[Congressional Record Volume 144, Number 132 (Monday, September 28, 1998)]
[House]
[Page H9165]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     THE EXPORT ENHANCEMENT PROGRAM

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Oklahoma (Mr. Lucas) is recognized for 5 minutes.
  Mr. LUCAS of Oklahoma. Mr. Speaker, fiscal year 1998 ends in 3 days, 
and President Clinton has let cob webs grow on the Export Enhancement 
Program.
  Yes, as our farmer constituents struggle through one of the most 
devastating downturns in commodity prices our country has seen, our 
President has sat on $150 million that could have been and should have 
been utilized to prevent the loss of markets in wheat, wheat flour, 
vegetable oil, and other commodities.
  The 1996 farm bill made over $1.5 billion available for EEP, and this 
administration has used it to move some frozen chickens and some 
barley. They should be ashamed.
  This administration's trade policy should be called promises made, 
promises broken. Understanding the need to open new markets for our 
commodities, the President has promised to utilize EEP to its fullest. 
This is a promise he has not kept.
  In March of this year, I joined my colleagues from Oklahoma in 
sending a letter to Secretary Glickman outlining our thoughts on the 
need for the administration to utilize EEP. I would like to read the 
letter we sent.

       Dear Mr. Secretary: It has come to our attention that 
     according to the United States Department of Agriculture . . 
     . February supply/demand report, the season average price for 
     wheat is expected to decline by at least twenty percent 
     compared to the 1996/97 season. This price decline is causing 
     serious concern to our producers, and we strongly urge the 
     Department to use all discretionary programs to strengthen 
     market prices and export opportunities for U.S. producers.
       We believe the Department should aggressively utilize 
     export enhancement tools in strategic markets, including the 
     Export Enhancement Program (EEP) and the GSM credit programs. 
     All agree that export growth is fundamental to improved 
     market prices for producers. As we talk it our producers/
     constituents throughout Oklahoma, they time and time again 
     express great dissatisfaction with the Department's 
     reluctance to use the EEP to counter competitive 
     subsidization of wheat in world markets. The unwillingness to 
     utilize this program has weakened its effectiveness both as a 
     deterrent to unfair trade practices and as a means of gaining 
     access to markets.
       As U.S. producers lose market share to a growing list of 
     countries with state trading enterprises, it is imperative 
     that the Department implement a long-term strategy to counter 
     these entities. As you begin the preparation for the next 
     round of World Trade Organization Negotiations in 
     Agriculture, we hope that you will utilize all export tools 
     available.
       Thank you for consideration. We are looking forward to your 
     response. Frank D. Lucas, J.C. Watts, Jr., Ernest Istook, 
     Steve Largent, Wes Watkins, and Tom Coburn.

  How did he respond? Nearly $50 million a month has sat idly by as our 
markets have dried up throughout the world as the administration plays 
partisan politics with the future of our producers. I would argue that 
one of the main problems plaguing those trying to earn a living off 
this land is this administration's lack of an agricultural trade 
policy. Mr. President, this needs to change.

                          ____________________