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Texas Agriculture Archive

September 6, 2002

FB: Sound trade rules needed

Sound trade rules will open markets, remove barriers and address the specific concerns of import-sensitive commodities, according to the American Farm Bureau Federation. Speaking recently at the International Sweetener Symposium in Santa Ana Pueblo, N.M., AFBF President Bob Stallman said the United States has an opportunity to push for sound trade rules during the new World Trade Organization round of talks.

"What comes out of those negotiations will greatly affect our businesses and how American agriculture will deal with our customers and our competitors," Stallman said. "Farm Bureau expects those who enter into agreements to fulfill their promises and abide by their agreements. We believe other countries should alter their support programs to be more in line with our level."

Stallman said the recently announced Bush administration's trade package proposal addresses these concerns. The package aims to increase market access, eliminate export subsidies— "the most trade-distorting of all practices"—and provide a fair method for limiting domestic support levels. "Of course, correcting the dispute settlement process to be more flexible and responsive, and curbing bogus health claims that prevent imports are also part of the mix," Stallman said.

Stallman acknowledged that specific sectors of agriculture have legitimate concerns in regard to trade. "I know there are many in agriculture who are leery of more trade liberalization. Trade for us farmers is indeed a two-sided coin," Stallman said. "We have many goods to sell to the 96 percent of the world's population who live outside our borders. Our borders are relatively open now—we impose an average tariff on competing ag products of about 12 percent yet our goods face a global tariff average of 62 percent."

Stallman said the administration's trade package strives to equalize these disparities by only offering to lower U.S. tariffs or reduce support levels if other countries do so in a manner that brings down their higher support levels faster. "With the huge gaps now in place, a blanket percentage cut does us little good," Stallman said. "It is clearly time to get serious about leveling the playing field and do it in such a manner that we do not unilaterally give away the farm or our domestic markets."

Stallman made a commitment that Farm Bureau would "closely monitor the negotiations and contribute to the policy discussions" in order to ensure agriculture's concerns are considered. In addition, Stallman also encouraged all in agriculture to get involved.

"U.S. agriculture united to achieve the current farm program," Stallman said. "Such unity will be necessary to make sure future trade agreements involving our country represent our best interests for the industry as a whole as well as for individual commodities."