Promoting Products Overseas

Washington’s world-class crops are in high demand around the world – and a key part of Washington’s trade economy. Thanks in large part to agriculture, Washington state is the 3^rd largest exporting state in the country. In 2010, export activity at the Ports of Seattle and Tacoma generated $704 million in state revenue. 

Maria has supported agriculture and trade jobs by aggressively working to expand the sales of Washington state products in foreign countries. She has visited with officials from Cuba, China and several other countries to broker important deals that promote Washington products. She has also been a leader on trade agreements that expand the market for Washington goods in countries from South Korea to Panama.

The Seattle Times hailed the South Korea and other free trade agreements in an October 2011 editorial, stating, “But no sales are made or jobs created without market access. Washington agriculture is a clear winner, especially with the Korea agreement… Let Washington products into the overseas markets, and their quality will prevail…”   

• South Korea Free Trade Agreement: South Korea is the fourth largest export market for Washington state goods, taking in $1.4 billion worth of agriculture exports from the state in 2011.  
  
  Maria was a leader in advocating for the bipartisan South Korea Free Trade Agreement (FTA), which went into effect in March 2012, lifting tariffs on the sale of Washington goods to South Korea. Maria helped shepherd the agreement through a key Senate committee, and she helped to pass it in October 2011.
  
  Mark Powers of the Northwest Horticultural Council applauded Maria’s leadership on the South Korea FTA, saying, “The Northwest Horticultural Council enthusiastically supports the efforts by Congress, Senator Maria Cantwell and President Obama to pass the trade agreements with Korea, Colombia and Panama. Collectively these trade agreements will benefit apple, pear and cherry growers and bring millions of dollars from overseas into the Washington state economy.” 
  
  The Korea Free Trade Agreement will have far-reaching impacts in Washington:

• Boosting the cherry trade – In 2009, Washington’s farmers exported $7 million worth of cherries to South Korea, despite a 24 percent tariff. The Free Trade Agreement immediately eliminates that tariff, reducing the cost of Washington state cherries by approximately 75 cents a pound. Eliminating the tariff is projected to boost sales by $18 to $20 million per year over the next few years, according to the Northwest Cherry Growers.

• Increasing wine sales – From mid-2007 to mid-2008, Washington and Oregon exported 11,801 cases of wine to South Korea, with a value of more than $700,000. The Free Trade Agreement eliminates a 15 percent tariff on wine, which could increase the volume of wine sold in South Korea by 45 percent and increase the value of wine exports by 188 percent, according to estimates.

• Expanding potato exports – Washington is the largest producer of frozen potato products in the nation, and the state’s frozen foods industry supports thousands of jobs. The Korea FTA bolsters Washington’s potato producers by eliminating an 18 percent tariff on frozen potato products and, over time, eliminating a 30 percent tariff on fresh potato products.

• Increasing beef exports – The Free Trade Agreement eliminates a 40 percent tariff on beef over 15 years. Beef exports are expected to increase by $7 million per year, according to the American Farm Bureau. Beef production is the state’s 5th largest commodity and the market for American beef in South Korea has the potential to reach $1 billion.

• Ending other tariffs – Over a 5 to 10 year period, the Korea FTA will phase out and eliminate a 30 percent tariff on frozen sweet corn and a 45 percent tariff on frozen berries and most types of apples and pears.  Washington is the nation’s leading producer of apples, pears and red raspberries, and the second leading producer of processed sweet corn.

"I actually think that Washington, of all the states in the country, stands to benefit the most," said Eric Schinfeld, President of the Washington Council on International Trade.

• Increasing Trade with South America: Maria was instrumental in passing free trade agreements in 2011 that open up markets in Panama and Columbia to Washington producers. Combined with the South Korea FTA, these free trade agreements could increase Washington exports by $52.8 million per year and support Washington economic growth.  
  
  Opening up the Colombian market to Washington producers will bolster the state’s wheat and fruit producers. By lifting a 10 percent tariff on wheat, Washington wheat exports to Columbia could increase by $5.9 million per year. The agreement will also immediately lift a 15 percent tariff on pears; in 2010 Washington state exported $2.54 million worth of pears to Colombia – a figure that is projected to increase with the removal of the tariffs. The FTA could also significantly boost Washington’s apple trade with Columbia. Despite a tariff on apples, Washington apple exports to Columbia were valued at $4.5 million this year. By immediately eliminating a 15 percent tariff on apples, the FTA could lead to increases in shipments of 50 to 100 percent to Columbia this season, according to the Washington Apple Commission.
  
  "Due to the high tariffs charged on U.S. imports, our agricultural products have been at a competitive disadvantage for far too long,” said Steve Appel, Washington Farm Bureau President and third-generation wheat farmer from Dusty, Washington. “With an estimated one in three jobs in our state dependent on international trade, passage of these agreements is a critical step in the right direction.” 

• Stopping Unfair Mexican Tariffs:  Maria worked to end harmful tariffs on agricultural exports that inhibited trade between Mexico and Washington for nearly a decade. The tariffs were finally lifted in October 2011, after years of work by Maria and others in the Washington delegation.
  
  Mexican tariffs on potatoes, pears, apples, and other food goods took a serious toll on Washington state’s agriculture industry. Since the tariffs went into place in 2003, state exports dropped by at least $82 million, according to the Washington Department of Commerce. Washington farmers saw a $39 million decline in potato exports, a $39 million drop in pear exports and $2 million declines in both cherry and apricot exports. 
  
  Maria relentlessly urged the Obama administration to work out an agreement with Mexico to remove the burdensome tariffs. She publicly questioned U.S. Trade Representative Ron Kirk on the administration’s lack of progress, and she called on Secretary of Agriculture Tom Vilsack to expedite negotiations with Mexico. Just a few months later the Department of Transportation announced an agreement to fully lift Mexico tariffs on 99 U.S. goods, including apples, grapes, pears, cherries, and potatoes. Maria hailed the agreement as a victory and a major step forward for Washington.
  
  “Today, Washington farmers can breathe a sigh of relief,” Maria said. “After years of work, these retaliatory tariffs have finally been lifted. Now, Washington farmers can compete more fairly in the Mexican market and continue to create jobs for our agricultural economy.”

• Supporting Washington’s Growing Wine Industry: Washington is the 2^nd largest premium wine producer in the United States – with more than 700 wineries and over 350 wine grape growers. The Washington wine industry supports nearly 30,000 jobs and brings in $3 billion in economic activity, according to a 2012 study.
  
  Maria has worked to expand market access for Washington wine and help promote sales in markets around the world – including the neighboring Canadian market. In October 2002, Maria negotiated with the British Columbia government  to permit the sale of wine from eight new Washington state wineries and boost Washington’s market share in British Columbia to nearly five percent. In 2010 Washington state exported nearly $5 million of wine to Canada, according to a 2011 study conducted by the U.S. Department of Agriculture.

• Opening Cuba to Washington Crops: Maria has worked to create new trade opportunities for Washington farmers and producers by opening foreign markets to their goods. In 2002, she traveled to Cuba with a Washington delegation to promote Washington farm products and meet with a wide range of government officials. The meetings resulted in the first Washington state exports of apples, pears, peas, and lentils to Cuba in more than 40 years. Read more.
  
  Maria continued to push for expanded trade with Cuba. In 2005, Maria took the lead on urging the administration of President George W. Bush to drop new Treasury Department rules that threatened to jeopardize Washington trade with Cuba. “If you care about jobs in Washington state, you need to care about agriculture,” she said. “We need to be cutting through the red tape that complicates trade with Cuba, rather than adding additional layers of bureaucracy.”  
  
  Cuba's top representative to the United States, Dagoberto Rodriguez Barrera, hailed Maria’s efforts to open up the market to peas, lentils and apples. "You are the pioneers of what we expect to be a mutually beneficial and lasting relationship,” he told Maria and local agriculture leaders at Pike Place Market in 2002.
  
  Maria also cosponsored – and continues to support – the Promoting American Agricultural and Medical Exports to Cuba Act to further expand trade with Cuba and increase exports of Washington products (S.1089).

• Expanding U.S. Beef Exports:  After the 2003 discovery of a case of Mad Cow disease in Washington state, Japan closed its borders to American beef imports. Although the infected cow had been imported to Washington from Canada, many Washington cattle ranchers were affected: The Japanese import ban cost Washington cattle producers $190 million per year. During the import ban, the meat industry lost more than 10,000 jobs nationwide.
  
  Maria held hearings and numerous meetings, leading Senate efforts to restore confidence and expand exports in U.S. beef in overseas markets. She was a leader in pushing the Department of Agriculture to pass common-sense protections that keep high-risk materials out of animal feed, and she fought to implement a safer tracking system on cattle imports from Canada.
  
  She also publicly called on then-U.S. Trade Representative Robert Portman to advance negotiations with Japan and restore American beef’s full access to the Japanese market. In 2006 Japan and the U.S. finally reached an agreement to resume U.S. beef exports to Japan.

• Expanding the Market for Washington Farmers: In Washington state 85 percent of wheat, 60 percent of hops and 30 percent of apples are exported. Foreign markets present substantial opportunities for Washington’s farmers to expand, but these markets can be difficult to navigate.
  
  That’s why Maria is a lead advocate for the Market Access Program, which helps farmers promote their crops in new foreign markets. Early in her Senate career, Maria led the fight to expand the Market Access Program through 2006, and she has repeatedly supported restoring and reauthorizing full support for it. In April 2012 Maria called on a key Senate Committee to continue robust support for the Market Access Program. The Washington State Fruit Commission, the Washington Apple Commission and the Northwest Cherry Growers are just a few of the Washington organizations that have participated in the Market Access Program to boost exports.
  
  Maria continues working to expand the market for Washington agricultural exports. Between 2006 and 2010 total Washington agriculture exports increased by over $5 billion. In 2010 Washington’s total export economy directly supported nearly 200,000 jobs with $6.1 billion worth of food and agricultural products, making Washington third in the nation for total agriculture and food exports.

• Cutting Red Tape for Cherry Exports: Cherries are integral to Washington’s agriculture economy, with Washington farmers producing more than half of America’s cherries. In 2010, Washington cherry production contributed $367 million to the state's economy.
  
  Cherry growers must be efficient to successfully export their product. To stay safe and fresh, cherries need to be picked, packed and shipped within 24 hours. In order to remain competitive and increase Washington exports, Washington cherry farmers cannot withstand delays caused by inefficient Transportation Security Administration screening processes. As chair of the Aviation Subcommittee of the Senate Commerce Committee, Maria is committed to cutting red tape and improving screening processes to streamline exports of perishable Washington produce.

• Improving Child Nutrition: In 2008 Maria was central in passing a provision to strengthen the Fresh Fruit and Vegetable Program and expand the program from 14 states to the entire country. This program brings local fruit and vegetables into schools to encourage healthy eating habits, which improve both physical health and academic performance. By promoting purchases of local food, these programs help local communities invest in their own economies. For example, one study that covered the Seattle area showed that shifting just 20 percent of food dollars into spending on local vendors would result in almost a $500 million annual income increase in King County and a nearly $1 billion increase in the Central Puget Sound area.

• Combating Child Obesity: Recent studies show that obesity rates are climbing in the United States. Between 1990 and 2009 the percentage of obese adults in Washington state more than doubled, and in 2009, 27 percent of Washington adults were considered obese. Combating child obesity is key to preventing adult obesity and essential to lifelong health.
  
  In 2011, Maria helped pass the Healthy Hunger-Free Kids Act, which provides wider and more affordable access to nutritious food options in school cafeterias for low-income children. This law implements nutritional standards at all schools and encourages healthy lifestyles for Washington state’s youth. Maria remains committed to finding new strategies to give more children access to nutritious foods.

• Improving Food Safety: Maria has worked to build a national framework that can prevent and stop the spread of contaminated food. She supports enhancing the safety of food supplies through scientific risk-based systems that ensure safety while supporting local food production. In 2010 Maria helped pass the Food Safety Modernization Act – the first significant overhaul of the food safety system in decades. The law includes many provisions to protect the health and safety of Washington citizens. These include: empowering the Food and Drug Administration (FDA) to issue mandatory recalls of contaminated products; requiring the FDA to establish minimum standards for safe food production; improving the FDA’s ability to trace the source of contaminated foods; increasing foodborne illness surveillance; and ensuring that small farmers can meet food safety requirements.

• Protecting against Mad Cow Outbreaks: After the nation’s first case of Mad Cow disease was discovered in Mabton, Washington, on December 23, 2003, Maria went to work investigating the cause and crafting legislation to prevent further cases. She has introduced legislation to keep high-risk materials out of cattle feed, and has pushed the U.S. Department of Agriculture to act quickly in closing known feed ban loopholes that can lead to Mad Cow infections. Plugging the loopholes in animal feed rules is essential to improving the safety of domestic food supply and the health of Washington consumers.