 Riemenschneider has been with the U.S. Department of Agriculture
since 1975. He said that he has found his career of working with the
foreign trade side of the USDA to be exciting and interesting.The
Foreign Ag Service is the Department of Agriculture's international
arm that works to assure that American agricultural products can be
offered competitively to other nations.
To achieve this, they have three goals: to create a level playing
field for American agriculture, to expand the global agriculture
trading system and to reduce tactical barriers.
The department has 800 employees in Washington and 170 attachés
who serve in U.S. embassies around the world. There are 115 American
officers placed overseas in 56 posts that serve 156 countries. There
are also approximately 300 "local" employees working out of those
same posts.
Riemenschneider said global trading has grown tremendously over
the last decade and is expected to continue to do so through the
next decade.
He said that in developing countries there is an emerging middle
class that is going to be driving the demand for products. He noted
that by 2021 it is expected that the middle-class population in
developing countries will have increased 83 percent over today's
statistics.
Riemenschneider said that in 2010, every $1 billion in
agricultural exports supported 7,800 jobs on and off the farm. He
said a new record of $137 billion was set in 2011, and the
projection for 2012 would be down slightly at $134 billion.
Of the goods exported, 45 percent is soybeans, 23 percent is pork
and 12 percent is corn. He also noted 78 percent of the U.S. almond
crop is exported.
In the corn statistic, he said that figure didn't reflect corn
exported as another product such as ethanol.
The bilateral free trade agreements around the world as of 2010
were approximately 200 in number. Riemenschneider said that in the
years between 1960 and 1995, foreign trade agreements and subsequent
trading showed very slow growth. However, since 1995 there has been
a large amount of foreign trade agreement growth.
He said these trade agreements are important because they protect
the market shares, help reduce tariffs and boost competitiveness.
Riemenschneider explained the benefits of the World Trade
Organization and noted that Russia has recently joined the WTO.
In the WTO, all the members are given the same trade agreements
and the same terms on tariffs. Riemenschneider said this breaks down
the barriers and enhances free trade with all the membership
nations.
He cited as an example that when China joined the WTO, the U.S.
didn't have to grant China any additional access, but China had to
bring its barriers down to a level that satisfied the WTO. The same
was true with Russia, in that they had to make all the concessions
to eliminate the barriers in trade.
Riemenschneider said that in the countries the U.S. now has free
trade agreements with, trade is growing faster than with the rest of
the world.
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He also talked briefly about the agreements, saying that once
fully in place, they are expected to increase U.S. exports by $2.3
billion.
He said that of the $2.3 billion increase, $1.93 billion would be
increased exports to Korea, a $370 million increase to Columbia and
$50 million more in Panama.
He said right now Korea is a $6.8 billion importer of American
agricultural products, the sixth-largest American market. He said
that in the Korean trade, nearly two-thirds is duty-free. Duties on
corn were eliminated immediately as were duties on soybeans. By
2016, 90 percent of all pork exports would be duty-free.
He finished by speaking briefly about the Trans-Pacific
Partnership. The partnership consists of seven countries, of which
the U.S. already had trade agreements with four.
The highlight of the partnership is the addition of Vietnam to a
trade agreement with the U.S., along with New Zealand.
When Riemenschneider finished his brief discussion, a question
came from the floor, asking who enforces the trade agreements of the
WTO.
Riemenschneider said members are primarily self-governing. He
said there is a dispute settlement committee that hears complaints
and offers resolutions.
In the process, a country that feels one of their partners is not
trading fairly may challenge that country through the committee. The
committee will review the complaint and deliver a decision. The
country being accused has the right to defend itself.
If the complaining country is not satisfied with the outcome, it
may file a WTO case. The complaint then goes before a panel of
judges, where each side may argue its case. The panel will then rule
on which side has the valid claim.
He said it was a very long and drawn-out process, and he added
that at the end of the day, if the violating country has been found
to be trading unfairly, that country doesn't necessarily have to
change its ways. If it does not, then the complainant is entitled to
exercise retaliation via its own trade agreements.
Riemenschneider was asked by an audience member about trade with
Cuba.
He said the U.S. has had sanctions on Cuba that only permitted
them to purchase food and medication. Five years ago when the U.S.
was trading with Cuba, it had been an OK experience, but now Cuba is
having trouble with its financing.
He was then asked about Russia entering the WTO.
Riemenschneider said the main thing that would do for the U.S. is
add some predictability to the export potential there. He said that
in the last couple of years Russia had made import policy changes
that had made it difficult for the U.S. to trade there.
He said also that in the past Russia had held no obligation to
live up to its trade agreements because it was not a member of the
WTO, but with this change they should be more accountable.
[By NILA SMITH]]
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