WASHINGTON (July 26, 2002) – National Farmers Union is disappointed with a World Trade Organization agricultural proposal released by the administration yesterday that could reduce the current safety net for U.S. farmers and ranchers and prevent Congress from protecting them in the future.

“Farmers Union cannot support a proposal that lowers the safety net in the current farm bill and ties the hands of Congress in responding to the future needs of those who produce our food and protect our environment,” said NFU President Dave Frederickson.

The U.S. trade proposal could cut assistance provided in the recently passed farm bill and would eventually eliminate future domestic support programs. It also risks reducing domestic protections against unfair trade practices of other countries.

“While we can appreciate the administration’s efforts to gain market access and eliminate barriers to trade, the proposal ignores the biggest trade barriers facing U.S. producers,” Frederickson said.

These obstacles include differences in labor standards, environmental regulations, and currency and exchange rates, Frederickson explained. “For example some countries arbitrarily devalue their currency to make their products less expensive in international markets,” he said.

While the proposal seeks to improve transparency and disciplines on state trading enterprises such as the Canadian Wheat Board, it does nothing to address the reduced market opportunity resulting from consolidation among private trading enterprises. This is a major concern for Farmers Union because of increased global concentration in agricultural markets, Frederickson said.

“The U.S. WTO trade proposal may be a good deal for international traders and processors, but it is not necessarily a good deal for farmers and ranchers,” he said. “Our lawmakers must have the ability to protect industries that are vital to our country, such as agriculture.”

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http://www.nfu.org/