US agricultural policy has a considerable impact on global markets for agricultural commodities given the US’ position as one of the top producers and consumers of food and agricultural products. US agricultural policy shapes market dynamics for a host of commodities. As the world’s largest agricultural exporter, US agricultural trade policy priorities, which include an emphasis on reducing tariff and non-tariff trade barriers, have considerable influence in negotiations at the World Trade Organization (WTO) and have shaped many major multilateral trade agreements.
Key facts about US agricultural policy
- The US is the world’s largest agricultural exporter, with exports valued at nearly $140 billion in 2018.
- The US is the top producer of ethanol and biodiesel.
- Implementation of the Phase One US-China trade agreement, which includes commitments by China to purchase some $80 billion in US agricultural goods over two years, is expected to have wide-ranging impacts on global agriculture commodity markets.
- How the US moves to regulate gene edited livestock may have major implications for research and development in the field.
- The WTO reform agenda led by the US, EU and Japan - and US demands for changes at the Appellate Body - are a key global trade policy focus in 2020 and beyond.