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TESTIMONY OF DR. TERRY N. BARR 



BEFORE THE 



HOUSE AGRICULTURE COMMITTEE 



SUBCOMMITTEE ON FOREIGN AGRICULTURE AND HUNGER 



ON BEHALF OF THE 



NATIONAL COUNCIL OF FARMER COOPERATIVES 



THURSDAY, JUNE 23, 1994 



Thank you, Mr. Chairman. My name is Terry Barr and I am Vice President for 

 Agriculture and Trade Policy for the National Council of Farmer Cooperatives. 

 We appreciate very much this opportunity to appear before your Subcommittee. 



We believe the long term strategy of the U.S. should have as its basic objective 

 maintaining the ability of U.S. agriculture to remain viable and competitive in a 

 global economy. Achieving this objective will depend in part on the U.S. 

 government's level of commitment and the extent to which U.S. policies and 

 programs are equally competitive with those of other countries. 



This is especially critical between now and the year 2000, during which time the 

 provisions of the Uruguay Round agreement will be implemented. The agreement, 

 it should be noted, does not eliminate existing trade distortions, or the use of 

 export subsidies and trade barriers. It only reduces their overall level. 



Further, the agreement provides that countries may maintain and even increase 

 support and funding for programs which are considered non-trade distorting or 

 "green box" programs. These include programs relating to market development and 

 promotion, export credit, and food assistance, among other programs. 



Without question, our foreign competitors, including the European Union, will 

 continue to utilize such programs to the maximum extent allowed in order to 

 maintain and expand their share of the world market. This includes the use of 

 export subsidies and shifting available resources into so-called "green box" 

 programs. 



For this reason, we continue to be concerned over reports the Administration may 

 propose substantial additional agriculture-related spending cuts as part of the 

 Uruguay Round implementing legislation to help offset as much as one-third of the 

 estimated cost of GATT. 



