​(August 30, 2011) Job creation via congressional approval of the pending free trade agreements (FTAs) was the hot topic at an agricultural roundtable led by U.S. Trade Representative (USTR) Ron Kirk recently at Blue Diamond Growers headquarters in Sacramento.

The audience included Susanne Stirling, vice president of international affairs for the California Chamber of Commerce, and Blue Diamond President and CEO Mark Jansen, a member of the CalChamber Board of Directors.

According to Ambassador Kirk, Congress is expected to consider approving the FTAs with South Korea, Colombia and Panama when it reconvenes in September, actions that would greatly increase U.S. exporters’ ability to compete in the global marketplace.

Ambassador Ron Kirk, U.S. trade representative, discusses pending trade agreements with agricultural roundtable participants. Seated from left: Karen Ross, secretary, California Department of Food and Agriculture; Blue Diamond President and CEO Mark Jansen; and Chief Agricultural Negotiator Issi Siddiqui, Office of the U.S. Trade Representative. Photo Courtesy Blue Diamond Growers.

Flanked by California Department of Food and Agriculture Secretary Karen Ross, USTR Chief Agricultural Negotiator Issi Siddiqui and Jansen, Ambassador Kirk commended California’s agricultural organizations for making the state the largest exporter of agricultural goods in the nation.

“Every billion dollars in agriculture exports supports almost 8,500 jobs, on the farm and on production lines,” Ambassador Kirk said.

Disconnect

Although the benefits of free trade are clear to organizations such as Blue Diamond Growers, a longtime CalChamber member, there is a disconnect between the importance of free trade and the general public, according to Ambassador Kirk.

“A conversation with agricultural representatives who strongly support trade agreements in Sacramento is much different than in cities such as Detroit or Pittsburgh, where people have come to believe that the reason that factories are shutting down is due to trade,” he explained.

Ambassador Kirk urged participants at the round table to educate their friends and neighbors on the positive impact that trade agreements and exports bring to local communities.

“We need to do everything we can right now and double down to help deliver one message—exports, particularly farm exports, help keep America strong and help us create jobs,” said Ambassador Kirk. “We need to get beyond the anxiety and anger Americans have when you mention free trade issues.

“The most compelling argument to make to our friends and neighbors is that 95 percent of our customers are somewhere else now and we don’t want to create a world in which American growers, manufacturers, entrepreneurs, farmers and ranchers are cut off from all those consumers … This is great for California and we have to make sure that America knows that this is also good for America.”

Market Access

With almonds being California’s largest food export, valued at $2 billion, and the sixth largest food export in the United States, Blue Diamond almond growers will gain needed market access when the FTAs pass Congress. Blue Diamond is a cooperative owned by more than half of California’s almond growers. Seventy percent of the almond crop is exported to 95 countries.

A record 1.95 billion-pound crop was estimated to be produced in California as growers began delivering the new crop in mid-August. California grows more than 80 percent of the world’s almond supply. Worldwide consumption of almonds has grown every year since 2005 at an average annual growth rate of 10%.

Within five years of the removal of the 21% shelled duty, 45% inshell duty and the 5% duty on processed almonds, sales to South Korea could increase 40% to $100 million.

At the level of 70% duty on almonds in Colombia, within five years of the duty’s removal, sales to Colombia could be $2.5 million.

Although the duty in Panama is 2% on shelled and inshell almonds and 15% on processed almonds, the same level of sales predicted for Colombia could also be achieved.

Jobs Connection

Up to 30,000 jobs are generated by trade related to almond exports. The estimated $2 billion in income generated by California almond exports is returned to local almond growers. This income helps to stimulate jobs and the economy in local California communities.

Before the roundtable, Ambassadors Kirk and Siddiqui and Secretary Ross toured Blue Diamond’s Sacramento plant, the world’s largest almond processing facility.

Staff Contact: Susanne Stirling