Cotton Council worries trade reorg may hurt FAS, USTR
March 21, 2011 | 04:14 PM | Filed in: Cotton Foreign Agriculture Service Trade US Trade Representative
By JERRY HAGSTROM
The National Cotton Council is concerned that the Obama administration’s plans to reorganize U.S. trade agencies might undermine the effectiveness of the Agriculture Department’s Foreign Agricultural Service and the Office of the U.S. Trade Representative. However, the Obama administration says it is not yet considering any specific proposals and will consult with stakeholders, including exporters, before making any decisions.
Responsibilities for trade issues are divided among 12 different agencies, including USDA, USTR and the Commerce Department. In his State of the Union address, Obama said his administration would make agencies more streamlined and efficient; the White House then announced that the reorganization would be begin with the trade agencies.
The administration named Jeffrey Zients, federal chief performance officer and the deputy director for management at the Office of Management and Budget, to lead the effort. Lisa Brown, who has been an assistant to the president and staff secretary, was named to help Zients. She also served as co-chair of the Agency Review Working Group for the Obama-Biden Transition Project.
The direction of the administration’s review of the trade agencies is unclear, but merging some of them will almost certainly be considered. Some countries have trade ministries that attempt to handle all trade matters, whether they are related to manufacturing, agriculture or services.
The U.S. Trade Representative handles negotiations of trade agreements, including the agriculture sections, while the USDA’s Foreign Agricultural Services promotes the sale of U.S. agricultural products. FAS officers, stationed mostly in embassies around the world, also analyze agricultural production in foreign countries and send that information to USDA’s World Agricultural Outlook Board for inclusion in monthly supply-and-demand reports that are regarded as the finest and most accurate in the world.
In his statement, National Cotton Council President Charles Parker, a Missouri cotton producer and ginner, praised the Obama administration for undertaking the effort, but cautioned the administration against making any changes that would “undermine the effectiveness” of FAS or USTR.
“While this undertaking is commendable, we urge the leaders of this initiative to not combine FAS or USTR with other agencies in a way that diminishes their roles in trade negotiations, promotion, enforcement and policy development,” Parker said.
“Agriculture’s remarkable record in export markets is due in part to the professional staff of FAS, who perform an outstanding job of gathering information and assisting U.S. exporters in successfully navigating complicated international markets,” Parker said.
“Cotton Council International, the export promotion arm of the Council, was an original participant in the highly effective foreign market development program and has a valued partnership with FAS," Parker said. "Any cotton industry representative who has traveled internationally will attest to the indispensible assistance provided by FAS staff stationed abroad. FAS also plays a key role in providing information to our negotiators at USTR.”
Parker also expressed concern that if USTR were consolidated with an agency like the Export-Import Bank, “it could increase bureaucracy and limit USTR’s ability to operate efficiently.” The Export-Import Bank helps finance U.S. exports.
The cotton council noted that Zients will establish a Government Reform for Competitiveness and Innovation Initiative, led by an executive director, to comprehensively review federal agencies and programs involved in trade and competitiveness.
According to an Obama administration memo, the cotton council said, the initiative will analyze each agency’s scope and effectiveness, areas of overlap and duplication, unmet needs, and possible cost savings. Zients and the executive director must consult with the heads and staff of departments and agencies, and with stakeholders, including members of Congress, business leaders, unions, non-governmental organizations and government reform experts.
Moira Mack, an OMB spokeswoman, told The Hagstrom Report in an email that Obama has made changing the way Washington does business a priority.
“That's why he asked Jeffrey Zients and Lisa Brown to take a hard look at ways we can operate more efficiently and effectively in order to make sure the U.S. is competitive in this global economy,” Mack said.
“As this effort gets under way, Zients is beginning the process of seeking advice and suggestions from the Congress, as well as those who run these programs and all the relevant stakeholder groups, including businesses that export goods," Mack said. "This initiative is not at the stage of considering specific proposals.”
The National Cotton Council is concerned that the Obama administration’s plans to reorganize U.S. trade agencies might undermine the effectiveness of the Agriculture Department’s Foreign Agricultural Service and the Office of the U.S. Trade Representative. However, the Obama administration says it is not yet considering any specific proposals and will consult with stakeholders, including exporters, before making any decisions.
Responsibilities for trade issues are divided among 12 different agencies, including USDA, USTR and the Commerce Department. In his State of the Union address, Obama said his administration would make agencies more streamlined and efficient; the White House then announced that the reorganization would be begin with the trade agencies.
The administration named Jeffrey Zients, federal chief performance officer and the deputy director for management at the Office of Management and Budget, to lead the effort. Lisa Brown, who has been an assistant to the president and staff secretary, was named to help Zients. She also served as co-chair of the Agency Review Working Group for the Obama-Biden Transition Project.
The direction of the administration’s review of the trade agencies is unclear, but merging some of them will almost certainly be considered. Some countries have trade ministries that attempt to handle all trade matters, whether they are related to manufacturing, agriculture or services.
The U.S. Trade Representative handles negotiations of trade agreements, including the agriculture sections, while the USDA’s Foreign Agricultural Services promotes the sale of U.S. agricultural products. FAS officers, stationed mostly in embassies around the world, also analyze agricultural production in foreign countries and send that information to USDA’s World Agricultural Outlook Board for inclusion in monthly supply-and-demand reports that are regarded as the finest and most accurate in the world.
In his statement, National Cotton Council President Charles Parker, a Missouri cotton producer and ginner, praised the Obama administration for undertaking the effort, but cautioned the administration against making any changes that would “undermine the effectiveness” of FAS or USTR.
“While this undertaking is commendable, we urge the leaders of this initiative to not combine FAS or USTR with other agencies in a way that diminishes their roles in trade negotiations, promotion, enforcement and policy development,” Parker said.
“Agriculture’s remarkable record in export markets is due in part to the professional staff of FAS, who perform an outstanding job of gathering information and assisting U.S. exporters in successfully navigating complicated international markets,” Parker said.
“Cotton Council International, the export promotion arm of the Council, was an original participant in the highly effective foreign market development program and has a valued partnership with FAS," Parker said. "Any cotton industry representative who has traveled internationally will attest to the indispensible assistance provided by FAS staff stationed abroad. FAS also plays a key role in providing information to our negotiators at USTR.”
Parker also expressed concern that if USTR were consolidated with an agency like the Export-Import Bank, “it could increase bureaucracy and limit USTR’s ability to operate efficiently.” The Export-Import Bank helps finance U.S. exports.
The cotton council noted that Zients will establish a Government Reform for Competitiveness and Innovation Initiative, led by an executive director, to comprehensively review federal agencies and programs involved in trade and competitiveness.
According to an Obama administration memo, the cotton council said, the initiative will analyze each agency’s scope and effectiveness, areas of overlap and duplication, unmet needs, and possible cost savings. Zients and the executive director must consult with the heads and staff of departments and agencies, and with stakeholders, including members of Congress, business leaders, unions, non-governmental organizations and government reform experts.
Moira Mack, an OMB spokeswoman, told The Hagstrom Report in an email that Obama has made changing the way Washington does business a priority.
“That's why he asked Jeffrey Zients and Lisa Brown to take a hard look at ways we can operate more efficiently and effectively in order to make sure the U.S. is competitive in this global economy,” Mack said.
“As this effort gets under way, Zients is beginning the process of seeking advice and suggestions from the Congress, as well as those who run these programs and all the relevant stakeholder groups, including businesses that export goods," Mack said. "This initiative is not at the stage of considering specific proposals.”
