Trade agreements must be done right and must be fully implemented and enforced to benefit America’s agricultural producers, stated House Ways and Means trade subcommittee chairman Dave Reichert, R- Wash., in his opening statement of a hearing Tuesday morning on expanding U.S. agriculture trade and eliminating barriers to U.S. exports.

While the global demand for U.S. agriculture exports is expected to grow, many of our foreign competitors impose tariff and non-tariff barriers — such as high tariffs, import quotas, arbitrary regulations, and border restrictions — that inhibit the success of U.S. agriculture.

Representatives from the agricultural industry testified before the House Ways and Means Committee on June 14. Pictured from left to right is Kevin Paap, president of the Minnesota Farm Bureau, Randy Mooney, chairman of the National Milk Producers Federation; John Weber, president of the National Pork Producers Council, Dale Foreman, chairman of Foreman Fruit Company and Heather McClung, co-owner of Schooner EXACT Brewing Company.

Every Member of the Subcommittee agreed that a strong trade agreement can be a powerful tool to break down these barriers, open up new markets, and promote American products. As witnesses representing the broad agriculture community — as well as the pork, fruit, beer, grain, and dairy industries — explained, trade barriers impede their ability to find new customers, sell their products, grow their bottom line, create new jobs, and contribute to a strong economy.

Members from the American Farm Bureau Federation (AFBF), National Pork Producers Council (NPPC) and National Milk Producers Federation (NMPF) testified before the committee and highlighted not only the benefits that exist with increased trade but the need to secure a promising future by requiring trading partners live up to their commitments.

Rep. Todd Young, R-Ind., shared that even with a well-written trade agreement, even if those provisions aren’t enforced and predictable it creates great challenges.

When Young asked for witnesses to share ways on how to improve enforcement, Randy Mooney, NMPF chairman and a dairy farmer from Rogersville, Mo., told the committee the key is establishing a penalty for those who do not abide by agreed upon rules. He said the penalty has to be great enough to stop what’s going on.

Kevin Paap, president of the Minnesota Farm Bureau and AFBF trade advisory committee member, said the process also needs to be transparent and ensures all stakeholders are involved. The rules need to be science-based and allow for countries to set the rules and then show how to follow them, he told the committee.

As an example, Reichart shared Canada simply cannot go back on its commitments in the Trans-Pacific Partnership (TPP) and the North American Free Trade Agreement (NAFTA) and limit imports of U.S. dairy products through protectionist regulatory changes, as it is proposing.

Mooney explained in his testimony that Canada is the “worst offender” when it comes to erecting measures over the years to create new barriers to trade.

The most Canadian recent policy shift, which has already led to a drop in U.S. dairy exports, is a milk pricing policy maneuver. This policy was first implemented in Ontario but is reportedly scheduled to go national later this summer, Mooney explained.

“It is intended to discourage use of imported dairy ingredients and specifically encourage use by Canadian processors of domestic dairy inputs. This ‘Class VI’ pricing program has already led to tens of millions of dollars in U.S. dairy export losses, an impact that comes at a particularly bad time for U.S. dairy farmers given the depressed dairy market situation currently,” he shared with the committee.

“We are drawing the line here. This recent action by Canada is a clear violation of their prior trade commitments, as well as the spirit of Trans-Pacific Partnership, and it cannot be permitted,” said Mooney.

“Likewise, the Administration must also work with the other TPP countries, as well as Congress and stakeholders, to develop plans as to how those countries will comply with TPP’s obligations on SPS measures and other agriculture-related areas,” he said. “This will be essential to getting Congressional support for the agreement, in addition to resolving other outstanding issues.”

Paap shared that TPP will be important for all of agriculture, but particularly for animal agriculture saying it was a “bigger winner than others.” Although large increases of grain and oilseed exports aren’t expected, it can go into livestock feed domestically and add value and local jobs, and provide “generational stability” he said for the next generation who want to continue to stay in the agricultural sector.

NPPC president John Weber shared that he has a son and herdsman who see TPP as their future to allow for growth in the industry. Weber noted that domestically the U.S. pork market is mature but gaining access into the world markets is “critically important for the next generation.”