports of U.S. unroasted malt, starting at 20,000 and growing to 32,000 tons in six years. Also, a new roasted malt CSQ for the United States will be created that starts at 700 tons and grows to 1,050 tons by year 11.

Corn: Japan is the leading market for U.S. corn exports, with shipments valued at $2.7 billion in 2014. The United States exported nearly $180 million of corn products to Japan in 2014 as well.

Under the TPP agreement, new export opportunities for livestock products, including beef, pork, poultry and dairy will expand demand for corn and other feed ingredients by U.S. livestock producers. Specifically for corn, Japan's zero duty on imports of U.S. corn for feed under its existing WTO TRQ will be maintained. Additionally, Japan will immediately eliminate an existing 3-percent tariff applied to a specific in-quota tariff line for corn other than feed. For starches, Japan will create a new, CSQ for U.S. corn and potato starch, starting at 2,500 tons and growing to 3,250 tons by year six, and a 200-ton inulin CSQ that grows to 250 tons over 11 years. Additionally, Japan will expand its current WTO starch TRQ by 7,500 tons for a number of starches including corn, potato, sago, and cassava.

Rice: In 2014, Japan was the second-largest export market for U.S. rice, valued at almost $240 million. As one of Japan's most sensitive agricultural sectors, domestic rice production is supported by high prices and a strictly controlled market. The Government of Japan controls all imports under an existing WTO TRQ, with imports outside the quota facing a trade prohibitive tariff level. Japan has excluded rice in all of its prior FTAs. The United States consistently accounts for roughly half of Japan's imports under the current 682,000 (milled rice basis) WTO TRQ.

Under the TPP agreement, Japan will establish a new, duty-free CSQ for U.S. rice. The quota will initially be set at 50,000 tons, and will grow to 70,000 in 13 years. Additionally, Japan will make important modifications to its quota administration that are designed to enhance the transparency and the operational efficiency and effectiveness of the new CSQ access for U.S. rice. Japan will immediately eliminate its 12.7-percent tariff on "other animal feeds, containing rice." Japan also announced its intention to re-designate 60,000 tons of medium grain rice currently under its WTO TRQ. This should enhance the ability of the United States to compete for this quantity.

Soybeans: Japan is the fifth-largest market for U.S. soybean exports, with shipments valued at $1 billion in 2014. Japan's WTO commitments provide duty-free treatment for soybeans and soybean oilcake imports, while tariffs on other soybean products are as high as 20 percent.

Japan has not included soybean oil in its previous trade agreements.

Under the TPP agreement, new export opportunities for livestock products, including beef, pork, poultry and dairy will expand demand for soybeans and other feed ingredients by U.S. livestock producers. Tariffs on soybean products such as soybean oil, as high as 21-percent, will be eliminated in six years. Japan will immediately eliminate its 4.2-percent tariff on soybean meal.

Peanuts: Japan has excluded peanuts from its previous free-trade agreements. Japan's imports of U.S. peanuts and peanut products reached $26 million in 2014. Japan maintains a 75,000-ton WTO TRQ for peanuts, with an out-of-quota duty of approximately 600 percent.

Under the TPP agreement, Japan will eliminate the 10-percent in-quota tariff on peanuts immediately and will eliminate the over-quota tariff in eight years. The duty for peanuts for oil extraction will remain at zero under the TPP agreement. Peanut oil tariffs, as high as 6 percent, will be eliminated in 11 years. Tariffs on prepared and preserved peanuts, as high as 24 percent, will be eliminated in eight years. Peanut butter tariffs, as high as 12 percent, will be eliminated in six years.

Tobacco: U.S. tobacco exports to Japan totaled more than $260 million in 2014. Under the TPP agreement, Japan will eliminate all tariffs on tobacco, currently as high as 30 percent, in 11 years.

Cotton: Japan imported $62 million of U.S. cotton in 2014. Under the TPP agreement, all of Japan's tariffs on cotton will remain at zero percent.

Processed Products: In 2014, the United States exported $2.6 billion of processed products to Japan.

Under the TPP agreement, Japan will immediately eliminate tariffs, as high as 26 percent, on numerous processed products, including flavored waters without sugar, mineral and aerated waters, vegetable proteins, roasted coffee, essential oils, planting seeds, and many spices. Tariffs on sauces and flavored waters with sugar added, as high as 13.4 percent, will be eliminated in four years. Tariffs, as high as 40 percent, will be eliminated in eight years or less for a range of products, including cookies, crackers, biscuits, nutritional supplements, carrot juice, and tomato paste. Tariffs, as high as 34 percent, will be eliminated in 11 years on other rice products such as breakfast cereals, infant formula, and other food preparatory items.

#

BRUSSELS (Nov. 19, 2015) - U.S. and South American soybean farmers are meeting with government officials, industry partners and other key influencers in Europe this week to discuss biotechnology acceptance and the implications of biotech approval delays. The farmers, who represent more than 95 percent of the world's soybean exports and normally battle for global market share, are joining forces to advocate for a science-based and more predictable biotech approval process.

"Soybeans are part of a global market," said Bob Haselwood, United Soybean Board (USB) chairman and soybean farmer from Berryton, Kansas. "We need a collaborative effort across the U.S., South America and the European Union to work toward timely approvals for new biotech traits. These traits will help us continue to supply a safe, reliable and abundant food supply for the world's consumers."

The delegation from the U.S. and South America is part of the International Soybean Growers Alliance (ISGA), which brings together farmers from these key soybean-producing countries to address global issues impacting all soybean farmers, including biotechnology acceptance.

A study released during an ISGA trade mission earlier this year showed that a three-year postponement in global approval of biotech-enhanced soybean traits any time in the next 10 years would cost farmers and consumers nearly $19 billion, compared with typical approval timelines.

The groups with the most to lose from delayed approvals include consumers in large importing countries, including China and nations in the European Union, and farmers in large soy-exporting countries that quickly adopt new technology, such as the U.S., Brazil and Argentina, according to the report.

"The global supply chain is a powerful economic engine that benefits not only farmers and consumers but also stakeholders at each stage in between," said Ron Moore, American Soybean Association (ASA) secretary, U.S. Soybean Export Council (USSEC) board member and soybean farmer from Roseville, Illinois. "The soybeans we grow create jobs in the U.S. and in each of our export markets. These economic benefits can't be fully realized without a fully functioning biotech approval process."

About the International Soy Growers Alliance (ISGA)
ISGA is made up of growers and industry representatives from Argentina, Brazil, Canada, Paraguay, Uruguay and U.S., who share a commitment to meet the rapidly increasing world demand for quality and healthy soy products produced in a sustainable and environmentally friendly manner. The six countries represented are responsible for over 95 percent of global soy production.

About the U.S. Soybean Export Council (USSEC)
USSEC aims to maximize the use of U.S. soy internationally by meeting the needs of global customers that use U.S. soy in human food and feed for poultry, livestock and fish. The organization uses a global network of stakeholder partnerships, including soybean farmers, exporters, agribusinesses, agricultural organizations, researchers and government agencies, to accomplish that mission. For more information about USSEC, visit www.ussec.org.

About the American Soybean Association (ASA)
ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA's advocacy efforts are made possible through voluntary farmer membership by farmers in 30 states where soybeans are grown. For more information on ASA, visit www.soygrowers.com.

About the United Soybean Board (USB)
The 70 farmer-directors of USB oversee the investments of the soy checkoff to maximize profit opportunities for all U.S. soybean farmers. These volunteers invest and leverage checkoff funds to increase the value of U.S. soy meal and oil, to ensure U.S. soybean farmers and their customers have the freedom and infrastructure to operate, and to meet the needs of U.S. soy's customers. As stipulated by the federal Soybean Promotion, Research and Consumer Information Act, the USDA Agricultural Marketing Service has oversight responsibilities for USB and the soy checkoff. For more information on USB, visit www.unitedsoybean.org.

###

Secretary Vilsack will travel to Japan and China this week, to meet with agricultural counterparts. The United States recently concluded negotiations on the Trans-Pacific Partnership (TPP) with Japan and 10 other nations. Countries in the Trans-Pacific Partnership currently account for up to 42 percent of all U.S. agricultural exports, totaling $63 billion. The Administration continues to work with Congress to secure the passage of the agreement into law so that American agriculture can take full advantage of unprecedented new market access in some of the fastest-growing countries in the Asia-Pacific region.

The past seven years have represented the strongest period for American agricultural exports in the history of our country, with U.S. agricultural product exports totaling $911.3 billion between Fiscal Years 2009 and 2015. In fiscal year 2015, American farmers and ranchers exported $139.7 billion of food and agricultural goods to consumers worldwide. Not only that, U.S. agricultural exports supported more than 1 million American jobs both on and off the farm, a substantial part of the estimated 11.7 million jobs supported by exports all across our country.

Opening New Markets for Farmers, Ranchers, and Rural Businesses

USDA continuously seeks opportunities for U.S. agricultural producers to expand overseas markets that contribute to a positive U.S. trade balance, create jobs, and boost economic growth.

• USDA's Market Development Programs have provided funding to help approximately 70 U.S. agricultural producer associations, each representing hundreds or thousands of producers, expand commercial export markets for their goods. An independent study demonstrated that U.S. agricultural exports increased by $6.1 billion as a result of the increased joint investment in foreign market development by government and industry during the 2002-09 timeframe studied. Overall, U.S. agricultural exports increase $35 for every additional market development dollar expended by government and industry.
• When implemented, the TPP agreement with 11 Pacific Rim countries will provide new market access across the board for America's farmers and ranchers by lowering tariffs and eliminating other barriers, and will boost exports and support jobs in our rural economies. The agreement will advance U.S. economic interests in a critical region that accounts for nearly 40 percent of global GDP. The TPP is a partnership between the United States and Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
• Since 2009, the United States has entered into free trade agreements with Colombia, Jordan, Oman, Panama, Peru, and South Korea. And through organic equivalency agreements established by USDA with Canada, the European Union, Switzerland, Japan, and Korea, U.S. organic farmers and businesses have streamlined access to over $35 billion international organic markets.
• Through the Administration's Made in Rural America Export and Investment Initiative, USDA is working to help farmers, ranchers, and rural businesses access federal export programs, connect with new customers and markets abroad, and bring new opportunity to rural America.
• Since 2009, USDA has led more than 225 U.S. agribusinesses and more than 20 State Departments of Agriculture on agricultural trade missions to China, Colombia, the Dominican Republic, Georgia, Ghana, Indonesia, India, Iraq, Malaysia, Panama, Peru, the Philippines, Russia, South Africa, Turkey and Vietnam. These businesses reported on-the-spot and short- term follow-up sales of more than $94 million. That number will grow exponentially over the next several years as a direct result of the partnerships forged and contacts established during USDA trade missions.
• USDA opened international market outlets for American farmers and ranchers by successfully negotiating and issuing thousands of export certificates for food products valued at more than $800 million.

Removing Unfair Barriers to Trade

USDA works on behalf of agricultural exporters to resolve trade related to animal and plant health concerns and to ensure that trade decisions are based on science. In FY2015, USDA resolved more than 150 trade-related issues involving U.S. agricultural exports valued at $2.4 billion.

• In FY2015, USDA engaged trading partners to eliminate all remaining animal health barriers related to BSE for U.S. export markets. The following 14 countries removed all BSE restrictions and granted access to U.S. beef and beef products: Australia; Macau; Philippines; New Zealand; Singapore; Ukraine; Vietnam; Egypt; Lebanon; Turkey; Costa Rica; Guatemala; St. Lucia; Iraq. The total value of U.S. beef and beef products exported to the 14 countries that lifted their BSE restrictions is in excess of $180 million.
• In FY 2015, USDA retained the poultry market to the European Union worth $111 million.
• When shipments are held up at foreign ports, USDA negotiates the overseas process to get products moving again. In FY 2015 USDA successfully secured the release of 250 detained shipments worth $45 million. The shipments ranged from apples to Taiwan to horses to Mexico.
• The USDA successfully negotiated continuation of "on-arrival" fumigation for California citrus for the 2015/2016 season. Korea remains the number one market for California citrus estimated to be worth $225 million.
• USDA successfully negotiated with Australia to open the Australian market to California Japanese plums in time for the 2015 shipping season. With the addition of California Japanese plums, the U.S. stone fruit market to Australia is now valued at $12 million per year.
• In FY 2015 USDA secured access for U.S. pork to Peru, a market valued at $5 million per year.
• USDA expanded market access for all apple varieties from all states of the U.S. to China in FY2015; the estimated value of this market is $100 million.
• The USDA minimized the trade impact of 2015 flag smut detection in Kansas which protected approximately $800 million in annual sales of Hard Red Winter wheat to the sixteen countries that regulate for this disease.

USDA believes that American agriculture will always succeed if competition is fair. USDA remains a strong partner and advocate in the international marketplace, working with foreign governments and international regulatory or standard-setting organizations to ensure the smooth and safe flow of international trade. USDA will continue to strike down foreign barriers to American products that can't be justified by science-while helping exporters identify and gain access to new overseas markets.

#