Because of the import sensitivity of some U.S. commodity sectors (e.g., beef, dairy, and sugar, among others) to the prospect of increased competition from foreign suppliers, the executive branch has had to take the concerns of producers of these commodities into account during negotiations, in order to secure congressional approval of concluded trade agreements. FTAs with three other countries (Costa Rica, Oman, and Peru) have been approved by Congress but not yet implemented for various reasons. Other stated U.S. objectives pertinent to negotiating bilateral FTAs are:
to 'seek to' eliminate 'on the broadest possible basis' tariffs and other charges on agricultural trade; to 'seek to' eliminate non-tariff barriers to U.S. exports, including licensing barriers on agricultural products, restrictive administration of tariff-rate quotas, unjustified trade restrictions that affect new U.S. technologies (i.e., biotechnology), and other trade restrictive measures that U.S. exporters identify; to provide adequate transition periods and relief mechanisms for the U.S. agricultural sector to adjust to increased imports of sensitive products; to seek to eliminate partner government practices that adversely affect U.S. exports of perishable or cyclical agricultural products; to eliminate any unjustified sanitary and phytosanitary (SPS) restrictions imposed by the prospective partner and seek its affirmation of its WTO commitments on SPS measures; and to develop a mechanism with each partner to support the U.S. objective to eliminate all agricultural export subsidies in the WTO negotiations. Market Access for Import-Sensitive Agricultural Products

One U.S. objective in negotiations is that bilateral free trade agreements be comprehensive (i.e., cover all products). Recently negotiated FTAs, though, provide for indefinite protection for a few commodities. The three exceptions because of political sensitivities for the United States or its partners are the outright exclusions for tobacco in the Jordan FTA (2001), sugar in the Australia FTA (2005), and rice in the FTA with South Korea (2007). Even though they are not technically on the agenda, two SPS issues have concerned U.S. negotiators in recent FTA talks with several countries. The share of two-way agricultural trade covered by U.S. free trade agreements increased from $329 million (just under 1%) in 1986 (under the FTA with Israel) to $54 billion (41%) in 2006 (when FTAs with 13 countries were in effect) ( Figure 1 and Figure 2 , and Table 5 ). Agricultural Trade

Two-way agricultural trade with the 13 countries with which the United States has approved FTAs since 2004 and with Colombia, Panama, and South Korea, whose FTAs await congressional consideration, could be an estimated 4.1% to 4.3% higher than would occur without these trade agreements. Australia and Chile would account for most of the increase in agricultural imports under the FTAs analyzed by the USITC. Agriculture in Current U.S. FTAs

Of the 10 U.S. FTAs now in effect, only three have operated for more than 10 years (those with Israel, Canada and Mexico). Provisions with the Dominican Republic took effect on March 1, 2007. Jordan35

The U.S.-Jordan FTA went into effect in December 2001. Sugar will be treated uniquely. This is expected to occur infrequently, because Peru varies between being a net sugar exporter and importer from year to year.
Trade in agricultural products frequently is one of the more difficult issues negotiators face in concluding free trade agreements (FTAs). While U.S. negotiators seek to eliminate barriers to U.S. agricultural exports, they also face pressures to protect U.S. producers of import sensitive commodities (i.e., beef, dairy products, sugar, among others). FTA partner country negotiators face similar pressures. One U.S. objective is for FTAs be comprehensive (i.e., cover all products). For the more import-sensitive agricultural commodities, negotiators have agreed on long transition periods, or compromised to allow for indefinite protection of a few commodities. In addition, because of political sensitivities for the United States or its partners, negotiators excluded sugar in the Australia FTA, tobacco in the Jordan FTA, and rice in the Korea FTA.
Though food safety and animal/plant health matters technically are not part of FTAs, resolving outstanding disputes and reaching common understanding on the application of science-based rules to bilateral trade have directly affected the dynamics of concluding recent FTAs and/or the process of subsequent congressional consideration. One example has been the high U.S. priority to secure assurances that prospective FTA partners allow imports of U.S. beef in accordance with internationally recognized scientifically based rules.
Most of the U.S. agricultural export gains under FTAs have occurred with Canada and Mexico, the top two U.S. agricultural trading partners. Though U.S. sales to overseas markets were expected to increase anyway because of population growth and income gains, analyses suggest that the FTAs recently put into effect or concluded since 2004 could boost U.S. agricultural exports by an additional 3.9% to 7.2%. Because of the reciprocity introduced into the agricultural trading relationship in those FTAs concluded with several developing countries that protect their farm sectors with high tariffs and restrictive quotas, U.S. exporters will benefit from increased sales. Net U.S. agricultural imports under these FTAs could be 1.5% higher than forecast.
The share of two-way U.S. agricultural trade (exports and imports) covered by FTAs has increased from 1% in 1985 (when the first FTA took effect) to 41% in 2006 (reflecting FTAs with 13 countries). Ranked in order, they are Canada, Mexico, Australia, Chile, Guatemala, Honduras, Israel, El Salvador, Singapore, Morocco, Nicaragua, Jordan, and Bahrain. If trade is included with nine other countries with which FTAs have been: approved but are not yet in effect (Costa Rica, Oman, and Peru); concluded and awaiting consideration in the 110th Congress (Colombia, Panama, and South Korea); took effect in 2007 (Dominican Republic); and may be concluded (Thailand and Malaysia)—another 9% of U.S. agricultural trade would be covered.
This report will be updated to reflect developments.