A Border-Adjustment Tax Could Make Matters Worse for Agriculture

Apr 5th, 2017

"A WTO challenge to an American border adjustment system wouldn’t happen overnight, but Patricia Wolff, senior director of congressional relations at the Farm Bureau, told Morning Tax that the agriculture sector would have to take the issue seriously from the jump. 'Countervailing duties can be imposed outside the WTO,' Wolff said Tuesday. 'So even if it takes a long time for a trade challenge to get to WTO, we could face those.'"

"Farmers and ranchers generally also have to buy some imported products, like fuel and fertilizer. Economists say that a stronger dollar would mean that consumers wouldn’t actually shoulder the costs of higher prices at stores. But that would actually create another issue for farmers and ranchers – Wolff said a stronger dollar would make it harder to sell American products abroad. 'Overall, it would be a positive if the proposal is written to be WTO compliant,' she said. 'If it’s not, then the benefits would likely be erased, and our situation made even worse with the trade war.'"

How [Agriculture] Views the [Border Adjustment Tax]