ADVOCACY REPORT
The U.S. and other European Countries are working hard to prevent Russia from doing this. This is being done by trying to persuade Russia that the consequences will be severe if it does invade. The U.S. has indicated it will provide Ukraine with military supplies but has not done so yet. It has kept an aircraft carrier and the accompanying fleet in the Mediterranean rather than having it depart as scheduled.
This is not good for trade and is especially difficult on our almond exports. If actual hostilities break out in either location or both, it will have a negative impact on our exports to these countries. It is also probable that it will adversely impact exports to either or both regions. Related is the fact that our ports remain congested. There is a lot of work going on to resolve this problem, but it is likely to remain for some time. It is disappointing that the USTR’s Agricultural Trade Ambassador has not been confirmed and in place yet. The President nominated Elaine Trevino for this position last fall, but the Senate has not considered this nomination yet. It is hoped that this will occur this month. It is expected that she will be confirmed easily when she is considered. Chairman Jim Costa will introduce her to the Senate Committee considering her nomination. Under Senate rules, her nomination may have to be resubmitted by the White House. There is some work going on by the USTR to improve access to several markets for agriculture, including almonds. This includes India, China, and Japan. While there has been no progress, discussions are continuing. This is especially important with China which has a new labeling regulation for imported products, including almonds, that went into effect January 1. U.S. and Chinese high-level discussions have been ongoing trying to get China to postpone implementation of the new regulation. This has not been successful to date. If imported products are not labeled according to the new regulation, they will be denied entry into China. Both the UK and India want to establish a Free Trade Agreement with the U.S. While there has been work on a Free Trade agreement with the UK, the U.S. is in no hurry to complete it. Despite India’s interest in a Free Trade Agreement, the U.S. has no current interest in it. Some in Congress are pushing the Administration to join the TPP, but there does not seem to be any interest in this either.
NATO has increased its troop deployment in eastern Europe.
In return, Russia has been reducing the supply of energy to Europe, especially Germany. Russia is demanding that it be given assurance that Ukraine will not be allowed to join NATO. Russia is also demanding that NATO pull its troops and equipment back from eastern Europe and the Balkans. Bilateral talks between the U.S. and Russia are scheduled to begin on January 10 and then continue later in January. Some are urging that both Ukraine and NATO be included in these talks. On the other side of the world, China continues to increase its hostility toward Taiwan and tighten control in Hong Kong. It is also becoming more active in the South China Sea. China has publicly stated that if Taiwan continues its hostility, it will take drastic action against Taiwan. The hostility China is referring to is Taiwan’s declaring it is independent from China. China continues to fly excursions into the air space over the Taiwan Strait. This is irritating Taipei regularly. The situation with Taiwan is the biggest impediment to good U.S.-China relations. Additionally, the U.S. has indicated it may start negotiations with Taiwan on a Free Trade Agreement. This will increase China’s agitation with the U.S. The U.S. has just enacted legislation preventing imports from China that are produced in the region where the Uyghurs are located. This was done due to China forcing the Uyghurs to work for China. This legislation has increased China’s irritation with the U.S. North Korea has just resumed firing missiles off its east coast. It is believed these are ballistic missiles.
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A L M O N D F A C T S
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