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NAFTA is of great value to US apple industry

Food & Ag groups urging Senate to expedite Lighthizer confirmation

A total of 138 food and agriculture trade associations and companies, including the U.S. Apple Association, working collectively through the diverse and broad-based U.S. Food and Agriculture Dialogue for Trade, urged the U.S. Senate to expeditiously vote to confirm Robert Lighthizer as U.S. Trade Representative (USTR).
 
The groups took the action following a 26-0 vote on April 25 by the Senate Finance Committee to recommend Lighthizer’s confirmation to the full Senate.
 
In their letter to the Senate, the organizations cited the central role that the USTR plays under U.S. law in developing and coordinating U.S. international trade policy and leading trade negotiations with other countries. They noted that action on Lighthizer’s confirmation is “particularly urgent” given the Trump Administration’s plans to notify Congress soon of its intent to renegotiate the North American Free Trade Agreement (NAFTA) and this is particularly relevant for the apple industry. 
 
US apple industry benefits from NAFTA
The apple industry has benefited greatly under NAFTA. Prior to the agreement, Mexico imposed a 20% tariff. With duty free access, Mexico is now the largest apple export market followed by Canada. From 1993 to 2015, exports to Mexico tripled while exports to Canada nearly doubled. Export sales to the two markets total more than $450 million annually, nearly equal to U.S. sales to all other nations combined.
 
“Each year, 30 percent of the fresh apple crop is exported,” said Jim Bair, President CEO of the U.S. Apple Association. “Maintaining a healthy and active export market is critical. We join others in calling for a swift confirmation of Robert Lighthizer as U.S. Trade Representative.” 
 
The U.S. Food and Agriculture Dialogue for Trade, emphasized that delays in scheduling a vote on Lighthizer’s confirmation risk “imperiling U.S. national interests” by creating a vacuum during which foreign competitors are ramping up efforts to supplant U.S. leadership and take away U.S. market share, while nervous U.S. foreign customers seek out non-U.S. suppliers to meet their import requirements to ensure basic food security for their people.” 
 
Confirmation of the USTR is an “essential step” in enabling the U.S. government to put its teams in place to engage in trade negotiations on NAFTA and with Asia-Pacific nations “to further enhance U.S. economic growth and job creation,” the groups wrote.
 
“To enable the United States to reengage on trade to benefit all Americans, including U.S. food and agriculture producers, manufacturers and agribusinesses, it is of utmost importance to confirm (Lighthizer) as USTR immediately,” the organizations concluded. Once confirmed, the groups reiterated their desire to work with Lighthizer and other Trump Administration officials and Congress to “develop and implement a coherent and effective U.S. trade policy that continues to promote America’s food and agriculture producers and exporters.”

Contact: 
Korenna Wilson
US Apple Association
Tel: (703) 442−8850
Publication date: