Order Code 98-253
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Updated March 21, 2007
Charles E. Hanrahan
Senior Specialist in Agricultural Policy
Resources, Science, and Industry Division
Beverly A. Banks
Research Assistant
Knowledge Services Group
Carol Canada
Information Research Specialist
Knowledge Services Group

U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Summary
U.S. agricultural exports for FY2007 are forecast by the U.S. Department of
Agriculture at $78 billion, while agricultural imports are expected to reach $70
billion, both historical records. The agricultural trade surplus is projected to be $8
billion. Exports of bulk commodities (e.g., soybeans, wheat, and feed grains) remain
significant, but exports of high-value products (HVPs), such as meats, fruits, and
vegetables, are increasing. HVPs accounted for almost 63% of total U.S. agricultural
exports in FY2006.
Leading markets for U.S. agricultural exports are Canada, Mexico, Japan, the
European Union, China, Korea, and Taiwan. The United States dominates world
markets for corn, wheat, and cotton. Brazil has overtaken the United States as the
world’s leading supplier of soybeans and is the world’s leading supplier of beef to
world markets. The U.S. share of world beef exports has declined since the
discovery of a cow infected with “mad cow disease” in the United States in 2003.
The United States, European Union, Australia, and New Zealand are dominant
suppliers of dairy products in global agricultural trade.
Most U.S. agricultural imports are high-value products. For some imports
(grains, meats, horticultural products), similar products are produced in the United
States; production of other categories of imports (bananas, coffee, cocoa) is very
limited. The biggest import suppliers are the European Union, Canada, and Mexico,
which together provide 58% of total U.S. agricultural imports. Australia, Brazil,
New Zealand, Indonesia, and Colombia are also major suppliers of agricultural
imports to the United States.
Among the fastest-growing markets for U.S. agricultural exports are Canada and
Mexico, both partners with the United States in the North American Free Trade
Agreement (NAFTA). U.S. agricultural exports to China, recently a member of the
World Trade Organization, have grown at an annual rate of 16% since 1992.
Both the EU and the United States subsidize their agricultural sectors, but
overall the EU out-subsidizes the United States. Recent reforms of the EU’s
Common Agricultural policy shift substantial spending into direct income support
decoupled from production and into rural development. Canada supports some
sectors (e.g., dairy and poultry) more than others. Australia provides less support to
its agriculture. Export subsidies are more important in the EU than in the United
States; border measures (tariffs) are more important in Canada than in either the
United States or the EU. Australia operates a mix of trade measures. The United
States is the dominant supplier of foreign food aid, followed by the EU, Canada, and
Australia. U.S. and other major food aid donors provide commodities mainly for
development assistance or emergency relief.
This report will be updated.

Contents
U.S. Agricultural Exports, Imports, and Trade Balance . . . . . . . . . . . . . . . . . . . . 1
Shares of U.S. Production Exported: Selected Commodities . . . . . . . . . . . . . . . . 3
Composition of U.S. Agricultural Exports: Major Commodity Components . . . . 7
Composition of U.S. Agricultural Exports: Bulk, Consumer-Ready, and
Intermediate Product Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Major Country Markets for U.S. Agricultural Exports . . . . . . . . . . . . . . . . . . . . 11
World Market Shares: Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
World Market Shares: Livestock and Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
World Market Shares: Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Major U.S. Agricultural Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
U.S. Agricultural Imports by Country of Origin . . . . . . . . . . . . . . . . . . . . . . . . . 40
Regional Market Growth in U.S. Agricultural Exports . . . . . . . . . . . . . . . . . . . . 42
Growth in U.S. Agricultural Exports to Asian Markets . . . . . . . . . . . . . . . . . . . . 44
Growth in Agricultural Exports to North and South America . . . . . . . . . . . . . . . 46
Market Development Programs in Selected Countries . . . . . . . . . . . . . . . . . . . . 48
Producer Support Estimates (PSEs) in Selected OECD Countries . . . . . . . . . . . 50
Producer Support Estimates (PSEs) in the United States and the
European Union: Selected Commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Domestic Support and Export Subsidies in the United States and the
European Union: Budgetary Outlays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
List of Figures
Figure 1. U.S. Agricultural Exports, Imports, and the Trade Balance,
FY1988-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Figure 2. U.S. Agricultural Exports: Share of U.S. Production Exported,
1990/91-2006/07F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Figure 3. U.S. Agricultural Exports: Shares U.S. Production of Livestock
Exported, 1990-2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Figure 4. U.S. Agricultural Exports of Major Commodities, FY2006 . . . . . . . . . 7
Figure 5. U.S. Agricultural Exports, FY1990-FY2006:
Bulk, Consumer-Oriented, and Intermediate Product Exports . . . . . . . . . . . 9
Figure 6. Major Country Markets for U.S. Exports, FY2005-FY2007F . . . . . . 11
Figure 7. Shares of World Exports of Wheat and Wheat Products, 2006/07F . . 14
Figure 8. Shares of World Exports of Rice, 2006/07F . . . . . . . . . . . . . . . . . . . . . 16
Figure 9. Shares of World Exports of Corn, 2006/07F . . . . . . . . . . . . . . . . . . . . 18
Figure 10. Shares of World Exports of Soybeans, 2006/07F . . . . . . . . . . . . . . . . 20
Figure 11. Shares of World Exports of Cotton, 2006/07F . . . . . . . . . . . . . . . . . . 22
Figure 12. Shares of World Exports of Beef and Veal, 2007F . . . . . . . . . . . . . . 24
Figure 13. Shares of World Pork Exports, 2007F . . . . . . . . . . . . . . . . . . . . . . . . 26
Figure 14. Shares of World Poultry Meat Exports, 2007F . . . . . . . . . . . . . . . . . 28
Figure 15. Shares of World Nonfat Dry Milk Exports, 2007F . . . . . . . . . . . . . . 30
Figure 16. Shares of World Cheese Exports, 2006F . . . . . . . . . . . . . . . . . . . . . . 32
Figure 17. Shares of World Butter Exports, FY2006F . . . . . . . . . . . . . . . . . . . . 34
Figure 18. Shares of World Centrifugal Sugar Exports, 2006/07F . . . . . . . . . . . 36
Figure 19. Major Agricultural Imports by Commodity, FY2006 . . . . . . . . . . . . . 38

Figure 20. Major U.S. Agricultural Imports by Country of Origin,
FY2005-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Figure 21. Growth in U.S. Agricultural Exports, FY1992-FY2007F . . . . . . . . . 42
Figure 22. Growth in Agricultural Exports to Asian Markets,
FY1992-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Figure 23. Growth in Agricultural Exports to North and South America,
FY1992-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Figure 24. Expenditures for Market Development, Selected Countries, 2002 . . 48
Figure 25. Producer Support Estimates (PSEs) in Selected OECD Countries . . 50
Figure 26. Producer Support Estimates (PSEs): Selected Commodities in the
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Figure 27. Producer Support Estimates (PSEs)
for Selected Commodities in the European Union . . . . . . . . . . . . . . . . . . . 54
List of Tables
Table 1. U.S. Agricultural Exports and Imports, FY1988-FY2007F . . . . . . . . . . 2
Table 2. U.S. Agricultural Exports: Shares of U.S. Production Exported,
1990/91-2006/07F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 3. U.S. Agricultural Exports: Shares of U.S. Production of Livestock
Exported, 1990-2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 4. U.S. Agricultural Exports of Major Commodities, FY2006 . . . . . . . . . . 8
Table 5. U.S. Agricultural Exports, FY1990-FY2006: Total, Bulk,
Consumer-Ready, and Intermediate Product Exports . . . . . . . . . . . . . . . . . 10
Table 6. Major Country Markets for U.S. Agricultural Exports,
FY2005-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 7. Shares of World Exports of Wheat and Wheat Products,
1995/96-2006/07F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Table 8. Shares of World Exports of Rice, 1994/95-2006/07F . . . . . . . . . . . . . 17
Table 9. Shares of World Exports of Corn, 1995/96-2006/07F . . . . . . . . . . . . . . 19
Table 10. Shares of World Exports of Soybeans, 1995/96-2006/07F . . . . . . . . 21
Table 11. Shares of World Exports of Cotton, 1995/96-2006/07F . . . . . . . . . . . 23
Table 12. Shares of World Exports of Beef and Veal, 1995-2007F . . . . . . . . . . 25
Table 13. Shares of World Pork Exports, 1994-2007F . . . . . . . . . . . . . . . . . . . . 27
Table 14. Shares of World Total Poultry Meat Exports, 1994-2007F . . . . . . . . . 29
Table 15. Shares of World Nonfat Dry Milk Exports, 1995-2007F . . . . . . . . . . 31
Table 16. Shares of World Cheese Exports, 1994-2006F . . . . . . . . . . . . . . . . . . 33
Table 17. Shares of World Butter Exports, 1994-2006F . . . . . . . . . . . . . . . . . . 35
Table 18. Shares of World Centrifugal Sugar Exports, 1995/96-2006/07F . . . . . 37
Table 19. Major U.S. Agricultural Imports, FY2006 . . . . . . . . . . . . . . . . . . . . . . 39
Table 20. U.S. Agricultural Imports by Country of Origin, FY2005-FY2007F . 41
Table 21. Change in U.S. Agricultural Exports to Selected Markets,
FY1992-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Table 22. Change in U.S. Agricultural Exports to Asian Markets,
FY1992-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Table 23. Change in Agricultural Exports to North and South America,
FY1992-FY2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Table 24. Expenditures for Market Development, Selected Countries, 2002 . . . 49
Table 25. Producer Support Estimates (PSEs) in Selected OECD Countries . . . 51
Table 26. Producer Support Estimates (PSE) in the United States
by Commodity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Table 27. Producer Support Estimates (PSEs) in the European Union . . . . . . . 55
Table 28. U.S. and EU Government Spending on Agricultural Support,
2003-2006E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Table 29. Agricultural and Trade Policies in the United States and the
European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Table 30. Agricultural and Trade Policies in Canada and Australia . . . . . . . . . . 61

U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
U.S. Agricultural Exports, Imports,
and Trade Balance

! The value of U.S. agricultural exports, supported by a weak dollar,
strong foreign demand, and high prices for many products, is
forecast by the U.S. Department of Agriculture (USDA) to reach $77
billion in FY2007, a record high.
! U.S. agricultural imports, forecast to reach a record $69 billion in
FY2007, reflect strong U.S. demand for fruits and vegetables, wines
and spirits, beef and pork, and other high value products.
! The $8 billion U.S. agricultural trade surplus forecast for FY2007 is
about 30% of its all-time high — $27 billion — in FY1996.
Figure 1. U.S. Agricultural Exports, Imports, and the Trade Balance,
FY1988-FY2007F
80
70
60
Exports
50
Imports
40
30
20
Trade Balance
10
0
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

CRS-2
Table 1. U.S. Agricultural Exports and Imports,
FY1988-FY2007F
($ billion)
Year
Exports
Imports
Balance
1988
35.3
21.0
14.3
1989
39.6
21.5
18.1
1990
40.2
22.6
17.7
1991
37.6
22.6
15.0
1992
42.4
24.3
18.1
1993
42.6
24.4
18.1
1994
43.9
26.6
17.3
1995
54.6
29.9
24.7
1996
59.8
32.6
27.2
1997
57.3
35.8
21.5
1998
53.6
36.8
16.8
1999
49.1
37.3
11.8
2000
50.7
38.9
11.9
2001
52.7
39.0
13.7
2002
53.3
41.0
12.3
2003
56.0
45.7
10.3
2004
62.4
52.7
9.7
2005
62.5
57.7
4.8
2006
68.7
64.0
4.7
2007F
78.0
70.0
8.0
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-53, March 3, 2007, available at [http://usda.mannlib.cornell.edu/
usda/current/AES/AES-03-08-2007.pdf].
F= Forecast

CRS-3
Shares of U.S. Production Exported: Selected Commodities
! USDA estimates that production from one-third of harvested acreage
is exported.
! In FY2006, 48% of the U.S. wheat crop was exported, while 18%
of the U.S. corn crop moved into world markets. Corn’s share of
exports reflects competition from domestic demand for corn for
livestock feed and for ethanol production.
! The export shares of soybeans and cotton in FY2006 were 36% and
75%, respectively.
! Beef exports grew from around 4% of production in 1990 to almost
10% in 2003, but the U.S. discovery of a cow infected with bovine
spongiform encephalopathy (BSE), or “mad cow” disease, in
December 2003 resulted in a precipitous decline in beef exports.
Figure 2. U.S. Agricultural Exports: Share of U.S. Production
Exported, 1990/91-2006/07F
80
Wheat
70
Corn
Cotton
60
Soybeans
50
40
30
20
10
0
1990-1995 1996-2001 2002/01
2003/04
2004/05
2005/06
2006/07F
Source: U.S. Department of Agriculture. Economic Research Service.

CRS-4
Table 2. U.S. Agricultural Exports: Shares of U.S. Production
Exported, 1990/91-2006/07F
(percent)
Year Wheat
Corn
Cotton
Soybeans
1990/91
38.4
22.1
50.3
28.9
1991/92
65.5
21.4
37.7
34.4
1992/93
55.5
17.7
32.1
35.2
1993/94
50.8
20.6
42.5
31.5
1994/95
51.5
23.0
47.8
33.4
1995/96
56.9
28.1
42.9
39.1
1996/97
44.0
19.9
36.3
37.2
1997/98
41.9
16.2
39.9
32.5
1998/99
41.8
21.0
30.9
29.4
1999/00
47.1
20.7
39.8
36.7
2000/01
46.2
19.2
39.2
36.1
2001/02
49.6
19.6
54.2
36.8
2002/03
52.2
18.0
69.1
37.9
2003/04
50.6
19.0
75.3
36.1
2004/05
48.5
15.1
62.1
35.1
2005/06
47.9
19.9
75.5
30.9
2006/07F
51.7
20.3
75.1
35.7
Source: Calculated by CRS using data from the U.S. Department of Agriculture’s Foreign
Agricultural Service World Production, Market, and Trade Reports, available at
[http://www.fas.usda.gov/currwmt.asp].

CRS-5
Figure 3. U.S. Agricultural Exports: Shares U.S. Production of
Livestock Exported, 1990-2007F
20
Beef
Pork
Poultry
15
10
5
0
1990-19951996-2001
2002
2003
2004
2005
2006
2007
Source: U.S. Department of Agriculture. Economic Research Service.

CRS-6
Table 3. U.S. Agricultural Exports: Shares of U.S. Production of
Livestock Exported, 1990-2007F
(percent)
Year Beef
Pork
Poultry
1990
4.4
1.6
6.2
1991
5.1
1.8
6.4
1992
5.7
2.4
7.1
1993
5.5
2.6
8.9
1994
6.5
3.1
12.1
1995
7.1
4.4
15.7
1996
7.2
5.7
16.9
1997
8.3
6.0
16.3
1998
8.3
6.5
15.8
1999
9.0
6.6
15.6
2000
9.1
6.8
16.3
2001
8.6
8.1
18.0
2002
8.9
8.2
15.1
2003
9.5
8.6
15.2
2004
1.9
10.6
14.2
2005
2.8
12.9
14.9
2006
4.4
14.1
15.2
2007
5.6
14.3
15.3
Source: Calculated by CRS using data from the U.S. Department of Agriculture’s Foreign
Agricultural Service World Production, Market, and Trade Reports, available at
[http://www.fas.usda.gov/currwmt.asp].

CRS-7
Composition of U.S. Agricultural Exports:
Major Commodity Components

! The United States exports a wide range of agricultural products,
including horticultural products, livestock products and poultry, and
field crops.
! Horticultural product exports (fruits, vegetables, tree nuts, and their
preparations) — valued at $16.7 billion in FY2006 — are the
leading commodity components of U.S. agricultural exports.
! Oilseeds (mainly soybeans) and oilseed products (mainly meal and
oil) — valued at $11 billion in FY2006 — comprise the second
largest category of U.S. agricultural exports.
! Livestock and poultry products together amounted to $11.6 billion
in FY2006.
! Field crop exports (feed grains, wheat and products, cotton, and
tobacco) accounted for just over $17 billion of U.S. agricultural
exports in FY2006.
Figure 4. U.S. Agricultural Exports of Major Commodities, FY2006
Horticultural Products
16.7
Oilseeds and Products
10.7
Livestock Products
8.6
Feed Grains
6.8
Cotton
4.7
Wheat and Prods.
4.3
Poultry/Prods.
3
Tobacco
1.1
0
5
10
15
20
$ Billion
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

CRS-8
Table 4. U.S. Agricultural Exports of Major Commodities,
FY2006
Commodity
($ Billion)
Horticultural Products
16.7
Oilseeds and Products
10.7
Livestock Products
8.6
Feed Grains
6.8
Cotton
4.7
Wheat and Prods.
4.3
Poultry/Prods.
3.0
Tobacco
1.1
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-52, November 22, 2006, available at [http://usda.mannlib.cornell.
edu/usda/current/AES/AES-11-22-2006.pdf].

CRS-9
Composition of U.S. Agricultural Exports:
Bulk, Consumer-Ready, and Intermediate Product Exports

! Bulk agricultural exports include products like wheat, coarse grains,
cotton, and soybeans.
! Intermediate products have been processed to some extent and
include products like wheat flour, soybean oil, and feeds.
! Consumer-ready includes both processed products such as breakfast
cereals and products such as fresh fruits and vegetables.
! Until 1990, bulk agricultural exports were the mainstay of U.S. farm
export trade. Since FY1991, the total of high-value (intermediate
and consumer-ready) products has exceeded the value of bulk
agricultural exports.
! In FY2006, high-value exports accounted for 63% of total U.S.
agricultural exports and bulk exports for 37%.
Figure 5. U.S. Agricultural Exports, FY1990-FY2006:
Bulk, Consumer-Oriented, and Intermediate Product Exports
70
60
50
40
30
20
10
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
Intermediate
Consumer-Oriented
Bulk
Source: U.S. Department of Agriculture. Foreign Agricultural Service.

CRS-10
Table 5. U.S. Agricultural Exports, FY1990-FY2006:
Total, Bulk, Consumer-Ready, and Intermediate Product Exports
($ thousands)
% of
Consumer-
% of
% of
Year
Total
Bulk
Intermediate
Total
Oriented
Total
Total
1990
40,347,960
21,793,461
54.0
9,891,735
24.5
8,662,764
21.5
1991
37,864,207
17,701,487
46.7
11,574,646
30.6
8,588,074
22.7
1992
42,554,780
19,523,240
45.9
13,689,029
32.2
9,342,511
22.0
1993
43,057,753
19,084,550
44.3
14,889,726
34.6
9,083,477
21.1
1994
43,893,020
17,940,578
40.9
16,460,463
37.5
9,491,979
21.6
1995
54,613,152
24,446,611
44.8
18,847,340
34.5
11,319,201
20.7
1996
59,785,653
28,781,235
48.1
20,167,462
33.7
10,836,956
18.1
1997
57,305,347
24,250,805
42.3
20,928,673
36.5
12,125,869
21.2
1998
53,661,663
20,925,957
39.0
20,716,672
38.6
12,019,034
22.4
1999
49,118,260
18,596,897
37.9
19,969,550
40.7
10,551,813
21.5
2000
50,761,767
18,580,955
36.6
21,568,538
42.5
10,612,274
20.9
2001
52,716,911
18,436,458
35.0
22,673,764
43.0
11,606,689
22.0
2002
53,319,318
19,122,275
35.9
21,807,002
40.9
12,390,041
23.2
2003
56,013,986
21,224,523
37.9
22,848,832
40.8
11,940,632
21.3
2004
62,408,828
26,903,911
43.1
23,473,244
37.6
12,031,673
19.3
2005
62,516,244
23,613,456
37.8
26,418,955
42.3
12,483,833
20.0
2006
68,720,594
25,709,989
37.4
29,557,328
43.0
13,453,277
19.6
Source: Data in this table are compiled from U.S. Department of Agriculture, Foreign Agricultural
Service databases, available at [http://www.fas.usda.gov/scriptsw/bico/bico_frm.asp].

CRS-11
Major Country Markets for U.S. Agricultural Exports
! Canada and Mexico, both U.S. partners in the North American Free
Trade Agreement (NAFTA), are the first- and second-largest
markets for U.S. agricultural exports. Total U.S. agricultural exports
to these two countries in FY2007 is forecast to exceed $25 billion.
! Japan, which was the number one U.S. destination for agricultural
products for many years, is the third-largest export destination.
! China, which joined the World Trade Organization in 2001, is
forecast to become the fourth-largest market for U.S. agricultural
products in FY2007, ahead of the European Union (EU-25) which
drops to fifth place.
! Other Asian markets — South Korea and Taiwan — are the sixth-
and seventh-largest destinations for U.S. agricultural exports.
Figure 6. Major Country Markets for U.S. Exports, FY2005-FY2007F
13.2
Canada
11.6
10.4
11.9
Mexico
10.4
9.2
9.1
Japan
8.2
7.8
8.5
China
6.7
5.3
7.2
EU*
7.1
7
2.7
Taiwan
2.4
2.2
0
2
4
6
8
10
12
14
$ Billions
2007F
2006
2005
*Includes the former EU-15 plus 10 new states which acceded in May 2004.
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

CRS-12
Table 6. Major Country Markets for U.S. Agricultural Exports,
FY2005-FY2007F
($ billion)
Country
2005
2006
2007F
Canada
10.4
11.6
13.2
Mexico
9.2
10.4
11.9
Japan
7.8
8.2
9.1
China
5.3
6.7
8.5
EU
7.0
7.1
7.2
Taiwan
2.2
2.4
2.7
South Korea
2.2
2.7
3.4
Russia
0.9
0.9
0.9
Turkey
1.0
1.0
1.0
Hong Kong
0.9
0.9
1.0
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-52, November 22, 2006, available at [http://usda.mannlib.cornell.
edu/usda/current/AES/AES-11-22-2006.pdf].
F=Forecast

CRS-13
World Market Shares: Crops
! Wheat: Although it has lost export market share over the last
decade, the United States remains the major supplier of wheat and
wheat products to the world market, with a forecast share of 25% in
marketing year 2006/2007. Australia, Canada, and the EU-25 are
major competitors in this market (see Figure 7 and Table 7).
! Rice: Thailand (30% forecast for 2007) is the world’s dominant rice
exporter; but Vietnam (17%) has emerged as a major competitor.
India’s export market share in 2007 is forecast to be 14% (see
Figure 8 and Table 8).
! Corn: The United States dominates the world market for corn with
a 2007 forecast export share of 70% (see Figure 9 and Table 9).
! Soybeans: Brazil has overtaken the United States as the world’s
main supplier of soybeans with a 2007 forecast share of 39%. The
U.S. share has declined from 73% in 1995/1996 to a forecast of 37%
in 2005/2006 (see Figure 10 and Table 10).
! Cotton: U.S. cotton exports are estimated to be 39% of the world
total in 2005/2006. Competitors include Australia (7%), Uzbekistan
(11%), and Franc-Zone West African countries (11%) (see Figure
11
and Table 11).

CRS-14
Figure 7. Shares of World Exports of Wheat and Wheat Products,
2006/07F
Canada
18%
Australia
11%
European Union
Argentina
14%
9%
Kazakhstan, Rep.
4%
Rest of World
22%
United States
22%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-15
Table 7. Shares of World Exports of Wheat and
Wheat Products, 1995/96-2006/07F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Argentina
4.5
9.7
9.4
9.0
9.8
10.9
Australia
12.2
17.5
14.7
15.8
15.2
16.0
Canada
17.2
17.4
20.4
14.1
17.2
16.7
EU-25
13.3
17.1
13.6
14.3
17.2
16.1
Kazakhstan,
4.3
2.2
3.4
2.3
5.8
3.8
Rep.
United States
34.1
26.2
27.1
28.4
26.1
26.9
Rest of World
14.4
9.8
11.4
16.1
8.7
9.5
Country
2001/02
2002/03
2003/04
2004/05
2005/06E
2006/07F
Argentina
10.5
5.7
7.0
11.9
7.3
9.0
Australia
14.9
9.9
14.4
14.0
13.4
10.8
Canada
15.1
8.5
14.9
13.4
13.8
18.4
EU-25
12.8
18.1
10.5
12.7
13.2
13.9
Kazakhstan,
3.6
5.7
3.9
2.4
2.6
4.5
Rep.
United States
23.7
20.7
30.9
25.2
24.1
22.0
Rest of World
19.3
31.3
18.4
20.4
25.5
21.6
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Grain: World
Markets and Trade, FG 01-07, January 2007, available at [http://www.fas.usda.gov/grain/
circular/2007/01-07/graintoc.htm].
July-June marketing year.
E = Estimate
F = Forecast

CRS-16
Figure 8. Shares of World Exports of Rice, 2006/07F
Pakistan
10%
India
15%
Thailand
30%
China
4%
Rest of World
13%
United States
11%
Vietnam
17%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-17
Table 8. Shares of World Exports of Rice, 1994/95-2006/07F
(percent)
Country
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
China
0.2
1.3
5.0
13.5
10.9
13.0
7.6
India
20.0
18.6
11.1
16.9
11.1
6.4
7.9
Pakistan
8.5
8.5
9.4
7.2
7.4
8.9
9.9
Thailand
28.6
26.8
27.7
23.0
26.9
28.8
30.8
United
14.6
13.3
12.2
11.5
10.7
12.5
10.4
States
Vietnam
11.1
15.4
17.6
13.7
18.4
14.8
14.4
Rest of
17.1
16.1
17.0
14.2
14.7
15.7
19.1
World
Country
2001/02
2002/03
2003/04
2004/05
2005/06E
2006/07F
China
7.0
9.4
3.2
2.3
4.0
3.6
India
23.9
16.0
11.7
16.2
13.7
15.4
Pakistan
5.8
7.1
7.3
10.5
10.9
10.4
Thailand
26.0
27.4
37.3
25.1
26.4
29.5
United
11.8
13.9
11.4
13.3
12.7
11.4
States
Vietnam
11.6
13.8
15.8
17.8
17.4
16.8
Rest of
13.8
12.4
13.3
14.9
15.0
12.9
World
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Grain: World
Markets and Trade, FG 01-07, January 2007, available at [http://www.fas.usda.gov/grain/
circular/2007/01-07/graintoc.htm].
July-June marketing year.
E = Estimate
F = Forecast

CRS-18
Figure 9. Shares of World Exports of Corn, 2006/07F
South Africa, Rep.
1%
Argentina
15%
United States
68%
Rest of World
12%
China
5%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-19
Table 9. Shares of World Exports of Corn,
1995/96-2006/07F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Argentina
10.7
15.3
20.2
11.4
12.1
16.0
China
0.2
5.8
9.8
4.9
13.5
9.5
South Africa,
2.7
2.4
1.7
1.2
1.1
1.9
Rep.
United States
81.4
70.0
59.9
75.7
67.4
63.3
Rest of World
4.9
6.5
8.4
6.8
5.9
9.3
Country
2001/02
2002/03
2003/04
2004/05
2005/06E
2006/07F
Argentina
11.5
15.7
13.2
18.0
12.9
14.5
China
11.5
19.4
9.5
9.9
4.5
4.8
South Africa,
1.6
1.5
1.0
2.0
1.7
0.6
Rep.
United States
63.4
51.4
61.6
59.3
67.6
68.1
Rest of World
12.0
12.0
14.7
10.8
13.3
12.0
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Grain: World
Markets and Trade, FG 01-07, January 2007, available at [http://www.fas.usda.gov/grain/
circular/2007/01-07/graintoc.htm].
October-September marketing year.
E = Estimate
F = Forecast

CRS-20
Figure 10. Shares of World Exports of Soybeans, 2006/07F
Brazil
37%
Argentina
10%
Paraguay
5%
Canada
2%
Rest of World
3%
United States
43%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
E = Estimate

CRS-21
Table 10. Shares of World Exports of Soybeans,
1995/96-2006/07F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Argentina
6.6
2.1
8.0
8.9
9.0
13.8
Brazil
10.9
22.9
22.1
23.3
24.3
28.7
Canada
1.9
1.3
1.9
2.3
2.1
1.4
Paraguay
5.0
5.8
5.8
6.0
4.4
4.7
United States
73.0
65.6
60.0
57.2
58.2
50.3
Rest of
2.5
2.3
2.2
2.2
1.9
1.2
World
Country
2001/02
2002/03
2003/04
2004/05 2005/06E 2006/07F
Argentina
11.2
14.2
12.4
14.4
11.3
10.5
Brazil
28.1
32.3
35.5
31.2
40.2
36.7
Canada
0.9
1.2
1.6
1.7
2.0
2.2
Paraguay
4.3
4.6
5.0
4.5
4.0
4.7
United
54.2
46.5
43.2
46.3
40.0
43.4
States
Rest of
1.3
1.3
2.3
1.9
2.4
2.5
World
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Oilseeds: World
Market and Trade, FOP 1 - 07, January 2007, available at [http://www.fas.usda.gov/oilseeds/
circular/2007/January/oilseedsfull0107.pdf].
Marketing year.
E = Estimate
F = Forecast

CRS-22
Figure 11. Shares of World Exports of Cotton, 2006/07F
United States
39%
Franc-Zone Africa*
11%
Australia
6%
Uzbekistan
11%
Rest of World
33%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
E = Estimate
F = Forecast
* Includes Benin, Burkina, Cameroon, CAR, Chad, Cote d'Ivoire, Mali, Niger, Senegal and Togo.

CRS-23
Table 11. Shares of World Exports of Cotton,
1995/96-2006/07F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Australia
5.3
8.9
10.1
12.9
11.8
14.9
Franc-Zone
10.2
12.3
13.5
15.3
13.7
12.4
Africaa
United
28.1
25.6
28.3
18.3
24.8
25.7
States
Uzbekistan
16.5
17.0
17.1
16.2
15.4
13.1
Rest of
39.8
36.3
31.0
37.3
34.2
33.9
World
Country
2001/02
2002/03
2003/04
2004/05 2005/06E 2006/07F
Australia
10.8
8.8
6.5
5.7
6.5
5.6
Franc-Zone
12.2
12.5
13.4
11.8
9.7
11.0
Africaa
United
37.9
39.2
41.4
41.2
40.4
38.9
States
Uzbekistan
12.0
11.2
9.3
11.3
10.7
11.4
Rest of
27.1
28.3
29.4
30.0
32.7
33.1
World
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Cotton: World
Markets and Trade, FOP 01-07, January 2007, available at [http://www.fas.usda.gov/cotton/
circular/2007/January/cottonfull00107.pdf].
a Includes Benin, Burkina, Cameroon, CAR, Chad, Cote d’Ivoire, Mali, Niger, Senegal and
Togo.
Marketing year.
E = Estimate
F = Forecast

CRS-24
World Market Shares: Livestock and Dairy
! Beef: Brazil, with 27% (forecast) of world exports in 2007, has
emerged as the world’s largest supplier of beef to world markets.
The U.S. share of world beef exports, 18% in 2003, has declined to
a forecast 9% for 2007, because of continuing effects of mad cow
disease on global beef trade.
! Pork: The EU and the United States are the world’s largest
exporters of pork (each with 26% forecast for 2007). The EU,
however, has lost market share to both the United States and
Canada.
! Poultry: Brazil is the world’s leading supplier of poultry meat (38%
forecast for 2007). The United States, with 37% of world exports,
and the EU (10%) have lost market share to Brazil in recent years.
! Dairy Products: In 2007, the United States, New Zealand, and the
EU are forecast to be the leading suppliers of nonfat dry milk to
world markets. The EU dominates the world market for cheese,
while New Zealand is the largest exporter of butter.
Figure 12. Shares of World Exports of Beef and Veal, 2007F
Brazil
United States
27%
9%
European Union
3%
Argentina
8%
Australia
20%
Rest of World
26%
New Zealand
8%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-25
Table 12. Shares of World Exports of Beef and Veal, 1995-2007F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
Argentina
9.8
9.9
7.9
5.6
6.3
6.2
3.0
European Union
22.0
22.0
18.8
14.3
15.7
9.5
8.9
United States
15.1
17.0
16.7
18.1
19.1
19.5
18.1
Brazil
4.2
4.5
4.0
5.6
8.1
8.6
13.2
Australia
20.3
20.5
20.4
23.3
22.2
23.3
24.7
New Zealand
9.1
10.0
8.8
9.0
7.7
8.4
8.7
Rest of World
19.4
15.9
23.3
24.1
20.9
24.5
23.4
Country
2002
2003
2004
2005 2006P
2007F
Argentina
5.5
6.1
9.6
10.7
7.1
8.0
European Union
7.7
6.1
5.5
3.6
2.9
2.7
United States
17.7
18.0
3.2
4.5
7.5
9.1
Brazil
14.0
18.5
25.1
26.3
27.8
26.6
Australia
21.8
19.9
21.5
19.9
20.3
20.1
New Zealand
7.7
8.8
9.3
8.3
7.7
7.6
Rest of World
25.5
22.5
25.8
26.6
26.7
25.8
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Livestock and
Poultry: World Markets and Trade, DL&P 2-06, October 2006, available at [http://www.
fas.usda.gov/dlp/circular/2006/2006%20Annual/Livestock&Poultry.pdf].
P = Preliminary
F = Forecast

CRS-26
Figure 13. Shares of World Pork Exports, 2007F
United States
26%
Canada
21%
Rest of World
European Union
17%
26%
China, Peoples Republic of
10%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-27
Table 13. Shares of World Pork Exports, 1994-2007F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
Canada
15.5
13.8
14.6
14.9
16.4
20.4
21.5
United States
15.1
15.8
16.5
19.2
17.3
18.0
20.9
European Union
32.7
30.9
33.1
35.7
52.1
47.0
33.6
China, People’s
4.4
4.9
7.0
7.0
4.2
4.4
6.6
Republic of
Taiwan
16.1
13.9
2.4
0.1



Rest of World
16.1
20.7
26.4
23.1
10.0
10.1
17.4
Country
2002
2003
2004
2005
2006P
2007F
Canada
22.2
22.9
20.0
20.8
21.2
21.1
United States
18.8
18.3
20.3
23.2
26.0
26.4
European Union
29.7
29.0
30.1
26.0
27.0
26.3
China, People’s
7.9
9.3
11.0
9.6
9.7
9.6
Republic of
Taiwan






Rest of World
21.5
20.4
18.5
20.4
16.1
16.6
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Livestock and
Poultry: World Markets and Trade, DL&P 2-06, November 2006, available at
[http://www.fas.usda.gov/dlp/circular/2006/2006%20Annual/Livestock&Poultry.pdf].
P= Preliminary
F= Forecast
— = Less than 0.1%

CRS-28
Figure 14. Shares of World Poultry Meat Exports, 2007F
United States
37%
Rest of World
Brazil
9%
38%
China (PRC)
5%
European Union
10%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-29
Table 14. Shares of World Total Poultry Meat Exports,
1994-2007F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
United States
41.3
41.9
49.2
47.1
47.1
46.4
45.6
Brazil
10.0
11.7
15.3
13.9
16.6
18.1
22.2
European Union
36.2
33.3
18.0
19.1
18.8
16.4
13.1
China (PRC)
6.2
6.6
8.2
7.7
8.5
9.6
8.8
Rest of World
6.3
6.5
9.4
12.1
9.0
9.5
10.2
Country
2002
2003
2004
2005
2006P
2007F
United States
38.2
37.1
35.8
34.8
37.9
37.2
Brazil
27.7
31.6
39.9
40.3
38.6
37.9
European Union
15.3
13.1
13.4
11.1
9.6
10.2
China (PRC)
7.7
6.4
4.0
4.9
5.4
5.4
Rest of World
11.2
11.8
6.9
8.9
8.4
9.3
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Livestock and
Poultry: World Markets and Trade, DL&P 2-06, November 2006, available at [http://www.
fas.usda.gov/dlp/circular/2006/2006%20Annual/Livestock&Poultry.pdf].
P= Preliminary
F= Forecast

CRS-30
Figure 15. Shares of World Nonfat Dry Milk Exports, 2007F
European Union
12%
United States
28%
Australia
18%
Rest of World
19%
New Zealand
23%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-31
Table 15. Shares of World Nonfat Dry Milk Exports,
1995-2007F
(percent)
Country
1995
1996
1997
1998
1999
2000
Canada
2.5
2.5
2.9
3.8
3.6
2.6
United States
9.5
2.4
11.3
11.5
19.0
11.7
European Union
22.4
17.6
27.3
19.4
32.6
37.4
Australia
10.9
12.8
19.8
22.1
21.1
20.9
New Zealand
9.7
11.5
20.8
21.8
18.0
14.5
Rest of World
45.1
53.2
18.0
21.4
5.7
12.9
Country
2001
2002
2003
2004
2005
2006P
2007F
Canada
4.8
4.7
3.1
1.4
0.6
1.0
1.0
United States
9.9
12.0
12.0
19.8
28.4
27.6
28.0
European Union
29.4
25.5
28.9
24.3
19.3
12.4
11.4
Australia
22.5
22.1
16.5
16.1
13.9
18.3
17.7
New Zealand
20.2
23.7
26.8
26.2
21.8
23.1
23.2
Rest of World
13.2
12.0
12.7
12.3
16.0
17.7
18.6
Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply
and Distribution Online database [http://www.fas.usda.gov/psdonline/psdHome.aspx].
P= Preliminary
F= Forecast

CRS-32
Figure 16. Shares of World Cheese Exports, 2006F
European Union
39%
New Zealand
21%
Rest of World
3%
Canada
1%
Argentina
5%
United States
Australia
6%
16%
Ukraine
10%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-33
Table 16. Shares of World Cheese Exports, 1994-2006F
(percent)
Country
1994
1995
1996
1997
1998
1999
2000
European Union
60.3
56.7
57.3
51.0
46.2
42.2
45.2
New Zealanda
15.0
17.4
20.4
25.0
25.6
26.9
23.7
Australiab
10.6
11.5
13.1
13.3
16.6
19.3
20.9
Ukraine
0.5
0.6
0.4
0.2
0.4
0.7
1.1
United States
2.7
2.9
3.8
4.0
4.1
4.3
4.4
Argentina
1.4
1.3
1.3
2.0
1.9
2.2
2.1
Canada
0.9
1.4
1.8
2.4
3.0
2.8
1.7
Rest of World
8.5
8.2
2.0
2.0
2.2
1.7
0.9
Country
2001
2002
2003
2004
2005P
2006F
European Union
44.7
44.6
43.6
41.6
39.7
38.5
New Zealanda
23.1
23.9
24.6
23.3
21.5
21.2
Australiab
20.2
18.8
17.5
17.1
18.4
15.6
Ukraine
2.9
3.2
5.2
7.6
8.9
10.4
United States
4.9
4.7
4.4
4.9
4.7
5.6
Argentina
1.7
2.2
1.9
2.5
3.6
5.2
Canada
1.8
1.5
0.9
0.9
0.8
1.0
Rest of World
0.9
1.0
1.9
2.2
2.4
2.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Dairy: World
Markets and Trade, FD 1-06, July 2006, [http://www.fas.usda.gov/dlp/circular/2006/
06-07Dairy/dairy06_07.pdf].
a Year ending May 31 of the year shown.
b Year ending June 30 of the year shown.
P= Preliminary
F= Forecast

CRS-34
Figure 17. Shares of World Butter Exports, FY2006F
New Zealand
46%
Rest of World
3%
United States
1%
Canada
3%
European Union
Ukraine
35%
4%
Australia
9%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

CRS-35
Table 17. Shares of World Butter Exports, 1994-2006F
(percent)
Country
1994
1995
1996
1997
1998
1999
New Zealanda
38.7
35.3
39.1
42.1
50.2
47.7
European Union
27.9
27.7
23.6
29.2
26.8
27.5
Australiab
13.7
12.6
12.3
14.8
16.7
20.0
Ukraine
3.3
10.2
15.6
7.9
1.6
1.4
Canada
0.3
0.9
2.1
1.6
1.9
1.9
United States
13.7
9.5
3.1
2.4
0.5
0.3
Rest of World
2.5
3.9
4.1
2.0
2.2
1.2
Country
2000
2001
2002
2003
2004
2005P
2006F
New Zealanda
47.5
46.7
47.5
46.1
44.2
39.5
45.7
European Union
26.0
26.4
29.9
35.5
39.2
42.5
34.6
Australiab
19.5
16.6
16.8
12.7
8.3
8.8
9.3
Ukraine
4.4
7.1
2.0
2.1
4.6
3.8
4.3
Canada
1.4
2.2
2.3
1.4
1.9
2.5
2.7
United States
0.6
0.0
0.4
1.2
0.9
1.0
0.7
Rest of World
0.7
1.1
1.1
1.0
0.9
2.0
2.6
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Dairy: World
Markets and Trade, FD 1-06, July 2006, [http://www.fas.usda.gov/dlp/circular/2006/
06-07Dairy/dairy06_07.pdf].
a Year ending May 31 of the year shown.
b Year ending June 30 of the year shown.
P= Preliminary
F= Forecast

CRS-36
World Market Shares: Sugar
! Brazil dominates the world market for sugar with an export market
share forecast at 41% for 2007.
! Australia is the world’s second-largest exporter of sugar.
! Sugar exports from the United States, a sugar importer, are
negligible (only 0.4% forecast for 2007).
Figure 18. Shares of World Centrifugal Sugar Exports, 2006/07F
Brazil
41%
DR-CAFTA
6%
Total Caribbean
3%
Mexico
1%
United States
European Union
0%
3%
Australia
8%
Rest of World
38%
Source: U.S. Department of Agriculture. Foreign Agricultural Service. October-September marketing year.
DR-CAFTA includes the Dominican Republic and Central America.
European Union data include French overseas departments of Reunion, Guadeloupe, and Martinique, but
does not include intra trade. EU data include sugar containing products.

CRS-37
Table 18. Shares of World Centrifugal Sugar Exports,
1995/96-2006/07F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
United States
0.9
0.5
0.4
0.6
0.3
0.3
Mexico
1.7
2.0
3.2
1.6
0.8
0.4
Total Caribbean
12.8
7.8
9.2
9.5
9.1
8.6
DR-CAFTAa
5.1
4.8
6.3
5.2
5.2
6.0
Brazil
7.4
15.5
19.1
23.2
27.1
20.0
European Unionb
13.1
14.0
16.9
14.2
14.7
17.2
Australia
12.0
12.2
12.1
10.8
9.9
7.9
Rest of World
47.0
43.2
32.8
35.0
33.0
39.5
Country
2001/02
2002/03
2003/04
2004/05
2005/06 2006/07F
United States
0.3
0.3
0.6
0.5
0.4
0.4
Mexico
1.0
0.1
0.0
0.3
1.4
0.7
Total Caribbean
7.8
4.4
4.9
5.2
4.5
2.6
DR-CAFTAa
5.3
5.0
5.3
5.6
5.0
5.7
Brazil
27.4
29.5
32.6
37.8
33.7
41.0
European Unionb
11.3
11.8
10.5
12.6
17.1
3.1
Australia
8.5
8.7
8.9
9.3
8.3
8.1
Rest of World
38.4
40.2
37.4
28.7
29.6
38.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Sugar: World
Markets and Trade, November 2006, [http://www.fas.usda.gov/psdonline/psdgetreport.
aspx?hidReportRetrievalName=BVS&hidReportRetrievalID=731&hidReportRetrievalT
emplateID=3].
a The EU Includes French overseas departments of Reunion, Guadeloupe, and Martinique.
EU trade data does not Include intra trade. Beginning 2004/05, the data reflects the EU
enlargement by accession of ten countries. EU exports include sugar-containing products.
b DR-CAFTA includes Dominican Republic and Central America.
P= Preliminary
F= Forecast

CRS-38
Major U.S. Agricultural Imports
! High-value horticultural products (fruits, vegetables, nuts, wine,
beer, nursery stock and flowers, and others) are the largest category
of U.S. agricultural imports — almost $24 billion — in FY2006.
! Other high-value imports include red meats ($4.5 billion), and
oilseeds and products ($3.5 billion).
! Imports of tropical products such as coffee, cocoa, and sugar
amounted to $8.4 billion in FY2006.
Figure 19. Major Agricultural Imports by Commodity, FY2006
Fruits, Nuts & Preps.
8.4
Wine & Malt Beverage
7.4
Vegetables & Preps.
6.7
Grains and Feeds
4.9
Red Meats
4.5
Oilseeds and Products
3.5
Coffee and Products
3.2
Cocoa and Products
2.6
Dairy Products
2.6
Sugar and Products
2.6
Essential Oils
2.5
Livestock and Products
2.2
Nursery and cut flowers
1.4
0
2
4
6
8
10
$ Billions
Source: U.S. Department of Agriculture. Economic Research Service.

CRS-39
Table 19. Major U.S. Agricultural Imports, FY2006
($ billions)
Commodity
FY2006 Imports
Fruits, Nuts & Preps.
8.4
Wine & Malt Beverage
7.4
Vegetables & Preps.
6.7
Grains and Feeds
4.9
Red Meats
4.5
Oilseeds and Products
3.5
Coffee and Products
3.2
Dairy Products
2.6
Sugar and Products
2.6
Cocoa and Products
2.6
Essential Oils
2.5
Livestock and Products
2.2
Nursery and cut flowers
1.4
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-52, November 22, 2006, available at [http://usda.mannlib.cornell.
edu/usda/current/AES/AES-11-22-2006.pdf].

CRS-40
U.S. Agricultural Imports by Country of Origin
! The EU-25 ($14.6 billion) and NAFTA partners Canada ($14.6
billion) and Mexico ($10.3 billion), with a total FY2007 forecast
import value of $39.5 billion, are the source of more than 57% of
total U.S. agricultural imports.
! Australia (at $2.5 billion), with whom the United States entered a
free trade agreement (FTA) in 2005, is forecast to be the fourth-
largest supplier in FY2007.
! Agricultural imports from Brazil also are expected to reach $2.5
billion in FY2007.
Figure 20. Major U.S. Agricultural Imports by Country of Origin,
FY2005-FY2007F
14.6
European Union
14
13.2
14.6
Canada
13.2
11.8
10.3
Mexico
9.3
8.1
2.5
Australia
2.4
2.5
2.5
Brazil
2.2
1.8
2.3
Indonesia
2
1.6
1.8
New Zealand
1.7
1.6
1.6
Colombia
1.5
1.4
0
2
4
6
8
10
12
14
16
$ Billions
2007F
2006
2005
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

CRS-41
Table 20. U.S. Agricultural Imports by Country of Origin,
FY2005-FY2007F
($ billion)
Country
FY2005
FY2006
2007F
European Union
13.2
14.0
14.6
Canada
11.8
13.2
14.6
Mexico
8.1
9.3
10.3
Australia
2.5
2.4
2.5
Brazil
1.8
2.2
2.5
New Zealand
1.6
1.7
1.8
Colombia
1.4
1.5
1.6
Indonesia
1.6
2.0
2.3
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-52, November 22, 2006, available at [http://usda.mannlib.cornell.
edu/usda/current/AES/AES-11-22-2006.pdf].
F= Forecast

CRS-42
Regional Market Growth in U.S. Agricultural Exports
! Economic growth in Asia has contributed to relatively consistent
long-term growth in U.S. agricultural exports to the region.
! Despite some year-to-year variation, the EU, the United States’ fifth-
largest export market, has been a relatively stable market for U.S.
agricultural exports.
! Agricultural exports to countries in the former Soviet Union have
declined in value since the 1992 break-up of the USSR.
! Agricultural exports to Latin America, including Mexico, and to
Canada grew rapidly during the 1990s because of geographic
proximity, NAFTA, and other factors.
Figure 21. Growth in U.S. Agricultural Exports, FY1992-FY2007F
70
60
50
40
30
20
10
0
1992
1994
1996
1998
2000
2002
2004
2006
Canada
Former Soviet Union
Latin America
European Union
Asia
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

CRS-43
Table 21. Change in U.S. Agricultural Exports
to Selected Markets, FY1992-FY2007F
($ billion)
Former
European
Latin
Year
Asia
Soviet
Canada
Union
Americaa
Union
1992
17.8
7.2
6.5
2.7
4.8
1993
17.8
7.2
6.9
1.6
5.2
1994
19.9
6.6
7.4
1.5
5.3
1995
24.0
8.4
8.2
2.1
5.8
1996
26.0
9.2
9.9
1.7
6.0
1997
23.9
9.0
10.0
2.9
6.6
1998
19.7
8.5
11.3
2.6
7.0
1999
18.5
7.0
10.4
1.4
7.0
2000
19.7
6.4
10.6
1.6
7.5
2001
20.1
6.5
11.6
1.8
8.0
2002
19.5
6.5
11.5
0.9
8.6
2003
21.7
6.3
12.4
0.7
9.1
2004
24.3
6.8
13.6
1.0
9.6
2005
22.5
7.0
14.4
1.2
10.4
2006
25.0
7.1
16.5
1.1
11.6
2007F
28.3
7.2
19.0
1.0
13.2
Rate of
2.94%
0%
6.93%
-6.02%
6.53%
Growthb
Source: U. S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-52, November 22, 2006, available at [http://usda.mannlib.cornell.
edu/usda/current/AES/AES-11-22-2006.pdf].
a Including Mexico.
b The rate of growth is the change in U.S. exports from 1992 to 2007F. Calculations were
made by CRS using a compound rate of growth calculator.
F= Forecast

CRS-44
Growth in U.S. Agricultural Exports to Asian Markets
! Like the EU, Japan also has been a relatively stable export market
for U.S. agricultural exports.
! U.S. agricultural exports to China have grown rapidly, fueled by
rates of GDP growth in excess of 9%. In FY2007 U.S. agricultural
exports to China are forecast to be more than four times their value
in FY2001, when China became a member of the World Trade
Organization.
! Rapid income growth in Southeast Asia also has stimulated demand
for U.S. agricultural exports since 1992.
! Agricultural exports to South Asia have shown slow but steady
growth since 1992.
Figure 22. Growth in Agricultural Exports to Asian Markets,
FY1992-FY2007F
25.0
20.0
15.0
10.0
5.0
0
1992
1994
1996
1998
2000
2002
2004
2006
China
South Asia
Southeast Asia
Japan
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

CRS-45
Table 22. Change in U.S. Agricultural Exports to Asian Markets,
FY1992-FY2007F
($ billion)
Southeast
Year
Japan
South Asia
China
Asia
1992
8.4
1.5
0.5
0.7
1993
8.5
1.6
0.6
0.3
1994
9.2
1.8
0.6
0.9
1995
10.5
2.6
1.0
2.4
1996
11.9
3.4
0.7
1.8
1997
10.7
3.1
0.7
1.8
1998
9.5
2.3
0.6
1.5
1999
8.9
2.2
0.5
1.0
2000
9.4
2.6
0.4
1.5
2001
8.9
2.9
0.6
1.9
2002
8.3
2.9
0.8
1.8
2003
8.8
2.9
0.6
3.5
2004
8.5
3.1
0.7
6.1
2005
7.8
3.4
0.7
5.3
2006
8.2
3.4
0.7
6.7
2007F
9.1
2.9
0.7
8.5
Rate of
Growtha
0.50%
4.21%
2.13%
16.89%
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-52, November 22, 2006, available at [http://usda.mannlib.cornell.
edu/usda/current/AES/AES-11-22-2006.pdf].
a The rate of growth is the change in U.S. exports from 1992 to 2007F. Calculations were
made by CRS using a compound rate of growth calculator.
F= Forecast

CRS-46
Growth in Agricultural Exports to North and South America
! Growth in U.S. agricultural trade with Canada and Mexico, both
NAFTA trading partners, and with Latin America has been
particularly strong since 1992.
! U.S. agricultural exports to Canada are forecast to reach $13.2
billion in FY2007.
! U.S. agricultural exports to Mexico are expected to be $11.9 billion
in FY2007.
! U.S. agricultural exports to Latin America (excluding Mexico) are
expected to reach $7 billion in FY2007.
Figure 23. Growth in Agricultural Exports to North and South
America, FY1992-FY2007F
60
50
40
30
20
10
0
1992
1994
1996
1998
2000
2002
2004
2006
NAFTA
Mexico
Canada
Latin America ex. Mexico
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

CRS-47
Table 23. Change in Agricultural Exports to North and
South America, FY1992-FY2007F
($ billion)
Latin America
Year
Canada
Mexico
NAFTA
ex. Mexico
1992
2.8
4.8
3.7
8.5
1993
3.3
5.2
3.7
8.9
1994
3.2
5.3
4.1
9.4
1995
4.5
5.8
3.7
9.5
1996
4.9
6.6
5.1
11.7
1997
4.9
6.6
5.1
11.7
1998
5.3
7.0
6.0
13.0
1999
4.7
7.0
5.7
12.7
2000
4.3
7.5
6.3
13.8
2001
4.3
8.0
7.3
15.3
2002
4.5
8.6
7.1
15.7
2003
4.8
9.1
7.6
16.7
2004
5.2
9.6
8.4
18.0
2005
5.2
10.4
9.3
19.7
2006
6.1
11.6
10.4
22.0
2007F
7.1
13.2
11.9
25.1
Rate of
5.99%
6.53%
7.57%
7.00%
Growth
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-52, November 22, 2006, available at [http://usda.mannlib.cornell.
edu/usda/current/AES/AES-11-22-2006.pdf].
a The rate of growth is the change in U.S. exports from 1992 to 2007F. Calculations were
made by CRS using a compound rate of growth calculator.
F= Forecast

CRS-48
Market Development Programs in Selected Countries
! Most major agricultural exporting countries have programs to
promote agricultural exports and develop markets. Programs
include consumer promotions, market research, technical assistance,
and trade servicing.1
! According to data compiled by USDA, 37% of the funds for U.S.
market development programs are from the federal government, and
63% are from commodity groups, trade associations, cooperatives,
or private firms.
! USDA reports that EU countries operate market development/export
promotion programs funded by mandatory producer levies (57% in
2002) and national budgets (43% in 2002).
! In Australia, the government provided 63% of export market
development funds in 2002 and industry 37%, while in New
Zealand, 99.8% of export market development funds are provided by
industry.
Figure 24. Expenditures for Market Development,
Selected Countries, 2002
377.6
400
352.9
331.4
350
300
250
200
150
100
49.3
50
0
EU Countries
United States
Australia
New Zealand
Industry
Government
Source: Foreign Agricultural Service 2002.
EU Countries include Denmark, France, Germany, Italy, Netherlands, Spain and U.K.
1 Information on spending for foreign country market development programs is from The
Competition in 2002: U.S. and Competitor Expenditures on Export Promotion for
Agricultural, Forestry, and Fishery Products
, USDA, Foreign Agricultural Service, August
2004, available at [http://www.fas.usda.gov/cmp/com-study/2002/2002.pdf].

CRS-49
Table 24. Expenditures for Market Development,
Selected Countries, 2002
($ millions)
Funding
Country
Total
Government
%
Industry
%
EU Countries
377.6
162.1
42.9
215.5
57.0
United States
331.4
123.4
37.2
208.0
62.8
Australia
49.3
31.1
63.1
18.2
36.9
New Zealand
352.9
0.6
0.2
352.3
99.8
Source: U.S. Department of Agriculture, Foreign Agricultural Service, The Competition in
2002: U.S. and Competitor Expenditures on Export Promotion for Agricultural, Forestry,
and Fishery Products
, August 2004, available at [http://www.fas.usda.gov/cmp/com-study/
2002/2002.pdf].

CRS-50
Producer Support Estimates (PSEs) in
Selected OECD Countries2

! PSEs measure assistance to producers in terms of the value of
monetary transfers generated by agricultural policy. Transfers are
paid either by consumers or by taxpayers in the form of market price
support, direct payments, or other support. They are a broader
measure of support than direct government subsidies alone (which
are discussed below). PSEs can be expressed in money terms in
aggregate or per unit of production, or in percentage terms.
! PSEs are an indication of the extent to which government policy
supports (subsidizes) agricultural producers.
! PSEs vary considerably among OECD countries. Australia, with
5%, is among the lowest, while Korea at 63% and Japan at 56% are
among the highest.
! The EU’s PSE (32%) equals about one-third, and the United States’
(16%) less than one-fifth, of the value of total agricultural
production.
Figure 25. Producer Support Estimates (PSEs)
in Selected OECD Countries
Australia
EU
Japan
Korea
U.S.
70
60
50
40
30
20
10
0
1986-88 2002-2004
2001
2002
2003
2004
2005P
Source: OECD 2006
P = Provisional
2 Agricultural policies in OECD Countries At a Glance, Paris, OECD, 2006.

CRS-51
Table 25. Producer Support Estimates (PSEs)
in Selected OECD Countries
(percent)
Country
1986-88
2002-2004
2001
2002
2003
2004
2005P
Australia
8
4
3
5
4
5
5
EU
41
34
32
34
36
33
32
Japan
61
58
57
58
59
56
56
Korea
70
63
62
65
61
63
63
U.S.
22
17
23
18
15
16
16
Source: Organization for Economic Co-operation and Development (OECD), Agricultural
policies in OECD Countries at a Glance, 2006 edition, [http://www.oecd.org/document/4/
0,2340,en_2649_201185_36967364_1_1_1_1,00.html].
P = Provisional





















































































































































































































































































































CRS-52
Producer Support Estimates (PSEs) in the United States
and the European Union: Selected Commodities3

! The PSE for all agricultural products in the EU declined from 41%
in 1986-88, and was 32% in 2005.
! The PSE for all agricultural products in the United States declined
from 22% in 1986-88 to 16% in 2005.
! Products most heavily supported in the EU are beef and veal, sugar,
poultry, milk, wheat, and rice.
! Products most heavily supported in the United States are milk, sugar,
wheat, and rice. (OECD does not calculate PSEs for no-food crops,
such as cotton, which is heavily subsidized in the United States).
Figure 26. Producer Support Estimates (PSEs):
Selected Commodities in the United States
70
60
50
40
30
20
10
0
1986-88
2002-2004
2002
2003
2004P
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Source: OECD 2005
P = Provisional
3 PSEs for individual commodities are from Agricultural Policies in OECD Countries:
Monitoring and Evaluation
, Paris, OECD, 2005.

CRS-53
Table 26. Producer Support Estimates (PSE)
in the United States by Commodity
(percent)
1986-88
Products
2002-2004
2002
2003
2004P
(Average)
Wheat
49
30
36
22
32
Corn
38
20
20
13
27
Rice
52
33
50
31
18
Oilseeds
8
18
14
16
24
Sugar
58
57
53
62
56
Milk
41
40
43
38
39
Beef and Veal
6
4
4
4
4
Pork
4
4
4
4
4
Poultry
13
4
4
4
4
All Products
22
17
18
15
18
Source: Organization for Economic Cooperation and Development (OECD), Agricultural
Policies in OECD Countries: Monitoring and Evaluation, 2005 edition, [http://www.oecd.
org/document/9/0,2340,en_2649_201185_35015433_1_1_1_1,00.html].
P = Provisional

CRS-54
Figure 27. Producer Support Estimates (PSEs)
for Selected Commodities in the European Union
80
70
60
50
40
30
20
10
0
1986-88
2002-2004
2002
2003
2004P
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Source: OECD 2005
P = Provisional

CRS-55
Table 27. Producer Support Estimates (PSEs)
in the European Union
(percent)
1986-88
Products
2002-2004
2002
2003
2004P
(Average)
Wheat
51
43
43
48
39
Corn
53
39
30
44
43
Rice
60
35
34
32
39
Oilseeds
59
37
36
39
35
Sugar
60
60
52
64
65
Milk
70
40
45
43
30
Beef and Veal
55
73
74
76
68
Pork
16
24
21
26
24
Poultry
24
40
38
35
46
All Products
41
34
34
36
33
Source: Organization for Economic Cooperation and Development (OECD), Agricultural
Policies in OECD Countries: Monitoring and Evaluation, 2005 edition, [http://www.oecd.
org/document/9/0,2340,en_2649_201185_35015433_1_1_1_1,00.html].
P = Provisional

CRS-56
Domestic Support and Export Subsidies in the
United States and the European Union: Budgetary Outlays

! The governments of both the United States and the European Union
provide income support to farmers and subsidize agricultural
exports. EU direct subsidies in 1998 were more than four times
larger than direct U.S. subsidies; in 1999 EU subsidies were a little
over twice as large.
! In the United States, domestic support and export subsidies are
concentrated on wheat, rice, feed grains, and cotton.
! A near doubling of U.S. support from FY2004 to FY2005 reflects
mainly an increase in price support loans, and U.S. support increased
by 80% in 1999 because of a large emergency assistance program for
farmers and because low prices triggered increased outlays for
marketing assistance and loan deficiency payments.
! The European Union provides domestic support and export subsidies
to a broader range of products including grains, sugar, oils and fats,
dairy products, meat, poultry and eggs, and fruits and vegetables.

CRS-57
Table 28. U.S. and EU Government Spending on
Agricultural Support, 2003-2006E
($ billion)
European Union
2004
2005
2006E
Export Subsidies a
2.864
4.210
4.244
Domestic Support b
60.453
58.150
67.592
Total
63.317
62.360
71.836
United States
2004
2005
2006E
Export Subsidies c
0.061
0.046
0.292
Domestic Support d
10.514
20.141
20.323
Total
10.575
20.187
20.615
Source: U.S. Department Of Agriculture, Economic Research Service Table 35 — CCC
Net Outlays by Commodity and Function, available at [http://www.ers.usda.gov/
Publications/AgOutlook/AOTables/]; and Commission of the European Union, Agriculture
in the European Union, Statistical and Economic Information 2005, available at [http://
ec.europa.eu/agriculture/agrista/2005/table_en/index.htm].
E = Estimate
a EU export subsidies include export refunds, but exclude foreign food aid.
b EU domestic support includes expenditures for intervention purchasing and other price
support measures, production and processing subsidies, set-aside and income support,
monetary compensatory amounts, and stock depreciation. Rural development
spending, including agri-environmental spending, is included.
c U.S. export subsidies include net outlays of the Community Credit Corporation for the
Export Enhancement Program, Dairy Export Incentive Program, Export Credit
Guarantee Programs, Market Access Program, Technical Assistance to Emerging
Markets, Foreign Market Development Cooperative Program, and Quality Samples
Program. Foreign food aid is excluded. Minus (-) indicates a net receipt (excess of
repayments or other receipts over gross outlays of funds).
d U.S. domestic support includes net CCC outlays, including interest payments and
operating expenses, minus CCC export outlays. Net costs of crop insurance are
included. Conservation Reserve Program and other conservation spending is included.

CRS-58
Table 29. Agricultural and Trade Policies in the United States
and the European Union
United States
European Union
Domestic Support
Producers of wheat, feed grains, upland
Historically, agricultural support has been
cotton, rice, and oilseeds are eligible for
based primarily on market price support
direct payments entitling them to fixed
provided through institutional prices. For
annual payments until 2007. Payments are
many commodities, these policies have
based on established acreage and yields. A
been operated together with measures to
few planting restrictions apply and
limit the volume of production to which
conservation rules must be observed.
the price support applies. From
Holders of contracts qualify for
1993/1994 on, as part of the May 1992
nonrecourse marketing assistance loans and reform of the Common Agricultural
loan deficiency payments. Producers of
Policy (CAP), there has been some
soybeans and other oilseeds also are
substitution for market price support by
eligible for contract payments and
direct payments.
nonrecourse marketing assistance loans and
loan deficiency payments.
For supported crops, direct payments were
based on historical areas and yields and
Substantial emergency assistance was
operated in conjunction with a land set-
provided to U.S. farmers in 1998, 1999,
aside requirement. Oilseeds support is
2000, and 2001 to counter the effects of
based on area payments.
declining commodity prices and natural
disasters.
For livestock products, direct payments
were based on fixed reference numbers
Prices of milk and dairy products are
and for beef they are subject to limitations
supported by an administered minimum
on stocking density. Further price
price for milk, CCC purchase of dairy
reductions, part of Agenda 2000 reforms
products, tariffs, and import quotas. Other
further reduced grain and meat prices and
livestock products are not supported by
will be only partially compensated by
administered prices.
increases in direct payments.
The price of sugar is supported above an
Beginning in 2005, EU farmers receive a
administered minimum price by controlling decoupled Single Farm Payment (SFP)
supply through a tariff import quota.
which generally groups the previous
direct payments into one and is decoupled
A counter-cyclical income support program from production. Eligibility for the SFP is
for grain, cotton, and oilseed producers
conditioned on farmers’ observing
was included in the 2002 farm bill. Dairy
enumerated environmental and “good
farmers also receive a form of counter-
farming” practices.
cyclical support through Milk Income Loss
Contract payments under the 2002 farm
bill.

CRS-59
United States
European Union
Trade Measures
Import quotas for dairy and sugar are
Trade restrictions in the form of variable
subject to conversion to tariff quotas under
import levies which kept imported
the 1994 Uruguay Round (UR) Agreement
agricultural products at prices that are as
on Agriculture.
high as EU internal prices were converted
to tariff quotas as the EU implemented the
Export subsidies provided under the Export 1994 Uruguay Round Agreement on
Enhancement Program (EEP) and other
Agriculture.
commodity specific subsidies are subject to
reduction under the UR Agreement.
Export subsidies (called restitutions or
refunds) are provided to traders to cover
Export market development programs, the
the difference between internal EU
Market Access Program (MAP,) and the
commodity prices and world market
Foreign Market Development Program
prices. Export restitutions are subject to
(FMDP) assist producer groups,
reduction commitments negotiated in the
associations, and firms with promotional
Uruguay Round Agreement on
and other activities.
Agriculture.
A federally chartered public corporation,
EU countries (but not the EU itself)
the Commodity Credit Corporation (CCC),
operate market development and export
makes credit guarantees available to private promotion programs funded by
financial institutions who finance the
Government outlays and mandatory
purchase U.S. agricultural exports.
producer levies. France, Netherlands, and
Germany have the largest programs
The United States has negotiated free trade
devoted to promoting mainly exports of
agreements (FTAs) with Canada and
high-value products.
Mexico which cover substantially all
agricultural trade among FTA signatories.
France, for example, assists with export
The United States has negotiated FTAS
financing through the Company
with Chile and Central American countries
for International Trade Insurance
and is involved in negotiating other
(COFACE), which is majority held
bilateral FTAs with Thailand and South
independently. COFACE commercial risk
Korea, among others.
coverage is usually less than three years,
but longer terms are available in certain
cases.
Several preferential trade arrangements
have been concluded with former
European colonies in Africa, the
Caribbean, and the Pacific.

CRS-60
United States
European Union
Food Aid
The United States is the world’s leading
The EU provides about 1/3 of world food
supplier of food aid. It provides more than
aid.
half of the global total.
EU food aid consists of two parts, EU aid
The United States provides food aid mainly and individual country bilateral programs.
through P.L. 480 also known as the Food
EU aid is distributed mainly through the
for Peace program. Wheat and wheat flour
United Nations’ World Food Program;
are the main commodities provided as food
bilateral aid is distributed directly to
aid, but rice and vegetable oils are also
receiving countries. Bilateral food aid
important in P.L. 480 programs. Higher-
constitutes about 70% of the total of EU
value products are made available in special food aid. All EU food aid is provided as
feeding programs. Responsibility for
donations.
implementing food aid programs is shared
by USDA and the U.S. Agency for
Wheat is the predominant commodity in
International Development (AID).
EU food aid; lesser amounts of skim milk
powder, vegetable oils, sugar, and pulses
P.L. 480 food aid is provided on
are provided.
concessional terms (Title I) and as
donations (Titles II and III). Title I food aid
is intended to help develop overseas
markets; Titles II and III are for
humanitarian or developmental purposes.
Two other food aid programs are conducted
under Section 416(b) of the Agricultural
Act of 1949 and the Food for Progress Act
of 1985. The former provides surplus CCC
inventories as donations; the latter provides
concessional credit terms or commodity
donations to support emerging democracies
or countries making free market economic
reforms. A recently enacted food aid
program, the McGovern-Dole School Food
for Education program, finances school
feeding and child nutrition projects in poor
countries.

CRS-61
Table 30. Agricultural and Trade Policies in
Canada and Australia
Canada
Australia
Domestic Support
Agricultural policy involves a broad
Both Commonwealth and State programs
range of measures implemented
provide funds for farm restructuring, rural
by both the Federal and Provincial
development and research, and income-tax
Governments.
concessions. Under the Rural Adjustment
Scheme, the Commonwealth offers
Wheat and other grain prices are
interest rate subsidies on commercial loans
supported by the Canadian Wheat Board
for productivity improvements, short-term
(CWB) which has an exclusive right to
downturns, or reestablishment after
purchase wheat produced in Manitoba,
leaving farming.
Saskatchewan, Alberta, and the Peace
River Valley of British Columbia, and to
Excise taxes on diesel fuel used in off-
export it or sell it domestically.
road vehicles and machinery are refunded
under the Diesel Fuel Rebate Scheme
Farmers can participate in the Canadian
Agricultural income Stabilization
The Commonwealth guarantees Australian
Program which protects farmer against
Wheat Board loans used to finance
risks associated with weather and low
advance payments to wheat producers.
prices.
A large number of statutory marketing
Supply management systems exist for
boards exist at the Commonwealth and
several commodities, including milk,
State levels. The purposes of these boards
poultry, and eggs. Marketing boards set
are to increase producer returns, stabilize
producer prices and production quotas
prices, and assist with marketing.
for some commodities.
States impose supply controls on milk.
Provincial governments operate other,
Some States impose supply controls on
autonomous programs, often through
eggs, sugar, and rice. Marketing
provincial marketing boards. About
arrangements operate in some States for
one-third of total budgetary expenditure
barley, sorghum, corn, rice, and tobacco.
for Canadian agriculture is provided by
Provincial Governments.

CRS-62
Canada
Australia
Trade Measures
Import quotas apply to imports of
Tariffs protect sugar, tobacco, and
certain products — particularly dairy,
processed fruit and vegetables. A
poultry, and eggs — and are used in
tariff-rate quota applies to cheese imports
conjunction with supply management
from all countries except New Zealand
schemes for those products. The
Uruguay Round Agreement required that
Local content restrictions apply to fruit
these quotas be converted to tariffs with
juices and tobacco.
some minimum access for imports
provided.
Manufacturing milk (milk used in the
manufacturing of dairy products) is
A tariff rate quota on imports of
supported through export subsidies
boneless beef applies to imports from all
financed by levies on all domestic milk
countries except the United States and
production.
Mexico, Canada’s partners in NAFTA.
AWB Ltd., the privatized version of the
Canada agreed to gradually eliminate its
Australian Wheat Board, has monopoly
tariffs on most U.S. agricultural
control of wheat exports. A Crown
products under the bilateral free trade
corporation is the sole exporting authority
agreement with the United States. It
for sugar in Queensland, the main sugar
reached a separate bilateral agreement
producing state.
with Mexico under the North American
Free Trade Agreement, which also
The Commonwealth provides export credit
requires a scheduled elimination of
for wheat exports and extends credit
tariffs on most agricultural products.
insurance. The Australian Wheat Board
makes sales on credit terms. The
The Federal Government guarantees
Government’s Export Finance and
export credit for wheat exports, usually
Insurance Corporation provides export
for three years or less. It is also
insurance and insures credit sales by the
responsible for debt of the Canadian
Australian Wheat Board.
Wheat Board, which can borrow money
to finance wheat sales.
Export promotion is provided primarily by
commodity marketing boards and
Canada promotes exports, including
associations; the Commonwealth
agricultural exports, through the
Government provides only modest
Program for Export Market
assistance to promote agricultural exports.
Development. Assistance is made
available to commodity associations.
Some important commodity groups and
associations fund all are part of their
own export market development
activities. Provincial Governments have
modest export promotion programs.

CRS-63
Canada
Australia
Food Aid
Canada is the third largest provider of
Australian food aid is provided mainly to
food aid.
meet disaster or emergency situations.
Australian food aid is provided both
Food aid is administered as part of
bilaterally and through the U.N. World
Canada’s foreign aid program; the
Food Program.
Canadian International Development
Agency (CIDA) is responsible for
The main commodities provided under
implementing the program. Food aid is
Australia’s food aid program have been
donated and used to help recipient
wheat, rice, and wheat flour. Other
countries reform their agricultural
commodities include vegetable oils, peas,
policies or to meet humanitarian
and biscuits.
emergencies. In 1994, 60% of Canadian
food aid was distributed multilaterally,
mainly through the U.N. World Food
Program.
Wheat and wheat flour make up the
largest portion of Canadian food aid.
Non-grain products, especially canola
(rapeseed) oil, pulses, and fish account
for about a third.