Dear Senator Lugar:

We commend U.S. trade officials for negotiating a ground-breaking agreement defining the terms of China's entry into the World Trade Organization (WTO). This agreement, if fully and fairly implemented, will create huge opportunities for U.S. agriculture. China will be subject to the rules and disciplines of the WTO upon completion of the accession process. In order for U.S. agriculture to benefit from China's entry into the WTO, Congress must extend to China the same trade status we grant to all other WTO members. Accordingly, we urge you to provide permanent Normal Trade Relations (NTR) status to China early in the year 2000. The agreement with China is critically important. It will significantly improve market access for a wide variety of U.S. food and agriculture products, as well as for the tools of agricultural production. Indeed, the tariffs agreed to by China for many of these products are much lower than the corresponding tariffs in countries such as Japan and Korea.

The agreement also will obligate China to reform its monopoly state purchasing agencies. It requires China to stop the subsidization of exports - no small feat given the vociferous opposition we face from the European Union and other countries when it comes to the elimination of agricultural export subsidies. With respect to sanitary and phytosanitary matters, a separate bilateral agreement concerning citrus, meat, and wheat resolves important technical issues with China. Finally, WTO membership will require China to play by the same rules and disciplines of the multilateral trading system as the United States. The United States will also have recourse to WTO dispute settlement mechanisms should China not live up to any of its obligations, an avenue of recourse we currently do not have.

The agreement plays an important role in U.S. agriculture's effort to rekindle its exports to Asia. China, our fourth largest trading partner, is broadly recognized as the most important growth market for U.S. agricultural exports. While the United States gains access to its growing market, China does not gain any greater access to the U.S. market under the negotiated agreement, making it a win-win for American agriculture.

We strongly support WTO membership for China, and we urge you to extend permanent NTR status to China. We further urge Congress to vote on this vitally important matter early next year. This vote must not be delayed. American agriculture's long term financial health depends on a growing and open world economy. Bringing China into the WTO will contribute significantly to American agriculture's future prosperity.

Sincerely,

Ag Processing Inc.
Agribrands International, Inc.
Agricultural Retailers Association
American Crop Protection Association
American Farm Bureau Federation
American Feed Industry Association
American Frozen Food Institute
American Meat Institute
American Seed Trade Association
American Soybean Association
American Sugar Alliance
Animal Health Institute
Archer Daniels Midland
Biotechnology Industry Organization
Blue Diamond Growers
Bunge Corporation
Cargill, Inc.
Cenex Harvest States
Central Soya Company, Inc.
Cerestar USA
Chocolate Manufacturers Association
CoBank
ConAgra, Inc.
ContiGroup Companies, Inc.
Corn Refiners Association, Inc.
Distilled Spirits Council of the United States
Farmland Industries, Inc.
Florida Citrus Mutual
Food Distributors International
Grocery Manufacturers of America
Independent Community Bankers of America
International Dairy Foods Association
Kraft Foods
Land O'Lakes
Louis Dreyfus Corporation
Miller Brewing Company
Monsanto Company
National Association of Animal Breeders
National Association of State Departments of Agriculture
National Association of Wheat Growers
National Cattlemen's Beef Association
National Chicken Council
National Confectioners Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Food Processors Association
National Grain & Feed Association
National Grain Sorghum Producers
National Grain Trade Council
National Grange
National Milk Producers Federation
National Oilseed Processors Association
National Pork Producers Council
National Renderers Association
National Sunflower Association
National Turkey Federation
North American Export Grain Association
North American Millers' Association
Northwest Horticultural Council
Philip Morris International
Pioneer Hi-Bred International
Snack Food Association
Sunkist Growers
United Egg Association
United Egg Producers
United Fresh Fruit and Vegetable Association
USA Poultry & Egg Export Council
USA Rice Federation
U.S. Apple Association
U.S. Canola Association
U.S. Dairy Export Council
U.S. Grains Council
U.S. Meat Export Federation
U.S. Wheat Associates
Wheat Export Trade Education Committee

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE