[Congressional Record Volume 143, Number 53 (Tuesday, April 29, 1997)]
[Extensions of Remarks]
[Page E783]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           THE MARKET ACCESS PROGRAM IS NOT CORPORATE WELFARE

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                            HON. FRANK RIGGS

                             of california

                    in the house of representatives

                        Tuesday, April 29, 1997

  Mr. RIGGS. Mr. Speaker, I would like to take this opportunity to 
speak on a topic that is embroiled in heated rhetoric and 
misinformation.
  Last week the Committee on Agriculture held a hearing to examine the 
effectiveness of agriculture export programs, including the Market 
Access Program [MAP].
  This issue is once again in the public spotlight due to an ``NBC 
Nightly News'' piece broadcast last week, on their weekly ``Fleecing of 
America'' segment. Such attacks are part of an annual barrage of 
rhetoric and misinformation targeting one of the few public-private 
partnerships that works, and works well.
  As you know, the congressional district I represent includes the Napa 
Valley, widely regarded as the prime growing region of the U.S. wine 
industry. The U.S. wine industry produces an award-winning, high-value 
product that competes with the best in the world.
  However, the agriculture sector in the United States, and 
specifically wine, continues to face unfair trading practices by 
foreign competitors. Domestic agriculture industries must compete with 
lower wages and heavily subsidized industries in Europe, East Asia, and 
other emerging global regions. The European Union alone subsidizes its 
wine industry by over $2 billion.
  Now there are colleagues of mine who label the MAP as just another 
form of corporate welfare. Nothing more could be further from the 
truth. The MAP is an invaluable resource for American agriculture to 
compete against massively subsidized foreign agriculture exports. What 
is more, it is a resource that allows America's small farmers to 
compete in highly restrictive foreign markets. In fact, the MAP is pro-
trade, pro-growth, and pro-jobs.
  Critics of the program continue to ignore the fact that in 1995, the 
Agriculture Subcommittee on Appropriations reformed the MAP to restrict 
branded promotions to trade associations, grower cooperatives, and 
small businesses. The primary emphasis of the MAP is toward the small 
family farmer. A sizable number of the so-called large corporations 
receiving MAP money are actually grower cooperatives.
  The purpose of the MAP is to move high-value American grown 
agriculture products overseas, to knock down trade barriers, and to 
create and protect American jobs. A recent study by the University of 
Arizona showed that for every dollar of MAP funds spent overseas 
promoting American wine there was a return of $7.44.
  What is more, the five largest wine recipients of MAP funds purchase 
90 percent of their grapes from independent grape growers. In past 
years, of the approximately 101 wineries that received matching funds 
through the Market Access Program, approximately 89 of them were small 
businesses.
  Often times, the only way American wine can break into an overseas 
market is through the active promotion of labels such as Gallo, Robert 
Mondavi, and Kendall Jackson. Once realizing the superb quality of the 
product, the foreign consumer will then sample more obscure labels 
based upon their previous experience. This is a basic lesson in 
advertising and how an industry promotes its products.
  In the world marketplace, competition is fierce. Every year, American 
jobs become more dependent on foreign trade. Efforts to dismantle our 
leading export promotion program are penny wise and pound foolish. To 
retreat in the international marketplace is shortsighted and 
counterintuitive. We must actively engage our trading partners and open 
up emerging markets to our agriculture goods.
  Don't be fooled by the rhetoric. Do what is right for America and 
protect our jobs by supporting exports.

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