Non-tariff regulations ongoing challenge for smaller exporters, says ODA director

By MATEUSZ PERKOWSKI

Capital Press

The U.S. International Trade Commission, an independent federal agency, has launched an investigation into the constraints faced by small- and medium-sized exporters.

Such enterprises have been a major growth engine for jobs in the past 15 years, so U.S. Trade Representative Ron Kirk asked the commission to study these companies and see how the government can enhance their success.

Field hearings were March 10 in St. Louis, Mo., and March 12 in Portland.

These were the commission's first field hearings in about nine years, said Peg O'Laughlin, ITC public affairs officer.

The six commissioners said they needed to travel because many small companies can't afford to go to Washington, D.C., for hearings, O'Laughlin said.

Portland was specifically chosen as a hearing location due to the diversity of agricultural, manufacturing and service firms in the area, said Shara Aranoff, the commission's chairwoman.

"We have gotten representation on all of those," Aranoff said.

The shortage of shipping containers was one of the hearing's subjects, but other topics that affect agriculture were also discussed.

Non-tariff trade barriers -- such as regulations that restrict the import of certain plants and meats -- are an ongoing challenge for agricultural exporters, said Katy Coba, director of the Oregon Department of Agriculture.

Such barriers are particularly burdensome because they're inconsistent, varying from country to country and from port to port, she said. "We never know for sure what's going to cause a hang-up."

The commissioners also heard about steep tariffs imposed on agricultural exports to Mexico. The Mexican government enacted the tariffs last year after a dispute over allowing trucks from that country into the U.S.

"When a tax like this is levied, it puts our product at risk because our competitors don't have that tax," testified Matt Harris, trade director for the Washington State Potato Commission.

For example, frozen potato products from Canada aren't subject to the Mexican tariff, which has prompted some companies to process more potatoes in Canada, Harris said.

That has reduced demand for U.S. potatoes, perhaps in the long term, Harris told Capital Press after the hearing. "We don't know if we'll be able to grab back that market share."