Free trade is essential to gain market share among the rapidly expanding middle class in developing countries, the United States’ top agricultural ambassador told U.S. Grains Council leaders last week during a speech outlining an ambitious U.S. trade agenda.

Attendees of the Council’s 54th Annual Board of Delegates meeting in Omaha enthusiastically welcomed Nebraska-native Vetter, who was confirmed a month ago as chief agricultural negotiator in the Office of the U.S. Trade Representative.

Vetter said that global food demand is driven mainly by improving diets, and the major growth markets are in the developing world. While the developed countries have long dominated global markets, developing countries are rapidly closing the gap.

By 2018, the middle class population of the developing world will edge ahead of the developed world. And the growth will be explosive — by 2022, 616 million households in the developing world having achieved middle class status, versus 432 million in the developed world. The balance of purchasing power is shifting rapidly.

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The competition for this massively expanding market is intense, Vetter’s presentation showed, and the sobering reality is that the United States is lagging on the trade policy front. Free trade agreements drive expanded trade, but competitor nations have aggressively pursued bilateral and regional preferential trade agreements while the United States is playing catch-up.

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Vetter’s speech to the USGC delegates emphasized that the ongoing Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (T-TIP) are critically important for the future of U.S. agricultural exports. The United States has relatively low tariffs on agricultural products, and a leveling of the playing field will clearly boost U.S. agricultural export performance.

The Council is actively engaged with industry consultative groups supporting high-quality, comprehensive TPP and T-TIP agreements. The Council also welcomes Vetter’s aggressive advocacy on these key issues in her new role at USTR.

Click here to view photos from the Council’s summer annual meeting.