WAWG
The Washington Association of Wheat Growers (WAWG) and the Washington Grain Commission (WGC) have submitted a letter to Ambassador Jamieson Greer, U.S. trade representative, highlighting the potential harm to wheat growers, grain trade, and international buyers from proposed Section 301 actions targeting China’s maritime, logistics, and shipbuilding sectors.
WAWG and the WGC fully support the premise of addressing unfair trade practices and revitalizing the U.S. shipbuilding industry, but strongly disagree with the methods proposed, as they would have devastating consequences for U.S. agriculture, particularly for grain farmers in Washington. One of the most concerning proposals is the imposition of port entrance fees, which would significantly increase export costs for U.S. wheat. The U.S. wheat industry is heavily dependent on ocean going vessels, especially dry bulk carriers, to access global markets. Exports are crucial for the industry, with nearly 50% of all U.S. wheat production being exported. For Washington wheat farmers, overseas demand is even more critical, as over 90% of our wheat is exported. Any disruption in shipping capacity or increase in shipping costs would significantly hinder the ability of Washington wheat farmers to compete in international markets.
“Our competitive edge lies in the excellent milling and baking quality of our wheat and the reliability of timely delivery. Like all U.S. wheat, Washington is rarely the low-cost wheat supplier. However, many of our markets are cost-sensitive, and additional costs inadvertently inflicted by the proposed 301 actions would depress prices, decrease export demand, and negatively impact farmers already facing a challenging economic environment,” the letter states. “With prices already below break-even, Washington farmers cannot take another hit. Many of the inputs used to grow wheat are sourced from overseas, and any cost increase to ship those inputs will be passed through to the farmer who does not have the ability to pass cost increases on.”
The letter is signed by Michelle Hennings, WAWG’s executive director, and Casey Chumrau, WGC CEO.