[Congressional Record (Bound Edition), Volume 145 (1999), Part 15]
[Extensions of Remarks]
[Page 22102]
[From the U.S. Government Publishing Office, www.gpo.gov]



    CALIFORNIA'S AGRICULTURAL EXPORT STRENGTH AND IT'S SIGNIFICANCE

                                 ______
                                 

                         HON. WILLIAM M. THOMAS

                             of california

                    in the house of representatives

                      Tuesday, September 21, 1999

  Mr. THOMAS. Mr. Speaker, in spite of all the jobs produced by foreign 
trade in California and the opening of a new round of agricultural 
trade negotiations expected during the World Trade Organization 
Ministerial meeting this fall, there continue to be those who claim the 
U.S. should not undertake new negotiations. I believe what we need are 
more ways to sell overseas so California farmers can take advantage of 
their ability to produce quality products.
  Exports are vital to California's agricultural industry as well as 
the California economy. California's agriculture accounts for almost $7 
billion in exports every year. Cotton and almonds, which account for 
one quarter of California's agricultural exports, are the two largest 
exports with 83 percent and 55 percent of the crops respectively being 
sold to foreign markets. We have also seen a booming increase in wine 
exports, which have grown 80% since 1995. Wine is now the third largest 
California agricultural export. One third of all California's 
agriculture output goes to foreign markets.
  The three leading export markets for California are Japan, Mexico, 
and Hong Kong. Japan still offers the largest growth potential in value 
added products. Mexico is recovering from the effects of the peso 
devaluation and has resumed its position as the largest market for 
California's farm agricultural exports. Hong Kong plays a key role as 
the gateway to Asia for exports. Thanks to the North American Free 
Trade Agreement (NAFTA), tariffs between two of California's major 
markets, Mexico and Canada, are being phased out or have already been 
eliminated. These markets are not the only ones in which growth is 
expected.
  California has the real possibility of making inroads into new 
emerging markets with long term potential. Many Asian markets were 
largely closed to foreign trade until this decade. Latin American 
nations also have potential to become important long-term importers of 
California's agricultural products.
  Another contributing factor to California's agricultural export 
strength is the motivation to adopt useful latest technology. 
Approximately 90,000 farms in California currently have Internet access 
and the number of farms ``on line'' has doubled from 23% to 46% in the 
last two years. Using this tool, farmers have access to commodity 
prices, weather, news on the latest technology, advice from the USDA 
and market conditions. This improved access to information will give 
farmers more control over production and marketing.
  In fact, California agriculture has demonstrated remarkable 
flexibility in marketing its products during the last ten years. Anyone 
who shops for produce is familiar with the bagged, ready-to-eat salad 
and vegetable products packed for consumers. Storage techniques have 
improved to the point where many types of produce are available for 
months after harvest with the same quality we have come to expect from 
fresh-picked products. Having perfected these techniques at home, 
Californians are positioned to offer foreign buyers high quality goods 
as well.
  While California has grown to be the biggest agricultural producer 
and exporter in the U.S., we should remember that our farmers also have 
the ability to offset unfair trade restrictions or obtain time to 
adjust to new market conditions. For example, American lamb producers 
recently obtained a 3-year recovery program to battle the recent 
drastic increase in lamb imports. This tariff-rate quota system will 
impose high tariffs on any lamb imports exceeding a specified amount. 
This will give our domestic lamb market the ability to recover 
competitiveness.
  Agricultural exports from California continue to grow and support our 
economy by creating jobs, revenue, and increasing our own economic 
stability. By continuing trade with our current customers, as well as 
researching new and emerging markets, California's agricultural 
production and value will continue to grow. We know we can prosper 
through trade. What we need to do most is pursue new places and means 
of trading with other countries.

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