[Congressional Record Volume 142, Number 24 (Tuesday, February 27, 1996)]
[Senate]
[Pages S1374-S1375]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       TRADE DISPUTE WITH RUSSIA

 Mr. BIDEN. Mr. President, I rise today to address a recent 
trade dispute which threatens tens of thousands of American jobs and 
hundreds of millions in American exports.
  On February 19, the Russian Government notified us that it will soon 
stop importing poultry products if its complaints about American food 
safety standards are not met. On top of this, what little will enter 
Russia these next few weeks will be subject to a sharp increase in 
their taxes on imported poultry.
  American poultry exports to Russia--our largest poultry export 
customer--total more than $700 million a year and represent over 20 
percent of all American exports to Russia.
  Mr. President, the Delmarva Peninsula is home to 21,000 poultry 
workers, produces more than 600 million birds per year, and is a major 
supplier to the Russian poultry market. Last summer, for example, 
Allen's Family Food, of Seaford, DE, exported 1,300 tons of frozen 
poultry to Russia.
  At one time or another, I have probably met with every poultry grower 
and processor in my State of Delaware. I've seen every step in the 
process, from the poultry house to the packaging plant to the freezers 
at the Port of Wilmington. I'll put the Delaware poultry industry up 
against any foreign or domestic challenger in terms of sanitary 
standards, particularly any Russian plant. 

[[Page S1375]]

  But teams of Russian inspectors have come into our country, into our 
poultry processing facilities--including plants such as Manor Farms and 
Allen's Foods in my own State of Delaware--and have failed each and 
every operation. Literally a 100 percent failure rate.
  I find this simply unbelievable. This tells me that their real agenda 
is not health and safety. We demand the same standards for the poultry 
we ship to Russia as we do for poultry which shows up in American 
supermarkets and on our kitchen tables every day.
  That's why in recent years, Russia's consumers, particularly in the 
great urban centers such as Moscow and St. Petersburg, have bought more 
and more poultry products from America. They recognize a good value 
when they see it. We can produce better tasting, more nutritious, less 
expensive poultry in America, and ship it to Russia, for a lower price 
than the current Russian poultry industry can. They are still 
struggling to get out from under the inefficiencies of the old economic 
system.
  If this ban goes into effect, Mr. President, the Russian people will 
lose a major high-quality supplier for a popular staple of their diet, 
and their food bills will go up.
  The last thing that the Russian economy needs now is an increase in 
the price of an important food commodity. It is largely because of 
inflation that the ruble, and with it the Russian economy, is in so 
much trouble already.
  And if this ban goes into effect, Mr. President, American poultry 
growers and processors, in Delaware and in the rest of the country, 
will be denied access to an important market. They have earned their 
place on the shelves of Russian stores through their hard work, know-
how, and efficiency. They should not be shut out by some bureaucrats' 
arbitrary ruling.
  Now, Mr. President, I understand that there are a lot of things going 
on behind the decision to ban American poultry exports. There is the 
still powerful pull of the old bureaucratic ways--old habits are hard 
to break, especially when it comes to protecting domestic industries 
from the new experience of foreign competition.
  Here is a good example of how our domestic industry, which has grown 
up in a highly competitive environment, can do well in international 
markets. It's no wonder the Russian domestic poultry industry wants 
some protection, even if it means higher costs and lower quality for 
Russian consumers.
  Mr. President, here in the United States, arguably the freest market 
in the world, we are in the midst of a heated national debate on 
international trade and competition. Just imagine what they are going 
through in the states of the former Soviet Union, where competition on 
the basis of quality and price is a new concept.
  And this is a Presidential election year over there, too. I know that 
I don't have to explain how the elimination of a major foreign 
competitor could fit into an election year agricultural policy.
  But that is no excuse for the Russian Government's action against 
American poultry producers. We cannot allow this decision to stand.
  I have spoken to Agriculture Secretary Dan Glickman directly, and I 
applaud the effort he and his negotiating team have made to resolve 
this dispute.
  The Russian Government must be made to understand that these steps 
against the United States poultry industry are steps away from the 
international economic community they tell us they are eager to join.
  The IMF has just announced another loan to Russia, worth $10.2 
billion. This money is intended to smooth the transition from the old 
Communist command economy to a more efficient, open, market economy. 
The terms of the loan include requirements that the Russians continue 
to reform their economy.
  And as the Russians are well aware, the terms of the loan provide for 
monthly installments over those 3 years. Evidence of backsliding, of 
reneging on commitments to open the Russian economy, could be grounds 
for terminating the loan at any point.
  Russia tells us that they want to join the World Trade Organization 
and America has supported their application to join the WTO. As a 
matter of fact, right now the United States has a representative on the 
WTO working group that must approve Russia's trade practices.
  Our representative must make crystal clear to the Russians that 
actions like the bogus ban on American poultry imports violates the 
spirit and the letter of international agreements, such as the WTO.
  I can't imagine they would want this stain on their record when they 
come to argue that they are ready to undertake the responsibilities of 
full participation in the international trading system.
  But, because this review process could take up to a year, I am asking 
President Clinton to appoint an interagency working group to 
investigate immediate retaliatory trade actions against the Russians.
  I sincerely hope that before any such retaliation becomes necessary, 
we can convince the Russian Government to turn back from the course 
that they have announced.

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