[Congressional Record Volume 149, Number 116 (Thursday, July 31, 2003)]
[Senate]
[Pages S10603-S10604]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  RURAL DEVELOPMENT PROGRAMS IN MEXICO

  Mr. GRASSLEY. Mr. President, on July 10, the Senate passed an 
amendment to S. 925, the Foreign Relations Authorization Act, to 
authorize $100 million for rural development programs in Mexico. This 
amendment authorizes funding for programs to promote microcredit 
lending, to promote small business and entrepreneurial development, to 
aid small farms impacted by the collapse of coffee prices,

[[Page S10604]]

and to strengthen private property ownership in rural communities.
  I understand why Senator Reid offered this amendment. Mexico is 
important to the United States, and it deserves our attention. But I 
voted against this amendment. Let me explain why.
  A better way to improve Mexico's economy, including its rural 
economy, is not through foreign assistance from the United States, but 
through trade. As recently noted by the Ambassador of Mexico to the 
United States, Mexico has been transformed in recent years through 
trade liberalization, and in particular through the NAFTA.
  Mexico's exports to the world grew from $50 billion to $160 billion 
between 1993 and 2001. Total trade between the United States and Mexico 
increased from $88 billion to $250 billion between 1993 and 2002.
  Mexico's agricultural producers have shared in the benefits of NAFTA. 
Between 1993 and 2001, Mexican agricultural exports to the United 
States rose by almost 97 percent. Some 78 percent of all Mexican 
agricultural exports are shipped to the United States, and the United 
States is by far Mexico's largest agricultural export destination.
  While well intentioned, increased foreign aid from the United States, 
such as through Senator Reid's amendment, will make little difference 
to the Mexican economy. Clearly, Mexico's leaders recognize that the 
best means of achieving a healthier Mexican economy, including Mexico's 
rural economy, is through continued strong trade ties with the United 
States.
  Regardless, some of these same leaders seem to be losing interest in 
maintaining strong trade relations between our countries. They are 
doing this by attempting unilaterally to renegotiate agricultural 
provisions of the NAFTA.
  Mexico has imposed, or threatened to impose, restrictions on the 
importation of a variety of U.S. agricultural products. These products 
include pork, beef, corn, and high fructose corn syrup, all of which 
are major Iowa commodities. I spoke on this situation just last month 
on the Senate floor, so I will not go into the specifics on Mexico's 
trade restrictions on these commodities.
  Given barriers imposed by Mexico on U.S. agricultural products, now 
is clearly not the proper time to increase foreign aid to Mexico. 
Mexico's trade policies are harming farmers in Iowa and other states. 
Providing more foreign aid to Mexico sends the wrong signal. I realize 
that Senator Reid's amendment to increase foreign aid has already 
passed the Senate. But until such time as Mexico's agricultural trade 
barriers are removed, I urge Senators to keep them in mind when voting 
on any future legislation involving foreign aid for Mexico.
  At the same time, I hope that Mexico will realize that by not abiding 
by its NAFTA commitments, and by thus threatening its trade relations 
with the United States, it is doing little to improve the lives of 
rural Mexicans.
  In fact, any reduction in trade between our two countries would 
likely lead to increased economic hardship in Mexico. Such a situation 
would benefit neither Mexico nor the United States.
  Once again, as I did last month, I urge officials in Mexico to 
consider the effects that Mexico's barriers to imports of U.S. 
agricultural products are having on overall trade relations between the 
United States and Mexico. Mexicans, including those living in rural 
areas, have much more to gain from closer economic ties to the United 
States than from increased foreign aid.

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