The US Congress passes a bill that will create difficulties for Vietnam's catfish industry.

After more than a year of debate, the US Senate on February 4th passed a budget bill to subsidize farms, which includes a provision that poses difficulties for Vietnam's catfish exports. Last week, the US House of Representatives also passed the bill with 217 votes in favor and 210 against. President Barack Obama is expected to sign the bill into law soon.

The bill – just passed by the Senate with 68 votes in favor and 32 against – authorizes $956 billion, expanding federal government guarantees for American farmers' crops and harvests over the next five years. The Congressional Budget Office estimates the new farm bill will save the federal budget approximately $16.6 billion over the next 10 years, while congressional leaders have put a higher figure of up to $23 billion.

The annual cuts of approximately $900 million to the food stamp program budget have been the most contentious and long-standing issue. The new farm bill would cut $8 billion over 10 years from the food stamp program, which provides approximately $80 billion annually to about 47 million poor and low-income individuals.

Processing pangasius fillet for export.

The bill would increase federal government guarantees for seeds and crops, but it represents a major shift in 80-year history, ending direct guarantees to farmers regardless of harvest yields and price fluctuations. The bill also increases government guarantees for crops and livestock that the government desires, particularly wheat, corn, and soybeans.

The US Farm Bill includes a very strict provision requiring all meat products, including chicken, pork, or beef, imported into the US to be labeled with their origin of farming, slaughter location, and slaughter method. Despite opposition from some lawmakers, the Farm Bill, recently passed by both houses of the US Congress, still includes a provision transferring the oversight function for catfish, including basa and tra fish from Vietnam, from the Food and Drug Administration (FDA) to the Department of Agriculture.

Under this provision, the U.S. Department of Agriculture will apply a standard requiring Vietnamese catfish exported to the U.S. market to meet the same standards as those for the same product produced in the U.S., from production processes to packaging and export. This provision was introduced by the U.S. catfish farmers' association and senators from the Southern states, despite opposition from Senator John McCain, who considered it a trade barrier aimed at protecting the interests of American catfish farmers.

According to News