[Congressional Record Volume 149, Number 176 (Tuesday, December 9, 2003)]
[Extensions of Remarks]
[Pages E2524-E2525]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REMOVAL OF U.S. TARIFF ON ORANGE JUICE IMPORTS WOULD NOT ENHANCE FREE 
                                 TRADE

                                 ______
                                 

                            HON. TOM FEENEY

                               of florida

                    in the house of representatives

                        Monday, December 8, 2003

  Mr. FEENEY. Mr. Speaker, three weeks ago the leaders of more than 
thirty nations around the Western Hemisphere gathered in Miami for the 
Free Trade Area of the Americas (FTAA) Eighth Ministerial meeting for 
the purpose of expanding free trade within the Western Hemisphere.
  I watched with great interest as these negotiations progressed, fully 
cognizant of the significant impact that they could have on my state of 
Florida.
  Free trade and free markets are essentially about making trade easier 
by allowing the market to balance needs, supply and demand. We are 
engaged in a battle to tear down trade barriers around the world in an 
effort to promote jobs, competition and greater prosperity for all 
countries involved. Since Adam Smith explained the benefits of free 
trade in his great work ``The Wealth of Nations'', thoughtful policy 
makers have understood the need to reduce these barriers. The famous 
economist Joseph Schumpeter once proclaimed that capitalism relies on 
the free flow of information and goods.
  The talks in Miami generated positive movement towards greater 
economic integration in this hemisphere. Trade Ministers agreed to a 
baseline of minimum standards for a full and comprehensive agreement 
that takes into account differing levels of development among nations. 
This framework is a step forward that gives nations needed flexibility.
  As we continue these discussions, I would caution the negotiators to 
find an acceptable balance between the need to open up to new foreign 
markets and to protect an industry that is vital to America's supply of 
fresh fruit and Florida's economic infrastructure: the Florida citrus 
industry.
  There are only two countries that produce 90 percent of the world's 
orange juice: the United States and Brazil. Brazil currently sells to 
the United States and has a large market share in the European Union. 
Without competition from the Florida citrus industry, Brazil would 
enjoy a monopoly over world orange juice production.
  The citrus industry in Florida generates revenues of $9.1 billion 
each year and employs nearly 90,000 people without subsidies from the 
Federal Government. A collapse of this industry would not only cost 
tens of thousands of jobs, it would also cost the State and local 
governments of Florida up to $1 billion in lost tax revenues.

[[Page E2525]]

  Removal of the U.S. tariff on orange juice imports would not enhance 
free trade. It would rather give Brazil a total world monopoly, make 
that country the world's dominant citrus producer and enable them to 
control market supply, access and prices with no competition.
  The Brazilian citrus industry has benefited from years of 
subsidization, dumping, lax environmental laws, price manipulation and 
weak and largely unenforced labor laws. I would urge our negotiators to 
insist on drastic reforms in the Brazilian citrus industry prior to 
agreeing to any tariff changes. Florida's citrus industry can compete 
with Brazil, or anyone else for that matter, as long as there is a 
level playing field.

                          ____________________