U.S. Agricultural Trade: Trends, Composition, Direction, and Policy
98-253 ENR
CRS Report for Congress
Received through the CRS Web
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Updated October 24, 2000
Charles E. Hanrahan
Senior Specialist in Agricultural Policy
Resources, Science, and Industry Division
Mary L. Dunkley
Research Production Assistant
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress
ABSTRACT
This report identifies trends in U.S. agricultural trade, examines the commodity
composition of both agricultural exports and imports, assesses the relative importance
of agricultural exports in relation to domestic production, provides estimates of
export market shares for major categories of agricultural products, and discusses the
principal markets for exports as well as major suppliers of agricultural products to the
U.S. market. The report compares levels of support for agriculture in the United
States and the European Union and compares the domestic, trade, and food aid
policies and programs of the United States, the European Union, Canada, and
Australia. The report is updated as new information becomes available.
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Summary
U.S. agricultural exports in FY2001 are forecast by the U.S. Department of
Agriculture at $51.5 billion. Agricultural imports are expected to reach a record
$39.5 billion. The trade surplus, is projected to be $12 billion. Agricultural exports
account for about 20% of the value of production and make a positive contribution to
the balance of payments. Exports of bulk commodities, e.g., oilseeds, wheat and feed
grains, remain significant, but exports of high value products (HVPs), e.g., meats,
fruits, and vegetables, are increasing. HVPs accounted for 62% of total U.S.
agricultural exports in 1999.
Leading markets for U.S. agricultural exports are Japan, Canada, the European
Union, Mexico, Taiwan and Korea. The United States dominates world markets for
corn, wheat, soybeans, and cotton. 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 Canada, the European
Union (EU), Australia-New Zealand, Mexico, Indonesia, Brazil, and Colombia.
U.S. agricultural exports to Asian countries, Canada, and Mexico have shown
considerable growth. Financial and economic difficulties have slowed the growth of
exports to Asia since 1997, but FY2000 exports to Asian markets are estimated to
increase. Exports to the Former Soviet Union (FSU), Japan, and China also are
estimated to increase in FY2000.
Both the EU and the United States subsidize agriculture, but the EU outsubsidizes
the United States. Canada supports some sectors (e.g., dairy and poultry) more than
others. Australia provides less support to its agriculture. Single desk sellers with
monopoly powers operate wheat markets and markets for some other commodities in
Canada and Australia. 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. The United States has the most diverse food aid programs; others limit food
aid to development assistance and emergencies.
Contents
U.S. Agricultural Trade: Trends, Composition,
Direction, and Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Share of U.S. Production Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Commodity Composition of U.S. Agricultural Exports . . . . . . . . . . . . . 9
Composition of U.S. Agricultural Exports:
Bulk, Consumer-Ready, and Intermediate . . . . . . . . . . . . . . . . . . . . . . 13
Major Country Markets for U.S. Agricultural Exports . . . . . . . . . . . . 17
U.S. Market Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Major U.S. Agricultural Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
U.S. Agricultural Imports by Country of Origin . . . . . . . . . . . . . . . . . 47
Growth in U.S. Agricultural Exports, 1988 -2000F . . . . . . . . . . . . . . 51
Growth in U.S. Agricultural Exports to Asian Markets . . . . . . . . . . . . 55
Growth in Agricultural Exports to North and South America . . . . . . . 59
Market Development Programs in Selected Countries . . . . . . . . . . . . 63
Domestic Support and Export Subsidies
in the United States and the European Union . . . . . . . . . . . . . . . . . . . 67
Producer Support Estimates (PSEs) in
the United States and the European Union . . . . . . . . . . . . . . . . . . . . . 69
Agricultural and Trade Policies in the United
States and the European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Agricultural and Trade Policies in Canada and Australia . . . . . . . . . . . 78
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
U.S. Agricultural Exports, Imports and Trade Balance
! U.S. agricultural exports in FY2001 are projected to be $51.5
billion, $1.5 billion more than in FY2000.
! FY2001 increases in exports reflect strong world economic
growth and resulting increases in demand.
! Agricultural imports are forecast at a record $39.5 billion in
FY2001, $500 million more than in FY2000.
! High-value products -- mainly fruits, vegetables, and wine and malt
beverages -- make up most of the increase in imports.
CRS-2
U.S. Agricultural Exports and Imports, FY 1985 - FY 2001F
$ Billions
70
60
50
40
30
20
10
0
1985
1987
1989
1991
1993
1995
1997
1999
2001F
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-3
Table 1. U.S. Agricultural Exports and Imports, FY 1985 - FY 2001F
($ Millions)
Year
Exports
Imports
Trade
1985
31,201
19,740
11,461
1986
26,312
20,884
5,428
1987
27,876
20,650
7,226
1988
35,316
21,014
14,302
1989
39,590
21,476
18,114
1990
40,220
22,560
17,660
1991
37,609
22,588
15,021
1992
42,430
24,323
18,107
1993
42,590
24,454
18,136
1994
43,900
26,600
17,300
1995
54,600
29,900
24,700
1996
59,800
32,600
27,200
1997
57,300
35,800
21,500
1998
53.6
37.0
16.6
1999
49.0
37.5
11.5
2000
50.5
39.0
11.5
2001F
51.5
39.5
12.0
Source: U.S. Department of Agriculture. Economic Research Service
F = Forecast
Share of U.S. Production Exported
! Production from one-third of harvested acreage is exported.
! About 20% of the value of U.S. agricultural output is exported.
! In FY2000, around 47% of the U.S. wheat crop was exported,
while 20% of the U.S. corn crop moved into world markets.
(Forecasts for FY2001 are for 49% and 20% respectively.)
! Export markets are important for soybeans (32%) and cotton
(40%).
! Beef exports have grown rapidly, but a relatively small percentage
of output (9% in FY2000) is exported.
CRS-5
U.S. Agricultural Exports:
Share of U.S. Production Exported, 1997 - 2001F
Wheat
Corn
Cotton
Soybeans
Beef
Percent
60
50
40
30
20
10
0
1997
1998
1999
2000F
2001F
Source: U.S. Department of Agriculture. Foreign Agricultural Service; Economic Research Service.
F = Forecast
CRS-6
Table 2. U.S. Agricultural Exports: Percentage Share of
U.S. Production Exported, 1988 - 2001F
Year
Wheat
Corn
Cotton
Soybeans
Beef
1988
75.81
24.06
44.59
41.38
2.88
1989
78.09
41.10
39.61
34.02
4.43
1990
60.48
31.44
63.11
32.38
4.42
1991
39.16
21.74
50.32
28.92
5.18
1992
64.75
21.19
38.07
34.42
5.74
1993
54.88
16.39
32.10
35.16
5.53
1994
51.25
20.96
42.86
31.48
6.61
1995
51.18
21.54
47.71
33.29
7.22
1996
56.8
30.1
43.0
39.1
7.4
1997
44.0
19.5
36.5
37.1
8.4
1998
41.9
16.3
39.9
32.5
8.5
1999
40.9
20.3
30.9
29.2
9.0
2000
47.3
19.9
40.0
32.2
9.4
2001F
49.0
20.5
42.5
33.0
9.7
Source: U.S. Department of Agriculture. Economic Research Service,
Agriculture Outlook Various Issues.
F = Forecast
Commodity Composition of U.S. Agricultural Exports
! The United States exports a wide range of agricultural
products, including both bulk commodities and high value
products.
! Oilseeds (mainly soybeans) and oilseed products were the leading
(by value) commodity components of U.S. agricultural exports in
FY2000, followed by feed grains, fruits, meats, wheat, and
vegetables.
CRS-8
U.S. Agricultural Exports of Major Commodities, FY2000e
$Billions
Oilseed and Products
8.7
Feed Grains & Prods.
5.2
Meats, excl. poultry
5.0
Fruits, Juices, Nuts, and Prep
4.2
Wheat and Prods.
3.5
Vegetables/Prep
2.9
Feeds/Fodder
2.4
Poultry/Prods.
2.3
Cotton
1.8
Tobacco
1.3
0.0
2.0
4.0
6.0
8.0
10.0
Source: U.S. Department of Agriculture. Economic Research Service.
e = estimate
CRS-9
Table 3. U.S. Agricultural Exports of
Major Commodities, FY 2000e
Commodity
($Billions)
Oilseeds and Products
8.7
Feed Grains
5.2
Meats, excl. Poultry
5.0
Fruits, Juices, Nuts, and Preps.
4.2
Wheat and Prods
3.5
Vegetables/Preps.
2.9
Feeds/Fodder
2.4
Poultry/Prods.
2.3
Cotton
1.8
Tobacco
1.3
Source: U.S. Department of Agriculture. Economic Research Service.
e = estimate
Composition of U.S. Agricultural Exports:
Bulk, Consumer-Ready, and Intermediate
! Bulk agricultural exports include products like wheat, coarse
grains, 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.
! Since FY 1991, the total of high value intermediate and consumer-
ready products has exceeded the value of bulk agricultural exports.
! In FY 1999, high value exports accounted for 62% of total U.S.
agricultural exports, bulk for 38%.
CRS-11
U.S. Agricultural Exports, FY 1981, FY 1985 - 1999
Bulk, Consumer-Ready, and Intermediate Product Exports
Bulk
Consumer-Ready
Intermediate
$ Billions
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
81
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-12
Table 4. U.S. Agricultural Exports, FY 1981 - FY 1999:
Total, Bulk, Consumer-Ready, and Intermediate Product Exports
($ Thousands)
Year
% of
Consumer-
% of
% of
Total
Bulk
Intermediate
Total
Ready
Total
Total
1981
43,782,436
30,484,758
69.6
5,498,271
12.6
7,799,407
17.8
1985
31,202,986
19,991,004
64.1
4,794,811
15.4
6,417,171
20.6
1986
26,335,846
14,455,870
54.9
4,959,782
18.8
6,920,194
26.3
1987
27,877,509
14,650,403
52.6
5,951,124
21.3
7,275,982
26.1
1988
35,336,356
19,360,317
54.8
7,360,473
20.8
8,615,566
24.4
1989
39,522,729
22,295,358
56.4
8,352,422
21.1
8,874,949
22.5
1990
40,122,362
21,785,568
54.3
9,766,813
24.3
8,569,981
21.4
1991
37,534,222
17,610,418
46.9
11,431,178
30.5
8,492,626
22.6
1992
42,315,630
19,556,582
46.2
13,521,311
32.0
9,237,737
21.8
1993
42,454,370
18,913,731
44.6
14,626,124
34.5
8,914,515
21.0
1994
43,475,000
17,967,000
41.3
16,167,000
37.2
9,340,000
21.5
1995
54,629,263
24,452,852
44.7
18,717,630
34.3
11,458,781
21.0
1996
59,794,787
28,792,244
48.1
20,047,654
33.5
10,954,889
18.3
1997
57,260,562
24,143,573
42.2
20,793,043
36.3
12,323,946
21.5
1998
53,628,843
20,879,395
39.0
20,626,187
38.5
12,123,261
22.6
1999
49,003,869
18,566,167
38.0
19,809,814
40.0
10,627,888
22.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
Major Country Markets for U.S. Agricultural Exports
! Japan is the leading country market for U.S. agricultural exports.
! Canada and Mexico, U.S. partners in the North American Free Trade
Agreement, are the 2nd and 3rd largest markets for U.S. agricultural
products.
! The EU is now the 4th largest U.S. export market.
! The Republic of Korea and Taiwan are in fifth and sixth place. U.S.
exports to Asian countries are expanding but have yet to rebound to pre-
1997 levels.
CRS-14
Major Country Markets for U.S. Agricultural Exports
FY 1999 - FY 2001F
1999
2000
2001
$ Billions
8.9
Japan
9.29.5
7.0
Canada
7.5
7.6
5.7
Mexico
6.0
6.2
7.0
EU
6.2
5.9
2.5
Korea, Republic of
2.6
2.6
2.0
Taiwan
2.0
2.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-15
Table 5. Major Country Markets for U.S. Agricultural Exports,
FY1999 - FY2001F
Country
1999
2000
2001F
Japan
8.9
9.2
9.5
Canada
7.0
7.5
7.6
Mexico
5.7
6.0
6.2
EU
7.0
6.2
5.9
Korea, Republic of
2.5
2.6
2.6
Taiwan
2.0
2.0
2.1
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
U.S. Market Shares
Crops
! Wheat: Although it has lost market share in the 1990s the United States is the
major supplier of wheat and wheat products to the world market; its share was
27.3% in 1999/2000. The European Union, Canada, Australia, and
Argentina are major competitors in this market.
! Rice: Thailand (27%) is the world's dominant rice exporter; Vietnam (18%)
is re-establishing itself in world rice markets. The United States held 11% of
the market in 2000.
! Corn: The United States provided 67% of world corn exports in 1999 and
Argentina, 12%; China, whose domestic demand for corn is growing, was an
important exporter in 1999/2000.
! Soybeans: In 1999/2000, the U.S. share of this market was 56%; Brazil and
Argentina, who export more soybean meal and oil than beans, together held
more than 30% of the world soybean market.
! Cotton: U.S. cotton exports were 25% of world exports in 1999/2000.
Uzbekistan, a Republic of the Former Soviet Union, and Franc-Zone West
African countries accounted for 15% and 13% respectively of world cotton
exports.
CRS-17
Share of World Exports of Wheat and Wheat Products, 1999/2000
European Union
United States
15%
27%
Canada
18%
Rest of World
10%
Kazakhstan, Rep.
4%
Argentina
10%
Australia
16%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-18
Table 6. Share of World Exports of Wheat and Wheat Products (%), 1991 - 2001F
Country
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01F
Argentina
5.2
6.5
4.5
8.1
5.6
9.7
9.2
8.7
10.0
10.5
Australia
7.5
8.4
12.7
8.0
13.0
17.5
14.8
15.7
15.8
15.7
Canada
22.6
19.3
18.7
21.6
18.1
17.5
20.5
14.0
17.9
17.1
European Union
20.0
21.0
20.0
17.4
13.4
17.2
13.7
14.2
14.8
15.2
Kazakhstan, Rep.
--
5.1
5.5
3.6
3.2
2.2
3.3
2.2
4.2
3.8
United States
32.1
33.0
33.0
33.4
36.0
26.1
27.0
28.3
27.3
29.0
Rest of World
13.0
6.6
5.6
7.9
10.7
10.3
11.5
17.2
10.0
8.7
Source: U.S. Department of Agriculture. Foreign Agricultural Service. July June year.
F = Forecast
-- = Less than .1%.
CRS-19
Share of World Exports of Rice, 2000
Pakistan
8%
India
5%
Thailand
China
27%
14%
Rest of World
United States
18%
12%
Vietnam
15%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-20
Table 7. Share of World Exports of Rice (%), 1991 - 2001F
Country
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000F
2001F
China
5.7
6.6
9.2
9.2
--
1.3
5.0
13.7
10.8
14.3
13.8
India
5.4
4.0
4.2
3.6
20.0
18.0
10.4
16.5
10.2
4.9
7.3
Pakistan
10.7
9.6
6.3
8.5
7.6
8.5
10.5
6.6
7.3
8.3
7.3
Thailand
33.1
34.0
36.2
28.4
28.3
26.8
27.7
23.3
26.6
26.8
26.8
United States
18.2
14.9
17.7
17.0
14.6
13.3
12.2
11.6
10.6
12.3
11.2
Vietnam
8.7
13.6
11.8
13.5
11.0
15.4
17.7
13.8
18.2
15.2
16.2
Rest of World
17.7
17.4
14.6
19.8
18.5
16.7
16.5
14.5
16.3
18.2
17.4
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Calendar year.
F = Forecast
-- = Less than .1%
CRS-21
Share of World Exports of Corn, 1999/2000
United States
67%
Rest of World
6%
South Africa, Rep.
1%
Argentina
12%
China
14%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-22
Table 8. Share of World Exports of Corn (%) , 1990 - 2000F
Country
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01F
Argentina
6.1
9.4
7.7
7.5
8.5
10.6
15.4
20.2
11.5
12.1
11.7
China
11.6
15.9
20.3
20.9
2.0
--
5.9
9.8
4.9
13.7
5.5
South Africa, Rep.
1.2
1.3
0
5.3
3.5
2.5
2.4
1.8
1.3
1.2
1.8
United States
75.3
65.0
67.1
58.8
82.4
79.8
70.2
59.8
75.7
67.3
78.5
Rest of World
5.8
8.4
4.9
7.5
3.6
7.1
6.1
8.4
6.6
5.7
2.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service. October September year.
F = Forecast
-- = Less than .1%.
CRS-23
Share of World Exports of Soybeans, 1999/00
United States
56%
Rest of World
5%
Paraguay
5%
Argentina
10%
Brazil
24%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-24
Table 9. Share of World Exports of Soybeans (%), 1990/91 - 2000/01e
Country
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00P
2000/01
Argentina
17.5
11.3
8.1
10.9
7.8
6.9
2.0
8.0
8.3
10.2
9.8
Brazil
10.3
13.7
14.0
19.3
11.1
10.1
22.5
21.6
23.1
23.9
21.9
Paraguay
4.1
2.9
4.2
4.3
4.5
4.7
5.8
5.9
5.9
4.7
5.1
United States
10.4
66.0
70.2
56.9
70.9
73.0
65.0
58.7
56.6
56.3
58.2
Rest of World
7.7
6.1
3.5
8.6
5.7
5.3
4.7
5.8
6.1
4.9
5.0
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Marketing year.
e = estimate
CRS-25
Share of World Exports of Cotton, 1999/00
Rest of World
35%
Australia
12%
United States
25%
Uzbekistan
15%
Franc-Zone Africa
13%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-26
Table 10. Share of World Exports of Cotton (%), 1990/91 - 1999/2000e
Country
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/2000e
Australia
4.6
8.3
6.6
6.3
4.7
5.3
8.8
10.1
12.8
11.8
Franc-Zone Africa
6.9
7.9
8.0
7.6
9.4
10.1
12.3
13.5
15.0
13.1
United States
26.2
23.5
20.5
25.7
33.0
27.4
25.5
28.0
18.3
24.8
Uzbekistan
18.1
18.4
21.5
21.7
17.2
16.3
16.9
17.1
16.1
15.0
Rest of World
39.6
35.0
39.0
37.5
34.8
40.9
36.5
31.3
37.8
35.3
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Marketing year.
e = estimate
f = forecast
U.S. Market Shares
Livestock and Dairy
! Beef: Australia and New Zealand together supply about 30% of world beef
exports. The United States' share of world beef exports was 19% in 1999.
The EU, Brazil and Argentina are the other major suppliers of beef to global
markets.
! Pork: In 1999, the U.S. share of world pork markets was 17%; the EU's share
was around 42%. Canada is the second major supplier of pork to world
markets, with a share of 18% in 1999.
! Poultry: The United States is the world's leading supplier of poultry meat
(42% in 1999). The EU, with around 14% of the world market, is a distant
second.
! Dairy Products: In 1999, the European Union was the leading supplier of
dairy products to the world market, followed by New Zealand and Australia.
The United States has only a shall share of world markets for dairy products.
CRS-28
Share of World Exports of Beef and Veal, 1999P
United States
19%
European Union
14%
Rest of World
22%
New Zealand
7%
Argentina
6%
Brazil
10%
Australia
22%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
CRS-29
Table 11. Share of World Exports of Beef and Veal, (%) 1990 - 2000F
Country
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
Argentina
8.4
7.0
5.5
5.2
7.3
10.1
9.1
7.9
5.4
5.9
6.5
European Union
19.7
22.4
21.2
20.6
21.1
17.9
17.7
16.4
12.6
14.3
11.2
United States
8.5
9.6
11.2
10.9
14.3
15.9
16.5
17.6
18.4
18.6
18.4
Brazil
7.5
6.1
8.4
7.7
7.5
5.6
5.3
5.3
7.0
9.7
11.4
Australia
21.0
20.1
23.0
23.0
22.8
21.0
19.7
20.9
23.5
22.0
21.3
New Zealand
7.0
8.0
8.2
8.8
9.1
9.7
10.0
9.7
9.7
7.4
8.0
Rest of World
27.9
26.8
22.5
23.8
17.9
19.8
21.7
22.2
23.4
22.1
23.2
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
CRS-30
Share of World Pork Exports, 1999P
United States
17.3%
China, Peoples Republic of
3.9%
Rest of World
10.6%
Poland
European Union
6.5%
42.4%
Canada
18.3%
Hungary
1.0%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
CRS-31
Table 12. Share of World Pork Exports (%), 1989 - 2000F
Country
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
Canada
16.8
15.8
13.9
17.8
17.7
14.1
15.4
14.6
15.4
15.9
18.3
20.0
United States
6.5
5.4
6.7
11.2
11.5
11.4
15.4
17.3
17.6
20.5
17.3
17.8
European Union
32.2
35.4
32.2
28.5
34.2
41.0
30.5
27.5
36.0
37.0
42.4
40.6
Hungary
7.4
10.6
7.5
4.2
2.6
1.9
2.3
4.0
1.8
1.0
1.0
0.8
Poland
4.0
2.5
1.1
.8
.6
1.2
3.5
6.3
10.5
8.2
6.5
6.5
China, Peoples Republic of
11.2
11.8
14.0
7.1
8.7
8.5
10.0
7.5
6.0
6.0
3.9
3.3
Taiwan
8.8
11.3
16.9
18.4
16.5
15.6
16.4
15.2
2.6
--
--
--
Rest of World
3.1
7.2
7.7
12.0
8.2
6.3
6.5
7.6
10.1
11.4
10.6
11.0
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
N/A = Not available
-- = Less than .1%.
CRS-32
Share of World Total Poultry Meat Exports, 1999
Brazil
13.2%
United States
41.7%
European Union
13.8%
China (PRC)
6.5%
Rest of World
Hong Kong
11.8%
13.0%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-33
Table 13. Share of World Total Poultry Meat Exports (%), 1990 - 2000F
Country
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
United States
20.3
21.1
23.1
36.2
39.6
44.2
45.2
46.1
44.0
41.7
40.1
Brazil
11.2
10.9
11.6
15.1
13.3
9.8
11.3
11.9
11.0
13.3
13.8
European Union
45.9
45.2
46.6
22.4
20.9
16.6
14.8
14.0
14.8
13.9
13.4
China (PRC)
4.0
4.1
4.7
6.2
6.8
7.4
7.2
6.7
6.2
6.5
6.9
Hong Kong
2.7
3.1
3.2
7.2
8.6
11.0
11.0
10.5
10.7
13.1
14.5
Rest of World
15.9
15.6
10.8
12.9
10.8
11.0
10.5
10.8
13.3
11.5
11.3
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
CRS-34
Share of World Nonfat Dry Milk Exports, 1999P
European Union
24.3%
United States
19.3%
Poland
8.5%
Canada
3.6%
Rest of World
4.8%
Australia
21.2%
New Zealand
18.3%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
CRS-35
Table 14. Share of World Nonfat Dry Milk Exports (%), 1990 - 2000F
Country
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
Canada
5.0
5.7
3.3
1.9
3.8
4.0
4.3
2.9
3.7
3.6
2.5
United States
1.2
8.3
14.5
15.9
14.4
14.9
4.2
11.2
11.2
19.3
13.7
European Union
43.1
30.5
39.8
33.6
21.1
35.1
30.3
28.3
22.1
24.3
28.3
Poland
8.3
10.6
6.7
14.5
13.1
8.9
10.4
10.7
10.9
8.5
9.5
Australia
11.4
16.0
13.5
15.0
20.6
17.1
21.9
19.6
21.5
21.2
21.1
New Zealand
21.0
21.3
18.3
13.1
17.7
15.1
19.6
20.6
21.2
18.3
8.8
Rest of World
10.0
7.6
3.9
6.0
9.3
4.9
9.3
6.7
9.5
4.8
6.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
Major U.S. Agricultural Imports
! Most U.S. agricultural imports are high value products.
! Some imports, such as vegetables, fruits, meats, and live animals,
are also produced in the United States.
! Other imports, such as coffee, bananas, and cocoa are not
produced in the United States.
! Horticultural products (fruits, nuts, vegetables and preparations)
have been the largest component of imports.
CRS-37
Major U.S. Agricultural Imports by Commodity FY2000
Fruits and Nuts
5.4
Vegetables and Preps
4.6
Wine & Malt Beverage
4.4
Red Meats
3.7
Coffee
2.9
Oilseeds & Products
1.9
Animals
1.8
Dairy Products
1.7
Cocoa
1.5
Sugar & Products
1.5
Nursery and cut flowers
1.2
Bananas
1.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Source: U.S. Department of Agriculture. Economic Research Service.
CRS-38
Table 15. Major U.S. Agricultural Imports, FY2000
Commodity
FY 2000 Imports
($ Billions)
Fruits and Nuts
5.4
Vegetables & Preps
4.6
Wine and Malt Beverage
4.4
Red Meats
3.7
Coffee
2.9
Oilseeds and Products
1.9
Animals
1.8
Dairy Products
1.7
Cocoa
1.5
Sugar and Products
1.5
Nursery and cut flowers
1.2
Bananas
1.1
Source: U.S. Department of Agriculture. Economic Research Service.
U.S. Agricultural Imports by Country of Origin
! Canada, the European Union, and Mexico are the major
suppliers of U.S. agricultural imports.
! Australia and New Zealand, Brazil, Colombia, Indonesia, and
other Latin American countries, are also major import suppliers.
CRS-40
Major U.S. Agricultural Imports by Country of Origin
FY 1998 - FY 2000F
1998
1999
2000
$ Billions
7.8
Canada
7.9 8.4
7.3
European Union
7.8
8.4
4.7
Mexico
4.8
5.0
2.1
Oceania
2.2 2.7
1.2
Brazil
1.4
1.4
1.4
Colombia
1.2
1.2
1.4
Indonesia
1.2
0.9
0.0
2.0
4.0
6.0
8.0
10.0
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-41
Table 16. U.S. Agricultural Imports by Country of Origin
1998 - 2000F ($ Billions)
Country
1998
1999
2000F
Canada
7.8
7.9
8.4
European Union
7.3
7.8
8.4
Mexico
4.7
4.8
5.0
Oceania1
2.1
2.2
2.7
Brazil
1.2
1.4
1.4
Colombia
1.4
1.2
1.2
Indonesia
1.4
1.2
0.9
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
1Australia, New Zealand, and Papua New Guinea.
Growth in U.S. Agricultural Exports, 1988 - 2000F
! Asian markets for U.S. agricultural exports grew substantially from
1988-1996. Because of financial and economic problems, FY2000
U.S. agricultural exports to Asia are forecast to be 23% less than in
FY1996.
! U.S. agricultural exports to the European Union grew relatively slowly
during the 1990s. FY2000 U.S. farm exports to the EU are forecast
to be 36% less than in FY1996.
! Agricultural exports to the Former Soviet Union are forecast to
increase from $816 million in FY1999 to $1.4 billion in FY2000.
! Agricultural exports to Latin America, including Mexico, and to
Canada have grown rapidly during the 1990's. They declined less
rapidly than have exports to Asian markets in 1999.
F = Forecast
CRS-43
Growth in U.S. Agricultural Exports
FY 1988 - FY 2000F
Asia
European Union
Latin America
Former Soviet Union
Canada
$ Billions
60.0
50.0
40.0
30.0
20.0
10.0
0.0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-44
Table 17. Growth in U.S. Agricultural Exports, FY1988 - FY2000F
($ Billions)
Year
Latin
Former Soviet
Asia
European Union
Canada
America1
Union
1988
15.928
7.486
4.401
1.940
1.973
1989
18.674
6.539
5.439
3.299
2.179
1990
18.174
6.815
5.155
3.006
3.715
1991
16.094
6.776
5.499
1.758
4.409
1992
17.782
7.193
6.438
2.704
4.812
1993
17.832
7.022
6.883
1.561
5.220
1994
17.272
6.857
7.309
1.497
5.303
1995
24.199
8.493
8.178
1.168
5.890
1996
26.018
9.180
9.991
1.666
6.004
1997
23.873
8.997
10.020
1.593
6.620
1998
19.668
8.844
11.348
1.456
7.022
1999
18.468
6.960
10.502
0.816
6.957
2000F
19.9
5.9
10.3
1.4
7.6
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
1 Including Mexico
Growth in U.S. Agricultural Exports to Asian Markets
! Japan is the United States largest agricultural export market.
Because of it’s continuing recession, U.S. farm exports to Japan
declined by 25% from 1996 to 1999.
! Rapid income growth in Southeast Asia stimulated demand for
U.S. agricultural exports in the 1990s. Financial and economic
problems in the region have since slowed the growth in
agricultural exports.
! U.S. agricultural exports to China grew during the 1990s but
fluctuated considerably. U.S. exports declined in 1999 as China
increased domestic production of grains and cotton.
! Agricultural exports to Asian markets (except South Asia) are
forecast to increase in FY2000.
CRS-46
Growth in Agricultural Exports to Asian Markets
FY 1988 - FY 2000F
Japan
Southeast Asia
South Asia
China
$ Billions
20.0
15.0
10.0
5.0
0.0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-47
Table 18. Growth in Agricultural Exports to Asian Markets, FY1988 - FY2000F
($ Billions)
Year
Japan
Southeast Asia
South Asia
China
1988
7.274
1.015
.805
.612
1989
8.148
.975
1.161
1.496
1990
8.155
1.184
.723
.909
1991
7.736
1.239
.375
.668
1992
8.383
1.470
.536
.690
1993
8.461
1.551
.641
.322
1994
9.281
1.803
.560
.884
1995
10.546
2.605
.801
2.434
1996
11.882
3.386
.730
1.828
1997
10.713
3.136
.728
1.774
1998
9.469
2.288
0.626
1.514
1999
8.940
2.202
0.500
1.012
2000F
9.5
2.6
0.4
1.5
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
Growth in Agricultural Exports to North and South America
! Growth in U.S. agricultural trade with Canada and Mexico,
NAFTA trading partners, has been particularly strong.
! Latin American markets have declined since FY1998.
! U.S. agricultural exports to Canada are forecast to reach $7.6
billion in FY2000.
! U.S. agricultural export to Mexico are expected to increase by
more than $500 million in 2000.
CRS-49
Growth in Agricultural Exports to North and South America
FY 1988 - FY 2000F
South America
Canada
Mexico
$ Billions
20.0
15.0
10.0
5.0
0.0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-50
Table 19. Growth in Agricultural Exports to North and South America, FY1988 - FY2000F
($ Billions)
Year
Latin America ex.
Canada
Mexico
Mexico
1988
2.675
1.973
1.726
1989
2.682
2.179
2.757
1990
2.491
3.715
2.666
1991
2.615
4.409
2.885
1992
2.762
4.812
3.676
1993
3.223
5.220
3.660
1994
3.119
5.303
4.166
1995
4.503
5.890
3.733
1996
4.968
6.004
5.023
1997
4.907
6.620
5.077
1998
5.407
7.022
5.956
1999
4.827
6.957
5.675
2000F
4.1
7.6
6.2
Source: U.S. Department of Agriculture. Economic Research Service.
F= Forecast
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.
! 52% of the funds for U.S. market development programs are from the Federal
Government; and 48% from commodity groups, trade associations, or firms.
! European Union countries operate market development/export promotion
programs funded by mandatory producer levies (59% in 1998) and national
budgets (41% in 1998).
! In Australia and especially New Zealand, where less direct government
funding is provided, most agricultural export promotion is carried out by
commodity marketing boards, trade associations, and private firms.
CRS-52
Expenditures for Market Development, Selected Countries, 1998
Government Funded
Industry
U.S. $ Millions
500
378.8
355.4
400
286.9
300
200
109.9
100
0
EU Countries
United States
Australia
New Zealand
Source: Foreign Agricultural Service.
EU Countries includes Denmark, France, Germany, Italy, Netherlands, Spain, and U.K.
CRS-53
`
Table 20. Expenditures for Market Development, Selected Countries, 1998
($ Millions)
Country
Funding
Total
Government
%
Industry
%
EU Countries
378.8
156.2
41.2
222.6
58.8
United States
286.9
149.2
52.0
137.7
48.0
Australia
109.9
0.3
0.3
109.6
99.7
New Zealand
355.4
8.6
2.4
346.8
97.6
Source: Foreign Agricultural Service
Domestic Support and Export Subsidies
in the United States and the European Union
! 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
4 times larger than direct U.S. subsidies; in 1999 EU subsidies
were a little over 2 times as large.
! In the United States, domestic support and export subsidies are
concentrated on wheat, rice, feed grains, and cotton.
! 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-55
Table 21. A Comparison of U.S. and EU Government Spending on Agricultural Support, 1996-1999
European Union
1996
1997
1998e
1999e
Export Subsidies a
7.221
6.696
5.913
5.699
Domestic Support b
42.328
39.306
39.077
37.389
Total
49.549
46.002
44.990
43.088
United States
1996
1997
1998
1999e
Export Subsidies c
0.422
0.125
0.212
0.344
Domestic Support d
5.068
7.131
9.931
18.047
Total
4.646
7.256
10.143
18.391
Source: U.S. Dept. of Agriculture and Commission of the European Union.
e=estimate
a EU export subsidies include export refunds (amounts paid to exporters who bought at high internal market prices and sold
at world market prices), but exclude 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 Commodity Credit Corporation for the Export Enhancement Program,
Dairy Export Incentive Program, Export Credit Guarantee Programs, and the Market Access Program. Foreign food aid is
excluded.
d U.S. domestic support includes net CCC outlays, including 1999 emergency assistance, interest payments, and operating
expenses, minus CCC export outlays. Conservation Reserve Program spending is excluded.
CRS-56
Producer Support Estimates (PSEs) in
the United States and the European Union
! PSEs measure assistance to producers in terms of the value of transfers to
farmers 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. PSEs can be expressed in money
terms in aggregate or per unit of production, or in percentage terms.
! The PSE for all agricultural products in the EU declined from 44% to 39%
from 1997 to1998, but rose to 49% in 1999.
! The PSE for all agricultural products in the United States which declined
from 1986-88 to 1997, increased from 14% in 1997 to 24% in 1999.
! Products most heavily supported in the EU are beef and veal, milk, sugar,
wheat, and oilseeds.
! Products most heavily supported in the United States are sugar, milk,
wheat and corn.
CRS-57
Producer Support Estimates (PSEs) Selected Commodities
in the United States
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Percent
80
70
60
50
40
30
20
10
0
1986-88
1997-99
1997
1998
1999
Source: OECD, 2000.
Estimates for 1998 and 1999 are provisional.
CRS-58
Table 22. Producer Support Estimates (PSE) in the United States by Commodity
Percent
Products
1986-88
1997-99
1997
1998p
1999p
(Average)
Wheat
49
37
25
39
46
Corn
38
24
14
27
30
Rice
52
17
10
15
26
Oilseeds
8
15
4
15
25
Sugar
58
56
44
56
68
Milk
60
54
45
61
57
Beef and Veal
6
4
3
4
4
Pork
4
4
3
3
5
Poultry
13
3
3
3
4
All Products
25
20
14
22
24
Source: Organization for Economic Cooperation and Development, 2000.
p = provisional
CRS-59
Producer Support Estimates (PSEs) Selected Commodities
in the European Union
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Percent
70
60
50
40
30
20
10
0
1986-88
1997-98
1997
1998
1999
Source: OECD, 2000.
Estimates for 1998 and 1999 are provisional.
CRS-60
Table 23. Producer Support Estimates (PSEs) in the European Union
Percent
Products
1986-88
1997-98
1997
1998p
1999p
(Average)
Wheat
55
53
44
55
58
Corn
54
40
35
42
42
Rice
57
23
20
18
29
Oilseeds
66
47
49
46
46
Sugar
60
51
44
51
58
Milk
56
54
48
56
58
Beef and Veal
48
58
56
59
60
Pork
1
11
10
12
10
Poultry
22
23
20
12
35
All Products
44
44
38
45
49
Source: Organization for Economic Cooperation and Development, 2000.
P = provisional
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, and rice are eligible for
Agricultural support has been based primarily on market price support provided
production flexibility contracts entitling them to fixed but declining annual
through institutional prices. For many commodities, these policies have been
payments until 2002. Payments are based on established acreage and yields.
operated together with measures to limit the volume of production
A few planting restrictions apply and conservation rules must be observed.
to which the price support applies. From 1993/1994 on, as part of the May
Holders of contracts qualify for nonrecourse marketing assistance loans and loan
1992 reform of the Common Agricultural Policy (CAP), there has been some
deficiency payments. Producers of soybeans, other oilseeds, and ELS cotton are
substitution of market price support by direct payments.
not eligible for contract payments but are eligible for nonrecourse marketing
assistance loans and loan deficiency payments.
For supported crops, direct payments are based on historical areas and yields
and are operated in conjunction with a land set-aside requirement. Oilseeds
Substantial emergency assistance was provided to U.S. farmers in 1998, 1999,
support is based on area payments.
and 2000 to counter the effects of declining commodity prices and natural
disasters.
For livestock products, direct payments are based on fixed reference numbers
and for beef they are subject to limitations on stocking density. Further price
Prices of milk and dairy products are supported by an administered minimum
reductions, part of Agenda 2000 reform have further reduced grain and meat
price for milk, CCC purchase of dairy products, tariffs and import quotas. Other
prices and will be only partially compensated by increases in direct payments.
livestock products are not supported by administered prices.
The price of sugar is supported above an administered minimum price by
controlling supply through a tariff import quota.
CRS-62
Agricultural and Trade Policies in the United States and the European Union
United States
European Union
Trade Measures
Import quotas for dairy and sugar are subject to conversion to tariff quotas under
Trade restrictions have been generally in the form of variable import levies
the Uruguay Round Agreement on Agriculture
and export subsidies.
Export subsidies provided under the Export Enhancement Program (EEP)
Variable import levies, which keep imported agricultural products at prices
and other commodity specific subsidies are subject to reduction under the
that are as high as EU internal prices, have been converted to tariff quotas
UR Agreement
as the EU implements the Uruguay Round Agreement on Agriculture.
Export market development programs, MAP and FMDP, assist producer groups,
Export restitutions or refunds are provided to traders to cover the difference
associations, and firms with promotional and other activities.
between internal EU commodity prices and world market prices. Export
restitutions are subject to reduction commitments negotiated in the Uruguay
The CCC makes credit guarantees available to private financial institutions
Round Agreement on Agriculture.
who lend to countries that want to purchase U.S. agricultural exports.
EU countries (but not the EU itself) operate market development and export
The United States has negotiated free trade agreements with Canada and Mexico
promotion programs funded by Government outlays and mandatory producer
which cover substantially all agricultural trade among FTA
levies. France, Netherlands, and Germany have the largest programs devoted
signatories.
to promoting mainly exports of high value products.
The EU does not have a broad export financing program. Individual countries
have their own programs. France, for example, assists with export financing
through the Company for International Trade Insurance (COFACE), which is
majority held independently. COFACE commercial risk coverage is usually less
than 3 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. More recently,
some trade concessions for central and eastern European countries have been
negotiated.
CRS-63
Agricultural and Trade Policies in the United States and the European Union
United States
European Union
Food Aid
The United States is the world's leading supplier of food aid. It provides more
The EU provides about 1/3 of world food aid.
than half of the global total.
EU food aid consists of two parts, EU aid and individual country bilateral
The United States provides food aid mainly through P.L. 480 also known as
programs. EU aid is distributed mainly through the United Nations' World
the Food for Peace program. Wheat and wheat flour are the main commodities
Food Program; bilateral aid is distributed directly to receiving countries.
provided as food aid, but rice and vegetable oils are also important in P.L. 480
Bilateral food aid constitutes about 70% of the total of EU food aid. All EU
programs. Higher value products are made available in special feeding
food aid is provided as donations.
programs. Responsibility for implementing food aid programs is shared by
USDA and the U.S. Agency for International Development (AID).
Wheat is the predominant commodity in EU food 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.
CRS-64
Agricultural and Trade Policies in Canada and Australia
Canada
Australia
Domestic Support
Agricultural policy involves a broad range of measures implemented
Both Commonwealth and State programs provide funds for farm
by both the Federal and Provincial Governments.
restructuring, rural development and research, and income-tax
concessions. Under the Rural Adjustment Scheme, the Commonwealth
Producers of grains and oilseeds receive assistance under a Federal-
offers interest rate subsidies on commercial loans for productivity
Provincial income stabilization program. Assistance through
improvements, short-term downturns, or reestablishment after leaving
transport subsidies has been eliminated. The Canadian Wheat Board
farming.
(CWB) has an exclusive right to purchase wheat produced in
Manitoba, Saskatchewan, Alberta, and the Peace River Valley of British
Excise taxes on diesel fuel used in off-road vehicles and machinery are
Columbia, and to export it or sell it domestically.
refunded under the Diesel Fuel Rebate Scheme.
Producers of livestock receive support under the National Tripartite
The Commonwealth guarantees Australian Wheat Board loans used to
Stabilization Programs, funded by the Federal and Provincial
finance advance payments to wheat producers.
Governments and producers.
A large number of statutory marketing boards exist at the
Farmers can participate in the Net Income Stabilization Account (NISA)
Commonwealth and State levels. The purposes of these boards are to
program. Farmers set aside money in individual accounts, which is then
increase producer returns, stabilize prices, and assist with marketing.
matched by Federal and Provincial treasuries. Farmers can make
withdrawals when their incomes fall below their 5-year average returns
States impose supply controls on milk. Some States impose supply
after costs, or when their taxable incomes fall below a fixed level.
controls on eggs, sugar, and rice. Marketing arrangements operate in
some States for barley, sorghum, corn, rice, and tobacco.
Supply management systems exist for several commodities, including
milk, poultry, and eggs. Marketing boards set producer prices and
production quotas for some commodities.
Provincial governments operate other, autonomous programs, often
through provincial marketing boards. About one-third of total
budgetary expenditure for Canadian agriculture is provided by
Provincial Governments.
CRS-65
Agricultural and Trade Policies in Canada and Australia
Canada
Australia
Trade Measures
Import quotas apply to imports of certain products, particularly dairy,
Tariffs protect sugar, tobacco, and processed fruit and vegetables. A
poultry, and eggs, and are used in conjunction with supply management
tariff-rate quota applies to cheese imports from all countries except
schemes for those products. The Uruguay Round Agreement requires
New Zealand
that these quotas be converted to tariffs with some minimum access for
imports provided.
Local content restrictions apply to fruit juices and tobacco.
A tariff rate quota on imports of boneless beef applies to imports from
Manufacturing milk (milk used in the manufacturing of dairy products)
all countries except the United States and Mexico, Canada's partners in
is supported through export subsidies financed by levies on all domestic
NAFTA.
milk production.
Canada agreed to gradually eliminate its tariffs on most U.S. agricultural
AWB Ltd., the privatized version of the Australian Wheat Board has
products under the bilateral free trade agreement with the United States. monopoly control of wheat exports. A Crown corporation is the sole
It reached a separate bilateral agreement with Mexico under the North
exporting authority for sugar in Queensland, the main sugar producing
American Free Trade Agreement, which also requires a scheduled
state.
elimination of tariffs on most agricultural products.
The Commonwealth provides export credit for wheat exports and
The Federal Government guarantees export credit for wheat exports,
extends credit insurance. The Australian Wheat Board makes sales on
usually for 3 years or less. It is also responsible for debt of the
credit terms. The Government's Export Finance and Insurance
Canadian Wheat Board, which can borrow money to finance wheat
Corporation provides export insurance and insures credit sales by the
sales.
Australian Wheat Board.
Canada promotes exports, including agricultural exports, through the
Export promotion is provided primarily by commodity marketing
Program for Export Market Development. Assistance is made available
boards and associations; the Commonwealth Government provides only
to commodity associations. Some important commodity groups and
modest assistance to promote agricultural exports.
associations fund all are part of their own export market development
activities. Provincial Governments have modest export promotion
programs.
CRS-66
Agricultural and Trade Policies in Canada and Australia
Canada
Australia
Food Aid
Canada is the third largest provider of food aid.
Australian food aid is provided mainly to meet disaster or emergency
situations. Australian food aid is provided both bilaterally and through
Food aid is administered as part of Canada's foreign aid program; the
the U.N. World Food Program.
Canadian International Development Agency (CIDA) is responsible for
implementing the program. Food aid is donated and used to help
The main commodities provided under Australia's food aid program
recipient countries reform their agricultural policies or to meet
have been wheat, rice, and wheat flour. Other commodities include
humanitarian emergencies. In 1994, 60% of Canadian food aid was
vegetable oils, peas, and biscuits.
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.
CRS Report for Congress
Received through the CRS Web
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Updated October 24, 2000
Charles E. Hanrahan
Senior Specialist in Agricultural Policy
Resources, Science, and Industry Division
Mary L. Dunkley
Research Production Assistant
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress
ABSTRACT
This report identifies trends in U.S. agricultural trade, examines the commodity
composition of both agricultural exports and imports, assesses the relative importance
of agricultural exports in relation to domestic production, provides estimates of
export market shares for major categories of agricultural products, and discusses the
principal markets for exports as well as major suppliers of agricultural products to the
U.S. market. The report compares levels of support for agriculture in the United
States and the European Union and compares the domestic, trade, and food aid
policies and programs of the United States, the European Union, Canada, and
Australia. The report is updated as new information becomes available.
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Summary
U.S. agricultural exports in FY2001 are forecast by the U.S. Department of
Agriculture at $51.5 billion. Agricultural imports are expected to reach a record
$39.5 billion. The trade surplus, is projected to be $12 billion. Agricultural exports
account for about 20% of the value of production and make a positive contribution to
the balance of payments. Exports of bulk commodities, e.g., oilseeds, wheat and feed
grains, remain significant, but exports of high value products (HVPs), e.g., meats,
fruits, and vegetables, are increasing. HVPs accounted for 62% of total U.S.
agricultural exports in 1999.
Leading markets for U.S. agricultural exports are Japan, Canada, the European
Union, Mexico, Taiwan and Korea. The United States dominates world markets for
corn, wheat, soybeans, and cotton. 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 Canada, the European
Union (EU), Australia-New Zealand, Mexico, Indonesia, Brazil, and Colombia.
U.S. agricultural exports to Asian countries, Canada, and Mexico have shown
considerable growth. Financial and economic difficulties have slowed the growth of
exports to Asia since 1997, but FY2000 exports to Asian markets are estimated to
increase. Exports to the Former Soviet Union (FSU), Japan, and China also are
estimated to increase in FY2000.
Both the EU and the United States subsidize agriculture, but the EU outsubsidizes
the United States. Canada supports some sectors (e.g., dairy and poultry) more than
others. Australia provides less support to its agriculture. Single desk sellers with
monopoly powers operate wheat markets and markets for some other commodities in
Canada and Australia. 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. The United States has the most diverse food aid programs; others limit food
aid to development assistance and emergencies.
Contents
U.S. Agricultural Trade: Trends, Composition,
Direction, and Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Share of U.S. Production Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Commodity Composition of U.S. Agricultural Exports . . . . . . . . . . . . . 9
Composition of U.S. Agricultural Exports:
Bulk, Consumer-Ready, and Intermediate . . . . . . . . . . . . . . . . . . . . . . 13
Major Country Markets for U.S. Agricultural Exports . . . . . . . . . . . . 17
U.S. Market Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Major U.S. Agricultural Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
U.S. Agricultural Imports by Country of Origin . . . . . . . . . . . . . . . . . 47
Growth in U.S. Agricultural Exports, 1988 -2000F . . . . . . . . . . . . . . 51
Growth in U.S. Agricultural Exports to Asian Markets . . . . . . . . . . . . 55
Growth in Agricultural Exports to North and South America . . . . . . . 59
Market Development Programs in Selected Countries . . . . . . . . . . . . 63
Domestic Support and Export Subsidies
in the United States and the European Union . . . . . . . . . . . . . . . . . . . 67
Producer Support Estimates (PSEs) in
the United States and the European Union . . . . . . . . . . . . . . . . . . . . . 69
Agricultural and Trade Policies in the United
States and the European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Agricultural and Trade Policies in Canada and Australia . . . . . . . . . . . 78
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
U.S. Agricultural Exports, Imports and Trade Balance
! U.S. agricultural exports in FY2001 are projected to be $51.5
billion, $1.5 billion more than in FY2000.
! FY2001 increases in exports reflect strong world economic
growth and resulting increases in demand.
! Agricultural imports are forecast at a record $39.5 billion in
FY2001, $500 million more than in FY2000.
! High-value products -- mainly fruits, vegetables, and wine and malt
beverages -- make up most of the increase in imports.
CRS-2
U.S. Agricultural Exports and Imports, FY 1985 - FY 2001F
$ Billions
70
60
50
40
30
20
10
0
1985
1987
1989
1991
1993
1995
1997
1999
2001F
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-3
Table 1. U.S. Agricultural Exports and Imports, FY 1985 - FY 2001F
($ Millions)
Year
Exports
Imports
Trade
1985
31,201
19,740
11,461
1986
26,312
20,884
5,428
1987
27,876
20,650
7,226
1988
35,316
21,014
14,302
1989
39,590
21,476
18,114
1990
40,220
22,560
17,660
1991
37,609
22,588
15,021
1992
42,430
24,323
18,107
1993
42,590
24,454
18,136
1994
43,900
26,600
17,300
1995
54,600
29,900
24,700
1996
59,800
32,600
27,200
1997
57,300
35,800
21,500
1998
53.6
37.0
16.6
1999
49.0
37.5
11.5
2000
50.5
39.0
11.5
2001F
51.5
39.5
12.0
Source: U.S. Department of Agriculture. Economic Research Service
F = Forecast
Share of U.S. Production Exported
! Production from one-third of harvested acreage is exported.
! About 20% of the value of U.S. agricultural output is exported.
! In FY2000, around 47% of the U.S. wheat crop was exported,
while 20% of the U.S. corn crop moved into world markets.
(Forecasts for FY2001 are for 49% and 20% respectively.)
! Export markets are important for soybeans (32%) and cotton
(40%).
! Beef exports have grown rapidly, but a relatively small percentage
of output (9% in FY2000) is exported.
CRS-5
U.S. Agricultural Exports:
Share of U.S. Production Exported, 1997 - 2001F
Wheat
Corn
Cotton
Soybeans
Beef
Percent
60
50
40
30
20
10
0
1997
1998
1999
2000F
2001F
Source: U.S. Department of Agriculture. Foreign Agricultural Service; Economic Research Service.
F = Forecast
CRS-6
Table 2. U.S. Agricultural Exports: Percentage Share of
U.S. Production Exported, 1988 - 2001F
Year
Wheat
Corn
Cotton
Soybeans
Beef
1988
75.81
24.06
44.59
41.38
2.88
1989
78.09
41.10
39.61
34.02
4.43
1990
60.48
31.44
63.11
32.38
4.42
1991
39.16
21.74
50.32
28.92
5.18
1992
64.75
21.19
38.07
34.42
5.74
1993
54.88
16.39
32.10
35.16
5.53
1994
51.25
20.96
42.86
31.48
6.61
1995
51.18
21.54
47.71
33.29
7.22
1996
56.8
30.1
43.0
39.1
7.4
1997
44.0
19.5
36.5
37.1
8.4
1998
41.9
16.3
39.9
32.5
8.5
1999
40.9
20.3
30.9
29.2
9.0
2000
47.3
19.9
40.0
32.2
9.4
2001F
49.0
20.5
42.5
33.0
9.7
Source: U.S. Department of Agriculture. Economic Research Service,
Agriculture Outlook Various Issues.
F = Forecast
Commodity Composition of U.S. Agricultural Exports
! The United States exports a wide range of agricultural
products, including both bulk commodities and high value
products.
! Oilseeds (mainly soybeans) and oilseed products were the leading
(by value) commodity components of U.S. agricultural exports in
FY2000, followed by feed grains, fruits, meats, wheat, and
vegetables.
CRS-8
U.S. Agricultural Exports of Major Commodities, FY2000e
$Billions
Oilseed and Products
8.7
Feed Grains & Prods.
5.2
Meats, excl. poultry
5.0
Fruits, Juices, Nuts, and Prep
4.2
Wheat and Prods.
3.5
Vegetables/Prep
2.9
Feeds/Fodder
2.4
Poultry/Prods.
2.3
Cotton
1.8
Tobacco
1.3
0.0
2.0
4.0
6.0
8.0
10.0
Source: U.S. Department of Agriculture. Economic Research Service.
e = estimate
CRS-9
Table 3. U.S. Agricultural Exports of
Major Commodities, FY 2000e
Commodity
($Billions)
Oilseeds and Products
8.7
Feed Grains
5.2
Meats, excl. Poultry
5.0
Fruits, Juices, Nuts, and Preps.
4.2
Wheat and Prods
3.5
Vegetables/Preps.
2.9
Feeds/Fodder
2.4
Poultry/Prods.
2.3
Cotton
1.8
Tobacco
1.3
Source: U.S. Department of Agriculture. Economic Research Service.
e = estimate
Composition of U.S. Agricultural Exports:
Bulk, Consumer-Ready, and Intermediate
! Bulk agricultural exports include products like wheat, coarse
grains, 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.
! Since FY 1991, the total of high value intermediate and consumer-
ready products has exceeded the value of bulk agricultural exports.
! In FY 1999, high value exports accounted for 62% of total U.S.
agricultural exports, bulk for 38%.
CRS-11
U.S. Agricultural Exports, FY 1981, FY 1985 - 1999
Bulk, Consumer-Ready, and Intermediate Product Exports
Bulk
Consumer-Ready
Intermediate
$ Billions
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
81
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-12
Table 4. U.S. Agricultural Exports, FY 1981 - FY 1999:
Total, Bulk, Consumer-Ready, and Intermediate Product Exports
($ Thousands)
Year
% of
Consumer-
% of
% of
Total
Bulk
Intermediate
Total
Ready
Total
Total
1981
43,782,436
30,484,758
69.6
5,498,271
12.6
7,799,407
17.8
1985
31,202,986
19,991,004
64.1
4,794,811
15.4
6,417,171
20.6
1986
26,335,846
14,455,870
54.9
4,959,782
18.8
6,920,194
26.3
1987
27,877,509
14,650,403
52.6
5,951,124
21.3
7,275,982
26.1
1988
35,336,356
19,360,317
54.8
7,360,473
20.8
8,615,566
24.4
1989
39,522,729
22,295,358
56.4
8,352,422
21.1
8,874,949
22.5
1990
40,122,362
21,785,568
54.3
9,766,813
24.3
8,569,981
21.4
1991
37,534,222
17,610,418
46.9
11,431,178
30.5
8,492,626
22.6
1992
42,315,630
19,556,582
46.2
13,521,311
32.0
9,237,737
21.8
1993
42,454,370
18,913,731
44.6
14,626,124
34.5
8,914,515
21.0
1994
43,475,000
17,967,000
41.3
16,167,000
37.2
9,340,000
21.5
1995
54,629,263
24,452,852
44.7
18,717,630
34.3
11,458,781
21.0
1996
59,794,787
28,792,244
48.1
20,047,654
33.5
10,954,889
18.3
1997
57,260,562
24,143,573
42.2
20,793,043
36.3
12,323,946
21.5
1998
53,628,843
20,879,395
39.0
20,626,187
38.5
12,123,261
22.6
1999
49,003,869
18,566,167
38.0
19,809,814
40.0
10,627,888
22.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
Major Country Markets for U.S. Agricultural Exports
! Japan is the leading country market for U.S. agricultural exports.
! Canada and Mexico, U.S. partners in the North American Free Trade
Agreement, are the 2nd and 3rd largest markets for U.S. agricultural
products.
! The EU is now the 4th largest U.S. export market.
! The Republic of Korea and Taiwan are in fifth and sixth place. U.S.
exports to Asian countries are expanding but have yet to rebound to pre-
1997 levels.
CRS-14
Major Country Markets for U.S. Agricultural Exports
FY 1999 - FY 2001F
1999
2000
2001
$ Billions
8.9
Japan
9.29.5
7.0
Canada
7.5
7.6
5.7
Mexico
6.0
6.2
7.0
EU
6.2
5.9
2.5
Korea, Republic of
2.6
2.6
2.0
Taiwan
2.0
2.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-15
Table 5. Major Country Markets for U.S. Agricultural Exports,
FY1999 - FY2001F
Country
1999
2000
2001F
Japan
8.9
9.2
9.5
Canada
7.0
7.5
7.6
Mexico
5.7
6.0
6.2
EU
7.0
6.2
5.9
Korea, Republic of
2.5
2.6
2.6
Taiwan
2.0
2.0
2.1
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
U.S. Market Shares
Crops
! Wheat: Although it has lost market share in the 1990s the United States is the
major supplier of wheat and wheat products to the world market; its share was
27.3% in 1999/2000. The European Union, Canada, Australia, and
Argentina are major competitors in this market.
! Rice: Thailand (27%) is the world's dominant rice exporter; Vietnam (18%)
is re-establishing itself in world rice markets. The United States held 11% of
the market in 2000.
! Corn: The United States provided 67% of world corn exports in 1999 and
Argentina, 12%; China, whose domestic demand for corn is growing, was an
important exporter in 1999/2000.
! Soybeans: In 1999/2000, the U.S. share of this market was 56%; Brazil and
Argentina, who export more soybean meal and oil than beans, together held
more than 30% of the world soybean market.
! Cotton: U.S. cotton exports were 25% of world exports in 1999/2000.
Uzbekistan, a Republic of the Former Soviet Union, and Franc-Zone West
African countries accounted for 15% and 13% respectively of world cotton
exports.
CRS-17
Share of World Exports of Wheat and Wheat Products, 1999/2000
European Union
United States
15%
27%
Canada
18%
Rest of World
10%
Kazakhstan, Rep.
4%
Argentina
10%
Australia
16%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-18
Table 6. Share of World Exports of Wheat and Wheat Products (%), 1991 - 2001F
Country
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01F
Argentina
5.2
6.5
4.5
8.1
5.6
9.7
9.2
8.7
10.0
10.5
Australia
7.5
8.4
12.7
8.0
13.0
17.5
14.8
15.7
15.8
15.7
Canada
22.6
19.3
18.7
21.6
18.1
17.5
20.5
14.0
17.9
17.1
European Union
20.0
21.0
20.0
17.4
13.4
17.2
13.7
14.2
14.8
15.2
Kazakhstan, Rep.
--
5.1
5.5
3.6
3.2
2.2
3.3
2.2
4.2
3.8
United States
32.1
33.0
33.0
33.4
36.0
26.1
27.0
28.3
27.3
29.0
Rest of World
13.0
6.6
5.6
7.9
10.7
10.3
11.5
17.2
10.0
8.7
Source: U.S. Department of Agriculture. Foreign Agricultural Service. July June year.
F = Forecast
-- = Less than .1%.
CRS-19
Share of World Exports of Rice, 2000
Pakistan
8%
India
5%
Thailand
China
27%
14%
Rest of World
United States
18%
12%
Vietnam
15%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-20
Table 7. Share of World Exports of Rice (%), 1991 - 2001F
Country
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000F
2001F
China
5.7
6.6
9.2
9.2
--
1.3
5.0
13.7
10.8
14.3
13.8
India
5.4
4.0
4.2
3.6
20.0
18.0
10.4
16.5
10.2
4.9
7.3
Pakistan
10.7
9.6
6.3
8.5
7.6
8.5
10.5
6.6
7.3
8.3
7.3
Thailand
33.1
34.0
36.2
28.4
28.3
26.8
27.7
23.3
26.6
26.8
26.8
United States
18.2
14.9
17.7
17.0
14.6
13.3
12.2
11.6
10.6
12.3
11.2
Vietnam
8.7
13.6
11.8
13.5
11.0
15.4
17.7
13.8
18.2
15.2
16.2
Rest of World
17.7
17.4
14.6
19.8
18.5
16.7
16.5
14.5
16.3
18.2
17.4
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Calendar year.
F = Forecast
-- = Less than .1%
CRS-21
Share of World Exports of Corn, 1999/2000
United States
67%
Rest of World
6%
South Africa, Rep.
1%
Argentina
12%
China
14%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-22
Table 8. Share of World Exports of Corn (%) , 1990 - 2000F
Country
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01F
Argentina
6.1
9.4
7.7
7.5
8.5
10.6
15.4
20.2
11.5
12.1
11.7
China
11.6
15.9
20.3
20.9
2.0
--
5.9
9.8
4.9
13.7
5.5
South Africa, Rep.
1.2
1.3
0
5.3
3.5
2.5
2.4
1.8
1.3
1.2
1.8
United States
75.3
65.0
67.1
58.8
82.4
79.8
70.2
59.8
75.7
67.3
78.5
Rest of World
5.8
8.4
4.9
7.5
3.6
7.1
6.1
8.4
6.6
5.7
2.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service. October September year.
F = Forecast
-- = Less than .1%.
CRS-23
Share of World Exports of Soybeans, 1999/00
United States
56%
Rest of World
5%
Paraguay
5%
Argentina
10%
Brazil
24%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-24
Table 9. Share of World Exports of Soybeans (%), 1990/91 - 2000/01e
Country
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00P
2000/01
Argentina
17.5
11.3
8.1
10.9
7.8
6.9
2.0
8.0
8.3
10.2
9.8
Brazil
10.3
13.7
14.0
19.3
11.1
10.1
22.5
21.6
23.1
23.9
21.9
Paraguay
4.1
2.9
4.2
4.3
4.5
4.7
5.8
5.9
5.9
4.7
5.1
United States
10.4
66.0
70.2
56.9
70.9
73.0
65.0
58.7
56.6
56.3
58.2
Rest of World
7.7
6.1
3.5
8.6
5.7
5.3
4.7
5.8
6.1
4.9
5.0
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Marketing year.
e = estimate
CRS-25
Share of World Exports of Cotton, 1999/00
Rest of World
35%
Australia
12%
United States
25%
Uzbekistan
15%
Franc-Zone Africa
13%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-26
Table 10. Share of World Exports of Cotton (%), 1990/91 - 1999/2000e
Country
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/2000e
Australia
4.6
8.3
6.6
6.3
4.7
5.3
8.8
10.1
12.8
11.8
Franc-Zone Africa
6.9
7.9
8.0
7.6
9.4
10.1
12.3
13.5
15.0
13.1
United States
26.2
23.5
20.5
25.7
33.0
27.4
25.5
28.0
18.3
24.8
Uzbekistan
18.1
18.4
21.5
21.7
17.2
16.3
16.9
17.1
16.1
15.0
Rest of World
39.6
35.0
39.0
37.5
34.8
40.9
36.5
31.3
37.8
35.3
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Marketing year.
e = estimate
f = forecast
U.S. Market Shares
Livestock and Dairy
! Beef: Australia and New Zealand together supply about 30% of world beef
exports. The United States' share of world beef exports was 19% in 1999.
The EU, Brazil and Argentina are the other major suppliers of beef to global
markets.
! Pork: In 1999, the U.S. share of world pork markets was 17%; the EU's share
was around 42%. Canada is the second major supplier of pork to world
markets, with a share of 18% in 1999.
! Poultry: The United States is the world's leading supplier of poultry meat
(42% in 1999). The EU, with around 14% of the world market, is a distant
second.
! Dairy Products: In 1999, the European Union was the leading supplier of
dairy products to the world market, followed by New Zealand and Australia.
The United States has only a shall share of world markets for dairy products.
CRS-28
Share of World Exports of Beef and Veal, 1999P
United States
19%
European Union
14%
Rest of World
22%
New Zealand
7%
Argentina
6%
Brazil
10%
Australia
22%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
CRS-29
Table 11. Share of World Exports of Beef and Veal, (%) 1990 - 2000F
Country
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
Argentina
8.4
7.0
5.5
5.2
7.3
10.1
9.1
7.9
5.4
5.9
6.5
European Union
19.7
22.4
21.2
20.6
21.1
17.9
17.7
16.4
12.6
14.3
11.2
United States
8.5
9.6
11.2
10.9
14.3
15.9
16.5
17.6
18.4
18.6
18.4
Brazil
7.5
6.1
8.4
7.7
7.5
5.6
5.3
5.3
7.0
9.7
11.4
Australia
21.0
20.1
23.0
23.0
22.8
21.0
19.7
20.9
23.5
22.0
21.3
New Zealand
7.0
8.0
8.2
8.8
9.1
9.7
10.0
9.7
9.7
7.4
8.0
Rest of World
27.9
26.8
22.5
23.8
17.9
19.8
21.7
22.2
23.4
22.1
23.2
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
CRS-30
Share of World Pork Exports, 1999P
United States
17.3%
China, Peoples Republic of
3.9%
Rest of World
10.6%
Poland
European Union
6.5%
42.4%
Canada
18.3%
Hungary
1.0%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
CRS-31
Table 12. Share of World Pork Exports (%), 1989 - 2000F
Country
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
Canada
16.8
15.8
13.9
17.8
17.7
14.1
15.4
14.6
15.4
15.9
18.3
20.0
United States
6.5
5.4
6.7
11.2
11.5
11.4
15.4
17.3
17.6
20.5
17.3
17.8
European Union
32.2
35.4
32.2
28.5
34.2
41.0
30.5
27.5
36.0
37.0
42.4
40.6
Hungary
7.4
10.6
7.5
4.2
2.6
1.9
2.3
4.0
1.8
1.0
1.0
0.8
Poland
4.0
2.5
1.1
.8
.6
1.2
3.5
6.3
10.5
8.2
6.5
6.5
China, Peoples Republic of
11.2
11.8
14.0
7.1
8.7
8.5
10.0
7.5
6.0
6.0
3.9
3.3
Taiwan
8.8
11.3
16.9
18.4
16.5
15.6
16.4
15.2
2.6
--
--
--
Rest of World
3.1
7.2
7.7
12.0
8.2
6.3
6.5
7.6
10.1
11.4
10.6
11.0
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
N/A = Not available
-- = Less than .1%.
CRS-32
Share of World Total Poultry Meat Exports, 1999
Brazil
13.2%
United States
41.7%
European Union
13.8%
China (PRC)
6.5%
Rest of World
Hong Kong
11.8%
13.0%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
CRS-33
Table 13. Share of World Total Poultry Meat Exports (%), 1990 - 2000F
Country
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
United States
20.3
21.1
23.1
36.2
39.6
44.2
45.2
46.1
44.0
41.7
40.1
Brazil
11.2
10.9
11.6
15.1
13.3
9.8
11.3
11.9
11.0
13.3
13.8
European Union
45.9
45.2
46.6
22.4
20.9
16.6
14.8
14.0
14.8
13.9
13.4
China (PRC)
4.0
4.1
4.7
6.2
6.8
7.4
7.2
6.7
6.2
6.5
6.9
Hong Kong
2.7
3.1
3.2
7.2
8.6
11.0
11.0
10.5
10.7
13.1
14.5
Rest of World
15.9
15.6
10.8
12.9
10.8
11.0
10.5
10.8
13.3
11.5
11.3
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
CRS-34
Share of World Nonfat Dry Milk Exports, 1999P
European Union
24.3%
United States
19.3%
Poland
8.5%
Canada
3.6%
Rest of World
4.8%
Australia
21.2%
New Zealand
18.3%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
CRS-35
Table 14. Share of World Nonfat Dry Milk Exports (%), 1990 - 2000F
Country
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999P
2000F
Canada
5.0
5.7
3.3
1.9
3.8
4.0
4.3
2.9
3.7
3.6
2.5
United States
1.2
8.3
14.5
15.9
14.4
14.9
4.2
11.2
11.2
19.3
13.7
European Union
43.1
30.5
39.8
33.6
21.1
35.1
30.3
28.3
22.1
24.3
28.3
Poland
8.3
10.6
6.7
14.5
13.1
8.9
10.4
10.7
10.9
8.5
9.5
Australia
11.4
16.0
13.5
15.0
20.6
17.1
21.9
19.6
21.5
21.2
21.1
New Zealand
21.0
21.3
18.3
13.1
17.7
15.1
19.6
20.6
21.2
18.3
8.8
Rest of World
10.0
7.6
3.9
6.0
9.3
4.9
9.3
6.7
9.5
4.8
6.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
Major U.S. Agricultural Imports
! Most U.S. agricultural imports are high value products.
! Some imports, such as vegetables, fruits, meats, and live animals,
are also produced in the United States.
! Other imports, such as coffee, bananas, and cocoa are not
produced in the United States.
! Horticultural products (fruits, nuts, vegetables and preparations)
have been the largest component of imports.
CRS-37
Major U.S. Agricultural Imports by Commodity FY2000
Fruits and Nuts
5.4
Vegetables and Preps
4.6
Wine & Malt Beverage
4.4
Red Meats
3.7
Coffee
2.9
Oilseeds & Products
1.9
Animals
1.8
Dairy Products
1.7
Cocoa
1.5
Sugar & Products
1.5
Nursery and cut flowers
1.2
Bananas
1.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Source: U.S. Department of Agriculture. Economic Research Service.
CRS-38
Table 15. Major U.S. Agricultural Imports, FY2000
Commodity
FY 2000 Imports
($ Billions)
Fruits and Nuts
5.4
Vegetables & Preps
4.6
Wine and Malt Beverage
4.4
Red Meats
3.7
Coffee
2.9
Oilseeds and Products
1.9
Animals
1.8
Dairy Products
1.7
Cocoa
1.5
Sugar and Products
1.5
Nursery and cut flowers
1.2
Bananas
1.1
Source: U.S. Department of Agriculture. Economic Research Service.
U.S. Agricultural Imports by Country of Origin
! Canada, the European Union, and Mexico are the major
suppliers of U.S. agricultural imports.
! Australia and New Zealand, Brazil, Colombia, Indonesia, and
other Latin American countries, are also major import suppliers.
CRS-40
Major U.S. Agricultural Imports by Country of Origin
FY 1998 - FY 2000F
1998
1999
2000
$ Billions
7.8
Canada
7.9 8.4
7.3
European Union
7.8
8.4
4.7
Mexico
4.8
5.0
2.1
Oceania
2.2 2.7
1.2
Brazil
1.4
1.4
1.4
Colombia
1.2
1.2
1.4
Indonesia
1.2
0.9
0.0
2.0
4.0
6.0
8.0
10.0
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-41
Table 16. U.S. Agricultural Imports by Country of Origin
1998 - 2000F ($ Billions)
Country
1998
1999
2000F
Canada
7.8
7.9
8.4
European Union
7.3
7.8
8.4
Mexico
4.7
4.8
5.0
Oceania1
2.1
2.2
2.7
Brazil
1.2
1.4
1.4
Colombia
1.4
1.2
1.2
Indonesia
1.4
1.2
0.9
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
1Australia, New Zealand, and Papua New Guinea.
Growth in U.S. Agricultural Exports, 1988 - 2000F
! Asian markets for U.S. agricultural exports grew substantially from
1988-1996. Because of financial and economic problems, FY2000
U.S. agricultural exports to Asia are forecast to be 23% less than in
FY1996.
! U.S. agricultural exports to the European Union grew relatively slowly
during the 1990s. FY2000 U.S. farm exports to the EU are forecast
to be 36% less than in FY1996.
! Agricultural exports to the Former Soviet Union are forecast to
increase from $816 million in FY1999 to $1.4 billion in FY2000.
! Agricultural exports to Latin America, including Mexico, and to
Canada have grown rapidly during the 1990's. They declined less
rapidly than have exports to Asian markets in 1999.
F = Forecast
CRS-43
Growth in U.S. Agricultural Exports
FY 1988 - FY 2000F
Asia
European Union
Latin America
Former Soviet Union
Canada
$ Billions
60.0
50.0
40.0
30.0
20.0
10.0
0.0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-44
Table 17. Growth in U.S. Agricultural Exports, FY1988 - FY2000F
($ Billions)
Year
Latin
Former Soviet
Asia
European Union
Canada
America1
Union
1988
15.928
7.486
4.401
1.940
1.973
1989
18.674
6.539
5.439
3.299
2.179
1990
18.174
6.815
5.155
3.006
3.715
1991
16.094
6.776
5.499
1.758
4.409
1992
17.782
7.193
6.438
2.704
4.812
1993
17.832
7.022
6.883
1.561
5.220
1994
17.272
6.857
7.309
1.497
5.303
1995
24.199
8.493
8.178
1.168
5.890
1996
26.018
9.180
9.991
1.666
6.004
1997
23.873
8.997
10.020
1.593
6.620
1998
19.668
8.844
11.348
1.456
7.022
1999
18.468
6.960
10.502
0.816
6.957
2000F
19.9
5.9
10.3
1.4
7.6
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
1 Including Mexico
Growth in U.S. Agricultural Exports to Asian Markets
! Japan is the United States largest agricultural export market.
Because of it’s continuing recession, U.S. farm exports to Japan
declined by 25% from 1996 to 1999.
! Rapid income growth in Southeast Asia stimulated demand for
U.S. agricultural exports in the 1990s. Financial and economic
problems in the region have since slowed the growth in
agricultural exports.
! U.S. agricultural exports to China grew during the 1990s but
fluctuated considerably. U.S. exports declined in 1999 as China
increased domestic production of grains and cotton.
! Agricultural exports to Asian markets (except South Asia) are
forecast to increase in FY2000.
CRS-46
Growth in Agricultural Exports to Asian Markets
FY 1988 - FY 2000F
Japan
Southeast Asia
South Asia
China
$ Billions
20.0
15.0
10.0
5.0
0.0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-47
Table 18. Growth in Agricultural Exports to Asian Markets, FY1988 - FY2000F
($ Billions)
Year
Japan
Southeast Asia
South Asia
China
1988
7.274
1.015
.805
.612
1989
8.148
.975
1.161
1.496
1990
8.155
1.184
.723
.909
1991
7.736
1.239
.375
.668
1992
8.383
1.470
.536
.690
1993
8.461
1.551
.641
.322
1994
9.281
1.803
.560
.884
1995
10.546
2.605
.801
2.434
1996
11.882
3.386
.730
1.828
1997
10.713
3.136
.728
1.774
1998
9.469
2.288
0.626
1.514
1999
8.940
2.202
0.500
1.012
2000F
9.5
2.6
0.4
1.5
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
Growth in Agricultural Exports to North and South America
! Growth in U.S. agricultural trade with Canada and Mexico,
NAFTA trading partners, has been particularly strong.
! Latin American markets have declined since FY1998.
! U.S. agricultural exports to Canada are forecast to reach $7.6
billion in FY2000.
! U.S. agricultural export to Mexico are expected to increase by
more than $500 million in 2000.
CRS-49
Growth in Agricultural Exports to North and South America
FY 1988 - FY 2000F
South America
Canada
Mexico
$ Billions
20.0
15.0
10.0
5.0
0.0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
CRS-50
Table 19. Growth in Agricultural Exports to North and South America, FY1988 - FY2000F
($ Billions)
Year
Latin America ex.
Canada
Mexico
Mexico
1988
2.675
1.973
1.726
1989
2.682
2.179
2.757
1990
2.491
3.715
2.666
1991
2.615
4.409
2.885
1992
2.762
4.812
3.676
1993
3.223
5.220
3.660
1994
3.119
5.303
4.166
1995
4.503
5.890
3.733
1996
4.968
6.004
5.023
1997
4.907
6.620
5.077
1998
5.407
7.022
5.956
1999
4.827
6.957
5.675
2000F
4.1
7.6
6.2
Source: U.S. Department of Agriculture. Economic Research Service.
F= Forecast
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.
! 52% of the funds for U.S. market development programs are from the Federal
Government; and 48% from commodity groups, trade associations, or firms.
! European Union countries operate market development/export promotion
programs funded by mandatory producer levies (59% in 1998) and national
budgets (41% in 1998).
! In Australia and especially New Zealand, where less direct government
funding is provided, most agricultural export promotion is carried out by
commodity marketing boards, trade associations, and private firms.
CRS-52
Expenditures for Market Development, Selected Countries, 1998
Government Funded
Industry
U.S. $ Millions
500
378.8
355.4
400
286.9
300
200
109.9
100
0
EU Countries
United States
Australia
New Zealand
Source: Foreign Agricultural Service.
EU Countries includes Denmark, France, Germany, Italy, Netherlands, Spain, and U.K.
CRS-53
`
Table 20. Expenditures for Market Development, Selected Countries, 1998
($ Millions)
Country
Funding
Total
Government
%
Industry
%
EU Countries
378.8
156.2
41.2
222.6
58.8
United States
286.9
149.2
52.0
137.7
48.0
Australia
109.9
0.3
0.3
109.6
99.7
New Zealand
355.4
8.6
2.4
346.8
97.6
Source: Foreign Agricultural Service
Domestic Support and Export Subsidies
in the United States and the European Union
! 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
4 times larger than direct U.S. subsidies; in 1999 EU subsidies
were a little over 2 times as large.
! In the United States, domestic support and export subsidies are
concentrated on wheat, rice, feed grains, and cotton.
! 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-55
Table 21. A Comparison of U.S. and EU Government Spending on Agricultural Support, 1996-1999
European Union
1996
1997
1998e
1999e
Export Subsidies a
7.221
6.696
5.913
5.699
Domestic Support b
42.328
39.306
39.077
37.389
Total
49.549
46.002
44.990
43.088
United States
1996
1997
1998
1999e
Export Subsidies c
0.422
0.125
0.212
0.344
Domestic Support d
5.068
7.131
9.931
18.047
Total
4.646
7.256
10.143
18.391
Source: U.S. Dept. of Agriculture and Commission of the European Union.
e=estimate
a EU export subsidies include export refunds (amounts paid to exporters who bought at high internal market prices and sold
at world market prices), but exclude 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 Commodity Credit Corporation for the Export Enhancement Program,
Dairy Export Incentive Program, Export Credit Guarantee Programs, and the Market Access Program. Foreign food aid is
excluded.
d U.S. domestic support includes net CCC outlays, including 1999 emergency assistance, interest payments, and operating
expenses, minus CCC export outlays. Conservation Reserve Program spending is excluded.
CRS-56
Producer Support Estimates (PSEs) in
the United States and the European Union
! PSEs measure assistance to producers in terms of the value of transfers to
farmers 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. PSEs can be expressed in money
terms in aggregate or per unit of production, or in percentage terms.
! The PSE for all agricultural products in the EU declined from 44% to 39%
from 1997 to1998, but rose to 49% in 1999.
! The PSE for all agricultural products in the United States which declined
from 1986-88 to 1997, increased from 14% in 1997 to 24% in 1999.
! Products most heavily supported in the EU are beef and veal, milk, sugar,
wheat, and oilseeds.
! Products most heavily supported in the United States are sugar, milk,
wheat and corn.
CRS-57
Producer Support Estimates (PSEs) Selected Commodities
in the United States
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Percent
80
70
60
50
40
30
20
10
0
1986-88
1997-99
1997
1998
1999
Source: OECD, 2000.
Estimates for 1998 and 1999 are provisional.
CRS-58
Table 22. Producer Support Estimates (PSE) in the United States by Commodity
Percent
Products
1986-88
1997-99
1997
1998p
1999p
(Average)
Wheat
49
37
25
39
46
Corn
38
24
14
27
30
Rice
52
17
10
15
26
Oilseeds
8
15
4
15
25
Sugar
58
56
44
56
68
Milk
60
54
45
61
57
Beef and Veal
6
4
3
4
4
Pork
4
4
3
3
5
Poultry
13
3
3
3
4
All Products
25
20
14
22
24
Source: Organization for Economic Cooperation and Development, 2000.
p = provisional
CRS-59
Producer Support Estimates (PSEs) Selected Commodities
in the European Union
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Percent
70
60
50
40
30
20
10
0
1986-88
1997-98
1997
1998
1999
Source: OECD, 2000.
Estimates for 1998 and 1999 are provisional.
CRS-60
Table 23. Producer Support Estimates (PSEs) in the European Union
Percent
Products
1986-88
1997-98
1997
1998p
1999p
(Average)
Wheat
55
53
44
55
58
Corn
54
40
35
42
42
Rice
57
23
20
18
29
Oilseeds
66
47
49
46
46
Sugar
60
51
44
51
58
Milk
56
54
48
56
58
Beef and Veal
48
58
56
59
60
Pork
1
11
10
12
10
Poultry
22
23
20
12
35
All Products
44
44
38
45
49
Source: Organization for Economic Cooperation and Development, 2000.
P = provisional
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, and rice are eligible for
Agricultural support has been based primarily on market price support provided
production flexibility contracts entitling them to fixed but declining annual
through institutional prices. For many commodities, these policies have been
payments until 2002. Payments are based on established acreage and yields.
operated together with measures to limit the volume of production
A few planting restrictions apply and conservation rules must be observed.
to which the price support applies. From 1993/1994 on, as part of the May
Holders of contracts qualify for nonrecourse marketing assistance loans and loan
1992 reform of the Common Agricultural Policy (CAP), there has been some
deficiency payments. Producers of soybeans, other oilseeds, and ELS cotton are
substitution of market price support by direct payments.
not eligible for contract payments but are eligible for nonrecourse marketing
assistance loans and loan deficiency payments.
For supported crops, direct payments are based on historical areas and yields
and are operated in conjunction with a land set-aside requirement. Oilseeds
Substantial emergency assistance was provided to U.S. farmers in 1998, 1999,
support is based on area payments.
and 2000 to counter the effects of declining commodity prices and natural
disasters.
For livestock products, direct payments are based on fixed reference numbers
and for beef they are subject to limitations on stocking density. Further price
Prices of milk and dairy products are supported by an administered minimum
reductions, part of Agenda 2000 reform have further reduced grain and meat
price for milk, CCC purchase of dairy products, tariffs and import quotas. Other
prices and will be only partially compensated by increases in direct payments.
livestock products are not supported by administered prices.
The price of sugar is supported above an administered minimum price by
controlling supply through a tariff import quota.
CRS-62
Agricultural and Trade Policies in the United States and the European Union
United States
European Union
Trade Measures
Import quotas for dairy and sugar are subject to conversion to tariff quotas under
Trade restrictions have been generally in the form of variable import levies
the Uruguay Round Agreement on Agriculture
and export subsidies.
Export subsidies provided under the Export Enhancement Program (EEP)
Variable import levies, which keep imported agricultural products at prices
and other commodity specific subsidies are subject to reduction under the
that are as high as EU internal prices, have been converted to tariff quotas
UR Agreement
as the EU implements the Uruguay Round Agreement on Agriculture.
Export market development programs, MAP and FMDP, assist producer groups,
Export restitutions or refunds are provided to traders to cover the difference
associations, and firms with promotional and other activities.
between internal EU commodity prices and world market prices. Export
restitutions are subject to reduction commitments negotiated in the Uruguay
The CCC makes credit guarantees available to private financial institutions
Round Agreement on Agriculture.
who lend to countries that want to purchase U.S. agricultural exports.
EU countries (but not the EU itself) operate market development and export
The United States has negotiated free trade agreements with Canada and Mexico
promotion programs funded by Government outlays and mandatory producer
which cover substantially all agricultural trade among FTA
levies. France, Netherlands, and Germany have the largest programs devoted
signatories.
to promoting mainly exports of high value products.
The EU does not have a broad export financing program. Individual countries
have their own programs. France, for example, assists with export financing
through the Company for International Trade Insurance (COFACE), which is
majority held independently. COFACE commercial risk coverage is usually less
than 3 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. More recently,
some trade concessions for central and eastern European countries have been
negotiated.
CRS-63
Agricultural and Trade Policies in the United States and the European Union
United States
European Union
Food Aid
The United States is the world's leading supplier of food aid. It provides more
The EU provides about 1/3 of world food aid.
than half of the global total.
EU food aid consists of two parts, EU aid and individual country bilateral
The United States provides food aid mainly through P.L. 480 also known as
programs. EU aid is distributed mainly through the United Nations' World
the Food for Peace program. Wheat and wheat flour are the main commodities
Food Program; bilateral aid is distributed directly to receiving countries.
provided as food aid, but rice and vegetable oils are also important in P.L. 480
Bilateral food aid constitutes about 70% of the total of EU food aid. All EU
programs. Higher value products are made available in special feeding
food aid is provided as donations.
programs. Responsibility for implementing food aid programs is shared by
USDA and the U.S. Agency for International Development (AID).
Wheat is the predominant commodity in EU food 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.
CRS-64
Agricultural and Trade Policies in Canada and Australia
Canada
Australia
Domestic Support
Agricultural policy involves a broad range of measures implemented
Both Commonwealth and State programs provide funds for farm
by both the Federal and Provincial Governments.
restructuring, rural development and research, and income-tax
concessions. Under the Rural Adjustment Scheme, the Commonwealth
Producers of grains and oilseeds receive assistance under a Federal-
offers interest rate subsidies on commercial loans for productivity
Provincial income stabilization program. Assistance through
improvements, short-term downturns, or reestablishment after leaving
transport subsidies has been eliminated. The Canadian Wheat Board
farming.
(CWB) has an exclusive right to purchase wheat produced in
Manitoba, Saskatchewan, Alberta, and the Peace River Valley of British
Excise taxes on diesel fuel used in off-road vehicles and machinery are
Columbia, and to export it or sell it domestically.
refunded under the Diesel Fuel Rebate Scheme.
Producers of livestock receive support under the National Tripartite
The Commonwealth guarantees Australian Wheat Board loans used to
Stabilization Programs, funded by the Federal and Provincial
finance advance payments to wheat producers.
Governments and producers.
A large number of statutory marketing boards exist at the
Farmers can participate in the Net Income Stabilization Account (NISA)
Commonwealth and State levels. The purposes of these boards are to
program. Farmers set aside money in individual accounts, which is then
increase producer returns, stabilize prices, and assist with marketing.
matched by Federal and Provincial treasuries. Farmers can make
withdrawals when their incomes fall below their 5-year average returns
States impose supply controls on milk. Some States impose supply
after costs, or when their taxable incomes fall below a fixed level.
controls on eggs, sugar, and rice. Marketing arrangements operate in
some States for barley, sorghum, corn, rice, and tobacco.
Supply management systems exist for several commodities, including
milk, poultry, and eggs. Marketing boards set producer prices and
production quotas for some commodities.
Provincial governments operate other, autonomous programs, often
through provincial marketing boards. About one-third of total
budgetary expenditure for Canadian agriculture is provided by
Provincial Governments.
CRS-65
Agricultural and Trade Policies in Canada and Australia
Canada
Australia
Trade Measures
Import quotas apply to imports of certain products, particularly dairy,
Tariffs protect sugar, tobacco, and processed fruit and vegetables. A
poultry, and eggs, and are used in conjunction with supply management
tariff-rate quota applies to cheese imports from all countries except
schemes for those products. The Uruguay Round Agreement requires
New Zealand
that these quotas be converted to tariffs with some minimum access for
imports provided.
Local content restrictions apply to fruit juices and tobacco.
A tariff rate quota on imports of boneless beef applies to imports from
Manufacturing milk (milk used in the manufacturing of dairy products)
all countries except the United States and Mexico, Canada's partners in
is supported through export subsidies financed by levies on all domestic
NAFTA.
milk production.
Canada agreed to gradually eliminate its tariffs on most U.S. agricultural
AWB Ltd., the privatized version of the Australian Wheat Board has
products under the bilateral free trade agreement with the United States. monopoly control of wheat exports. A Crown corporation is the sole
It reached a separate bilateral agreement with Mexico under the North
exporting authority for sugar in Queensland, the main sugar producing
American Free Trade Agreement, which also requires a scheduled
state.
elimination of tariffs on most agricultural products.
The Commonwealth provides export credit for wheat exports and
The Federal Government guarantees export credit for wheat exports,
extends credit insurance. The Australian Wheat Board makes sales on
usually for 3 years or less. It is also responsible for debt of the
credit terms. The Government's Export Finance and Insurance
Canadian Wheat Board, which can borrow money to finance wheat
Corporation provides export insurance and insures credit sales by the
sales.
Australian Wheat Board.
Canada promotes exports, including agricultural exports, through the
Export promotion is provided primarily by commodity marketing
Program for Export Market Development. Assistance is made available
boards and associations; the Commonwealth Government provides only
to commodity associations. Some important commodity groups and
modest assistance to promote agricultural exports.
associations fund all are part of their own export market development
activities. Provincial Governments have modest export promotion
programs.
CRS-66
Agricultural and Trade Policies in Canada and Australia
Canada
Australia
Food Aid
Canada is the third largest provider of food aid.
Australian food aid is provided mainly to meet disaster or emergency
situations. Australian food aid is provided both bilaterally and through
Food aid is administered as part of Canada's foreign aid program; the
the U.N. World Food Program.
Canadian International Development Agency (CIDA) is responsible for
implementing the program. Food aid is donated and used to help
The main commodities provided under Australia's food aid program
recipient countries reform their agricultural policies or to meet
have been wheat, rice, and wheat flour. Other commodities include
humanitarian emergencies. In 1994, 60% of Canadian food aid was
vegetable oils, peas, and biscuits.
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.