 |
| NCGA
Trade Task Force Chair Doug Boisen delivers testimony Tuesday
on Capitol Hill. Boisen addressed the Senate Foreign Relations
Subcommittee on Western Hemisphere, Peace Corps and Narcotics
Affairs. |
Boisen Testimony Outlines NCGA Trade Objectives in Western Hemisphere
(5-21-03)
National Corn Growers Association (NCGA) Trade Task Force Chair and
Nebraska Corn Development, Utilization and Marketing Board member
Doug Boisen testified Tuesday before Congress on the future of U.S.
economic relations in the Western Hemisphere. Boisen addressed the
Senate Foreign Relations Subcommittee on Western Hemisphere, Peace
Corps and Narcotics Affairs.
During his testimony,
Boisen discussed problems U.S. growers are experiencing with Mexico
concerning the North America Free Trade Agreement (NAFTA).
“It is essential
Congress and the administration not renegotiate NAFTA and work towards
its implementation,” said Boisen. “Renegotiation of NAFTA
would be unwise and unproductive for both countries.”
Mexico is the
second largest market for corn. Since 1993, U.S. corn exports to Mexico
have doubled and are twice the tariff rate quota allowed under NAFTA.
NCGA last week wrote to President Bush urging him to stand firm against
Mexico's efforts to renegotiate North American Free Trade Agreement
(NAFTA) provisions, warning that NAFTA is being "unilaterally
renegotiated" by Mexico.
During the hearing,
Boisen also outlined NCGA’s trade objectives in the Western
Hemisphere as: 1) overall reduction in tariff levels; 2) elimination
of the use of export subsidies for trade; and 3) phasing out of tariff-rate
quotas.
“Specifically,
the U.S. feed grain industry would benefit from the elimination or
reduction of the complex system of preferential regional and bilateral
trade agreements,” continued Boisen. “This will increase
access to more countries and provide exporters access to markets comparable
to other trading partners.”
When asked by
Subcommittee Chair Norm Coleman (R-Minn.) what the expected boost
in sales would be by increasing access for feed grains like corn in
Central and South America, Boisen replied, “In Central America
and Northern South America, we can expect a modest annual increase
as tariffs come down. Demand for livestock and poultry products will
expand as the cost of these products decrease. Since the United States
is the primary supplier of corn to those countries, we will be the
primary supplier for this new market.
“In the
case of Brazil, demand is not the problem, but rather competition
with Argentina,” continued Boisen. “We could potentially
supply 50 percent to 70 percent of the imports into Brazil with tariff
harmonization within Mercosur (regional trade organization) countries.”
While on Capitol
Hill, Boisen also met with Coleman, Rep. Tom Osborne (R-Neb.), U.S.
Trade Representative Chief Agriculture Negotiator Allen Johnson, and
staff from Nebraska Sens. Ben Nelson (D), and Chuck Hagel’s
(R) offices.