12 



Mr. Penny. Likewise, is it unrealistic to think that we can con- 

 tinue the pace of 15-percent increases in our value-added exports 

 over the next number of years? 



Mr. Goldthwait. I think that is something we can achieve as 

 well. One of the points that was made by our Counselor, Minister 

 Counselor from Japan who was with us, was that we are only be- 

 ginning in that market to get to the areas outside of Tokyo. The 

 retailing and distribution structures within Japan are changing, 

 and while the Tokyo region has been well-developed with respect 

 to United States exports for a long time, it, first of all, continues 

 to grow, we have a very good presence there, we are now getting 

 into the rest of Japan. We are now getting U.S. products out into 

 retail distribution in many other regions of that country. 



If you look at the rates of growth in markets like Mexico, the 

 Russian example that you had referred to, other Southeast Asian 

 countries, even potential in Europe where the fact that the Euro- 

 peans themselves are standardizing their phytosanitary regimes 

 and their import regimes as one market, will make access for Unit- 

 ed States exporters to all parts of the European market much easi- 

 er, particularly for high value product. 



Previously they had to adapt their products to the requirements 

 of each of the individual member states. Now there will be one 

 standard that governs all. So I think there are reasons for opti- 

 mism all over. And it is going to take a lot of hard work to be sure 

 that we do all we can to achieve those goals. But I think there is — 

 I don't think they are beyond reach by any means. 



Mr. Penny. It appears to me that we are in need of some bilat- 

 eral agreements to tackle some of these problems that GATT 

 doesn't solve for us. Where do we need to target our efforts in 

 terms of bilateral arrangements? 



Mr. Goldthwait. Well, we could start close to home. The Sec- 

 retary, as you know, will be meeting again on Monday with the Ca- 

 nadian Minister to discuss some of the very difficult issues that 

 have developed with that close trading partner, a very important 

 trading partner. We clearly need to work on those issues. I think 

 many of the other issues revolve around the implementation and 

 oversight of the implementation of the achievements of the MTN. 



I think, also, we need in a more proactive way to explain our own 

 phytosanitary and food safety measures to other countries. 



Mr. Penny. You think it is simply a matter of explaining this to 

 them? We have been trying to explain this to Japan for decades 

 now. 



Mr. Goldthwait. Well, in many cases, it is actual negotiation of 

 specific issues. That has to continue, obviously, as well. But what 

 I was thinking was, some of the countries which in fact are some 

 of the better market prospects where the regimes are not so solidi- 

 fied, where as we have recently done in Indonesia, sending out a 

 team that represented the expertise of a variety of agencies within 

 the Department, we were able to help Indonesian officials under- 

 stand our systems and adopt, make some decisions about adopting 

 similar approaches that will make it much easier for our products 

 to have access over the long term. 



But you are absolutely right, there are going to continue to be 

 any number of trade policy issues. Over the past few months, many 



