Ill 



The developed market economies must be courted, developed and maintained. The competition 

 for these markets is fierce and will become even more so with the enactment of GATT and 

 other policies to open world trade. Economically strong markets are critical as outlets of our 

 value-added products that allow growth not only on the farm but in our rural and urban 

 communities as we do value-adding here at home. 



We must be aggressive about planning and entering markets in developing nations. We must 

 be sure we have the funding and loan programs that have enough flexibility to meet the 

 economic needs of growing economies. American food and fiber must have the chance to be 

 experienced. We must have the resources to go into these areas and develop a demand for 

 American products. Long term planning must give us the ability to stay in a developing market 

 until we have been able to create a demand for our products. 



NASDA believes that there are no countries that are not potential trading partners for America's 

 agricultural products. 



NASDA believes that there are sufficient programs in place to access these markets if 

 adequately funded, properly directed and managed and with improved planning and scope of 

 vision. The programs are there, too often the vision and a belief in 'the possible' have 

 prevented us from reaching our potential. But American agriculture did not put $42.5 billion 

 worth of product in foreign markets in 1993 because the system is broken. American 

 agriculture, in fact, had a balance of trade surplus of $18 billion in 1992. 



WHAT ARE SOME OF THE SPECIFIC PROBLEMS 



Agri-industry export programs are continually losing federal funding, personnel and acceptance 

 in Congress. The industry has the capability to increase production and to create new jobs. 

 Export barriers and foreign competition, however, continue to grow and limit these capabilities. 



America's farmers and ranchers are losing international market share to countries with heavily 

 subsidized export programs. 



Agriculture has lost its numerical advantage in Congress and its support, recognition and 

 acceptance as a critical component of the American economy. Lawmakers and the public as 

 a whole have lost sight of the fact that agriculture goes beyond the farm gate to the factory, 

 to the transportation, packaging, marketing and other industries that play an important role in 

 the American economy. 



The agricultural portion of the federal budget is continually shrinking. 



Agricultural export promotion and development program authorizations will expire in 1995. 



Funding for agricultural export programs has been drastically reduced. 



Dispute mechanisms (NAFTA and CUSTA) are not fully implemented to protect U.S. producers. 



FAS marketing programs such as MPP, FMD and EEP are due to expire in 1 995. Many of these 

 programs have been heavily criticized and face drastic cuts or the possibility of elimination. 



The federal Market Promotion Program (MPP), a very effective marketing tool, should be 

 revitalized to help participants meet new global challenges aggressively instead of cutting MPP 

 and similar funding programs or eliminating them completely. 



