[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                        AGRICULTURE AND THE GATT

                                 ______


                           HON. JILL L. LONG

                               of indiana

                    in the house of representatives

                        Friday, October 7, 1994

  Ms. LONG. Mr. Speaker, earlier this year, a number of House Members 
and I, including Mr. de la Garza, Mr. Kingston, Mr. Pomeroy, Mr. 
Emerson, and Mr. Bereuter, introduced legislation to ensure that 
agriculture did not pay a disproportionate share of the implementing 
cost of the General Agreement on Tariffs and Trade. In fact, the 
legislation was cosponsored by over 55 Members of the House of 
Representatives--including a large majority of members of the Committee 
on Agriculture. Similar legislation was also introduced in the Senate 
by Senator Daschle, Senator Pryor, Senator Cochran, Senator Conrad, and 
others. In fact, every member of the Senate Agriculture, Nutrition and 
Forestry Committee--except one--cosponsored the legislation.
  Since that time, Mr. Speaker, the Clinton administration has 
earnestly worked with concerned Members to ensure that American 
agriculture will reap all of the benefits of this important trade 
agreement. In this regard, Chief of Staff Panetta, Ambassador Kantor, 
Secretary Espy, and Acting OMB Director Rivlin have been most helpful.
  As a result of this cooperative effort, most of the Members, along 
with a large number of agriculture organizations, who had some concerns 
about GATT and agriculture are now enthusiastically supportive of the 
implementing legislation.
  I am inserting into the Record some additional material that further 
explains the assurances that were given by the administration, in 
addition to some other pertinent documentation. I do so for the benefit 
of my colleagues and all others who are interested.


                                              The White House,

                              Washington, DC., September 30, 1994.
     Hon. E (Kika) de la Garza,
     Chairman, Committee on Agriculture, House of Representatives, 
         Washington, DC.
       Dear Mr. Chairman: The GATT implementing legislation now 
     before Congress is one of the most important measures for the 
     U.S. economy and global economies that we have had the 
     opportunity to enact in recent years. It is the result of 
     many years of bipartisan efforts, and is particularly 
     important for our agricultural sector. Our projections are 
     that it will lead to increased U.S. agricultural exports of 
     $5-14 billion cumulatively over the next five years and the 
     creation of 112,000 export-related U.S. jobs.
       My Administration is also prepared to take further steps to 
     support the agricultural sector as this legislation is being 
     implemented. These steps are detailed in a letter to you from 
     Secretary Espy and Acting Director Rivlin, and I would like 
     to emphasize my support for them.
       My Administration will refocus the Export Enhancement 
     Program and the Dairy Export Incentive Program so they can be 
     used for market expansion in addition to focusing on 
     combating unfair trade practices. We will also propose 
     increases over the next five years in the level of USDA 
     ``greenbox'' and other programs that are not constrained by 
     GATT.
       On the domestic front, I want to assure you that I am 
     strongly supportive of USDA's Conservation Reserve Program 
     (CRP) and am committed to ensuring that it will continue. 
     Finally, as described in the Espy-Rivlin letter, my next two 
     budget requests will safeguard spending for agricultural 
     programs.
       I hope this helps to clarify my Administration's support 
     for agriculture programs, and that I can count on your 
     support in passing the GATT legislation and working to 
     realize its benefits for American farmers and the entire U.S. 
     agricultural sector.
       With best wishes,
           Sincerely,
                                                             Bill.
                                 ______

                                         Department of Agriculture


                                       Office of the Secretary

                                 Executive Office of the President


                              Office of Management and Budget,

                                               September 30, 1994.
     Hon. E (Kika) de la Garza,
     Chairman, Committee on Agriculture,
     House of Representatives,
     Washington, DC.
       Dear Mr. Chairman: The enactment of GATT is vital to the 
     continuing economic expansion of the U.S., and particularly 
     for expanding opportunities in the agricultural sector. Our 
     estimates are that the implementation of the GATT agreement 
     will lead to a cumulative increase of U.S. agricultural 
     exports over the next five years of between $5 and $14 
     billion. These increased agricultural exports will result in 
     a gain of 112,000 U.S. jobs by 2000.
       In spite of these significant benefits, however, we know 
     there remain concerns in some quarters about the effects of 
     projected reductions in federal spending on agriculture-
     related programs resulting from GATT's implementation. 
     Therefore, we are making commitments in some additional areas 
     that will reassure and further benefit the agricultural 
     sector.
       The Administration has decided, as part of the 
     implementation of GATT, to refocus USDA's Export Enhancement 
     Program (EEP) and Dairy Export Incentive Program (DEIP) so 
     they can be used for market expansion and promotion, not just 
     for combating unfair trade practices as is currently the 
     case. The GATT implementing legislation we submitted to 
     Congress on September 27th will effect this change in the EEP 
     program, based on the language suggested by the Agriculture 
     Committees in their draft GATT legislation. A parallel change 
     to the DEIP program will be made administratively.
       We also want to reiterate the Administration's commitment 
     to use these and other export programs, as well as the 
     Sunflower and Cotton Oilseed Assistance Programs, to the 
     maximum levels allowed under GATT and U.S. law. Throughout 
     the six-year GATT implementing period, we intend to request 
     that Congress make available funds for these programs to the 
     fullest extent permissible under GATT.
       In addition, we will work with others in the Administration 
     to develop and utilize an expedited interagency review 
     process to ensure that sales under the EEP and DEIP programs 
     are carried out promptly in a market-sensitive manner that 
     fulfills the broader program focus described above.
       The Conservation Reserve Program (CRP) has been another 
     priority for the agricultural community. The Administration 
     strongly supports the CRP program and will act to ensure its 
     continuation. We have already taken action to extend our 
     baseline CRP funding, in the Midsession Review of the 
     President's FY 1995 Budget. In addition, USDA has announced 
     that CRP participants with contracts that expire in 1995 can 
     modify and extend their contracts for an additional year. The 
     Administration will include a full continuation of the CRP in 
     the FY 1996 Budget baseline, and will propose reauthorization 
     and extension of the CRP in 1995.
       The Administration also wishes to reassure the Committee 
     that it is planning to maintain total discretionary spending 
     on USDA agricultural programs at or above the FY 1995 level 
     in the FY 1996 and 1997 Budget requests to Congress. In 
     formulating future budgets, we will take into consideration 
     reductions made in agriculture budgets in the past and during 
     the GATT round.
       To broadly support market development for agricultural 
     products, the Administration will propose increases in 
     ``greenbox'' and other GATT-allowed agricultural program 
     levels by $600 million over the next 5 years. These programs 
     will include a combination of direct spending, direct 
     credits, and credit guarantees. Consistent with the draft 
     GATT legislation prepared by the Agriculture Committees, this 
     effort will include funding for the Market Promotion Program 
     and other programs to benefit a wide range of commodities, 
     including dairy, oilseed products, and high-value commodity 
     products. In addition, funding will be included to support 
     development of alternative uses for agricultural products.
       One source of offsets to fund this increase this year of 
     crop insurance reform. To the extent that those savings are 
     not sufficient to fund this increased program level, funding 
     for such agriculture programs will be proposed as additional 
     agricultural spending in future budgets.
       We appreciate your continued support and look forward to 
     working closely with you on agricultural issues in the 
     future.
           Sincerely,
     Mike Espy,
                                         Secretary of Agriculture.
     Alice M. Rivlin,
                                                  Acting Director.
                                  ____

                                                  October 5, 1994.
     Hon. Jill Long,
     House of Representatives, Washington, DC
       Dear Representative Long: On behalf of the organizations 
     listed below, we would like to take this opportunity to 
     express our strong support for Congressional passage this 
     year of legislation implementing the Uruguay Round General 
     Agreement on Tariffs and Trade (GATT).
       The economic well-being of U.S. agriculture is heavily 
     dependent on its ability to complete in the international 
     marketplace. This is underscored by the fact that 
     agricultural exports account for nearly one-third of U.S. 
     production and provide employment for nearly one million 
     Americans.
       It is anticipated that the Uruguay Round agreement on GATT 
     will provide even greater trade opportunities for U.S. 
     agriculture. According to recent estimates, U.S. agricultural 
     exports are projected to increase by $5 to $14 billion over 
     the next 5 years which, in turn, would create an additional 
     112,000 new jobs.
       To realize this potential, however, will depend on the 
     extent that U.S. agricultural policies and programs continue 
     to be equally competitive with those of other countries, 
     especially the European Union. Clearly, as history has shown, 
     our foreign competitors will continue to use every available 
     weapon allowed under GATT to maintain and expand their share 
     of the world market. Without a similar commitment, U.S. 
     agriculture will be at a significant disadvantage.
       This is why we strongly supported legislation (H.R. 4675) 
     which you introduced and which was unanimously adopted by the 
     House Committee on Agriculture as part of its recommendations 
     on GATT.
       The Administration, consistent with H.R. 4675, has pledged 
     its support for maintaining U.S. agricultural policies and 
     programs, including funding, at the maximum levels allowed 
     under GATT; announced its commitment to provide $600 million 
     in additional funding for certain other GATT-allowable or 
     ``green box'' programs such as market development and 
     promotion, export credit, food assistance (P.L. 480 and 
     TEFAP), as well as for developing alternative uses from 
     agricultural commodities; and emphasized it will maintain and 
     extend the conservation reserve program (CRP).
       These actions will help U.S. agriculture remain viable and 
     competitive in the international marketplace; meet the food 
     and fiber needs of consumers at home and abroad; contribute 
     to continued economic growth, jobs and an expanding tax base; 
     and help fully capitalize on the potential market 
     opportunities expected to result from the Uruguay Round 
     agreement on GATT.
       For these reasons, we want to take this opportunity to 
     express our strong support of the Uruguay Round implementing 
     legislation and to urge that such legislation be approved by 
     Congress this year.
       At the same time, we want to express our appreciation to 
     you for your continued strong leadership on behalf of 
     agriculture and rural America.
           Sincerely,
         American Farm Bureau Federation; American Forest and 
           Paper Association; American Meat Institute; Coalition 
           for Food Aid; International Apple Institute; National 
           Association of State Departments of Agriculture; 
           National Barley Growers Association; National 
           Cattlemen's Association; National Corn Growers 
           Association; National Cotton Council; National Council 
           of Farmer Cooperatives; National Pork Producers 
           Council; National Potato Council; United Egg 
           Association; United Egg Producers; United Fresh Fruit 
           and Vegetable Association; and USA Rice Federation.

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