NCGA News














FOR IMMEDIATE RELEASE

NATIONAL CORN GROWERS ASSOCIATION
CONTACT: Mimi Ricketts, NCGA, 636-733-9004, ext. 112

July 23, 2004

NCGA Applauds Passage of U.S. - Morocco Free Trade Agreement

WASHINGTON (July 23, 2004) –The National Corn Growers Association applauds Congress for passing by overwhelming margins the U.S.-Morocco Free Trade Agreement (FTA) this week.

“This forward-looking agreement is balanced and represents a good market opportunity for corn growers and U.S. Agriculture overall,” noted National Corn Growers Association President Dee Vaughan. ”The vote illustrates Congress’ commitment to being a strong force on behalf of trade in the international marketplace.”

The legislation passed the Senate July 21 by a vote of 85 to 13; the House followed with its approval July 22 with a vote of 323 to 99. “Chairmen (Charles) Grassley and (Bill) Thomas should be applauded for their hard work and quick action this week,” said Vaughan.

“The National Corn Growers Association would also like to thank President Bush, U.S. Trade Representative Robert Zoellick and Agriculture Ambassador Allen Johnson for a job well done. This agreement would not have been possible if not for their tireless efforts and the hard work of the U.S. negotiating team. They continue to show their strong support and commitment to U.S. agriculture,” said Vaughan.

The Morocco FTA cuts the tariff on U.S. corn initially in half (to 17.5 percent for lower value per ton shipments based on its reference price system), and then proceeds to zero by year six based on linear reductions.

“The Morocco FTA provides U.S. exports a significant advantage in the Moroccan market,” said Doug Boisen, chair of NCGA’s Joint Trade Policy A-Team. Morocco has a strong demand for U.S. feed grains and driving Morocco’s feed grain demand is poultry production, the fastest growing meat production sector in Morocco. The duty-free corn would save the Moroccan poultry and livestock industries approximately $30 million per year based on current imports and applied duties.

Also this week, NCGA, along with 27 other commodity organizations, sent a letter to the Senate and House of Representatives, supporting the Morocco FTA, urging passage of the pact.

The letter stated the agreement could lead to $260 million in increased sales per year by 2015, while Morocco agricultural sales to the U.S. would increase by $25 million. The agreement will also help maintain U.S. agriculture’s competitiveness in the market as well as help to streamline and expedite U.S. sales.

”Corn growers support an aggressive trade agenda and we applaud Congress for the vote this week. Together, we can expand market opportunities that will help the U.S. corn industry remain competitive and profitable in the years to come,” concluded Vaughan.

To view the letter in its entirety, please visit the letters section at the NCGA web site, www.ncga.com.

# # #

The National Corn Growers Association mission is to create and increase opportunities for corn growers in a changing world and to enhance corn’s profitability and usage. NCGA represents more than 33,000 members, 25 affiliated state corn grower organizations and hundreds of thousands of growers who contribute to state checkoff programs.

 



ST. LOUIS OFFICE


WASHINGTON D.C. OFFICE

632 Cepi Drive
Chesterfield, MO 63005
Phone: (636) 733-9004
FAX: (636) 733-9005
122 C Street, N.W., Suite 510
Washington, DC 20001
Phone: (202) 628-7001
FAX: (202) 628-1933