45 



cause without that the harmonization of standards becomes mean- 

 ingless. Unless we can have some assurance on that ground, then 

 obviously our concerns will remain. Although the standards may 

 end up being identical, if we cannot ensure enforcement of those 

 standards effectively, then we really have not had redress. 



The Chairman. The time of the gentleman has expired. 



Mr. Volkmer. 



Mr. Volkmer. Thank you, Mr. Chairman. 



Mr. Ambassador, I know you have already addressed earlier with 

 the chairman the problem of the pork and poultry. I just want to 

 let you know that some of us on the committee view what Mexico 

 is doing as somewhat inconsistent with the idea of having free 

 trade and promoting free trade. 



In the first place, for some time we have had a problem with 

 Mexico on mystery swine flu. Right now, because of that, our live 

 hogs going to Mexico are down about 59 percent from where they 

 were from 1991 to 1992. Now we find on this dumping — correct me 

 if I am wrong, but as I understand Mexican law, if one of those ex- 

 porters in El Paso actually sold into Mexico for less than what it 

 cost him for one hog or a series of hogs, then Mexico could put ad- 

 ditional levies on all hogs coming from all exporters into Mexico. 



Is that correct? 



Ambassador Kantor. Frankly, we don't know that to be true. I 

 have heard that. We are not sure of that. 



As I said in answer to the Chair's questions, we are monitoring 

 this closely. 



Mr. Volkmer. I know you're monitoring, but as I understand it, 

 Mexican law is different from ours in that if you dump in here, 

 then whoever dumps gets the levy against their product, but not 

 everybody. But I understand Mexican law is that if they make a 

 case on any one of these, they can increase the levy from the 20 

 percent up to equal the amount of the dumping, and that that ap- 

 plies to all pork going into Mexico. 



Ambassador Kantor. In order to be careful, I would like to get 

 back to you, Mr. Volkmer, and give you a specific answer. 



Mr. Volkmer. I would like to have that because if that is the 

 case, then how can we have free trade if they do one thing and we 

 do something different? I thought a free-trade agreement was sup- 

 posed to eliminate all that stuff. 



Ambassador Kantor. Your point is well taken. We will get back 

 to you on that. 



Mr. Volkmer. Thank you very much. I would appreciate it. 



Thank you, Mr. Chairman. 



The Chairman. I thank the gentleman. 



Mr. Smith. 



Mr. Smith. Thank you, Mr. Chairman. 



Mr. Ambassador, welcome to the House Agriculture Committee. 



I want to ask you a philosophical question and preface it by a 

 very short statement. 



I am one of those many who believe that the future of agriculture 

 is driven by the engine of foreign export, as I know you are. One 

 almost only has to look at the numbers to prove that 30 percent 

 of all our agricultural production is exported and the future for us 



