Grassley’s visit addresses trade, NAFTA

     Sen. Chuck Grassley took questions from many in the agricultural industry last week on April 6 as he met with a room full at Innovative Ag Services (IAS) in Monticello. The majority of the questions centered on NAFTA and trade tariffs, and particularly how these major decisions will impact farmers and the agriculture industry.

     “I feel it’s kind of a nervous situation about these negotiates going up to the cliff,” Grassley admitted of President Donald Trump’s fall-out with China over trade agreements. “If we don’t go over the cliff, then we’re going to be a lot better off. But if we go over the cliff, we’re going to be a lot worse off.”

     He said those in the ag community have some very valid concerns right now. “It’s definitely something to be worried about and we’re hearing from them every day,” Grassley said of people’s fears. “It’s very difficult to put those fears at ease.”

     In 1962, President Kennedy enacted the Trade Expansion Act that gave the president the authority to cut tariffs. Grassley said one way to change Trump’s authority today in cutting tariffs with China would be to change that law, which is nearly impossible.

     He said the only thing to do is remind Trump “that if there are any retaliation to the tariffs, it hits agriculture first.

     “And hopefully the president goes along with it. Trump listens, and I think he gets the point.”

     However, Grassley said when Trump claims he can better deals on tariffs and trade, “who’s going to bad mouth that?

     “But you never leave a meeting with a great deal of confidence,” he added, which got quite the chuckle from the audience. “Particularly when you represent a state like Iowa who exports so much of our surplus ag products.”

     Grassley sand several other Congress members recently spent a week in China. Katie Hall, director of Government Affairs with the Iowa Institute of Cooperatives in Ames, asked the Senator how that trip went.

     “You come away with an understanding that China is going to do anything legally or illegally, ethically or unethically, to become a bigger player in world trade than we are,” he answered.

     Grassley said even former Iowa governor Terry Branstad, now Ambassador to China, who is well respected over there, “would tell you that it’s something to be very concerned about.”

     Grassley’s impression of the back-and-forth between Trump and China over the tariffs is Trump’s way of bringing Chinese leaders to the table to hopefully negotiate in good faith. He said for far too long, the U.S. as “pussy-footed around too long” with China.

     In terms of whether this push and pull would lead to a trade war, Grassley offered, “You hear from a lot of people who are experts on trade that there won’t be a war. But if we don’t push them, then we’re never going to get anything done.”

     Regarding NAFTA, Grassley said he is against the U.S. pulling out the trade agreement, but feels some changes need to be made after 25 years.

     “The question is, what is that update?” he asked.

     The discussion wasn’t just consumed by trade. Grassley also addressed a question on whether anything would be done about immigration. He flat-out admitted, “We have no credibility to do anything on immigration again until we (Congress) can show the American people that we can control the (Mexican) border. That’s a necessary first step.”

     He did say there were a couple of small things that could be done concerning DACA and agricultural workers, but the Democrats are making that hard to do with pushing for comprehensive immigration.

     “They want to put everything else on it to make it comprehensive and you lose Republican votes,” Grassley said.

     He said if anything else is done, it comes down to $25 billion to control the southern border.

     “I don’t mean a 2,300-mile fence or wall, but it’s border control, greater interior enforcement, and doing away with the Catch and Release laws that we have on the books.”