The landscape of global agricultural trade is undergoing a significant transformation, marked by shifting market dynamics and a proactive approach by the U.S. Department of Agriculture (USDA) to bolster the competitiveness of American agricultural products. In a recent panel session, Michelle Bekkering, Deputy Under Secretary for Trade and Foreign Agricultural Affairs at the USDA, highlighted the department’s role in mapping global opportunities and providing tools to help the U.S. agricultural industry capitalize on them and how we have entered New Era for U.S. Agriculture.
Strengthening the Core: The Role of TFAA and FAS
The Trade and Foreign Agricultural Affairs (TFAA) mission area within the USDA oversees the Foreign Agricultural Service (FAS) and the U.S. Codex Office. These entities are instrumental in ensuring the competitiveness of U.S. products by removing non-tariff technical barriers and increasing global demand through marketing expertise.
“Agriculture is really the lifeblood of our rural communities… but we also recognize that it is so intrinsic to our overall national economy,” Bekkering said. She emphasized that U.S. agricultural exports support over 1 million jobs and generate $185 billion in additional economic activity, underscoring the essential nature of trade to both local rural communities and the broader national economy.
A Legacy of Market Development Programs
Mark Slupek, Deputy Administrator of Global Programs at FAS, provided a historical overview of the USDA’s market development programs, which date back to the 1950s. These programs have evolved over decades to meet changing market needs:
- Market Access Program (MAP): With annual funding of $200 million, MAP provides cost-share assistance for various trade promotion activities, including trade shows, market research, and educational seminars. It supports both generic and branded product promotions.
- Foreign Market Development (FMD) Cooperator Program: Created in the 1950s, this program focuses on trade servicing and technical assistance for generic commodities, often funding cooperator offices and staff overseas.
- Emerging Markets Program (EMP): A smaller program focused on market research and technical assistance for emerging markets, open to both public and private entities.
- Technical Assistance for Specialty Crops (TASC): This program assists U.S. organizations in addressing technical or other barriers to trade for specialty crops.
- Quality Samples Program (QSP): A technical assistance program that funds the procurement and shipment of samples to targeted markets to demonstrate how to use U.S. agricultural products.
Innovative Initiatives: RAPP and ASCE
To further expand market opportunities, the USDA introduced two new initiatives in late 2023:
- Regional Agricultural Promotion Program (RAPP): Funded with $600 million, RAPP aims to diversify and expand market opportunities beyond traditional customers, with a focus on regions like South and Southeast Asia, Latin America, the Middle East, and Africa.
- Assisting Specialty Crops Exports (ASCE) Initiative: This $100 million initiative is designed to help specialty crop industries remove non-tariff barriers through targeted projects and a continuous dialogue between FAS and industry stakeholders.
Enhancing Credit and Risk Mitigation
The USDA also offers credit guarantee programs to facilitate trade, such as GSM-102, which guarantees letters of credit to ensure American exporters and their banks get paid. This program currently covers 135 destination countries and involves 78 approved foreign financial institutions. Additionally, the Facility Guarantee Program (FGP) provides guarantees for financing infrastructure projects that support U.S. exports.
As Bekkering noted, the trade markets of today are not necessarily those of yesterday or tomorrow. Through a combination of long-standing programs and innovative new initiatives, the USDA continues to support the U.S. agricultural community.
