March 2019 - 24

Trade wars causing direct, measurable damage to potato industry
As 2019 begins,
NATIONAL
POTATO
COUNCIL
Kam Quarles
Vice President of
Public Policy
there is an increasing
focus on the cost
of the trade wars
upon American
agriculture including
our industry. The
ongoing back-andforth
regarding the
multitude of actions
taking place across
the globe and the
arcane agreements
they impact, creates
confusion. To cut through the noise, we
wanted to talk specifics on the impact for
our industry.
In Japan and Vietnam, when the Trump
administration elected to withdraw from the
Trans-Pacific Partnership (TPP) Agreement,
the U.S. lost tariff concessions that it
negotiated. All the other nations involved
in TPP moved forward in our absence and
have already received tariff reductions of
50 percent, with the additional benefits of
duty-free access to be completed by 2021.
Given these disadvantages, it is anticipated
that the U.S. potato industry may lose $150
million annually in the Japanese market.
Due to the ongoing trade battles with
China, a retaliatory tariff has been placed
on U.S. frozen fries and dehydrated
potatoes. Since the Chinese tariffs against
the U.S. went into effect, Canadian exports
have increased 59 percent and EU exports
are up 110 percent in part to fill the void
left by reduced U.S. exports. Should the
announced tariffs remain in place, the U.S.
stands to lose over $40 million in exports to
China over the next year.
Mexico has placed a 20 percent tariff on
U.S. frozen fries. This action invalidates our
previous duty-free access under the North
American Free Trade Agreement (NAFTA)
and could potentially mean a loss of over
$80 million in sales annually. These losses
would occur without taking into consideration
the actions of competitors such as the EU
who are seeking to establish themselves in
Mexico. Since the tariffs against the U.S.
were announced last year, EU exports to
Mexico have increased 145 percent.
Additionally, the administration has
suggested that if Congress does not
approve the pending U.S.-Mexico-Canada
Agreement (USMCA) then they will exert
leverage on senators and representatives
INDUSTRY NEWS
OREGON COMMISSION LEADER BILL BREWER TO RETIRE
The longstanding CEO of the Oregon Potato
Commission, Bill Brewer, is set to retire.
Brewer, 68 - one of the most prominent
figures in the growth of the Oregon potato
industry - will call it a career on June 30.
He has led the Oregon Potato Commission
since 2005.
During his tenure, Brewer has helped
navigate disease crises, led the effort to grow
Oregon's export market and was instrumental
in founding the Potato Variety Management
Institute in 2005. The PVMI licenses and
promotes varieties developed by the Pacific
Northwest cooperative breeding team.
The interview process to find Brewer's
successor has begun.
by pulling out of NAFTA. Should that action
take place, the U.S. potato industry would
likely lose upward of $140 million in exports
to Canada each year.
In the aggregate, the estimated impact to
U.S. potato exports from just these examples
could exceed over $400 million annually.
This overall number is combined with losses
across U.S. agriculture and does not account
for the negative economic impact that
will trickle down to dependent jobs and
businesses throughout the supply chain.
To avoid these overwhelming negative
consequences, we are strongly urging the
administration and Congress to restore the
substantial tariff concessions we negotiated
under TPP, ratify the USMCA and act to
eliminate the retaliatory tariffs against our
products in China and Mexico. Inaction will
only allow these numbers to grow and dig
the hole we must climb out of that much
deeper.
24
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March 2019

Table of Contents for the Digital Edition of March 2019
