WASHINGTON, DC -- One year to the day after the request from the House Ways & Means Committee, the U.S. International Trade Commission (ITC) has released its study of factors and policies affecting the global competitiveness of the U.S. rice industry. The study, "Rice: Global Competitiveness of the U.S. Industry," is known as a Section 332 investigation and examined the rice industry in the U.S. and in major producing and exporting countries, such as China, India, Thailand, Vietnam, Uruguay, and Brazil, and found that the world rice market is a confusing, and often unfair place.

"The global rice market is characterized by significant government intervention in both imports and exports," the report says. "[This] has affected trade and price trends in the world rice market more than it has for most other agricultural products."

The study looked at the impact on the U.S. rice industry of exports from competitor countries to the U.S. and traditional U.S. markets like Mexico, Haiti, and West Africa and found that although the U.S. rice is high quality and enjoys favorable tariff treatment from markets such as Mexico and Central America, competition is on the rise.

The report finds that while tariff and non-tariff barriers have major impacts on trade in rice, support programs also take their toll.

"Consumption support has the largest effect on the global rice market," the report finds. "Had such support not been in place in 2013, global paddy production and rice consumption would have been 6.1 million mt lower. Another factor shaping rice production in non-U.S. countries is government support for inputs such as seed, fertilizer, and fuel."

"The study provides detailed evidence that the U.S. rice industry is playing by the rules, but is at a decided disadvantage from some of our trading partners who do not," said Betsy Ward, president & CEO of USA Rice. "The report points out that support for U.S. farmers continues to decline, while in places like China, Thailand, and India, those supports are going in the opposite direction."

The yearlong study is the result of a collaboration between USA Rice and Congressman Charles Boustany (R-LA), a Member of the House Ways & Means Committee and the Committee's Chairman, Congressman Dave Camp (R-MI).

"We appreciate the leadership of Chairman Camp and Congressman Boustany on bringing these important issues to light on behalf of America's rice farmers," said Dow Brantley, an Arkansas rice farmer and chairman of the USA Rice Federation who participated in the ITC study. "We've said all along that we can compete globally and are willing to compete, but if the system is rigged against us, it makes it quite difficult." 

The ITC will conduct a detailed briefing of the study with USA Rice next week and Ward says the rice industry will use this study to advocate for change in foreign government policies that negatively impact the industry's competitiveness.

Contact:  Michael Klein (703) 236-1458

In a good spot

WASHINGTON, DC -- On Tuesday, a procedural vote in the U.S. Senate to move forward with H.R. 1314, Trade Promotion Authority (TPA) fell eight votes short of the 60 needed. Senator Tom Carper (D-DE) was the only Democrat to vote in favor of the legislation which would allow President Obama to submit trade deals to Congress for approval without amendments.

Yesterday, the Senate was able to work out a bipartisan deal and a second procedural vote was held today which will allow debate to begin on the TPA bill.

"The fate of TPA legislation is far from over as we expect there will be vigorous debate and an open amendment process beginning tonight," said Ben Mosely, USA Rice's vice president of government affairs. "Even if the Senate passes the TPA bill, the measure will need to pass the House where they may be as many as 20 votes short of passage."

Contact:  Peter Bachmann (703) 236-1475

Divining common sense

WASHINGTON, DC -- On Tuesday night, the U.S. House of Representatives passed H.R. 1732, a bill sponsored by Rep. Bill Shuster (R-PA) that would require the EPA and the U.S. Army Corps of Engineers to withdraw their controversial Waters of the U.S. proposed rule (WOTUS). It is unsure yet when or if that particular bill will be taken up by the Senate because this bill is just one of several pieces of legislation that would restrict or repeal the reach of the proposed rule.

"Without filibuster proof votes there is a high likelihood any legislation passed that restricts or repeals WOTUS will be vetoed by the President," said Ben Mosely, USA Rice vice president of government affairs. "The upcoming FY 2016 Appropriations Bills will be the best chance of limiting or temporarily de-funding the regulation with less risk of a Presidential veto."

The EPA and U.S. Army Corps of Engineers have indicated that they still plan to release the final rule later this spring or early summer after making a number of revisions to the originally proposed WOTUS rule.

Contact:  Peter Bachmann (703) 236-1475

Around Washington

USDA Develops First Government Label for GMO Free Products Washington Post

Ag Secretary Tom Vilsack said the USDA certification is being created through the department's Agriculture Marketing Service, which works with interested companies to certify the accuracy of the claims they are making on food packages - think "humanely raised" or "no antibiotics ever." Companies pay the Agricultural Marketing Service to verify a claim, and if approved they can market the foods with the USDA label.

Around the Country

Before We Can Address the California Drought, We Need a Geography Lesson  

Los Angeles Times

Too often we try to wrap it all into convenient, simple packages - Central Valley and nut orchards - when more specificity is required to grasp the nub of the problem. What part of the vast Central Valley? How dry is it and what's being grown there?

Joe Street: A Life of Service to Mississippi Agriculture Delta Farm Press

Street spent his 35-1/2 year working career in his home state of Mississippi, participating in the massive expansion of rice acreage in the Delta in the 1980s, and spending the later years in administration for the Mississippi State University Extension Service.

Tariffs and Trade

After Lobbying by Obama, Senate Agrees to Vote on Trade Bill After All New York Times

Lawmakers from both parties say that even if the enforcement and currency bill passes Thursday, they may try to break off some provisions as amendments to the trade promotion bill that Mr. Obama must sign into law.

Senate Clears Way for Fast Track Bill Agri-Pulse

One day after Democrats blocked debate on the bill, Senate Minority Leader Harry Reid agreed to a GOP plan to allow a separate vote on a trade enforcement measure Thursday before moving onto the fast-track legislation.