The Uruguay Round was a significant achievement.  Like NAFTA, it has benefited American farmers.  However, its reforms will not be fully implemented until the end of 2000.  U.S. producers will be less successful in the new century without further progress in opening markets worldwide in the most highly protected of all industries, agriculture.

 In the short term, the Administration may announce steps that may be of assistance in improving our export performance.  Earlier this week, Senators Baucus, Craig, Roberts and I wrote to the Secretary with some suggestions for additional wheat export opportunities.

 None of that will matter much if we cannot gain more permanent access to foreign markets.  That is why I am at a loss to understand the Clinton Administration’s seemingly casual attitude toward its lack of fast-track negotiating authority.

 Last year, Administration spokesmen stated repeatedly that fast-track authority was necessary to begin negotiations on a hemispheric free trade agreement and the next WTO round.  Now the message is quite different.  Last week, the President was asked about fast-track authority and made this statement:

 “It is probably not the best time, because it is even closer to the election, and for reasons that I disagree with, a lot of members of Congress — and most of them in my own party — think that it’s not a good thing to do politically.  I think it is imperative for our future.  I will continue to try to pass it.  But I don’t think it is a good time right now.”
 

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Lugar Statement:
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 That acknowledgment of defeat for this year and this 105th Congress is most unfortunate and may have negative consequences for American farmers.   The President has not abandoned the fight for IMF funding, tobacco legislation, health, education, environmental or other proposals that he considers important.  In these areas, he and other Administration officials speak forcefully, repeatedly and unequivocally, almost every day.

 In last year’s preliminary votes, nearly 70 Senators supported fast-track authority.  The vote count in the other body was close enough that strong Presidential leadership could have made the difference this year.  Apparently that will not happen.

 Our future trade policy is not a small matter.  U.S. exports now support over 12 million
jobs.  Nearly a million of those are related to agriculture.  We hear almost constant criticism of NAFTA, but in 1997 our total merchandise exports to Canada rose 13% and our merchandise exports to Mexico rose 26%.  Mexico has now displaced Japan as our second largest export market.  That did not happen by accident.  It was the result of trade liberalization that was negotiated under the fast-track authority which the President now lacks.

 There is no substitute for Presidential leadership in securing trade negotiating authority.  That leadership is sorely lacking today.  Unfortunately, it is our farmers and business operators who will suffer from it, through missed opportunities and lower exports.

 This Committee is prepared to share leadership with the President and his Administration in vigorous pursuit of export market openings and expansions.  Strong demand for American agricultural exports exists world-wide and is at least two-thirds blocked by protectionist policies of other nations.

 There is a big and obvious difference between satisfying world demand for our exports and enjoying the growing net farm income which comes from shipping our competitively priced exports, as opposed to a retreat from the Freedom to Farm concept of the 1996 Farm Bill and slouching back into the supply control farm policies of the past.

 Please work with us on a bold and optimistic export strategy with equally bold and optimistic negotiating tactics.  The future of American agriculture will be strongly enhanced by the clarity and certainty of our leadership at the top that clears a path for highly competitive and successful American farm producers.