[Congressional Record Volume 146, Number 116 (Tuesday, September 26, 2000)]
[Senate]
[Pages S9267-S9268]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN:
  S. 3108. A bill to amend the Federal Insecticide, Fungicide, and 
Rodenticide Act to permit a State to register a Canadian pesticide for 
distribution and use within that State; to the Committee on 
Agriculture, Nutrition, and Forestry.


                      Pesticide Harmonization Bill

  Mr. DORGAN. Mr. President, during the first few months of the 106th 
Congress in early 1999, I introduced a pesticide harmonization bill--S. 
394. Today, I am introducing a revised version of that legislation. The 
need for this legislation has not changed.
  Last year, I pointed out that when the U.S.-Canada Free Trade 
Agreement came into effect, part of the understanding on agriculture 
was that our two nations were going to move rapidly toward the 
harmonization of pesticide regulations. However, we have entered a new 
decade--and century, no less--and relatively little progress in 
harmonization has been accomplished that is meaningful to family 
farmers.
  Since this trade agreement took effect, the pace of Canadian spring 
and durum wheat, and barley exports to the United States have grown 
from a barely noticeable trickle into annual floods of imported grain 
into our markets. Over the years, I have described many factors that 
have produced this unfair trade relationship and unlevel playing field 
between farmers of our two nations. The failure to achieve 
harmonization in pesticides between the United States and Canada 
compounds this ongoing trade problem.
  Our farmers are concerned that agricultural pesticides that are not 
available in the United States are being utilized by farmers in Canada 
to produce wheat, barley, and other agricultural commodities that are 
subsequently imported and consumed in the United States. They 
rightfully believe that it is unfair to import commodities produced 
with agricultural pesticides that are not available to U.S. producers. 
They believe that it is not in the interests of consumers or producers 
to allow such imports. However, it is not just a difference in 
availability of agricultural pesticides between our two countries, but 
also in the pricing of these chemicals.
  Just last spring, our farmers were denied the right to bring a 
pesticide across the border that was cleared for use in our country, 
but was not available locally because the company who manufactures this 
product chose not to sell it here. They were selling a more expensive 
version of the product here. The simple fact is, this company was using 
our environmental protection

[[Page S9268]]

laws as a means to extract a higher price from our farmers even though 
the cheaper product sold in Canada is just as safe. This simply is not 
right.
  I have pointed out, time and time again, the fact is that there are 
significant differences in prices being paid for essentially the same 
pesticide by farmers in our two countries. In fact, in a recent survey, 
farmers in the United States were paying between 117 percent and 
193 percent more than Canadian farmers for a number of pesticides. This 
was after adjusting for differences in currency exchange rates at that 
time.

  The farmers in my state are simply fed up with what is going on. They 
see grain flooding across the border, while they are unable to access 
the more inexpensive production inputs available in our ``free trade'' 
environment. And I might add, this grain coming into our country has 
been treated with these products which our farmers are denied access 
to. This simply must end.
  As I stated earlier, today, I am introducing a new version of 
legislation that would take an important step in providing equitable 
treatment for U.S. farmers in the pricing of agricultural pesticides. 
And I want to point out what has taken place since introduction of the 
original pesticide harmonization bill--or maybe I should say--what has 
not taken place.
  I wrote the chairman of the Agriculture Committee on more than one 
occasion requesting hearings about the original version of this 
legislation, but to no avail. I was disappointed, to say the least. 
Especially, as I stated, since the need for this legislation has not 
disappeared. On the contrary, it is still a hot issue along our 
northern border with Canada.
  This bill would only deal with agricultural chemicals that are 
identical or substantially similar. It only deals with pesticides that 
have already undergone rigorous review processes and whose formulations 
have been registered and approved for use in both countries by the 
respective regulatory agencies.
  The bill would establish a procedure by which states may apply for 
and receive an Environmental Protection Agency label for agricultural 
chemicals sold in Canada that are identical or substantially similar to 
agricultural chemicals used in the United States. Thus, U.S. producers 
and suppliers could purchase such chemicals in Canada for use in the 
United States. The need for this bill is created by pesticide companies 
which use chemical labeling laws to protect their marketing and pricing 
structures, rather than protecting the public interest. In their 
selective labeling of identical or substantially similar products 
across the border they are able to extract unjustified profits from 
American farmers, and create unlevel pricing fields between our two 
countries.
  This bill is one legislative step in the process of full 
harmonization of pesticides between our two nations. It is designed 
specifically to address the problem of pricing differentials on 
chemicals that are currently available in both countries. We need to 
take this step, so that we can begin the process of creating a level 
playing field between farmers of our two countries. This bill would 
make harmonization a reality for those pesticides in which their actual 
selling price is the only real difference.
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