June 22, 2012

Russia's trade bill boosts opportunities for US soy farmers

The introduction of a Senate bill that would graduate Russia from the Jackson-Vanik Amendment to the Trade Act of 1974, and authorise President Barack Obama to establish permanent normal trade relations (PNTR) with the world's sixth largest economy has been welcomed by the American Soy Association (ASA).

ASA urges the immediate passage of the bipartisan bill introduced by Montana Sen. Max Baucus, Massachusetts Sen. John Kerry, Arizona Sen. John McCain and South Dakota Sen. John Thune, which enables the US to take advantage of the many market opening commitments that form Russia's accession package to the World Trade Organisation, to which the country was formally invited in late 2011.

Russia is a leading export market for US soy, meat, poultry, egg and dairy products, importing more than US$770 million in these products last year.

"Today's announcement from (Baucus, Kerry, McCain and Thune) is an exciting one for farmers," said ASA President Steve Wellman, a soy farmer from Syracuse, Neb. "As Russia's economy and purchasing power grows, Russian demand for soy products, poultry, pork, dairy and eggs grows as well, and that's great news for American soy farmers."

Russia is home to more than 140 million consumers and a fast-growing economy. As part of its accession to the WTO, Russia will be obligated to bind its agricultural tariffs, adding more predictability to the trading relationship and opening export opportunities for the US agricultural industry. WTO membership will also require Russia to adhere to internationally-recognised scientific standards when regulating meat imports, thereby ensuring greater predictability for US exporters seeking to supply the Russian consumer market.

The establishment of PNTR with Russia is different from a free trade agreement, in that the move will not require the US to provide any market access benefits, lower any US tariffs, or make other changes to our trade laws as a result of Russia's WTO accession

ASA represents all US soy farmers on domestic and international issues of importance to the soy industry. ASA's advocacy efforts are made possible through the voluntary membership in ASA by more than 21,000 farmers in 31 states where soys are grown.