By Brooke L. Rollins, 33rd Secretary of Agriculture
President Trump has done it again. Yesterday’s historic trade deal with the United Kingdom, announced on the 80th anniversary of Victory Day for World War II, is a major victory for American producers, consumers, and, above all, American farmers and ranchers.
What became an imbalanced trade relationship between us and the U.K. did not develop by accident. Before yesterday’s deal, the weakened position of American farmers emerged through a combination of three factors:
- The average tariff imposed on American agricultural producers by the U.K. has been 9.2% while our average tariff has been 5%.
- The U.K. imposed other non-tariff barriers that limited American access to British markets such as limited quota limits, geographical indicators, irregular inspections, and arbitrary health, animal welfare, or environmental concerns not backed by science or data.
- The previous administration did our farmers and ranchers no favors by refusing to institute a new deal with any country, including the U.K.
Yesterday’s announcement reverses course and gives American farmers a fair shot at competing in British markets, creating a $5 billion opportunity for new exports for U.S. stakeholders, including U.S. farmers, ranchers, and producers.
While our team finalizes the trade deal, we are working hard to eliminate U.K. tariffs from all agricultural products. The deal secures a decrease from 19% to 0% in the U.K.’s ethanol tariff, offering an opportunity for corn farmers in states such as Iowa and Nebraska to further expand this important, second-largest market for U.S. ethanol. British energy users will likewise benefit from additional homegrown biofuel produced here in the U.S. This week’s trade deal offers our corn and ethanol producers the opportunity to export $700 million in product to a market that was previously closed to them.
Cattle ranchers also have cause for celebration. Beef produced by American ranchers in states like Texas, Oklahoma, and Kansas is the best in the world, and British consumers will now have access to a product that is the envy of the world. This trade deal creates the opportunity for our cattle ranchers to export millions more, which will end up in the pockets of American ranchers who saw a global trade surplus in beef during President Trump’s first term crash to a deficit under the previous administration.
Our rice farmers in states such as Arkansas and Louisiana will also see increased production because of this deal. Consumers in the U.K., which does not grow rice, will now have access to nutritious rice grown in American fields, creating a market potential of $100 million with free access.
We at USDA will not let this moment pass without energetic promotion of our products to British markets. My team and I are traveling to the U.K. next week to share the bounty of American agriculture to a market that is now open to our products. The trade deal announced yesterday commits our two countries to work together to enhance agricultural market access, closes loopholes, and fast-tracks customs procedures for U.S. exports.
The U.K. is the sixth-largest economy in the world and the fourth-largest to which we export. This week’s trade deal is a momentous step forward in our relationship with the U.K. and for the American agricultural industry. During my trip next week, I will stand ready to collaborate with our counterparts in the U.K. and ensure British consumers know American farmers and ranchers are open for business.
