[Congressional Record Volume 142, Number 141 (Thursday, October 3, 1996)]
[Senate]
[Page S12280]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     THE IMPACT OF DIFFERENTIAL EXPORT TAX SYSTEMS ON U.S. OILSEED 
                               PROCESSORS

  Ms. MOSELEY-BRAUN. Mr. President, last month, as we were voting on an 
extension of the Generalized System of Preferences, I spoke on the 
floor about a tax system employed by certain countries, including 
Brazil and Argentina, that operates to confer an unfair competitive 
advantage on exports of oilseed products from those countries at the 
expense of United States producers of these products. These unfair tax 
schemes, commonly known as differential export tax systems, or DETs, 
have been of great concern to all soybean growing states, including my 
State of Illinois, one of the leading soybean States in our country.
  As I explained last month, these tax schemes, which operate in much 
the same way as WTO-impermissible export subsidies, make a mockery of 
the principles of free and fair trade. Until these unfair tax schemes 
are eliminated in countries throughout the world, U.S. processors will 
continue to lose ground in world markets for soybean meal and oil.
  I was therefore pleased to learn that the Government of Brazil 
recently passed a law that eliminates these tax schemes in the states 
that employ them. I want to take this opportunity to commend the 
Government of Brazil for this major achievement. By this action, the 
Brazilian Federal Government has greatly contributed to the further 
liberalization of world trade. I am hopeful that other countries that 
continue to rely upon these trade-distorting tax schemes will be 
encouraged to follow the lead of Brazil and take similar steps toward 
trade liberalization. I will continue to monitor this issue closely, 
and if we do not see further progress in this regard, the Senate 
Finance Committee should consider examining this issue in more detail 
as part of its trade agenda in the next Congress.

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