[Congressional Record Volume 143, Number 142 (Tuesday, October 21, 1997)]
[Extensions of Remarks]
[Page E2018]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 AGRICULTURAL EXPORT BENEFIT CALIFORNIA

                                 ______
                                 

                         HON. WILLIAM M. THOMAS

                             of california

                    in the house of representatives

                       Tuesday, October 21, 1997

  Mr. THOMAS. Mr. Speaker, California is famous as the home of the 
motion picture industry, Disneyland, beaches, and an overwhelming 
tourist industry. It may surprise you to learn, however, that 
agriculture is actually California's No. 1 industry. Since California 
is also the home of numerous international ports, the combination of 
agriculture and international trade creates the backbone of 
California's economy. As such, it is a priority to foster growth in 
agricultural exports by supporting U.S. efforts to decrease barriers to 
trade with foreign countries.
  For the last 50 years California has held the title as the Nation's 
No. 1 agricultural State. California's agricultural industry is 
important to the Nation as well as to the economic well being of our 
local communities. Agricultural exports account for over half of 
California's total agricultural products which brings $22 billion into 
the California economy every year. Thus, over half of the revenues 
earned by the sale of California's agricultural products were generated 
by California growers' ability to enter and compete competitively in 
foreign markets. For some products, such as the sale of cotton in my 
district, exports account for 75 percent of the $1 billion in total 
sales revenues.
  Agriculture provides 1 in every 10 jobs in the State. These jobs 
serve as the underlying force behind California's economic strength. 
According to the California Department of Food and Agriculture's 1995 
Crop Report, ``for every $1 billion in export sales, 27,000 jobs are 
created in the state''. By this approximation, agricultural exports 
helped the total California economy by creating 124,000 jobs, and these 
jobs, on average, pay more than nonexport related jobs. In my district, 
Kern County's $350 million in exports sales creates almost 10,000 jobs, 
which does not include indirect economic benefits.
  Given the direct relationship between agricultural exports and 
employment levels, it is important that we work to increase exports by 
encouraging free trade and maintaining strong working relationships 
with our trading partners. Although exports already represent a large 
portion of California's agricultural sales, they remain the area of 
greatest potential growth for the industry. While overseas markets are 
growing, our domestic market has reached a stagnant growth rate. The 
global marketplace is where the action is, due to the fact that there 
are about 6 billion consumers beyond our Nation's borders. In just the 
last 6 years, U.S. agricultural exports have increased by 50 percent.
  New trade agreements that open and liberalize trade allow California 
farmers access to those 6 billion consumers in the global market. I 
mentioned how successful cotton has been for California and my 
district. Consider if other agricultural products also succeeded in 
expanding through free trade. For example, as the leading dairy 
producing county in the Nation, Tulare County in my district is well 
positioned to seize a lion's share of the growing world dairy demand if 
only fair and free trade can be achieved. Other major agricultural 
products found in California, such as pistachios, almonds, grapes, and 
stone fruits, stand to gain from the ability to enter foreign markets 
if given an equal footing with producers from other countries.
  We must plan for future growth by working with our trading partners 
to open market access, allowing California farmers the opportunity to 
sell even more goods in the global market. Expansion of agricultural 
exports has always been my priority. As the Representative of an 
agricultural district I am proud that the success of California's 
farmers and ranchers helps build America's economy while feeding 
millions. Since the implementation of NAFTA 3 years ago, agricultural 
exports to our NAFTA trading partners have increased by 13 percent. 
Trade liberalization under NAFTA will continue to bolster the economic 
forces that are promoting trade growth. As we work to further reduce 
barriers to trade, we can look forward to great increases in our 
agricultural exports. Creating a free market is in our best interest, 
and I urge this Congress to do its best to continue to support free 
trade.

                          ____________________