Why Don’t Iowa Farmers Export More to Europe?

Sundog Farm

During a brief appearance at Northeast Iowa Community College in Peosta on July 26, President Trump claimed a trade breakthrough with European allies.

“We just opened up Europe for you,” he said.

Not so fast!

On Saturday, European Union Commission President Jean-Claude Juncker, who met with Trump, said trade talks almost collapsed over U.S. agricultural demands.

Agricultural trade will remain off the table in any trade talks between the U.S. and EU, Juncker said, according to Deutsche Welle. A European commitment to buy more U.S. soybeans is driven by market conditions.

Europe is the second largest importer of soybeans after China and prices are low because of the U.S. trade war with China. In other words, after market conditions driven by the president beat the price of soybeans down, Europe sees a bargain. It is hard to fathom how Trump sees Europe “opened up” under these conditions. Granted Iowa farmers planted more acres in soybeans this year, but the president’s statement can only be seen as political posturing in advance of the 2018 midterm elections and everyone should know it.

There is a more significant problem with “opening up” Europe for agricultural trade — the issue of genetically modified organisms.

There are very few genetically modified crops grown in Europe compared to the U.S., according to a July 27 New York Times article. The reason is in 2001, the EU issued a directive about GMOs. From the early stages of research to the marketplace, these products would have to pass a series of tests for environmental risks and human safety. The consequence of the directive in Europe is few farmers produce GMO crops.

In the U.S., neither the USDA nor the National Academy of Sciences is concerned that GMO crops have any impact on consumers different from non-GMO crops, despite a slate of regulations. Driven by science, farmers embrace GMO crops because of their acceptance in the U.S. marketplace combined with the attributes of genetically modified seeds. Regardless of science, increasing the amount of GMO crops exported to Europe seems unlikely given the fact many European countries have banned GMOs.

Shorter version of Trump’s statement, “Farmers, here’s a bone.”

It’s hard to see how help for Iowa farmers will materialize from current discussions with Europe. The irony of increased soybean sales to Europe after Trump’s trade war beat down prices as something positive seems lost on his true believers. They may swallow this hook, line and sinker, but other sentient beings should not. It is another deception from a president with an unending supply of deceit.

~ First posted on Blog for Iowa

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