VIDEO: Smith Questions U.S. Trade Representative Lighthizer on Agriculture Trade Priorities

Congressman Adrian Smith (R-NE) questioned U.S. Trade Representative Robert Lighthizer on agriculture trade priorities in today’s Ways and Means Committee hearing on President Trump’s trade agenda. Smith focused on China’s approval of U.S. biotechnology products, but he also stressed the importance of NAFTA as well as duty-free treatment of travel goods under the Generalized System of Preferences (GSP).



Transcript

Congressman Smith
Thank you, Mr. Chairman, and thank you, Ambassador, for your service and for sharing your time here today. I certainly want to associate my comments and concerns with those of my colleagues who have raised the issue of NAFTA and agriculture, and the progress that has been made with NAFTA. I know producers across rural Nebraska certainly appreciate the gains that have been made, and I think you’ve heard from us numerous times – they call us the agriculture delegation here on the committee – on how important these issues are, that we not undermine the successes NAFTA has brought to U.S. agriculture.

Shifting gears just a bit, thank you for the work you, the President, and others in the administration have done pressing China on a number of trade issues. This isn’t just a market access issue for the biotech firms. The lack of approval for these products also forces U.S. producers to choose between using the most current seed varieties or continuing access to China’s 1.3 billion consumers. It’s obviously a big deal. As agreed to under the U.S.-China 100-day plan, China’s National Biosafety Committee (NBC) recently met to review approval petitions for eight U.S. biotech products which have seen their approval for the Chinese market delayed by an average of five years, pretty astonishing. Following the NBC meeting, the Chinese Ministry of Agriculture approved only two of the eight pending products. Approval of only two of these eight products is disappointing, and I am concerned China will not honor the spirit of the 100-day plan and approve the remaining six products. I understand the NBC is set to meet again by the end of June, giving us opportunity to have the other six products approved. What is USTR doing to ensure China follows through and approves the remaining six products before the conclusion of the 100-day plan?

Ambassador Lighthizer
Thank you, Congressman. First of all, I would say that there was some progress made in the 100-day plan, as you suggest, and this is one of the principal areas where there was progress. We are continuing to press China. We expect and will require that they, after they follow their process, very quickly approve all eight applications. This is important not just because of those [applications] but because it actually delays U.S. farmers from implementing a lot of these high-tech techniques in the domestic market as well as internationally. So I can assure you Secretary Ross, who is very focused on this, is making it very clear that this has to be done. We’ve been in contact with the Chinese as recently as the last couple days on this, and my feeling is before long we’re going to have all eight of them agreed to. That’s what we expect, that’s what we think was agreed to, and the Secretary, as I say, who actually had that negotiation at that time is very focused on it.

Congressman Smith
Thank you. I know there is great opportunity in being good stewards of our natural resources with biotechnology. We’ve got a great story to tell with how far we’ve come utilizing biotechnology, and I think it is very promising for the future.

I was pleased to see the President’s budget did include renewal of the GSP program, and this is very important. More specifically, the recent GSP reauthorization included language to allow consideration for duty-free access for a variety of travel goods. The previous administration did not provide this consideration for travel goods from all eligible countries as intended by the law and instead only provided it to the least developed and AGOA nations. I appreciated Ambassador Froman’s deferring that expansion to the current administration. Could you give us an update on that effort on GSP and travel goods?

Ambassador Lighthizer
Yes, well, I don’t actually appreciate him deferring it – I say that just in jest. We are in the process of looking at it right now. We’re very close – the documents are in front of me – and I think you’ll see an outcome very soon. My guess is you won’t be disappointed.

Congressman Smith
Okay, thank you again, Ambassador, and thank you, Mr. Chairman.