[Congressional Record Volume 149, Number 94 (Tuesday, June 24, 2003)]
[Senate]
[Pages S8442-S8444]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself and Mr. Baucus):
  S. 1324. A bill to amend the Trade Act of 1974 to establish 
procedures for identifying countries that deny market access for 
agricultural products of the United States, and for other purposes; to 
the Committee on Finance.
  Mr. GRASSLEY. Mr. President, I'm pleased to introduce today the 
United States Agricultural Products Market Access Act of 2003. This 
bill will be yet one more tool for the United States to use to expand 
its exports of agricultural products.
  Agricultural exports are key to the economic health of rural America. 
Just last year, $53.1 billion worth of U.S.-produced agricultural 
products were exported. About one-third of America's farm products are 
sold outside of our borders. These sales in foreign markets translate 
to improved incomes for our country's farmers. Today, approximately 
one-fourth of gross farm income for U.S. producers comes from exports.
  Agricultural exports are particularly important to farmers in my 
State of Iowa. In 2001, some $3.3 billion worth of Iowa's agricultural 
production was exported. This makes Iowa the second largest 
agricultural exporting State in the country. Iowa's largest 
commodities--corn, soybeans, pork, and beef--greatly benefit from sales 
abroad. Approximately one-half of U.S. soybean production, and 20 
percent of our country's corn production, is exported. Last year U.S. 
pork exports set record levels. Since the implementation of the NAFTA, 
exports of U.S. beef and beef

[[Page S8443]]

variety meats to Mexico have increased five-fold. Iowa's producers 
clearly benefit from exports.
  While Iowa's agricultural exports are already high, they have the 
potential to grow even more in coming years. Demand in the U.S. market 
for agricultural products is relatively stable. But populations, as 
well as disposable incomes, are increasing rapidly in foreign 
countries. With the hardest-working farmers and ranchers in the world, 
and with productivity increasing through improved technologies, the 
United States clearly has the ability to continue feeding a growing 
world.
  But trade barriers imposed by foreign governments often cloud this 
bright spot for U.S. agriculture. Too frequently, misguided foreign 
governments overlook the wants and needs of their consumers and take 
measures to restrict, or prevent, imports of U.S. farm products. These 
policies hurt U.S. farmers. They also hurt foreign consumers.
  In fact, due in part to foreign trade barriers, U.S. agricultural 
exports declined from $60.4 billion in 1996 to $53.1 billion in 2002.
  Unfortunately, even countries that should be our closest trade allies 
are proving adept at imposing measures that block imports of U.S. farm 
products. As an example, our NAFTA-partner Mexico is imposing, or 
threatening to impose, barriers to imports of a wide variety of U.S. 
agricultural products. These products include corn, high fructose corn 
syrup, pork, beef, rice, apples, and dry beans. Iowa is a major 
producer of four of these products--corn, high fructose corn syrup, 
pork, and beef.

  Not surprisingly, much of U.S. agriculture is upset with Mexico and 
other of our trading partners at this time. U.S. agricultural producers 
have traditionally been the strongest supporters of new trade deals. 
But due to foreign trade barriers, some in U.S. agriculture are 
beginning to question their support for new trade agreements.
  The U.S. Trade Representative, in conjunction with Congress, is 
working hard to remove trade barriers imposed by Mexico and other 
countries. But the current tools available to the USTR, including 
negotiations, NAFTA challenges, and WTO challenges, don't always 
accomplish the job.
  Let me give you an example. For several years now, Mexico has gone to 
great lengths to block imports of U.S.-produced high fructose corn 
syrup. In 1998, Mexico imposed antidumping duties on imports of this 
product from the United States. The United States challenged this 
antidumping order under the NAFTA. Mexico lost at the NAFTA. The United 
States challenged this order at the WTO. Mexico lost at the WTO. 
Following its defeats at the NAFTA and the WTO, Mexico revoked this 
antidumping order.
  But, no, that wasn't the end of the story. Mexico turned around and 
imposed a 20 percent tax on sales of soft drinks containing high 
fructose corn syrup. This discriminatory tax was designed to boost 
sales of Mexican sugar at the expense of U.S.-produced high fructose 
corn syrup.
  Mexico's tax in effect shut down the Mexican market for this product. 
Iowa's high fructose corn syrup producers are now being locked out of 
what was at one time their largest export market. This discriminatory 
tax is hurting Iowa's high fructose corn syrup producers. It's hurting 
Iowa's corn farmers.
  This example clearly demonstrates that existing tools aren't always 
enough to remove entrenched trade barriers. Despite losing at the 
NAFTA, despite losing at the WTO, and despite lengthy negotiations, 
Mexico is still blocking imports of U.S. high fructose corn syrup.
  It's time to add yet another tool to our arsenal.
  That's why I'm introducing the United States Agricultural Products 
Market Access Act of 2003. This bill creates a new mechanism with which 
to confront foreign trade barriers. The new mechanism operates in a 
similar fashion to the existing special 301 provision for intellectual 
property. The bill requires USTR to identify and report on those 
foreign countries that deny fair and equitable market access for U.S. 
agricultural exports, or countries that apply to U.S. agricultural 
products sanitary or phytosanitary measures that are not based on sound 
science. USTR would annually issue a report on its findings.
  Out of the countries identified in USTR's report, USTR would identify 
which ones have the most egregious practices impacting U.S. 
agricultural exports and, further, are not entering into good faith 
negotiations with the United States to end these practices.
  This legislation also authorizes additional staffing for USTR to 
focus on these agricultural enforcement issues.
  This bill will further strengthen the ability of the United States to 
enforce its existing market access rights for agricultural exports. 
Perhaps just as important, it will help Congress and the Administration 
prioritize barriers imposed by our trading partners. Through such 
prioritization, U.S. negotiators will be better able to focus upon 
removing the most egregious of these barriers.
  The United States Agricultural Products Market Access Act will not 
solve all of our agricultural market access problems. We need to move 
ahead vigorously in bilateral and multilateral negotiations to tear 
down barriers to our exports. At the top of this list is successful 
completion of agricultural negotiations in the WTO. However, the United 
States Agricultural Products Market Access Act of 2003 will help us 
identify the most egregious problems, so we can focus our energy on 
fixing them. It will also provide a new enforcement tool to help make 
sure American farmers are getting the benefit of our hard fought trade 
bargains.
  This bill is strongly supported by Iowa's agricultural community, 
including the Iowa Corn Growers, the Iowa Farm Bureau Federation, and 
the Iowa Soybean Association.
  I would like to thank my distinguished colleagues Senator Max Baucus, 
Ranking Member of the Finance Committee, and Representative Dave Camp 
for their hard work on this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1324

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``United States Agricultural 
     Products Market Access Act of 2003''.

     SEC. 2. FINDINGS; PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) The export of agricultural products is of vital 
     importance to the economy of the United States.
       (2) In 2002, agriculture was a large positive contributor 
     to the United States merchandise trade balance with a trade 
     surplus of $12,300,000,000.
       (3) The growth of United States agricultural exports should 
     continue to be an important factor in improving the United 
     States merchandise trade balance.
       (4) Increasing the volume of agricultural exports will 
     increase farm income in the United States, thereby protecting 
     family farms and contributing to the economic well-being of 
     rural communities in the United States.
       (5) Although the United States efficiently produces high-
     quality agricultural products, United States producers cannot 
     realize their full export potential because many foreign 
     countries deny fair and equitable market access to United 
     States agricultural products.
       (6) The Foreign Agricultural Service estimates that United 
     States agricultural exports are reduced by $4,700,000,000 
     annually due to unjustifiable imposition of sanitary and 
     phytosanitary measures that deny or limit market access to 
     United States products.
       (7) The denial of fair and equitable market access for 
     United States agricultural products impedes the ability of 
     United States farmers to export their products, thereby 
     harming the economic interests of the United States.
       (b) Purposes.--The purposes of this Act are--
       (1) to reduce or eliminate foreign unfair trade practices 
     and to remove constraints on fair and open trade in 
     agricultural products;
       (2) to ensure fair and equitable market access for exports 
     of United States agricultural products; and
       (3) to promote free and fair trade in agricultural 
     products.

     SEC. 3. IDENTIFICATION OF COUNTRIES THAT DENY MARKET ACCESS.

       (a) Identification Required.--Chapter 8 of title I of the 
     Trade Act of 1974 (19 U.S.C. 2241 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 183. IDENTIFICATION OF COUNTRIES THAT DENY MARKET 
                   ACCESS FOR AGRICULTURAL PRODUCTS.

       ``(a) In General.--Not later than the date that is 30 days 
     after the date on which the

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     annual report is required to be submitted to Congressional 
     committees under section 181(b), the United States Trade 
     Representative (in this section referred to as the `Trade 
     Representative') shall identify--
       ``(1) those foreign countries that--
       ``(A) deny fair and equitable market access to United 
     States agricultural products, or
       ``(B) apply standards for the importation of agricultural 
     products from the United States that are not related to 
     public health concerns or cannot be substantiated by reliable 
     analytical methods, and
       ``(2) those foreign countries identified under paragraph 
     (1) that are determined by the Trade Representative to be 
     priority foreign countries.
       ``(b) Special Rules for Identifications.--
       ``(1) Criteria.--In identifying priority foreign countries 
     under subsection (a)(2), the Trade Representative shall only 
     identify those foreign countries--
       ``(A) that engage in or have the most onerous or egregious 
     acts, policies, or practices that deny fair and equitable 
     market access to United States agricultural products,
       ``(B) whose acts, policies, or practices described in 
     subparagraph (A) have the greatest adverse impact (actual or 
     potential) on the relevant United States products, and
       ``(C) that are not--
       ``(i) entering into good faith negotiations, or
       ``(ii) making significant progress in bilateral or 
     multilateral negotiations,
     to provide fair and equitable market access to United States 
     agricultural products.
       ``(2) Consultation and consideration requirements.--In 
     identifying priority foreign countries under subsection 
     (a)(2), the Trade Representative shall--
       ``(A) consult with the Secretary of Agriculture and other 
     appropriate officers of the Federal Government, and
       ``(B) take into account information from such sources as 
     may be available to the Trade Representative and such 
     information as may be submitted to the Trade Representative 
     by interested persons, including information contained in 
     reports submitted under section 181(b) and petitions 
     submitted under section 302.
       ``(3) Factual basis requirement.--The Trade Representative 
     may identify a foreign country under subsection (a)(1) only 
     if the Trade Representative finds that there is a factual 
     basis for the denial of fair and equitable market access as a 
     result of the violation of international law or agreement, or 
     the existence of barriers, referred to in subsection (d).
       ``(4) Consideration of historical factors.--In identifying 
     foreign countries under paragraphs (1) and (2) of subsection 
     (a), the Trade Representative shall take into account--
       ``(A) the history of agricultural trade relations with the 
     foreign country, including any previous identification under 
     subsection (a)(2), and
       ``(B) the history of efforts of the United States, and the 
     response of the foreign country, to achieve fair and 
     equitable market access for United States agricultural 
     products.
       ``(c) Revocations and Additional Identifications.--
       ``(1) Authority to act at any time.--If information 
     available to the Trade Representative indicates that such 
     action is appropriate, the Trade Representative may at any 
     time--
       ``(A) revoke the identification of any foreign country as a 
     priority foreign country under this section, or
       ``(B) identify any foreign country as a priority foreign 
     country under this section.
       ``(2) Revocation reports.--The Trade Representative shall 
     include in the semiannual report submitted to the Congress 
     under section 309(3) a detailed explanation of the reasons 
     for the revocation under paragraph (1) of the identification 
     of any foreign country as a priority foreign country under 
     this section.
       ``(d) Denial of Fair and Equitable Market Access Defined.--
     For purposes of this section, a foreign country denies fair 
     and equitable market access if the foreign country 
     effectively denies access to a market for a product through 
     the use of laws, procedures, practices, or regulations 
     which--
       ``(1) violate provisions of international law or 
     international agreements to which both the United States and 
     the foreign country are parties, or
       ``(2) constitute discriminatory nontariff trade barriers.
       ``(e) Publication.--The Trade Representative shall publish 
     in the Federal Register a list of foreign countries 
     identified under subsection (a) and shall make such revisions 
     to the list as may be required by reason of the action under 
     subsection (c).
       ``(f) Annual Report.--The Trade Representative shall, not 
     later than the date by which countries are identified under 
     subsection (a), transmit to the Committee on Ways and Means 
     and the Committee on Agriculture of the House of 
     Representatives and the Committee on Finance and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate, a report on the actions taken under this section 
     during the 12 months preceding such report, and the reasons 
     for such actions, including a description of progress made in 
     achieving fair and equitable market access for United States 
     agricultural products.''.
       (b) Clerical Amendment.--The table of contents for the 
     Trade Act of 1974 is amended by inserting after the item 
     relating to section 182 the following:

``Sec. 183. Identification of countries that deny market access for 
              agricultural products.''.

       (c) Additional Staff for Office of Assistant Trade 
     Representative for Agricultural Affairs and Office of 
     Assistant Trade Representative for Monitoring and 
     Enforcement.--
       (1) In general.--There is authorized to be appropriated 
     such sums as may be necessary for fiscal year 2004 for the 
     salaries and expenses of 1 additional specialist employee 
     position within the Office of the Assistant United States 
     Trade Representative for Agricultural Affairs and 1 
     additional specialist employee position within the Office of 
     the Assistant United States Trade Representative for 
     Monitoring and Enforcement.
       (2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended.

     SEC. 4. INVESTIGATIONS.

       (a) Investigation Required.--Subparagraph (A) of section 
     302(b)(2) of the Trade Act of 1974 (19 U.S.C. 2412(b)(2)) is 
     amended by inserting ``or 183(a)(2)'' after ``section 
     182(a)(2)'' in the matter preceding clause (i).
       (b) Conforming Amendment.--Subparagraph (D) of section 
     302(b)(2) of such Act is amended by inserting ``concerning 
     intellectual property rights that is'' after ``any 
     investigation''.
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