[Congressional Record Volume 144, Number 106 (Friday, July 31, 1998)]
[Senate]
[Pages S9663-S9664]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                     NOMINATION OF JACOB JOSEPH LEW

  Mr. BROWNBACK. Mr. President, as we confirm the nomination of Mr. 
Jack Lew to the Director of the Office of Management and Budget, I want 
to take this opportunity to highlight a problem that OMB has the power 
to help correct, but to this date has chosen not to.
  As many are aware, there is a real problem right now in rural America 
brought about the dismal farm prices. The only way that commodity 
prices are going to increase is to boost exports. Certainly, passage of 
Fast Track, funding of the IMF, continuing normal trade relations with 
China, and lifting sanctions are necessary parts of the strategy to 
grow our export markets.
  However, there is also a tool, the Export Enhancement Program, that 
the federal government can be using to help boost exports and revive 
farm exports in the near term. Congress has done its part in providing 
appropriations for this program, but the Administration has failed to 
utilize the program.
  The EEP program is designed to help our agricultural exports compete 
in the face of subsidized competition in international markets. Despite 
clear evidence that subsidized competition is eroding U.S. markets, 
particularly for wheat flour, the Administration has been dragging its 
feet in initiating the EEP.
  The USDA has been pushing for the use of the Export Enhancement 
Program for wheat flour for almost two years. However, before the 
program can be initiated, an interagency review group, of which OMB is 
a member, must approve the initiative. OMB has not endorsed usage of 
the Export Enhancement Program to counteract European subsidies for 
wheat flour, and thus has effectively blocked use of the program.
  It is objectionable that the Clinton Administration is not compelled 
to stand up for its farm community in the face of adversity in the same 
way that its European counterparts are. Secondly, it is objectionable 
that the OMB is driving agricultural trade policy, instead of the 
Department of Agriculture in conjunction with the U.S. Trade 
Representative.

[[Page S9664]]

  Exports of U.S. wheat flour have come to a virtual standstill, and it 
is not because U.S. farmers and millers are relatively inefficient. It 
is because our competitors, namely the European Union, highly subsidize 
flour milling. The Administration has the power to correct this by 
using our own export subsidy program, but OMB is preventing it.
  The Administration has announced its intention to purchase wheat and 
donate it overseas for humanitarian purposes. This is a fine idea, but 
it is not a substitute for an initiative that will target commercial 
markets. The EEP program can be used in countries that pay cash for the 
wheat flour they consume and that do not qualify for humanitarian 
assistance. These are important markets that the U.S. wheat industry 
has spent years developing. Furthermore, using the EEP to leverage 
sales will allow USDA to facilitate a larger amount of wheat flour 
sales using fewer federal dollars that it would through a donation 
program.
  The EEP is needed not only because it wall help us regain our 
commercial presence in markets traditionally held by the U.S., but also 
because it will increase our leverage in future trade negotiations. The 
real objective here needs to be to eliminate export subsidies 
worldwide. However, our competitors have no reason to come to the 
negotiating table if the U.S. has already unilaterally eliminated 
export subsidies.
  The Export Enhancement Program needs to be utilized now for wheat 
flour. I encourage Mr. Lew to make that a priority when he enters 
office.