Food Policy Roundup: Ron Kirk, Mexico Tariffs, FDA Divorce, and More

New trade rep was food company board member — Former Dallas mayor Ron Kirk was sworn in Friday as the U.S. trade representative, the top post for negotiating and enforcing trade agreements. Kirk was on the board of directors of Dean Foods, PetSmart, and restaurant chain company Brinker International, but he resigned from these positions to serve as trade representative. A long supporter of NAFTA and similar treaties, Kirk said he opposes a recent U.S. move that blocked Mexican trucks from operating on U.S. highways. [Sources: Meat & Poultry, Forbes, PRNewswire]

Mexico tariffs take effect — Mexico has imposed tariffs on approximately 90 U.S. products in retaliation for an omnibus spending bill provision that removed funding for a project letting Mexican trucks operate within the country. Numerous agricultural products are included on the list, and grapes will face the highest tariff, at 45 percent. Other consumer products, such as toilet paper, are also targeted, but fruit and vegetable growers will likely feel the biggest impact. However, food staples like corn and wheat are excluded from the list, as are meat and poultry products.

The White House has called for a new program to replace the one that was defunded, but any such proposals will face opposition from those who say that the trucks are not up to U.S. safety standards and that low Mexican trucker wages will hurt truckers in the U.S. [Sources: Food Business News, Meat & Poultry, Wall Street Journal]

Drug companies join call for FDA divorce — The drug industry wants its own agency as well. The recent series of food safety scandals has prompted calls for a single food regulatory body in place of our current system, in which the Food and Drug Administration regulates both food and drugs and pieces of the USDA, the FDA and other agencies all share responsibility for food safety in an often chaotic and disjointed manner. But drug companies could also benefit from an FDA split, as a more focused drug agency might speed up drug approvals. [Source: AP]

G8 farm groups discuss world grain reserve — A world grain reserve could shield farmers from volatile prices and protect against food shortages, farmers unions from Italy, Britain, Canada, France, Germany, Japan, Russia and the United States said at a recent meeting in Rome. The goal of the meeting was to create a common position before an upcoming G8 summit. The group concluded in its final statement that, “An unregulated market would create unacceptable social costs for agriculture businesses,” though not all attendees supported the idea of a world grain reserve. [Source: Reuters]

Argentine farmers in week-long strike — Farmers in Argentina are blocking roads and halting sales of grain, oilseeds and cattle in response to the government’s refusal to lower export taxes on soya beans, which is Argentina’s biggest crop. Strikes and protests are common in the country, and last year, months of farmer protests lead to food shortages in Buenos Aires and other areas. Some experts have speculated that such actions could lead major importers like China to turn to the U.S. and Brazil instead of Argentina. [Source: BBC News]