[Congressional Record Volume 143, Number 8 (Tuesday, January 28, 1997)]
[Senate]
[Pages S752-S753]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself and Mr. Daschle):
  S. 220. A bill to require the U.S. Trade Representative to determine 
whether the European Union has failed to implement satisfactorily its 
obligations under certain trade agreements relating to U.S. meat and 
pork exporting facilities, and for other purposes; to the Committee on 
Finance.


            fair trade in meat and pork products act of 1997

  Mr. GRASSLEY. Mr. President, I join the minority leader today in 
introducing two important bills regarding agricultural trade. The first 
is a bill that requires the U.S. Trade Representative to determine 
whether the European Union has violated its trade agreements with the 
United States by failing to certify U.S. beef and pork processing 
plants for export to the European Union. The failure to certify our 
plants has cost the pork industry alone as much as $60 million 
annually.
  The problem arises under the E.U.'s so-called Third Country Meat 
Directive. This directive, which has been in place since 1985, calls 
for E.U. inspection and certification of U.S. meat plants as a 
condition for accepting exports from those plants. Simply put, if a 
plant has not been certified, it cannot export to the E.U. member 
nations. Since the mid-1980's the E.U. has used this directive to 
prohibit over 400 U.S. facilities from exporting beef and pork to the 
E.U.
  Many bilateral discussions have taken place between the E.U. and the 
United States on this issue since 1985. But no satisfactory resolution 
has ever been reached. In early 1991, the then-U.S. Trade 
Representative, Carla Hills, initiated an action under section 301 of 
the 1974 Trade Act. After a year of consultations and the certification 
of some U.S. plants, we entered into a settlement agreement, known as 
the 1992 meat agreement. In exchange for the settlement agreement, the 
United States agreed to withdraw its 301 action.
  Under the 1992 meat agreement, the E.U. agreed that U.S. plants would 
be certified if their inspection systems are equivalent to the E.U.'s. 
In spite of this agreement, and its commitments made under the WTO 
Agreement on Sanitary and Phytosanitary Measures, the E.U. has not made 
any significant progress in certifying U.S. plants. Europe effectively 
remains a closed market for United States beef and pork.
  What this bill does is require the USTR to determine under section 
306 whether the E.U. has violated its trade agreements. This is 
important because once a determination has been made, the USTR is 
required to take action. The action could take the form of unilateral 
retaliation, for example. Furthermore, the bill requires the U.S. 
Department of Agriculture to reconsider our certification of European 
plants if this problem continues.
  Mr. President, the impact of the E.U.'s blatant disregard of our 
trade agreements is substantial for the U.S. meat industry. Our cattle 
and hog farmers have been effectively shut out of the entire European 
market. This comes at a time when American agriculture is becoming more 
dependent on foreign markets. In fact, USDA calculates that American 
farmers will soon derive up to 30 percent of their net income from 
foreign trade. So global market access is critical to the viability of 
the family farmer.
  This bill sends a strong signal to the E.U. that we are no longer 
willing to tolerate this egregious behavior. Bilateral negotiations 
have failed. It is time to take swift and strong action to eliminate 
this barrier to our value-added agricultural products.
  We must also send a signal to our other foreign trading partners. 
Trade agreements must be followed. Commitments must be kept. The United 
States will no longer sit idly by as the rest of the world thumbs it 
nose at their responsibilities as a trading partner. The stakes are 
simply too high in terms of American jobs and standard of living.
  This leads me to the second bill that I have cosponsored today with 
the minority leader. This bill requires the USTR to identify, on an 
annual basis, those countries that deny market access to our value-
added agricultural products. It also requires identifying countries who 
are violating the sanitary and phytosanitary provisions of the GATT. 
This procedure is similar to the special 301 procedure for intellectual 
property rights.
  It is necessary to identify and understand the trade barriers faced 
by American agriculture so we can work to eliminate them. Not only is 
foreign trade vital to American farmers, it is vital to the U.S. 
balance of payments. Agriculture trade is the shining star in an 
otherwise increasing trade deficit. But we cannot rest on the success 
of the past. In existing markets we could be doing much better in terms 
of market share. And many markets remain closed to U.S. ag products.
  This bill will help pinpoint our successes and our failures so we can 
move forward on bilateral negotiations and, eventually, a new round of 
agricultural negotiations in the World Trade Organization, beginning in 
1999. This annual report will serve as a blueprint to achieving 
worldwide access for the commodities produced on America's family 
farms.
  I appreciate the minority leader's hard work on these two pieces of 
legislation. And I look forward to working

[[Page S753]]

with him during this Congress to get these bill enacted into law.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 220

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fair Trade in Meat and Pork 
     Products Act of 1997''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The European Union's Third Country Meat Directive has 
     been used to decertify more than 400 United States facilities 
     exporting beef and pork products to the European Union even 
     though United States health inspection procedures are 
     equivalent to those provided for in the Third Country Meat 
     Directive.
       (2) An effect of the decertifications is to prohibit the 
     importation of United States beef and pork products into the 
     European Union.
       (3) As a result of the decertifications, the highly 
     competitive United States pork industry loses as much as 
     $60,000,000 each year from trade with European Union 
     countries.
       (4) In July 1987 and November 1990, at the request of 
     affected United States industries, the United States 
     initiated investigations under section 301 of the Trade Act 
     of 1974 into the European Union's administration of the Third 
     Country Meat Directive and sought resolution of the meat and 
     pork trade problems through the dispute settlement process 
     established under the General Agreement on Tariffs and Trade.
       (5) The United States Trade Representative preliminarily 
     concluded on October 10, 1992, that the European Union's 
     administration of the Third Country Meat Directive created a 
     burden on and restricted United States commerce.
       (6) Bilateral talks, initiated as a result of that finding, 
     resulted in an Exchange of Letters in which the United States 
     and the European Union concluded that the meat inspection 
     systems of the United States and the European Union provided 
     ``equivalent safeguards against public health risks'' and 
     agreed to take steps to resolve remaining differences 
     regarding meat inspection.
       (7) Even though the United States terminated the section 
     301 investigation as a result of the Exchange of Letters, the 
     United States determined that the practices under 
     investigation would have been actionable if an acceptable 
     agreement had not been reached.
       (8) United States meat and pork producers have displayed 
     consistent interest in exporting products to the European 
     Union and have undertaken substantial investment to take the 
     steps specified by the Exchange of Letters.
       (9) The European Union has failed to acknowledge changes in 
     plant safety and inspection procedures undertaken in the 
     United States specifically at the European Union's request 
     and has not fulfilled its obligation to inspect and relist 
     United States producers who have taken the steps specified by 
     the Exchange of Letters.
       (10) The actions of the European Union in conducting United 
     States plant inspections places the European Union in 
     violation of commitments made in the Exchange of Letters.
       (11) The European Union, in addition to being a party to 
     the Exchange of Letters, is a signatory to GATT 1994 and to 
     the Agreement on the Application of Sanitary and 
     Phytosanitary Measures, which requires that meat and pork 
     inspection procedures under Department of Agriculture 
     regulations be treated as equivalent to inspection procedures 
     required by the European Union under the Third Country Meat 
     Directive if the regulations achieve the European level of 
     sanitary protection.
       (12) Whenever a foreign country is not satisfactorily 
     implementing an international trade measure or agreement, the 
     United States Trade Representative is required under section 
     306(b)(1) of the Trade Act of 1974 (19 U.S.C. 2416(b)(1)) to 
     determine the actions to be taken under section 301(a) of 
     such Act.

     SEC. 3. DEFINITIONS.

       For purposes of this Act:
       (1) Exchange of letters.--The term ``Exchange of Letters'' 
     means the exchange of letters concerning the application of 
     the Community Third Country Directive, signed in May 1991 and 
     November 1992, which constitute the agreement between the 
     United States and the European Economic Community regarding 
     the Third Country Meat Directive.
       (2) GATT 1994.--The term ``GATT 1994'' means the General 
     Agreement on Tariffs and Trade annexed to the WTO Agreement.
       (3) Third country meat directive; community third country 
     directive.--The terms ``Third Country Meat Directive'' and 
     ``Community Third Country Directive'' mean the European 
     Union's Council Directive 72/462/EEC relating to inspection 
     and certification of slaughter and processing plants that 
     export meat and pork products to the European Union.
       (4) WTO agreement.--The term ``WTO Agreement'' means the 
     Agreement establishing the World Trade Organization entered 
     into on April 15, 1994.

     SEC. 4. REQUIREMENT FOR DETERMINATION BY UNITED STATES TRADE 
                   REPRESENTATIVE.

       Not later than 30 days after the date of enactment of this 
     Act, the United States Trade Representative shall determine, 
     for purposes of section 306(b)(1) of the Trade Act of 1974, 
     whether the European Union has failed to implement 
     satisfactorily its obligations under the Exchange of Letters, 
     the Agreement on the Application of Sanitary and 
     Phytosanitary Measures, or any other Agreement.

     SEC. 5. REQUEST FOR DISPUTE SETTLEMENT.

       If the United States Trade Representative determines under 
     section 4 that the European Union has failed to implement 
     satisfactorily its obligations under the Exchange of Letters, 
     the Agreement on the Application of Sanitary and 
     Phytosanitary Measures, or any other agreement, the United 
     States Trade Representative shall promptly request 
     proceedings on the matter under the formal dispute settlement 
     procedures applicable to the agreement.

     SEC. 6. REVIEW OF CERTAIN MEAT FACILITIES.

       (a) Review by Food Safety and Inspection Service.--If the 
     United States Trade Representative determines pursuant to 
     section 4 that the European Union has failed to implement 
     satisfactorily its obligations under the Exchange of Letters, 
     the Agreement on the Application of Sanitary and 
     Phytosanitary Measures, or any other Agreement, the United 
     States Trade Representative shall request the Secretary of 
     Agriculture (who, upon receipt of the request, shall) direct 
     the Food Safety and Inspection Service of the Department of 
     Agriculture to review certifications for European Union 
     facilities that import meat and other agricultural products 
     into the United States.
       (b) Relationship to USTR Authority.--The review authorized 
     under subsection (a) is in addition to the authority of the 
     United States Trade Representative to take actions described 
     in section 301(c)(1) of the Trade Act of 1974 (19 U.S.C. 
     2411(c)(1)).
                                 ______