WASHINGTON, DC, US — US Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) on April 17 praised the Office of the US Trade Representative (USTR) for protecting US farm commodity export competitiveness by modifying their original proposed actions regarding Chinese maritime practices.

US agriculture organizations in recent weeks had called for the Trump administration to exempt bulk shipments of farm commodities from docking fees that will be placed on ships from China.

The wheat organizations in a joint statement said they appreciate USTR’s understanding of the impact their original proposals could have had on wheat growers and the grain trade, as “the uncertainty about the proposals was already causing problems for overseas customers, who were hesitant to make purchases with additional port fees looming.”

“This move means a lot to farmers and customers around the world,” said USW Chairman Clark Hamilton, a wheat farmer from Ririe, Idaho, US. “We want to thank them for their efforts to balance the need for action against these Chinese maritime practices with the potential for harm to our export competitiveness.”

On March 12, 2024, five labor unions filed a petition with the USTR under Section 301(a)(1) of the Trade Act requesting an investigation into the acts, policies and practices of China in the maritime, logistics and shipbuilding sectors. Section 301 of the Trade Act allows the USTR to address unreasonable or discriminatory acts, policies or practices that burden or restrict US commerce.

These actions come after a year-long Section 301 investigation, which included USTR convening a two-day public hearing, receiving nearly 600 public comments, and consulting with government agency experts and USTR-cleared advisers.

“Ships and shipping are vital to American economic security and the free flow of commerce,” said USTR Ambassador Jamieson Greer. “The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the US supply chain, and send a demand signal for US-built ships.”

The actions will occur in two phases. In the first phase, after 180 days:

• Fees on vessel owners and operators of China based on net tonnage per US voyage, increasing incrementally over the following years;
• Fees on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years;
• To incentivize US-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity.

The second-phase actions, which will not take place for three years will incentivize US-built liquified natural gas (LNG) vessels, limited restrictions on transporting LNG via foreign vessels. These restrictions will increase incrementally over 22 years.

The US wheat industry and its customers depend on ocean-going vessels, especially dry bulk carriers, and exports are vital to this sector. About half of the US wheat crop is exported each year. The reconsideration of the proposal, which would have significantly increased export costs for US wheat, is a welcome relief for the industry, the USW and NAWG noted.

“Ocean shipping is critical for US wheat growers to move their crops to market, and this step helps maintain our global competitiveness,” said Pat Clements, president of NAWG.