Letter to Joseph R. Biden, President of the United States - Iowa Senators Urge Biden To Forcefully Engage On Trade Issues

Letter

Dear President Biden,

Iowa has 86,000 farm families and is known worldwide as an agriculture powerhouse. Iowa farms
grow more corn, raise more pigs, and produce more eggs than any state in the nation. These
farmers deal with many uncertainties including weather, pests, input prices, and commodity
markets. Since commodity markets are global in nature we must continue to engage with new and
existing countries to ensure there is strong demand for the crops and livestock that our farmers
produce. Between the end of the Phase One agreement with China, uncertainty on the role the
United States will play in the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP), and supply chain issues, producers in our state are in limbo as preparations
for planting begin.

While it is true that China failed to live up to their agriculture purchases from the Phase One
agreement, the purchases they did make surpassed agriculture exports in 2017. This resulted in a
record $172.2 billion in agriculture exports in 2021, and in turn measurable increases in
commodity prices for Iowa farmers. While a multitude of non-tariff barriers exist, we
encourage you to continue to engage with China and seek an additional agreement that includes
target purchases of U.S. agriculture products in the coming years. An additional agreement that
includes targeted purchases can capture the volume missed from the Phase One agreement and
give assurances to the farmers of Iowa.

Furthermore, it is clear that China is looking to expand their trading relationships in the IndoPacific region and is taking concrete steps to grow their influence.

The Regional Comprehensive Economic Partnership (RCEP) trade agreement which includes
China, took effect for most of the 15 member countries on January 1, 2022. RCEP is the world's
largest trade agreement, as it covers nearly a third of the global population and about 30 percent of
its global gross domestic product. Last September, China formally applied to the CPTPP.

Initially, your administration stated they were content with focusing on your domestic agenda
before they consider negotiating new free trade agreements. However, a year later, it is clear that
your domestic agenda has been stalled while China is taking serious action to expand their
foothold in the region.

One way to counter China's influence is to begin and complete free-trade agreements on a
multi-lateral, regional, or bilateral basis. This includes a serious look at joining the CPTPP.
The U.S. must step up and again take a leadership role on expanding free trade. As you
know, trade enables us to engage economically with consumers worldwide, which is crucial
since 95 percent of the world's consumers live outside the U.S. It would be extremely
painful for U.S. exporters, including farmers in our home state, to see us sit on the sidelines
and watch China take the lead in the Indo-Pacific region.

Iowa agriculture and ag-related industries supported nearly 400,000 jobs in 2019 and $22.2
billion in household income. We are at a critical moment in determining the future of
agriculture trade, and we urge your administration to forcefully reengage in talks for new
trade agreements; further engage with China to hold them accountable; and, give certainty to
our farmers that their products will continue to be sold to our trading partners across the
world.

I look forward to your response and appreciate your attention to this issue.

Sincerely,

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