[Congressional Record Volume 145, Number 128 (Tuesday, September 28, 1999)]
[Senate]
[Pages S11570-S11571]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Gorton, Mr. Bingaman, Mr. Craig, 
        and Mrs. Murray):
  S. 1651. A bill to amend the Agricultural Trade Act of 1978 to 
require the Secretary of Agriculture to take certain actions if the 
European Union does not reduce and subsequently eliminate agricultural 
export subsidies; to the Committee on Agriculture, Nutrition, and 
Forestry.


                agricultural trade fairness act of 1999

 Mr. BAUCUS. Mr. President, I rise today to introduce the 
``Agriculture Fair Trade Act of 1999.'' I am pleased to be joined in 
this bipartisan effort by the bill's leading cosponsors, Senator 
Gorton, Senator Bingaman, Senator Craig and Senator Murray. The measure 
is also supported by the Montana Grain Growers and the Montana Farm 
Bureau.
  Let me begin by saying that this next round of WTO is vital. As a 
senator who represents Montana--a state whose primary industry is 
agriculture--this next round will decide the fate of our next 
generation of producers. It is becoming increasingly clear that while 
the rest of the nation continues to experience astounding economic 
growth and prosperity through open and global trade, America's farmers 
and ranchers across the nation suffer. They have yet to reap the fruits 
of free trade's bounty.
  During the past several months, we in the Senate, the Administration 
and farmers and ranchers back home have worked to identify the goals 
for agriculture in the next round in the WTO. And the consensus is that 
we must step up our efforts in order to make any genuine progress in 
leveling the playing field for the agricultural industry.
  It is our intention that this bill will begin this process. The 
Agriculture Fair Trade Act provides a mechanism through which we can 
target unfair export subsidies and fight for their total elimination by 
January 1, 2003. It is our hope that such legislation will provide an 
incentive for our trading partners to voluntarily reduce their export 
subsidies during the next round of the WTO. The elimination of these 
subsidies will benefit farmers on both sides of the Atlantic.
  I believe that the Agriculture Fair Trade Act provides a powerful, 
two-tiered ``trigger'' approach to the reduction of export subsidies.
  First, the European Union must reduce its agricultural export 
subsidies by 50 percent by January 1, 2002. If the EU fails to do so, 
the U.S. Secretary of Agriculture shall take appropriate measures to 
protect the interests of American agricultural producers and ensure the 
international competitiveness of United States agriculture.
  In particular, the Secretary shall be authorized to--
  Target the EU's most sensitive export market for grains, and
  Spend $1 billion in Export Enhancement Program funding in that 
market.
  Step two requires the European Union to enter into an agreement with 
the United States. By January 1, 2003, the EU must agree to completely 
eliminate its export subsidies. If not, the U.S. Secretary of 
Agriculture shall be authorized to--
  Again, target the EU's most sensitive export market for grains,
  Double the Export Enhancement Program to $2 billion, and
  Increase and utilize export funding for market promotion and direct 
ag export credit sales in the best interest of American ag producers.
  It's high time, we in the U.S. Senate take action to ensure that the 
next round of negotiations results in benefits to our producers.


                    Why Target EU Export subsidies?

  I believe that the U.S. has taken the high road in leading by 
example. That lead hurts U.S. producers. The United States has long 
taken the position that if we reduce support for agriculture we will 
get a fair trading system. That is not the case across the Atlantic, 
where the EU export subsidies are 60 times

[[Page S11571]]

greater than export subsidies in the United States. In fact, the EU 
accounts for nearly 85 percent of the world's export subsidies.
  I can remember the 1980s when the U.S. and EU engaged in an ``export 
subsidy war.'' At that time, both countries battled to undercut each 
other's prices in the world's wheat export markets. Over the decade, 
U.S. market share declined while EU market share increased 
dramatically. Europe, formerly the world's largest net importer, 
suddenly became the world's largest net exporter. It had nothing to do 
with luck. It had everything to do with their aggressive use of export 
subsidies.
  And how did the United States fight back? We didn't. To date, the 
United States maintains the anemic Export Enhancement Program. 
Authorized at $500 million a year, EEP operates well below its Uruguay 
Round reduction commitments. If EEP is to be a credible tool in 
international trade, its high time to start flexing its muscle.
  The United States will remain the most open market in the world. I am 
committed to that. At the same time, we must do everything possible to 
open foreign markets. A ``trigger'' is the first step--but one that 
must be taken as a very large stride in the path toward fair trade.
  I again thank Senators Gorton, Bingaman, Craig and Murray for 
cosponsoring this important legislation. And I urge my colleagues 
vested in the future of America agriculture to join us in this 
endeavor.
                                 ______