26 



of other less prosperous nations, and address the emerging issue of 

 environmental protection, as the President noted in his American 

 University speech. 



The President has consistently affirmed his support for the 

 NAFTA, provided it is accompanied by effective U.S. domestic poli- 

 cies and supplemented by domestic actions and supplemental 

 agreements to address concerns regarding labor, the environment, 

 and safeguards against import surges. Addressing these concerns 

 does not mean renegotiating the NAFTA itself; our goal is, rather, 

 to negotiate the necessary supplemental agreements and to work 

 with the Congress to develop implementing legislation so that the 

 NAFTA, the supplemental agreements, and domestic measures can 

 be in place by January 1, 1994. 



These supplemental agreements must break new ground in find- 

 ing ways to raise workers' standards and environmental protection. 

 In these areas we are committed to agreements that harmonize up- 

 ward, not downward. 



President Clinton is committed to the creation of a trinational, 

 or three-party, Commission on the Environment, and I look for- 

 ward to hearing further views from the committee on how such a 

 Commission might work. 



I am also aware of this committee's concerns about adequate pro- 

 visions to address surges of agricultural imports. We will not sac- 

 rifice substance for speed. We will not ask you to vote on NAFTA 

 until the supplemental agreements are completed and you can 

 judge how they strengthen the NAFTA. This administration will 

 not come to the Congress for approval of the NAFTA without sup- 

 plemental agreements that have real teeth, meaningfully advance 

 their objectives, are concrete, and contain serious commitments, as 

 an enhanced NAFTA package can contribute to the ability of our 

 farmers to compete at home and abroad and can help improve 

 working conditions, living standards, and environmental quality 

 throughout North America. 



After Japan, Canada and Mexico are our second and third largest 

 markets for United States agricultural exports. Since 1986 United 

 States agricultural exports to Mexico have nearly quadrupled, 

 climbing to almost $4 billion in 1992, and establishing Mexico as 

 our fastest growing export market for farm-produced goods. In fact, 

 our two neighbors accounted for more than 20 percent, $8 billion, 

 of U.S. agricultural exports in 1992. 



The United States-Mexico agreement on market access rep- 

 resents a significant change in the status quo. Upon implementa- 

 tion of the NAFTA, tariffs and tariff-rate quotas will replace cur- 

 rent nontariff barriers in United States-Mexico agricultural trade. 

 Roughly half of United States-Mexico trade will be duty-free at the 

 moment the agreement goes into effect; 9 years later, all agricul- 

 tural tariffs between the United States and Mexico will be elimi- 

 nated except duties on certain highly sensitive products. Barriers 

 on U.S. imports of sugar, peanuts, orange juice, and a few fruits 

 and vegetables will not be eliminated until the 14th year after the 

 agreement takes effect. 



At the same time, Mexico will eliminate its barriers on corn, dry 

 beans, powdered milk, sugar, and orange juice. 



