May 19, 2000

Trade with Cuba moves a step closer
The House Appropriations Committee on May 10 rejected Majority Whip Tom DeLay’s attempt to kill a proposal that would end sanctions against sales of agricultural and medical products to Cuba and four other “rogue” countries—a substantial defeat for Cuban-American opponents of the measure and a victory for farm, religious and humanitarian groups that want more trade with Cuba. The move failed on a 35-24 vote.

The amendment to end the sanctions on Cuba, Iran, Sudan, North Korea and Libya was introduced last week by Rep. George Nethercutt (R-WA) in the House Agriculture appropriations Subcommittee.

Last year a somewhat similar Nethercutt sanctions amendment was defeated when only 24 members of the House Appropriations Committee voted for it.

The Senate-Appropriations Committee adopted a similar amendment introduced May 9 by Sen. Byron Dorgan (D-ND). Supporters say the amendment would open new markets for American farm products. DeLay (R-TX) opposed the Nethercutt amendment, saying that his district is “full of rice growers,” but that he had told them, “When I pick between support of freedom and making a buck, I’m going to pick freedom.”

Audrae Erickson, a lobbyist with the American Farm Bureau Federation, said the vote was much better than expected, adding it reflected sentiment in the farm community that it was time to end agricultural sanctions.

“Our next hurdle will be a hearing by the House Rules Committee which determines how and what legislative measures go before the full House,” said Steve Pringle, legislative director for Texas Farm Bureau, which supports ending the sanctions. “We have two Texans on the Rules Committee. Congressman Pete Sessions, on the Republican side, and Martin Frost on the Democratic side.”

Pringle said the large margin of this vote was significant.

Biotech: good news, bad news
First the good news in the continuing controversy over biotech foods: shareholders with Kellogg Co. overwhelmingly defeated a resolution to force the company to stop using genetically modified crops.

Now the bad news: Fast-food chains including McDonald’s Corp. are telling their french-fry suppliers to stop using Monsanto Co.’s genetically modified potato (according to the Wall Street Journal online edition).

The recent Kellogg’s vote was prompted by two groups of share-holding nuns who said GM products are not safe and put the company at risk for lawsuits. Ninety-four percent of the shareholders disagreed.

J.R. Simplot Co., a major McDonald’s supplier, has told its farmers to stop growing the potato developed by Monsanto, which is now part of Pharmacia Corp.

Mexico imposes permanent tariffs
The Mexican government recently announced that it is imposing new tariffs on U.S. beef, reports the Texas Cattle Feeders Association Newsletter.

The action is the final decision in the anti-dumping case against U.S. beef exporters. Preliminary duties have been in place since August.

The duties are complex and vary by company.

Mexico’s trade ministry said its investigation had determined U.S. beef exports caused damage to Mexican producers.

However, U.S. Meat Export Federation President Phil Seng said harm to Mexico’s cattle industry came from currency devaluation, lack of credit, drought and other factors.

Former presidents back China PNTR
Former presidents Gerald Ford, Jimmy Carter and George Bush have pushed lawmakers to vote for permanent normal trade relations (PNTR) for China.

“We urge Congress to embrace this agreement and to bring its benefits home by voting for PNTR,” Ford, Carter and Bush said in a letter released May 8 from the White House. “A failure to do so would cost American jobs and squander the best opportunity we have had in a generation to address our long-standing concerns about China’s trading practices.”

Administration officials said the letter could help sway dozens of undecided House members to support the legislation.

A White House official said backers of the pact were making progress, but added, “We’re not there yet...”

Notable Quotables
“The Clinton administration’s proposal to increase oversight of foods enhanced by biotechnology should further boost consumer confidence in the safety of America’s food supply. Like farmers, biotech companies should welcome the opportunity to share research that proves any new biotech food product is safe.

“We are also encouraged that the Food and Drug Administration has chosen to accentuate the positive in regard to biotech labeling. Since biotech crops are common on America’s farms and biotech food products are common on the grocer’s shelf, it makes more sense to label products not containing biotech ingredients. That way, if farmers take special steps to grow non-biotech crops, not only should farmers be rewarded with premiums from food companies, but the food companies also should be able to positively reflect that non-biotech status on a label.”

Statement by American Farm Bureau President Bob Stallman regarding a federal proposal on biotech oversight.