 |
| At
a hearing held today by the House Committee on Agriculture, NCGA President
Dee Vaughan testified on the importance of an aggressive trade agenda. |
NCGA’s
Vaughan Calls for Aggressive Trade Agenda in House Testimony (5-19-04)
In testimony before the House Committee on Agriculture today, National Corn Growers Association (NCGA) President Dee Vaughan staunchly supported an aggressive trade agenda, outlining the vital impact trade has on U.S. farmers. Vaughan was part of a panel representing various farm organizations reacting to the agricultural negotiations that are completed, those that are currently in discussions and those planned for the near future.
“NCGA believes trade is a vital component in the farm economy and supports trade agreements that will open markets for U.S. farmers and increase market development opportunities throughout the world,” Vaughan said. “However, farmers and ranchers are already expressing frustration with free trade agreements and import-sensitive commodities and are rallying against efforts to lower tariffs and expand market opportunities.”
Noting that more than 20 percent of the domestic corn crop is exported, and USDA estimates U.S. corn exports are up 50 million bushels this year, Vaughan said corn farmers are enjoying the benefits of a commodity boom. “However, how long this price strength lasts and ensuring farmers position themselves favorably in a competitive international marketplace is a serious concern,” he said. “Our future relies on the continuous search for new markets and providing grain that is more abundant and of a better quality.”
Citing Mexico as a simultaneous success and failure of U.S. trade policy, Vaughan related frustrations farmers and ranchers are feeling with free trade agreements. “In the 10 years since NAFTA (North American Free Trade Agreement) passed Congress, U.S. corn exports to Mexico have grown from 1.1 million metric tons in 1992 to 5.6 million metric tons in 2003. Mexico is now our second largest export market as the domestic livestock industry in Mexico continues to grow,” Vaughan said.
“However, as you know, the U.S. corn industry has been embroiled in a trade dispute with Mexico for more than seven years on high fructose corn syrup (HFCS). This sweetener dispute has exacted a heavy toll on (the agriculture) sector. NCGA is currently engaged in private sector discussions with the Corn Refiners Association (CRA), the U.S. sugar industry and the Mexican sugar industry to craft a proposal for our respective governments that we hope will resolve this dispute and restore trade in HFCS with Mexico.”
Vaughan said the WTO negotiations and Doha Round are top trade priorities for NCGA. The association continues to support bilateral free trade agreements with significant and emerging trade partners.
“Generally the list of candidates provides benefits to feed grain producers, but it is imperative that the administration ensures that partners represent significant future potential for economic activity and trade.” The Central American Free Trade Agreement and free trade agreements in Morocco and the Dominican Republic provide tangible benefits to the feed grain sector, he said, yet the Australia free trade agreement is of little value.
Vaughan also touched on the increasing importance of biotechnology in international trade. “With 46 percent of this year’s corn crop being planted to biotech hybrids, and the corn industry’s willingness to be early adopters of these important production and management tools, the U.S. government must do everything it can to assure that other countries are not imposing unworkable and non-tariff trade barriers to inhibit their sale to major U.S. trading partners.”
Vaughan concluded, “We must do a better job communicating with our grassroots, but we need the Congress and administration to negotiate trade agreements that allow farmers to participate on a level playing field in the international marketplace.”
To read the oral and written testimonies, visit www.ncga.com.