May 19, 2000

Trade bill offers carousel
provision in trade disputes

A new trade and investment policy for sub-Sahara Africa which provides “carousel retaliation” provisions is drawing praise from the American Farm Bureau Federation, House Ag Committee Chairman Larry Combest and House Ag Committee Ranking Member Charlie Stenholm.

Farm Bureau supported language designed to pressure trading partners to comply with international trade rules, by requiring the U.S. government to periodically change the list of products subject to retaliatory tariffs, was included in the measure.

“Retaliation against trading partners who fail to abide by the rules is an infrequent and unpleasant by-product of international trade,” AFBF President Bob Stallman said. “But, if we are forced to take action, we must have the tools to ensure an effective strike. The rotating retaliation passed by the House will increase the impact of retaliation, particularly in Europe.”

Combest agreed: “This new strategy makes the most of our rights under World Trade Organization rules by using an ever-changing list of foreign goods that we are authorized to retaliate against when a nation tries to ignore WTO rulings in our favor.”

Stallman said in light of current farm economy problems, the measure’s establishment of a permanent chief agriculture negotiator in the U.S. Trade Representative’s office is another positive step for American agriculture. He said U.S. farmers and ranchers need a permanent “negotiator who will be dedicated solely to the goal of improving conditions” for America’s food and fiber producers.

Stallman also commended lawmakers for their diligent work to provide U.S. cotton producers with benefits in trading with Africa and the Caribbean nations.

“This bill assures that the U.S. cotton industry is protected and will be able to reap the benefits of this new trade agreement,” Stallman said. “These provisions are critical to our cotton sector, which is experiencing the lowest prices in over a decade.”