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Prepared for Members and Committees of Congress

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U.S. agricultural exports for FY2008 are forecast by the U.S. Department of Agriculture to reach
a record $91 billion, while agricultural imports are expected to reach $75.5 billion, also a record
level. The agricultural trade surplus is projected to be $15.5 billion. Exports of high-value
products (e.g., fruits, vegetables, meats, wine and beer) have increased since the early 1990s and
now account for 60% of total U.S. agricultural exports. Exports of bulk commodities (e.g.,
soybeans, wheat, and feed grains) remain significant. Much of the growth in U.S. export value in
2007 is due to increased bulk exports.
Leading markets for U.S. agricultural exports are Canada, Mexico, Japan, the European Union,
China, South 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 and poultry to world markets. The U.S. share of world beef
exports, which declined after the 2003 discovery of a case of “mad cow disease” in the United
States, are recovering as more countries re-open markets to U.S. product. 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. The biggest import suppliers are the
European Union and NAFTA partners Canada and Mexico, which together provide 55% 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, a member of the World Trade Organization since 2001, have grown
at an annual rate of 15% since 1992.
Both the EU and the United States subsidize their agricultural sectors, but overall the EU
outspends the United States five to one. 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. EU and U.S. export subsidies are declining largely in
response to policy changes and market forces. 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. food aid is almost exclusively in the form of commodities, while other donors
provide a mix of cash and commodities.

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U.S. Agricultural Exports, Imports, and Trade Balance............................................................ 1
Shares of U.S. Crop Production Exported: Selected Commodities .......................................... 2
Shares of U.S. Livestock Production Exported: Selected Commodities................................... 4
Composition of U.S. Agricultural Exports: Major Commodity Components ........................... 5
Composition of U.S. Agricultural Exports: Bulk, Consumer-Ready, and Intermediate
Product Exports...................................................................................................................... 6
Major Country Markets for U.S. Agricultural Exports ............................................................. 8
World Export Market Shares: Crops ....................................................................................... 10
World Market Shares: Livestock and Dairy ............................................................................ 16
World Market Shares: Sugar ................................................................................................... 24
Major U.S. Agricultural Imports ............................................................................................. 26
U.S. Agricultural Imports by Country of Origin ..................................................................... 27
Regional Market Growth in U.S. Agricultural Exports........................................................... 28
Growth in U.S. Agricultural Exports to Asian Markets .......................................................... 30
Growth in Agricultural Exports to North and South America................................................. 32
Producer Support Estimates (PSEs) in Selected OECD Countries ......................................... 33
Producer Support Estimates (PSEs) in the United States and the European Union:
Selected Commodities.......................................................................................................... 35
Domestic Support and Export Subsidies in the United States and the European Union:
Budgetary Outlays................................................................................................................ 37

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Figure 1. U.S. Agricultural Exports, Imports, and the Trade Balance, FY1998-FY2008F ............. 1
Figure 2. U.S. Agricultural Exports: Share of U.S. Production Exported, 1990/91-
2007/08F....................................................................................................................................... 3
Figure 3. U.S. Agricultural Exports: Shares of U.S. Production of Livestock Exported,
1990-2008F .................................................................................................................................. 4
Figure 4. U.S. Agricultural Exports of Major Commodities, FY2007 ............................................ 6
Figure 5. U.S. Agricultural Exports, FY1990-FY2007: Bulk, Consumer-Oriented, and
Intermediate Product Exports....................................................................................................... 7
Figure 6. Major Country Markets for U.S. Exports, FY2006-FY2008F......................................... 9
Figure 7. Shares of World Exports of Wheat and Wheat Products, 2007/08F .............................. 10
Figure 8. Shares of World Exports of Rice, 2007/08F .................................................................. 12
Figure 9. Shares of World Exports of Corn, 2007/08F.................................................................. 13
Figure 10. Shares of World Exports of Soybeans, 2007/08F......................................................... 14
Figure 11. Shares of World Exports of Cotton, 2007/08F ............................................................. 15
Figure 12. Shares of World Exports of Beef and Veal, 2008F....................................................... 17
Figure 13. Shares of World Pork Exports, 2008F.......................................................................... 18
Figure 14. Shares of World Poultry Meat Exports, 2008F ............................................................ 19
Figure 15. Shares of World Nonfat Dry Milk Exports, 2008F ...................................................... 21
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Figure 16. Shares of World Cheese Exports, 2008F...................................................................... 22
Figure 17. Shares of World Butter Exports, 2008F ....................................................................... 23
Figure 18. Shares of World Centrifugal Sugar Exports, 2007/08F................................................ 25
Figure 19. Major Agricultural Imports by Commodity, FY2007 .................................................. 26
Figure 20. U.S. Agricultural Imports by Country of Origin, FY2006-FY2008F .......................... 28
Figure 21. Growth in U.S. Agricultural Exports, FY1992-FY2008F............................................ 29
Figure 22. Growth in Agricultural Exports to Asian Markets, FY1992-FY2008F........................ 31
Figure 23. Growth in the Agricultural Exports to North and South America, FY1992-
FY2008F .................................................................................................................................... 32
Figure 24. Producer Support Estimates (PSEs) in Selected OECD Countries .............................. 34
Figure 25. Producer Support Estimates (PSEs): Selected Commodities in the United
States .......................................................................................................................................... 35
Figure 26. Producer Support Estimate (PSEs) in the European Union ......................................... 36

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Table 1. U.S. Agricultural Exports and Imports, FY1988-FY2008F............................................... 1
Table 2. U.S. Agricultural Exports: Shares of U.S. Production Exported, 1990/91-
2007/08F....................................................................................................................................... 3
Table 3. U.S. Agricultural Exports: Shares of U.S. Production of Livestock Exported,
1990-2008F .................................................................................................................................. 5
Table 4. U.S. Agricultural Exports of Major Commodities, FY2007.............................................. 6
Table 5. U.S. Agricultural Exports, FY1990-FY2007: Total, Bulk, Consumer-Ready, and
Intermediate Product Exports....................................................................................................... 7
Table 6. Major Country Markets for U.S. Agricultural Exports, FY2006-FY2008F ...................... 9
Table 7. Shares of World Exports of Wheat and Wheat Products, 1995/96-2007/08F...................11
Table 8. Shares of World Exports of Rice, 1994/95-2007/08F...................................................... 12
Table 9. Shares of World Exports of Corn, 1995/96-2007/08F ..................................................... 13
Table 10. Shares of World Exports of Soybeans, 1995/96-2007/08F............................................ 14
Table 11. Shares of World Exports of Cotton, 1995/96-2007/08F ................................................ 16
Table 12. Shares of World Exports of Beef and Veal, 1995-2008F ............................................... 17
Table 13. Shares of World Pork Exports, 1994-2008F .................................................................. 18
Table 14. Shares of World Total Poultry Meat Exports, 1994-2008F............................................ 20
Table 15. Shares of World Nonfat Dry Milk Exports, 1995-2008F............................................... 21
Table 16. Shares of World Cheese Exports, 1994-2008F .............................................................. 22
Table 17. Shares of World Butter Exports, 1994-2008F................................................................ 24
Table 18. Shares of World Centrifugal Sugar Exports, 1995/96-2007/08F ................................... 25
Table 19. Major U.S. Agricultural Imports, FY2007..................................................................... 27
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Table 20. U.S. Agricultural Imports by Country of Origin, FY2006-FY2008F ............................ 28
Table 21. Change in U.S. Agricultural Exports to Selected Markets, FY1992-FY2008F............. 29
Table 22. Change in U.S. Agricultural Exports to Asian Markets, FY1992-FY2008F ................. 31
Table 23. Change in Agricultural Exports to North and South America, FY1992-FY2008F........ 33
Table 24. Producer Support Estimates (PSEs) in Selected OECD Countries................................ 34
Table 25. Producer Support Estimates (PSE) in the United States by Commodity....................... 36
Table 26. Producer Support Estimates (PSEs) in the European Union ......................................... 37
Table 27. U.S. and EU Government Spending on Agricultural Support, 2005-2007E ................. 37
Table 28. Agricultural and Trade Policies in the United States and the European Union ............. 38
Table 29. Agricultural and Trade Policies in Canada and Australia .............................................. 40

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Author Contact Information .......................................................................................................... 41

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• 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 $91 billion in FY2008, a record high.
• U.S. agricultural imports, forecast to reach a record $75.5 billion in FY2008, reflect
strong U.S. demand for imported foods, despite a weak dollar and negative effects on
disposable income from high fuel prices and the housing slump.
• The $15.5 billion U.S. agricultural trade surplus forecast for FY2008 is more than
half of its all-time high—$27 billion—reached in FY1996.
Figure 1. U.S. Agricultural Exports, Imports, and the Trade Balance, FY1998-FY2008F

Table 1. U.S. Agricultural Exports and Imports, FY1988-FY2008F
($ 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
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Year Exports Imports Balance
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 68.6
64.0
4.6
2007 81.9
70.0
11.9
2008F 91.0
75.5
15.5
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
Note: F= Forecast
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• USDA estimates that production from one-third of harvested acreage is exported.
• In FY2008, a forecast 58% of the U.S. wheat crop will be exported, while 18% of the
U.S. corn crop would move into world markets. Corn’s slightly declining export share of
production reflects competition from strong domestic demand for corn for livestock feed
and for ethanol production.
• The export shares of soybeans and cotton in FY2008 are forecast to reach 38% and
88%, respectively.
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Figure 2. U.S. Agricultural Exports: Share of U.S. Production Exported, 1990/91-
2007/08F

Table 2. U.S. Agricultural Exports: Shares of U.S. Production Exported, 1990/91-
2007/08F
(percent)
Year Wheat
Corn
Cotton Soybeans
1990/91 38.4
22.1
50.2 28.9
1991/92 65.5
21.4
37.7 34.4
1992/93 55.5
17.7
32.0 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
42.8 39.1
1996/97 44.0
19.9
36.2 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
54.1 36.8
2002/03 52.2
18.0
69.1 37.9
2003/04 50.6
19.0
75.3 36.1
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Year Wheat
Corn
Cotton Soybeans
2004/05 48.5
15.1
62.0 35.1
2005/06 47.9
19.9
73.5 30.7
2006/07 50.7
20.2
60.3 35.1
2007/08F 57.8
18.5
85.3 38.4
Source: Calculated by CRS using data from the U.S. Department of Agriculture’s Foreign Agricultural Service
Production, Supply and Distribution Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
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• Beef exports, which grew from around 4% of production in 1990 to almost 10% in
2003, have slowly recovered from export bans on U.S. beef following the 2003 discovery
of a BSE-infected cow in the United States. The beef export share of production in 2008
is forecast to be 6.5%.
• Pork exports as a share of production have grown substantially, from less that 2% in
1990 to a forecast 14% in 2008.
• Poultry’s export share of production has more than doubled since 1990, from 6.2% to
a forecast 15.3% in 2008.
Figure 3. U.S. Agricultural Exports: Shares of U.S. Production of Livestock Exported,
1990-2008F

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Table 3. U.S. Agricultural Exports: Shares of U.S. Production of Livestock Exported,
1990-2008F
(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 4.3
14.2 14.7
2007 5.4
13.9 15.4
2008F 6.5
14.3 15.3
Source: Calculated by CRS using data from the U.S. Department of Agriculture’s Foreign Agricultural Service
Production, Supply and Distribution Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
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• 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 $17.9 billion in FY2007—are the leading commodity components of U.S.
agricultural exports.
• Oilseeds (mainly soybeans) and oilseed products (mainly meal and oil)—valued at
$14 billion in FY2007—comprise the second largest category of U.S. agricultural
exports.
• Livestock and poultry products together amounted to $13.9 billion in FY2007.
• Field crop exports (feed grains, wheat, cotton, and tobacco) accounted for just under
$22 billion of U.S. agricultural exports in FY2007.
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Figure 4. U.S. Agricultural Exports of Major Commodities, FY2007

Table 4. U.S. Agricultural Exports of Major Commodities, FY2007
Commodity ($
Billion)
Horticultural Products
17.9
Oilseeds and Products
13.7
Livestock Products
10.1
Feed Grains
9.8
Cotton
4.3
Wheat
6.4
Poultry/Prods.
3.8
Tobacco
1.1
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
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• 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.
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• 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 FY2007, high-value exports accounted for 60% of total U.S. agricultural exports
and bulk exports for 40%. The growth in U.S. agricultural exports in FY2007 is due
largely to increased exports of bulk commodities.
Figure 5. U.S. Agricultural Exports, FY1990-FY2007: Bulk, Consumer-Oriented, and
Intermediate Product Exports

Table 5. U.S. Agricultural Exports, FY1990-FY2007: Total, Bulk, Consumer-Ready, and
Intermediate Product Exports
($ thousands)
Year Total Bulk % of
Consumer-
% of
Total
Oriented
Total Intermediate
% of
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
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Year Total Bulk % of
Consumer-
% of
Total
Oriented
Total Intermediate
% of
Total
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 62,408,831 26,903,911
43.1
23,361,967
37.4
12,142,954
19.5
2005 62,516,299 23,613,456
37.8
26,287,920
42.0
12,614,923
20.2
2006 68,592,659 25,619,902
37.4
29,363,487
42.8
13,609,271
19.8
2007 81,947,137 32,681,114
39.9
33,139,606
40.4
16,126,417
19.7
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.
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• 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 FY2008 are forecast to exceed $28
billion.
• Japan ($10.8 billion), which was the number one U.S. destination for agricultural
products for many years, is the third-largest export destination.
• The EU-27, forecast to be the fourth largest U.S. export market with $8.9 billion in
FY2008, is followed closely by China, which has become the fifth largest U.S. farm
export market with $7.8 billion. (China-Hong Kong combined—a forecast $9.1 billion—
would occupy the fourth place as an overseas market for U.S. agricultural exports for
FY2008.)
• Other Asian markets—South Korea and Taiwan—also are major markets for U.S.
agricultural exports with forecast values of $3.5 billion and $3.1 billion, respectively.
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Figure 6. Major Country Markets for U.S. Exports, FY2006-FY2008F

Table 6. Major Country Markets for U.S. Agricultural Exports, FY2006-FY2008F
($ billion)
Country 2006
2007
2008F
Canada 11.6
13.2
14.7
Mexico 10.4
12.3
13.7
Japan 8.2
9.7
10.4
EU-27 7.2
8.1
8.9
China 6.6
7.0
7.8
South Korea
2.7
3.2
3.5
Taiwan 2.4
2.9
3.3
Russia 0.9
1.1
1.3
Turkey 1.0
1.4
1.5
Hong Kong
0.9
1.1
1.3
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
Note: F=Forecast
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• 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 30% in marketing year 2007/2008. Argentina, Canada, and the EU are
major competitors in this market (see Figure 7 and Table 7).
• Rice: Thailand (30% forecast for 2008) 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 11% (see Figure 8 and Table 8).
• Corn: The United States dominates the world market for corn with a 2007 forecast
export share of 67% (see Figure 9 and Table 9).
• Soybeans: Brazil has overtaken the United States as the world’s main supplier of
soybeans with a 2008 forecast share of 41%. The U.S. share has declined from 73% in
1995/1996 to a forecast of 41% in 2007/2008, while over the same period, Brazil’s share
grew from 11% to 41%. (see Figure 10 and Table 10).
• Cotton: U.S. cotton exports are estimated to be 39% of the world total in 2007/2008.
Competitors include Uzbekistan (11%) and West/Central African countries (7%) (see
Figure 11 and Table 11).
Figure 7. Shares of World Exports of Wheat and Wheat Products, 2007/08F

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Table 7. Shares of World Exports of Wheat and Wheat Products, 1995/96-2007/08F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/2000
2000/01
2001/02
Argentina
4.5 9.7 9.4 9.0 9.9 11.1 10.8
Australia
12.2 17.5 14.7 15.8 15.3 16.3 15.3
Canada
17.2 17.4 20.4 14.1 17.3 17.0 15.5
European Uniona 13.3 17.1 13.6 14.3 18.2 15.3 11.8
Kazakhstan,
Rep. 4.3 2.2 3.4 2.3 5.8 3.9 3.7
United
States
34.1 26.2 27.1 28.4 26.3 27.4 24.3
Rest
of
World
14.4 9.8 11.4 16.1
7.2 9.0 18.6
Country
2002/03
2003/04
2004/05
2005/06
2006/07E
2007/08F

Argentina 5.9
7.1
12.0
7.3
10.6
10.3

Australia
10.2 14.6 14.0 13.4
9.8 7.5

Canada
8.8 15.0 13.5 13.8 16.9 13.6

European Uniona 16.9 9.5 13.4 13.9 12.1 8.4

Kazakhstan,
Rep. 5.8 4.1 2.7 3.4 7.0 7.5
United
States
21.3 31.2 25.3 24.2 21.8 30.4

Rest of World
31.1
18.5
19.5
24.0
21.9
22.3

Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: July-June marketing year.
E = Estimate
F = Forecast
a. 1995/96-1998/99 data are EU-15 and 1990/00 to present are EU-27.
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Figure 8. Shares of World Exports of Rice, 2007/08F

Table 8. Shares of World Exports of Rice, 1994/95-2007/08F
(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
States 14.6 13.3 12.2 11.5 10.7 12.5 10.4
Vietnam
11.1 15.4 17.6 13.7 18.4 14.8 14.4
Rest
of
World 17.1 16.1 17.0 14.2 14.7 15.7 19.1
Country
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07E
2007/08F
China
7.0 9.4 3.2 2.3 4.2 4.5 5.4
India
23.9 16.0 11.7 16.2 15.7 13.1 11.4
Pakistan
5.8 7.1 7.3 10.5 12.4 9.0 10.7
Thailand
26.0 27.4 37.3 25.1 25.5 32.5 30.2
United
States 11.8 13.9 11.4 13.3 13.4 10.7 11.7
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Vietnam
11.6 13.8 15.8 17.8 16.3 15.9 16.8
Rest
of
World 13.8 12.4 13.3 14.9 12.5 14.2 13.8
Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: July-June marketing year.
E = Estimate
F = Forecast
Figure 9. Shares of World Exports of Corn, 2007/08F

Table 9. Shares of World Exports of Corn, 1995/96-2007/08F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/2000
2000/01
2001/02
Argentina
10.7 15.3 20.2 11.4 12.3 16.1 11.8
China 0.2
5.8
9.8
4.9
13.7
9.6
11.8
South Africa, Rep.
2.7
2.4
1.7
1.2
1.2
1.9
1.6
United
States
81.4 70.0 59.9 75.7 68.4 63.7 64.9
Rest of World
4.9
6.5
8.4
6.8
4.4
8.8
9.9
Country
2002/03
2003/04
2004/05
2005/06
2006/07E
2007/08F

Argentina 16.1
13.2
18.1
13.0
17.3
16.1

China 19.8
9.6
10.0
4.5
5.8
1.6

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South Africa, Rep.
1.5
1.0
2.0
1.7
0.5
0.9

United States
52.4
61.7
59.7
67.9
59.7
66.7

Rest of World
10.2
14.5
10.2
12.9
16.7
14.6

Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: October-September marketing year.
E = Estimate
F = Forecast
Figure 10. Shares of World Exports of Soybeans, 2007/08F

Table 10. Shares of World Exports of Soybeans, 1995/96-2007/08F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/2000
2000/01
2001/02
Argentina
6.6 2.1 8.0 8.9 9.0 13.8 11.3
Brazil
10.9 22.9 22.1 23.3 24.3 28.7 27.4
Canada
1.9 1.3 1.9 2.3 2.1 1.4 0.9
Paraguay
5.0 5.8 5.8 6.0 4.4 4.7 4.3
United
States
73.0 65.6 60.0 57.2 58.2 50.3 54.7
Rest
of
World 2.5 2.3 2.2 2.2 1.9 1.2 1.3
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Country
2002/03
2003/04
2004/05
2005/06
2006/07E
2007/08F

Argentina
14.3 12.0 14.8 11.3 13.4 13.9

Brazil
32.1 36.3 31.1 40.5 33.0 40.7

Canada
1.2 1.6 1.7 2.1 2.4 1.7
Paraguay
4.6 4.9 4.5 3.9 5.8 5.7
United
States 46.5 42.9 46.1 40.0 42.8 35.9

Rest
of
World 1.3 2.2 1.8 2.3 2.6 2.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: Marketing year.
E = Estimate
F = Forecast
Figure 11. Shares of World Exports of Cotton, 2007/08F

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Table 11. Shares of World Exports of Cotton, 1995/96-2007/08F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/2000
2000/01
2001/02
Australia
5.3 8.9 10.1 12.9 11.8 14.9 10.8
West/Central Africaa 10.2 12.3 13.5 15.3 13.7 12.4 12.2
United
States
28.1 25.6 28.1 18.3 24.8 25.7 37.9
Uzbekistan
16.5 17.0 17.1 16.2 15.4 13.1 12.0
Rest of World
39.8
36.3
31.0
37.3
34.2
33.9
27.1
Country
2002/03
2003/04
2004/05
2005/06
2006/07E
2007/08F

Australia
8.8 6.5 5.7 6.5 5.7 3.4
West/Central Africaa 12.5 13.3 11.8 10.0 10.1 7.4

United
States
39.2 41.4 41.2 39.4 34.6 39.2

Uzbekistan 11.2
9.3
11.3
10.8
12.0
11.0

Rest of World
28.3
29.4
30.0
33.4
37.6
39.1

Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: Marketing year.
E = Estimate
F = Forecast
a. Includes Benin, Burkina, Cameroon, CAR, Chad, Cote d’Ivoire, Mali, Niger, Senegal and Togo.
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• Beef: Brazil, with 33% (forecast) of world exports in 2008, 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 10% for 2008, due to continuing effects of mad
cow disease on global beef trade and U.S. (See Figure 12 and Table 12).
• Pork: The United States (28%) and the EU (22%) are forecast to be the world’s
largest exporters of pork in 2008 (Figure 13 and Table 13).
• Poultry: Brazil is the world’s leading supplier of poultry meat (41% forecast for
2008). The United States, with 34% of world exports, and the EU (9%) have lost market
share to Brazil in recent years (Figure 14 and Table 14).
• Dairy Products: In 2008, New Zealand (28%), the United States (25%), and
Australia (15%) are forecast to be the leading suppliers of nonfat dry milk to world
markets. The EU (46%) dominates the world market for cheese, while New Zealand
(50%) is the world’s largest exporter of butter.
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Figure 12. Shares of World Exports of Beef and Veal, 2008F

Table 12. Shares of World Exports of Beef and Veal, 1995-2008F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
Argentina
9.8 9.6 7.9 5.6 6.3 6.2 3.0
European Uniona
22.0 21.3 18.8 14.3 17.8 11.5 10.8
United
States
15.1 16.4 16.7 18.1 19.1 19.5 18.1
Brazil
4.2 4.3 4.0 5.6 8.1 8.6 13.2
Australia
20.3 19.8 20.4 23.3 22.2 23.3 24.7
New
Zealand
9.1 9.7 8.8 9.0 7.7 8.4 8.7
Rest
of
World
19.4 18.9 23.3 24.1 18.8 22.5 21.5
Country
2002
2003
2004
2005
2006
2007
2008F
Argentina
5.5 6.0 9.6 10.8 7.8 7.0 6.7
European Uniona
9.2 6.9 5.7 3.6 3.0 2.3 2.2
United
States
17.7 18.1 3.3 4.5 7.3 8.6 9.7
Brazil
14.0 18.4 25.1 26.5 29.3 31.9 33.1
Australia
21.8 19.7 21.3 19.9 20.1 19.3 17.3
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New
Zealand
7.7 8.7 9.3 8.3 7.5 6.9 6.6
Rest
of
World
24.0 22.2 25.8 26.4 25.0 24.0 24.4
Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: P = Preliminary
F = Forecast
a. 1995-1998 data are EU-15 and 1999 to present are EU-27.
Figure 13. Shares of World Pork Exports, 2008F

Table 13. Shares of World Pork Exports, 1994-2008F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
Canada
15.5 13.8 14.6 14.9 10.8 20.4 21.5
United
States
15.1 15.8 16.5 19.2 11.3 18.0 20.9
European Uniona
32.7 30.9 33.1 35.7 31.1 41.2 28.7
China, People’s Republic of
4.4
4.9
7.0
7.0
2.8
4.4
6.6
Taiwan
16.1 13.9
2.4
0.1 — — —
Rest
of
World
16.1 20.7 26.4 23.1 43.8 15.9 22.2
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Country
2002
2003
2004
2005
2006
2007
2008F
Canada
22.2 23.4 20.7 21.7 20.6 20.2 19.9
United
States
18.8 18.7 21.1 24.2 25.9 26.6 28.0
European Uniona
25.5 27.3 27.7 22.9 24.4 24.6 21.9
China, People’s Republic of
7.9
9.5
11.4
10.8
11.3
8.5
8.7
Taiwan
— — — — — — —
Rest
of
World
25.7 21.0 19.1 20.4 17.7 20.0 21.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: P = Preliminary
F = Forecast
— = Less than 0.1%
a. 1995-1998 data are EU-15 and 1999 to present are EU-27.
Figure 14. Shares of World Poultry Meat Exports, 2008F

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Table 14. Shares of World Total Poultry Meat Exports, 1994-2008F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
United
States
41.3 41.9 49.2 47.1 40.1 40.3 40.3
Brazil
10.0 11.7 15.3 13.9 14.2 15.7 19.6
European Uniona
NA NA 18.0 19.1 14.9 13.1 10.3
China
(PRC)
6.2 6.6 8.2 7.7 7.2 8.4 7.8
Rest
of
World
42.5 39.8 9.4 12.1 23.6 22.5 21.9
Country
2002
2003
2004
2005
2006
2007
2008F
United
States
33.2 37.5 36.3 35.1 36.7 36.4 33.7
Brazil
24.0 32.0 40.4 40.7 38.9 40.5 41.4
European Uniona
11.6 12.1 12.2 10.3 10.7 9.8
9.4
China
(PRC)
6.7 6.5 4.0 4.9 5.0 4.9 5.2
Rest of World
24.5
11.9
7.2
8.9
8.6
10.3
10.2
Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: NA= Not Available
P= Preliminary
F= Forecast
a. 1997-1998 data are EU-15 and 1999 to present are EU-27.
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Figure 15. Shares of World Nonfat Dry Milk Exports, 2008F

Table 15. Shares of World Nonfat Dry Milk Exports, 1995-2008F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
Canada
2.5 2.5 2.9 3.8 2.7 1.9 3.7
United
States
9.5 2.4 11.3 11.5 14.4 8.5
7.7
European Uniona
NA NA 27.3 19.4 24.5 27.1 22.3
Australia
10.9 12.8 19.8 22.1 15.9 15.2 17.5
New
Zealand
9.7 11.5 20.8 21.8 13.6 10.5 15.7
Rest
of
World
67.4 70.8 18.0 21.4 29.0 36.7 33.1
Country
2002
2003
2004
2005
2006
2007
2008F
Canada
3.7 2.4 1.1 0.5 1.2 0.7 0.7
United
States
9.6 9.3 16.0 23.2 26.3 21.0 24.9
European Uniona
20.0 22.3 19.2 15.9 8.1 14.0 14.1
Australia
17.7 12.8 13.0 11.8 17.3 14.4 15.2
New
Zealand
19.0 20.8 21.2 18.5 22.3 26.9 28.3
Rest
of
World
30.0 32.3 29.5 30.1 24.9 23.0 16.8
Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
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Notes: NA= Not Available
P= Preliminary
F= Forecast
a. 1997-1998 data are EU-15 and 1999 to present are EU-27.
Figure 16. Shares of World Cheese Exports, 2008F

Table 16. Shares of World Cheese Exports, 1994-2008F
(percent)
Country
1994
1995
1996
1997
1998
1999
2000
2001
European Uniona
NA NA NA 51.0 46.2 45.2 31.1 30.8
New Zealandb
5.9 6.9 6.7 25.0 25.6 26.1 16.3 16.0
Australiac
4.1 4.5 4.3 13.3 16.6 18.7 14.4 13.9
Ukraine
0.2 0.2 0.1 0.2 0.4 0.7 0.8 2.0
United
States
1.1 1.1 1.2 4.0 4.1 4.1 3.0 3.4
Argentina
0.6 0.5 0.4 2.0 1.9 2.2 1.4 1.1
Canada
0.3 0.6 0.6 2.4 3.0 2.7 1.2 1.2
Rest
of
World
87.8 86.2 86.6 2.0 2.2 0.3 31.8 31.5
Country
2002
2003
2004
2005
2006
2007
2008F

European Uniona
30.3 31.3 29.7 28.7 31.7 31.3 45.6

New Zealandb
16.7 16.9 16.4 15.2 15.1 16.1 21.9

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Australiac
13.1 12.0 12.0 13.1 11.4 11.1 14.2

Ukraine
2.2 3.5 5.3 6.7 2.8 3.4 5.0
United
States
3.3 3.0 3.5 4.1 5.4 5.0 7.2
Argentina
1.6 1.3 1.8 2.6 3.3 2.4 3.9
Canada
1.0 0.6 0.6 0.5 0.5 0.4 0.6
Rest
of
World
31.8 31.2 30.8 29.1 29.9 30.3
1.6

Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: NA= Not Available
P= Preliminary
F= Forecast
a. 1997-1998 data are EU-15 and 1999 to present are EU-27.
b. Year ending May 31 of the year shown.
c. Year ending June 30 of the year shown.
Figure 17. Shares of World Butter Exports, 2008F

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Table 17. Shares of World Butter Exports, 1994-2008F
(percent)
Country
1994
1995
1996
1997
1998
1999
2000
2001
New Zealanda
20.2 19.3 21.0 42.1 50.2 34.1 37.0 36.4
European Unionb
NA NA NA 29.2 26.8 24.5 21.4 21.7
Australiac
7.1 6.9 6.6 14.8 16.7 14.3 15.2 12.9
Ukraine
1.7 5.6 8.4 7.9 1.6 1.0 3.4 5.6
Canada
0.2 0.5 1.1 1.6 1.9 1.3 1.1 1.7
United
States
7.1 5.2 1.7 2.4 0.5 0.2 0.4 0.0
Rest
of
World
63.7 62.5 61.1 2.0 2.2 24.5 21.5 21.6
Country
2002
2003
2004
2005
2006
2007
2008F

New Zealanda
36.1 33.6 31.8 27.8 36.5 37.2 50.3

European Unionb
23.5 27.0 28.1 29.9 24.7 24.2 30.7

Australiac
12.8 9.3 6.0 6.2 8.2 7.4 9.0
Ukraine
1.5 1.5 3.3 2.1 1.3 0.7 0.8
Canada
1.7 1.0 1.4 1.8 1.8 1.5 2.0
United
States
0.3 1.0 0.7 0.8 1.1 3.3 5.1
Rest
of
World
24.0 26.6 28.8 31.5 26.4 25.7
2.2

Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: NA= Not Available
P= Preliminary
F= Forecast
a. Year ending May 31 of the year shown.
b. 1997-1998 data are EU-15 and 1999 to present are EU-27.
c. Year ending June 30 of the year shown.
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• Brazil dominates the world market for sugar with an export market share forecast at
41% for 2007/2008.
• Australia, with 7% of global sugar exports, 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 2007/08).
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Figure 18. Shares of World Centrifugal Sugar Exports, 2007/08F

Table 18. Shares of World Centrifugal Sugar Exports, 1995/96-2007/08F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/2000
2000/01
2001/02
United
States
0.9 0.5 0.4 0.6 0.3 0.3 0.3
Mexico
1.8 2.6 2.9 1.4 0.8 0.4 1.0
Total
Caribbean 12.8 11.5 8.0 9.7 9.5 9.0 8.4
DR-CAFTAa
5.2 5.7 6.3 5.2 5.2 6.0 5.3
Brazil
16.4 15.5 19.1 23.2 27.1 20.1 27.4
European Unionb 13.1 14.0 16.9 14.2 14.7 17.2 11.3
Australia
12.0 12.2 12.1 10.8
9.9 8.0 8.5
Rest
of
World
37.8 38.0 34.4 35.0 32.6 39.0 37.8
Country
2002/03
2003/04
2004/05
2005/06
2006/07P
2007/08F

United
States
0.3 0.6 0.5 0.4 0.8 0.4
Mexico
0.1 0.0 0.3 1.7 0.3 0.9
Total
Caribbean
4.8 5.2 2.5 2.6 2.3 2.0
DR-CAFTAa
5.0 5.3 5.8 5.0 5.8 5.4
Brazil
29.7 32.7 38.4 34.4 41.9 40.5

European Unionb 11.9 10.5 12.8 16.8
2.8 2.7

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Australia
8.7 8.9 9.5 8.5 7.7 7.2
Rest
of
World
39.4 36.8 30.2 30.7 38.5 40.9

Source: U.S. Department of Agriculture. Foreign Agricultural Service Production, Supply and Distribution
Online database, http://www.fas.usda.gov/psdonline/psdHome.aspx.
Notes: P= Preliminary
F= Forecast
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. 1995/96-2003/04 data are EU-15, 2004/05-
2005/06 are EU-25, and 2006/07 to present are EU-27.
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• High-value horticultural products (fruits, vegetables, nuts, wine, beer, nursery stock
and flowers, and others) are the largest category of U.S. agricultural imports—more than
$25 billion—in FY2007.
• Other high-value imports include grains and feeds ($6.0 billion), red meats ($4.6
billion), and oilseeds and products ($4.0 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, FY2007
Fruits, Nuts & Preps.
9.9
Wine & Malt Beverage
8.2
Vegetables & Preps.
7.3
Grains and Feeds
6
Red Meats
4.6
Oilseeds and Products
4
Coffee and Products
3.7
Cocoa and Products
2.7
Dairy Products
2
Sugar and Products
2.6
Essential Oils
2.4
Livestock and Products
2.4
Nursery and cut flowers
1.5
0
2
4
6
8
10
12
$ Billions
Source: U.S. Department of Agriculture. Economic Research Service.

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Table 19. Major U.S. Agricultural Imports, FY2007
($ billions)
Commodity FY2007
Imports
Fruits, Nuts & Preps.
9.9
Wine & Malt Beverage
8.2
Vegetables & Preps.
7.3
Grains and Feeds
6.0
Red Meats
4.6
Oilseeds and Products
4.0
Coffee and Products
3.7
Dairy Products
2.7
Sugar and Products
2.0
Cocoa and Products
2.6
Essential Oils
2.4
Livestock and Products
2.4
Nursery and cut flowers
1.5
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
ǯǯȱȱȱ¢ȱ¢ȱȱȱ
• The EU-27 ($15.7 billion) and NAFTA partners Canada ($15.7 billion) and Mexico
($10.3 billion) are forecast to be the source of more than 55% of total U.S. agricultural
imports in FY2008.
• Australia (at $2.7 billion), with whom the United States entered a free trade
agreement (FTA) in 2005, is forecast to be the fourth-largest supplier in FY2008.
• Agricultural imports from Brazil also are expected to reach $2.7 billion in FY2007.
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Figure 20. U.S. Agricultural Imports by Country of Origin, FY2006-FY2008F
15.7
European Union
15
14.1
15.7
Canada
14.7
13.2
10.3
Mexico
9.9
9.3
2.7
Australia
2.6
2.4
2.7
Brazil
2.5
2.2
2.3
Indonesia
1.9
2
1.7
New Zealand
1.7
1.7
1.6
Colombia
1.5
1.5
0
2
4
6
8
10
12
14
16
$ Billions
2008F
2007
2006
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

Table 20. U.S. Agricultural Imports by Country of Origin, FY2006-FY2008F
($ billion)
Country FY2006
FY2007
FY2008F
European Union
14.1
15.0
15.7
Canada 13.2
14.7
15.7
Mexico 9.3
9.9
10.3
Australia 2.4
2.6
2.7
Brazil 2.2
2.5
2.7
New Zealand
1.7
1.7
1.7
Colombia 1.5
1.5
1.6
Indonesia 2.0
1.9
2.3
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
Notes: F= Forecast
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• Economic growth in Asia has contributed to relatively consistent long-term growth in
U.S. agricultural exports to the region.
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• 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 have grown
rapidly since the early 1990s because of geographic proximity, NAFTA, and other
factors.
Figure 21. Growth in U.S. Agricultural Exports, FY1992-FY2008F

Table 21. Change in U.S. Agricultural Exports to Selected Markets, FY1992-FY2008F
($ billion)
Former
Year Asia
European
Latin
Union
America
Soviet
Canada
a
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
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Former
Year Asia
European
Latin
Union
America
Soviet
Canada
a
Union
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
7.0
13.6
0.7
9.6
2005 22.5
7.2
14.4
0.9
10.4
2006 24.9
7.2
16.5
0.9
11.6
2007 29.3
8.1
19.9
1.1
13.2
2008F 32.2 8.9
22.4
1.3
14.7
Rate of Growthb 3.55% 1.25% 7.55% -4.21% 6.81%
Source: U. S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
Notes: F= Forecast
a. Including Mexico.
b. The rate of growth is the change in U.S. exports from 1992 to 2008F. Calculations were made by CRS using
a compound rate of growth calculator.
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• Like the EU, Japan also has been a relatively stable export market for U.S.
agricultural exports.
• U.S. agricultural exports to China, fueled by rates of GDP growth in excess of 9%,
have grown rapidly since the early 1990s (15.2%). In FY2008 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.
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Figure 22. Growth in Agricultural Exports to Asian Markets, FY1992-FY2008F

Table 22. Change in U.S. Agricultural Exports to Asian Markets, FY1992-FY2008F
($ billion)
Year Japan
Southeast
Asia
South Asia
China
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
6.6
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Year Japan
Southeast
Asia
South Asia
China
2007 9.7
4.3
1.0
7.1
2008F 10.4
4.8 1.1
7.8
Rate of Growtha
1.26% 7.08%
4.75%
15.24%
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
Notes: F = Forecast
a. The rate of growth is the change in U.S. exports from 1992 to 2008F. Calculations were made by CRS using
a compound rate of growth calculator.
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• 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 $14.7 billion in FY2007.
• U.S. agricultural exports to Mexico are expected to be $13.7 billion in FY2007.
• U.S. agricultural exports to Latin America (excluding Mexico) are expected to reach
$8.7 billion in FY2008.
Figure 23. Growth in the Agricultural Exports to North and South America, FY1992-
FY2008F

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Table 23. Change in Agricultural Exports to North and South America, FY1992-
FY2008F
($ billion)
Year
Latin America
ex. Mexico
Canada Mexico NAFTA
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
2007 7.6
13.2
12.3
25.5
2008F 8.7
14.7
13.7
28.4
Rate of Growtha 6.90%
6.81%
8.00%
7.35%
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S. Agricultural Trade, AES-
56, November 30, 2007, available at http://usda.mannlib.cornell.edu/usda/current/AES/AES-11-30-2007.pdf.
Notes: F = Forecast
a. The rate of growth is the change in U.S. exports from 1992 to 2008F. Calculations were made by CRS using
a compound rate of growth calculator.
ȱȱȱǻǼȱȱȱȱŗȱ
• 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).
The percentage PSE measures support in relation to the total value of production.
• PSEs are an indication of the extent to which government policy supports
(subsidizes) agricultural producers.

1 Agricultural policies in OECD Countries Monitoring and Evaluation, Paris, OECD, 2007.
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• PSEs vary considerably among OECD countries. Australia, with 6% in 2006, is
among the lowest, while Korea at 63% and Japan at 53% are among the highest.
• The EU’s PSE (32%) is almost three times that of the United States’ (11%).
Figure 24. Producer Support Estimates (PSEs) in Selected OECD Countries

Table 24. Producer Support Estimates (PSEs) in Selected OECD Countries
(percent)
Country 1986-88 2004-2006 2004
2005
2006p
Australia 8
4
4
4
6
EU 41
34
36
33
32
Japan 64
55
56
55
53
Korea 70
63
63
63
63
U.S. 22
14
16
16
11
Source: Organization for Economic Co-operation and Development (OECD), Agricultural Policies in OECD
Countries: Monitoring and Evaluation, 2007.
Note: P = Provisional
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• The PSE for all agricultural products in the EU declined from 41% in 1986-88 to32%
in 2006.
• The PSE for all agricultural products in the United States declined from 22% in 1986-
88 to 11% in 2006.
• EU policy changes to greater income support and away from commodity support
have reduced the level of subsidies to wheat, corn, and oilseeds (soybeans). Products still
heavily subsidized in the EU are rice, sugar, milk, and beef and veal.
• In the United States, high commodity prices more than policy changes have reduced
the level of individual commodity support for grains. Milk and sugar, however, are still
highly subsidized. (OECD does not calculate PSEs for non-food crops, such as cotton,
which also is heavily subsidized in the United States).
Figure 25. Producer Support Estimates (PSEs): Selected Commodities in the United
States
60
0000000000
0000000000
000000000
0000000000
000000000
0000000000
000000000
50
0000000000
000000000
0000000000
000000000
0000000000
000000000
000000000
0000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
40
0000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
30
0000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
20
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
10
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0000000000
000000000
000000000
000000000
000000000
0
-10
1986-88
2004-2006
2004
2005
2006P
Wheat
0000000000000
Corn
Rice
0000000000000
Soybeans
0000000000000
Sugar
Milk
Beef and Veal
Source: OECD 2007
P = Provisional

2 PSEs for individual commodities are from Agricultural Policies in OECD Countries: Monitoring and Evaluation,
Paris, OECD, 2007. OECD will produce commodity-specific PSEs in 2007.
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Table 25. Producer Support Estimates (PSE) in the United States by Commodity
(percent)
Products
1986-88
(Average)
2004-2006 2004
2005
2006P
Wheat
47
4.8 4.6 1.8 8.0
Corn
34.8
9.7 10.8 17.6
0.7
Rice
50
5.3 7.4 7.5 1.0
Soybeans 1.7
0.6
2.8
-0.6
-0.5
Sugar
55.9
41.6 54.2 44.4 26.2
Milk
36.1
19.9 27.6 19.2 12.8
Beef and Veal
1.1
0.0
0.0
0.0
0.0
Source: Organization for Economic Cooperation and Development (OECD), Agricultural Policies in OECD
Countries: Monitoring and Evaluation, 2007 edition.
Note: P = Provisional
Figure 26. Producer Support Estimate (PSEs) in the European Union

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Table 26. Producer Support Estimates (PSEs) in the European Union
(percent)
Products
1986-88
(Average)
2004-2006 2004
2005
2006P
Wheat
49.7
4.0 6.3 4.5 1.1
Corn
51.0
11.8 17.3 15.0
3.0
Rice
58.9
33.3 40.2 36.5 23.2
Soybeans
60.9
0.1 0.1 0.1 1.0
Sugar
61.4
51.9 64.4 53.8 37.5
Milk
69.8
27.8 35.9 23.5 23.8
Beef and Veal
52.9
57.7
66.7
57.7
48.8
Source: Organization for Economic Cooperation and Development (OECD), Agricultural Policies in OECD
Countries: Monitoring and Evaluation, 2007 edition.
Note: P = Provisional
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• The governments of both the United States and the European Union provide income
support to farmers and subsidize agricultural exports. At current exchange rates, the EU
sends about five times as much as the United States in support of agriculture.
• In the United States, domestic support and export subsidies are concentrated on
wheat, rice, feed grains, and cotton. Domestic support in the United States has declined in
recent years as prices for supported agricultural commodities have increased.
• 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.
• EU support remains large, but the nature of its support has changed. In 2007, the EU
estimates that 55% of its support will be provided as decoupled (not linked to production)
direct aid to farmers. An additional 22% of EU aid will go to promote rural development
in the countryside.
Table 27. U.S. and EU Government Spending on Agricultural Support, 2005-2007E
($ billion)
European Union
2005
2006
2007E
Export Subsidiesa 3.709
3.376
1.881
Domestic Supportb 60.311
66.156
69.064
Total 64.020
69.532
70.945
United States
2005
2006
2007E
Export Subsidiesc (-)
(-)
0.227
Domestic Supportd 20.187
20.211
13.558
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Total 20.187
20.211
13.785
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
2006, available at http://ec.europa.eu/agriculture/agrista/2006/table_en/index.htm. Currency conversions
calculated by CRS.
Notes: 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.
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.
Table 28. Agricultural and Trade Policies in the United States and the European
Union
United States
European Union
Domestic Support
Producers of wheat, feed grains, upland cotton, rice, and Historically, agricultural support has been based primarily
oilseeds are eligible for direct payments entitling them to on market price support provided through institutional
fixed annual payments until 2007. Payments are based on prices. For many commodities, these policies have been
established acreage and yields. A few planting restrictions operated together with measures to limit the volume of
apply and conservation rules must be observed. Holders production to which the price support applies. From
of contracts qualify for nonrecourse marketing assistance 1993/1994 on, as part of the May 1992 reform of the
loans and loan deficiency payments. Producers of
Common Agricultural Policy (CAP), there has been some
soybeans and other oilseeds also are eligible for contract substitution for market price support by direct payments.
payments and nonrecourse marketing assistance loans and
loan deficiency payments.
For supported crops, direct payments were based on
historical areas and yields and operated in conjunction
Substantial emergency assistance was provided to U.S.
with a land set-aside requirement. Oilseeds support is
farmers in 1998, 1999, 2000, and 2001 to counter the
based on area payments.
effects of declining commodity prices and natural
disasters.
For livestock products, direct payments were based on
fixed reference numbers and for beef they are subject to
Prices of milk and dairy products are supported by an
limitations on stocking density. Further price reductions,
administered minimum price for milk, CCC purchase of part of Agenda 2000 reforms further reduced grain and
dairy products, tariffs, and import quotas. Other livestock meat prices and will be only partially compensated by
products are not supported by administered prices.
increases in direct payments.
The price of sugar is supported above an administered
Beginning in 2005, EU farmers receive a decoupled Single
minimum price by controlling supply through a tariff
Farm Payment (SFP) which generally groups the previous
import quota.
direct payments into one and is decoupled from
A counter-cyclical income support program for grain,
production. Eligibility for the SFP is conditioned on
cotton, and oilseed producers was included in the 2002 farmers’ observing enumerated environmental and “good
farm bill. Dairy farmers also receive a form of counter-
farming” practices.
cyclical support through Milk Income Loss Contract
payments under the 2002 farm bill.
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United States
European Union
Trade Measures
Import quotas for dairy and sugar are subject to
Trade restrictions in the form of variable import levies
conversion to tariff quotas under the 1994 Uruguay
which kept imported agricultural products at prices that
Round (UR) Agreement on Agriculture.
are as high as EU internal prices were converted to tariff
Export subsidies provided under the Export Enhancement quotas as the EU implemented the 1994 Uruguay Round
Program (EEP) and other commodity specific subsidies are Agreement on Agriculture.
subject to reduction under the UR Agreement.
Export subsidies (called restitutions or refunds) are
Export market development programs, the Market Access provided to traders to cover the difference between
Program (MAP,) and the Foreign Market Development
internal EU commodity prices and world market prices.
Program (FMDP) assist producer groups, associations, and Export restitutions are subject to reduction commitments
firms with promotional and other activities.
negotiated in the Uruguay Round Agreement on
Agriculture.
A federally chartered public corporation, the Commodity
Credit Corporation (CCC), makes credit guarantees
EU countries (but not the EU itself) operate market
available to private financial institutions who finance the development and export promotion programs funded by
purchase U.S. agricultural exports.
Government outlays and mandatory producer levies.
France, Netherlands, and Germany have the largest
The United States has negotiated free trade agreements programs devoted to promoting mainly exports of high-
(FTAs) with Canada and Mexico which cover substantially value products.
all agricultural trade among FTA signatories. The United
States has negotiated FTAS with Chile and Central
France, for example, assists with export financing through
American countries and is involved in negotiating other the Company for International Trade Insurance
bilateral FTAs with Thailand and South Korea, among
(COFACE), which is majority held independently.
others.
COFACE commercial risk 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.
Food Aid
The United States is the world’s leading supplier of food The EU provides about 1/3 of world food aid.
aid. It provides more than half of the global total.
EU food aid consists of two parts, EU aid and individual
The United States provides food aid mainly through P.L. country bilateral programs. EU aid is distributed mainly
480 also known as the Food for Peace program. Wheat through the United Nations’ World Food Program;
and wheat flour are the main commodities provided as
bilateral aid is distributed directly to receiving countries.
food aid, but rice and vegetable oils are also important in Bilateral food aid constitutes about 70% of the total of EU
P.L. 480 programs. Higher-value products are made
food aid. All EU food aid is provided as donations.
available in special feeding programs. Responsibility for
implementing food aid programs is shared by USDA and Wheat is the predominant commodity in EU food aid;
the U.S. Agency for International Development (AID).
lesser amounts of skim milk powder, vegetable oils, sugar,
and pulses are provided.
P.L. 480 food aid is provided on 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.
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Table 29. Agricultural and Trade Policies in Canada and Australia
Canada Australia
Domestic Support
Agricultural policy involves a broad range of measures
Both Commonwealth and State programs provide
implemented by both the Federal and Provincial
funds for farm restructuring, rural development and
Governments.
research, and income-tax concessions. Under the
Wheat and other grain prices are supported by the
Rural Adjustment Scheme, the Commonwealth offers
Canadian Wheat Board (CWB) which has an exclusive right interest rate subsidies on commercial loans for
to purchase wheat produced in Manitoba, Saskatchewan,
productivity improvements, short-term downturns, or
Alberta, and the Peace River Valley of British Columbia, and reestablishment after leaving farming.
to export it or sell it domestically.
Excise taxes on diesel fuel used in off-road vehicles
Farmers can participate in the Canadian Agricultural income and machinery are refunded under the Diesel Fuel
Stabilization Program which protects farmer against risks
Rebate Scheme
associated with weather and low prices.
The Commonwealth guarantees Australian Wheat
Supply management systems exist for several commodities, Board loans used to finance advance payments to
including milk, poultry, and eggs. Marketing boards set
wheat producers.
producer prices and production quotas for some
A large number of statutory marketing boards exist at
commodities.
the Commonwealth and State levels. The purposes of
Provincial governments operate other, autonomous
these boards are to increase producer returns,
programs, often through provincial marketing boards. About stabilize prices, and assist with marketing.
one-third of total budgetary expenditure for Canadian
States impose supply controls on milk. Some States
agriculture is provided by Provincial Governments.
impose supply controls on eggs, sugar, and rice.
Marketing arrangements operate in some States for
barley, sorghum, corn, rice, and tobacco.
Trade Measures
Import quotas apply to imports of certain products—
Tariffs protect sugar, tobacco, and processed fruit and
particularly dairy, poultry, and eggs—and are used in
vegetables. A tariff-rate quota applies to cheese
conjunction with supply management schemes for those
imports from all countries except New Zealand
products. The Uruguay Round Agreement required that
these quotas be converted to tariffs with some minimum
Local content restrictions apply to fruit juices and
access for imports provided.
tobacco.
A tariff rate quota on imports of boneless beef applies to
Manufacturing milk (milk used in the manufacturing of
imports from all countries except the United States and
dairy products) is supported through export subsidies
Mexico, Canada’s partners in NAFTA.
financed by levies on all domestic milk production.
Canada agreed to gradually eliminate its tariffs on most U.S. AWB Ltd., the privatized version of the Australian
agricultural products under the bilateral free trade
Wheat Board, has monopoly control of wheat
agreement with the United States. It reached a separate
exports. A Crown corporation is the sole exporting
bilateral agreement with Mexico under the North American authority for sugar in Queensland, the main sugar
Free Trade Agreement, which also requires a scheduled
producing state.
elimination of tariffs on most agricultural products.
The Commonwealth provides export credit for wheat
The Federal Government guarantees export credit for
exports and extends credit insurance. The Australian
wheat exports, usually for three years or less. It is also
Wheat Board makes sales on credit terms. The
responsible for debt of the Canadian Wheat Board, which
Government’s Export Finance and Insurance
can borrow money to finance wheat sales.
Corporation provides export insurance and insures
credit sales by the Australian Wheat Board.
Canada promotes exports, including agricultural exports,
through the Program for Export Market Development.
Export promotion is provided primarily by commodity
Assistance is made available to commodity associations.
marketing boards and associations; the
Some important commodity groups and associations fund all Commonwealth Government provides only modest
are part of their own export market development activities. assistance to promote agricultural exports.
Provincial Governments have modest export promotion
programs.
Food Aid
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Canada Australia
Canada is the third largest provider of food aid.
Australian food aid is provided mainly to meet disaster
Food aid is administered as part of Canada’s foreign aid
or emergency situations. Australian food aid is
program; the Canadian International Development Agency
provided both bilaterally and through the U.N. World
(CIDA) is responsible for implementing the program. Food Food Program.
aid is donated and used to help recipient countries reform
The main commodities provided under Australia’s
their agricultural policies or to meet humanitarian
food aid program have been wheat, rice, and wheat
emergencies. In 1994, 60% of Canadian food aid was
flour. Other commodities include vegetable oils, peas,
distributed multilaterally, mainly through the U.N. World
and biscuits.
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.

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Charles E. Hanrahan
Carol Canada
Senior Specialist in Agricultural Policy
Information Research Specialist
chanrahan@crs.loc.gov, 7-7235
ccanada@crs.loc.gov, 7-7619
Beverly A. Banks

Reference Assistant
bbanks@crs.loc.gov, 7-3485

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