Farmers, ranchers on short end of trade negotiation stick

U.S. farmers and ranchers typically get the short end of the stick in international trade deals as negotiators give priority to other segments of the economy over agriculture's interests, says Larry Combest, former House ag committee chairman.

"One willing to cut a deal the quickest is usually willing to give up the most," Combest said.

Speaking at the annual USA Rice Outlook Conference recently in Orlando, Combest said the agricultural industry and trade representatives should take a closer look at trade agreements. "We live in a global economy. But our negotiators should first consider producers in the United States before they consider producers in other countries." He said negotiators should not abandon sound trade practices that give U.S. producers a level playing field.

He labels some talks as "nonsensical trade negotiations," that do not hold developing nations accountable for currency manipulations and "hidden subsidies to prop up agriculture.

"Negotiations also work under a faulty premise. In GATT and WTO, developed countries are the only ones with serious commitments (to deal with subsidies). That's the obvious reason there is no movement in DOHA. Developed countries are already well below (recommended) tariff rate levels."

He said sanctions against the U.S. cotton program stemming from the Brazil case came about with very little burden of proof. "Why doesn't the United States fight back? Why don't we challenge the policies of the countries that challenge us? A good offense is always the best defense and caving in and kowtowing is no way to curtail litigation."

He said parties working on trade agreements should understand better what they are agreeing to. "The system encourages parties to sign off on ambiguous agreements, just to sign a deal. That's a good deal for the trade negotiators but not for anyone else."