[Congressional Record Volume 140, Number 100 (Wednesday, July 27, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                E X T E N S I O N   O F   R E M A R K S


      INTRODUCTION OF RESOLUTION CONCERNING RICE TRADE WITH JAPAN

                                 ______


                             HON. VIC FAZIO

                             of california

                    in the house of representatives

                        Wednesday, July 27, 1994

  Mr. FAZIO. Mr. Speaker, last month, the Japanese Food Agency 
announced that its emergency program to purchase foreign rice would 
cease immediately.
  This announcement means the Japanese will not purchase 75,000 metric 
tons of California rice, which they had promised to buy. The economic 
impact of Japan reneging on this rice purchase will result in a loss of 
$45,000,000 this year to rice growers in the Sacramento Valley.
  Further, the negative economic consequences will extend beyond 
California's borders to other rice growing States. Using USDA 
guidelines, it is estimated that if the 75,000 metric tons of 
California rice remains unsold to the Japanese Food Agency, then they 
carryover of this quantity from the 1993 crop year to the 1994 crop 
year will cause the U.S. season average farm price for rice to decline 
by $.36 per hundredweight in 1994, and by $.17 per hundredweight in 
1995. These declines would equate to a loss in farm revenue of 
$56,200,000 in 1994 and $30,800,000 in 1995, for a combined loss of 
$87,000,000.
  Clearly, Mr. Speaker, this development is most troubling. United 
States Government officials and the U.S. rice industry have worked 
diligently and exhaustively to establish an open trade relationship 
with Japan. We have been successful in this effort under the emergency 
rice purchase program as well as under GATT. However, Japanese Food 
Agency's failure to purchase the remaining 75,000 metric tons of U.S. 
rice directly contravenes a good faith trade agreement. This action 
places in jeopardy other such agreements reached between the United 
States and Japan and damages the prospect for future trade relations 
between our two countries.
  For all of these reasons, I am introducing a resolution today 
denouncing the Japanese Food Agency's decision to renege on its promise 
to purchase the final 75,000 metric tons of rice from the U.S. rice 
industry.
  The United States was the only country affected by this announcement, 
as the Japanese have already fulfilled purchase agreements with China, 
Australia and Thailand. My resolution puts Congress clearly on record 
that when the Japanese make a deal with the United States, we expect 
them to follow through. Further, it puts the Japanese government on 
notice that we will not tolerate any backtracking on other trade 
agreements we have reached with Japan.
  It has taken years to open up access to Japan's rice market and we 
simply cannot let that progress slip away now. This is too important 
for the economy and jobs in the Sacramento Valley as well as other 
parts of the country.
  My resolution will let the Japanese know that we are serious about 
keeping trade commitments, and we will not turn the other cheek when 
they break their promises.
  Mr. Speaker, I already have more than 20 cosponsors on this 
resolution, both Democrats and Republicans. I hope the House will take 
this resolution up in the very near future to ensure that the Japanese 
Government understands the serious nature of this issue.

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