The UK has a population of 66 million people and represents the fifth largest global economy, but produces less than 60% of its food needs, presenting a potentially lucrative market for U.S. agriculture in general and feed grains in particular.
As part of a new Section 232 agreement reached Tuesday between the U.S. and the UK regarding steel and aluminum imports from the UK, the 25% retaliatory tariff on U.S. corn has been zeroed out allowing U.S. corn farmers to renew their trading relationship with Britain. The agreement will be effective June 1, 2022.
“This agreement will provide opportunities to expand free and fair trade and strengthen our economic and strategic relationship with one of our greatest allies," says Ryan LeGrand, U.S. Grains Council president and CEO.
"USGC is very pleased with the outcome regarding this agreement because it paves the way for U.S. corn to re-enter the UK market once again.
"This agreement lifts the retaliatory tariffs on more than $500 million of U.S. products, including U.S. corn, and that is vital not only to global economic development, but also U.S. agriculture’s profitability.”