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FOR
IMMEDIATE RELEASE
NATIONAL CORN GROWERS ASSOCIATION
Rhondalee A. Dean-Royce, 202.628.7001
NCGA’s
Vaughan Testifies for Aggressive Trade Agenda
WASHINGTON (May 19, 2004) – 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,” said
Vaughan. “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 the greatest
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 (FTA) in Morocco and Dominican provide tangible benefits
to the feed grain sector, he said, yet the Australia free trade agreement
is of little value.
Vaughan stressed the need for the U.S. Trade Representative to proceed
cautiously in order to secure agriculture benefits from future FTAs
while maintaining support among farmers and ranchers.
Vaughan also touched on
the importance of trade issues as they related to biotechnology. “With 46 percent of this year’s corn
crop being planted to biotech hybrids and the corn production 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.
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.
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