ANNUAL GROWERS MEETING
Panel Addresses Trade Issues
Facing Agriculture
With export markets accounting for over 70 percent of
California growers’ annual almond sales and trade wars
between the U.S. and its major trading partners hurting
sales, it came as no surprise that the trade seminar at
Blue
Diamond Growers
’ annual member meeting was well
attended. Julian Heron, a partner at Tuttle, Taylor and Heron,
and long-time
Blue Diamond
representative with federal
agencies and administrations, hosted the Navigating Trade
in 2019 panel. The trade experts addressed challenges and
opportunities in the current turbulent export environment.
Heron put the discussion into context with an overview of
the impact of the recent midterm election on agriculture’s
prospects over the next two years. “California lost big
time,” he declared. “With the Democrats retaking the House,
we lost the speakership and many important committee
chairmanships.”
The impact of that change can best be seen in the
House Agriculture Committee, Heron noted. “While the
chairman is from Minnesota, understands agriculture and
has experience as chairman, his committee is weighted
with urban representatives with little knowledge about or
interest in agriculture. We can expect them to focus on
urban issues at the expense of agriculture.”
Complex, Challenging Issues
The political tilt will affect trade negotiations and deals
as well. Brian Grunenfelder, president of Tuttle Taylor and
Heron, has over three decades of experience in agricultural
trade matters with the federal government. He declared,
“The current trade landscape is extremely unusual. I have
never seen anything like this in all the years I’ve been
dealing with trade issues. It has become very challenging
and complex on the trade front.”
For example, Grunenfelder cited the Administration’s
withdrawal from several trade pacts which President Trump
described as “bad deals,” levying tariffs on steel and
aluminum imports to “level the playing field,” and saddling
imports from China with tariffs in retaliation for the theft
of intellectual property. All of these actions produced
reactions from U.S. trading partners that “hit agriculture
disproportionately,” Grunenfelder said. “Our trading
partners know that if they strike at U.S. agriculture, they will
get the Administration to respond and resolve the issue.”
Positive Steps
The difficult present appears to be shifting to a brighter future.
Grunenfelder cited a relaxing of tensions in talks with the EU,
and the fact almonds have not yet been targeted, although
chances of a good agreement remain remote: “Fundamental
differences between the EU and U.S. on matters of science,
food safety, and other matters will be difficult to overcome.”
Grunenfelder noted that successful agreements with Korea,
Canada, and Mexico, are bright spots, and a better
agreement with Japan has good potential. Talks with India
are going well which could be very good for almonds.
China remains a big challenge, and both economies are
being harmed. “China is the bad actor in several respects,
but a satisfactory agreement is doable,” he said. “We are
also working with Israel on an updated agreement that we
hope will provide better access for almonds.”
“Trade agreements work for agriculture, so it is encouraging
that the Administration is plowing new ground in new
markets,” Grunenfelder noted. “The middle class is expected
to grow 50 percent by 2020 worldwide. We are working
to capitalize on that opportunity. It is very important that
the U.S. remains active in making trade deals because our
competitors for those markets are working hard to capture
them for themselves.”
Market Access Push
Associate Administrator for the Foreign Agricultural Service
(FAS) Daniel Whitley, who has over 20 years of experience
From left to right: Julian Heron, Brian Grunenfelder, Daniel
Whitley, and Jaime Johansson.
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A L M O N D F A C T S
