Klobuchar, Warren, Colleagues Call for Halt of Argentina Bailout That Will Harm American Farmers

WASHINGTON - Senators Amy Klobuchar (D-MN), Ranking Member of the Senate Committee on Agriculture, Nutrition, and Forestry, and Elizabeth Warren (D-MA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, led 12 of their colleagues in calling on President Trump to immediately halt his plan to send a $20 billion bailout to Argentina, which recently suspended soybean export taxes, undercutting American farmers in the international market.

"We write with deep concern regarding your plan to send a $20 billion bailout, funded by American taxpayers, to Argentina just days after the country took steps to undermine American farmers," wrote the Senators. "Last week, Argentina announced its plan to suspend export taxes on soybeans, effectively sidelining American soybean farmers in the international market."

"Despite Argentina's decision, you are still reportedly moving forward with the bailout for the country," the Senators continued. "American soybean farmers - who are already reeling from your sweeping tariffs - deserve better."

Along with Klobuchar and Warren, Leader Chuck Schumer (D-NY) and Senators Tammy Baldwin (D-WI), Cory Booker (D-NJ), Chris Coons (D-DE), Tammy Duckworth (D-IL), Dick Durbin (D-IL), Tim Kaine (D-VA), Jack Reed (D-RI), Bernie Sanders (I-VT), Elissa Slotkin (D-MI), Tina Smith (D-MN), and Chris Van Hollen (D-MD) signed the letter.

The full letter is available here and below.

Dear President Trump:

We write with deep concern regarding your plan to send a $20 billion bailout, funded by American taxpayers, to Argentina just days after the country took steps to undermine American farmers. Last week, Argentina announced its plan to suspend export taxes on soybeans, effectively sidelining American soybean farmers in the international market. Despite Argentina's decision, you are still reportedly moving forward with the bailout for the country. American soybean farmers - who are already reeling from your sweeping tariffs - deserve better.

American farmers are confronting unprecedented challenges under your sweeping and uncertain trade policies. Across-the-board tariffs are increasing the cost of critical inputs farmers need to produce a crop, like fertilizer and equipment, at the same time retaliatory tariffs are making U.S. agricultural products less competitive and putting key export markets at risk. Nearly 20 percent of U.S. farm production is typically sold to customers abroad. With those markets in jeopardy, farmers and businesses across the agricultural supply chain are now facing falling commodity prices and shrinking profit margins, while farm debt, bankruptcy rates, and distressed operations are rising across the country. Soybean producers have been particularly affected, as China - historically our largest agricultural export market - has purchased no U.S. soybeans since May and bought 51 percent less through July compared to the same period last year.

Despite the crisis facing our farmers, your attention appears to be elsewhere: last Monday, September 22, your Administration announced it "stands ready to do what is needed" to bail out Argentina amidst the country's economic turmoil. Argentina's President, Javier Milei, is notably one of your close personal friends and ideological allies and faces a crucial midterm election on October 26.

Immediately following your Administration's announcement regarding potential U.S. financial support for Argentina, Argentina suspended export taxes on soybeans, corn, wheat, and other agricultural commodities. Argentina's policy change had immediate consequences for American farmers. Argentine agricultural products are now significantly more competitive on global markets, and Chinese buyers have reportedly purchased up to 40 cargoes of soybeans from Argentina in just one week. Now, even after Argentina suspended its export duties, your Administration is moving full steam ahead with its plans to offer financial assistance to the tune of $20 billion - rewarding a country that has implemented policies that directly disadvantage American farmers in favor of our competitors.

It is unclear why you are choosing to use taxpayer dollars to bolster the reelection campaign of a foreign president while they take steps to undermine U.S. farmers. As the American Soybean Association put it last week: "U.S. soybean prices are falling; harvest is underway; and farmers read headlines not about securing a trade agreement with China, but that the U.S. government is extending $20 billion in economic support to Argentina."

Rather than reversing course on tariffs or abandoning your plans to bail out Argentina, you are reportedly planning to provide American farmers with an aid package, nominally paid for with tariff revenues. Farmers want fair trade and steady markets, not tariff uncertainty and short-term aid payments. The best way to support American producers would be to end your chaotic tariff policies that are hamstringing farmers in the first place. Meanwhile, your Administration has failed to reach any trade deal with China that would restore market access for U.S. soybean farmers.

We call on you and your Administration to immediately halt any plans to provide financial assistance to Argentina. Instead of subsidizing a foreign country to influence a midterm election on behalf of your friend - and further undermining America's farmers in the process - you should prioritize lowering costs for American families and strengthening the nation's agricultural competitiveness.

###

• Print
• Email
• Share
• Tweet