Statement of Senator Richard G. Lugar

Senate Committee on Agriculture, Nutrition and Forestry
Hearing on the Future of U.S. Agricultural Exports

June 18, 1997

I would like to thank Secretary Glickman and Ambassador Barshefsky for appearing before the Senate Agriculture Committee to discuss the future of U.S. agricultural trade. In the last few years, American farmers have seen new markets open and non-tariff trade barriers fall. The U.S. had a record $59.8 billion in agricultural exports last year. These exports support nearly one million jobs in the U.S. Under the North American Free Trade Agreement (NAFTA) agricultural exports to Mexico last year climbed to $5.3 billion and are expected to reach a record $5.5 billion this year.

We are here today to discuss how agriculture can increase the benefits received from existing trade agreements and expand opportunities through the next round of agricultural talks under the World Trade Organization (WTO) in 1999. The renewal of fast track authority is essential to achieve this goal.

The Administration has been slow to make fast track reauthorization a priority. Congress has not yet received a detailed proposal and has been informed that one will not be presented until the fall. This lack of emphasis could send the wrong signal to our trading partners in the Western Hemisphere and beyond. Ambassador Barshefsky and I discussed this issue last week and I have been informed that the Administration will spend the necessary time this fall with Congress to ensure passage of this important negotiating authority.

Trade agreements must reflect and accept the rapidly changing opportunities presented through technological progress. One of the many exciting advances in agriculture is the progress being made in biotechnology. This year American farmers will harvest as much as 30 million acres of crops derived from agricultural biotechnology. Some officials of the EU have proposed segregating or labeling of these GMO (genetically modified organisms) products. This is not necessary, nor is it feasible. It is a policy grounded in fear, not science.

Before 1972, China imported little if anything from the United States. Twenty-five years it is a dramatically different story. The Chinese market offers great potential for American farmers. The Committee has heard testimony that within the next fifty years, we will need to produce roughly three times as much on our available acreage as we do today in order to feed a growing, more prosperous world. We must strive to be more efficient producers to meet those needs. The greatest potential growth in demand for food is in low income countries which are experiencing broad-based economic growth. People of the world are eating better and their caloric intake is increasing. As trade liberalization in agriculture continues, it benefits America's farmers and better serves the people of developing countries.

As we look forward to the next round of agricultural talks under the WTO, the world will continue to look to the United States for leadership. This means the establishment of specific goals and clear strategies by the Administration which have the support of America's farmers and agri-business. The future direction of international trade in agriculture is critical to our nation and the world.

Again, Mr. Secretary and Madame Ambassador, I thank you for appearing before the Committee this morning and look forward to your comments.