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statement Submitted by Congressman Michael D. Crapo 



MR. CHAIRMAN: 



MR. KANTOR: 



I WANTED TO THANK YOU FOR APPEARING BEFORE THIS COMMITTEE ON THE 



ISSUE OF THE NORTH AMERICAN FREE TRADE AGREEMENT. IT IS AN 



IMPORTANT ISSUE WITH MANY RAMIFICATIONS FOR MY CONSTITUENTS. 



WHILE I BELIEVE THAT MOST AMERICAN COMPANIES AND BUSINESS HAVE MUCH 



TO GAIN FROM THIS AGREEMENT, I HAVE SERIOUS CONCERNS REGARDING THE 



SUGAR PROVISIONS OF THE AGREEMENT. IF PASSED IN ITS PRESENT FORM, 



THE AGREEMENT COULD CAUSE SERIOUS DAMAGE TO THE U.S. SUGAR 



INDUSTRY. 



IDAHO, AS YOU MAY KNOW, IS AN IMPORTANT SUGAR PRODUCING STATE. THE 

 SUGARBEET INDUSTRY, FROM PRODUCTION THROUGH PROCESSING, PROVIDES A 

 SOLID ECONOMIC BASE FOR MY DISTRICT AND HELPS SUPPORT THE RURAL 

 AREAS OF IDAHO THROUGH PROVIDING JOBS AND INCOME. I DO NOT WANT TO 

 SEE THIS ECONOMIC BASE DAMAGED THROUGH IMPLEMENTATION OF AN 

 AGREEMENT WHICH DOES NOT PROVIDE ADEQUATE SAFEGUARDS TO THE SUGAR 

 INDUSTRY. 



I BELIEVE THAT THE FOLLOWING MODIFICATIONS TO THE AGREEMENT ARE IN 

 ORDER. 



1. THE SURPLUS PRODUCER CALCULATION DEFINITION MUST BE EXPANDED 

 TO INCLUDE THE CONSUMPTION OF CORN SWEETNERS . IT APPEARS THAT 

 MEXICO COULD GENERATE A 1 TO 2 MILLION TONS SUGAR SURPLUS 

 MERELY BY CONVERTING THEIR LARGE BEVERAGE INDUSTRY FROM SUGAR 

 TO CORN SWEETENERS, AS OCCURRED IN THE UNITED STATES. 



2. THE PROVISION GIVING MEXICO VIRTUALLY UNLIMITED ACCESS TO 

 THE U.S. MARKET AFTER 6 YEARS IF IT IS PROJECTED TO ACHIEVE 

 SURPLUS PRODUCER STATUS TWO CONSECUTIVE YEARS IS TROUBLESOME 

 AND MUST BE DELETED. 



3. THE PHASE-OUT OF SECTION 22 IMPORT PROTECTION ON REFINED 

 SUGAR AND SUGAR-CONTAINING PRODUCTS FROM MEXICO OVER 10 YEARS 

 MUST BE LENGTHENED TO 15 YEARS IN ORDER TO BE CONSISTENT WITH 

 THE TRANSITION PERIOD FOR RAW SUGAR. 



THESE BASIC AND FAIR MODIFICATIONS WILL DO MUCH TO DIMINISH THE 

 LEGITIMATE CONCERNS OF THE IDAHO SUGARBEET GROWERS, THE SUGAR 

 INDUSTRY IN IDAHO AND IN THE UNITED STATES. 



