From October 21, 2022 post.
Sen. Chuck Grassley (R-Iowa), a senior member of the Agriculture Committee, was joined by Sens. Joni Ernst (R-Iowa), Roger Marshall (R-Kan.) and Patty Murray (D-Wash.) in urging United States Trade Representative (USTR) Ambassador Katherine Tai to reject a new petition that could adversely impact U.S. export products. As USTR is set to consider a Section 301 petition, which would result in an investigation into Mexico’s trade practices for seasonal products like fruits and vegetables, the bipartisan group of senators is arguing that this trade dispute should be settled through the United States–Mexico–Canada Agreement (USMCA) to prevent price hikes and retaliation.
“If the petition is not rejected, it will undermine the credibility of Section 301 as an effective tool and raise the cost of fresh fruits and vegetables during a time when Americans across the country are struggling with the increasing cost of food,” the senators wrote. “Any agricultural trade issue with Mexico is best addressed via the dispute settlement mechanism included in the United States-Mexico-Canada Agreement (USMCA). The USMCA is intended to improve regional cooperation and avoid using unilateral actions like Section 301 investigations against our neighbors and largest trading partners.”
Grassley and his colleagues point out that Mexico is the second-largest export market for the U.S., with a record $25.5 billion exported to Mexico in 2021. They warn failure to reject the petition could be devastating to producers in the U.S. – including corn, beef, and pork producers if Mexico were to retaliate.
“As you consider this petition, we ask you to recognize the importance of cross-border trade and consumer needs, and urge you to not take any action that would harm the significant economic benefit of the agricultural industry on the U.S. economy. We respectfully urge you to reject the petition in the interests of American consumers, workers, and agricultural exporters,” the senators concluded.
Specifically, the senators argue that the Section 301 petition does not meet USTR’s requirements because it fails to identify the economic interests of the petitioners; lacks analysis and explanation on its impact to commerce in the U.S.; and fails to explain adequately the alleged export targeting scheme.
As then-chairman of the Senate Finance Committee, Grassley played a leading role in shepherding the historic USMCA trade agreement through the Senate.
Original source can be found here
