51 



In early March, the Mexican Government began initiating a 

 dumping investigation against United States pork producers and 

 the pork industry. 



What actions are the CHnton administration taking to respond to 

 this dumping case that has recently been initiated? 



Ambassador Kantor. We are looking at that closely. We have 

 talked about this before, but let me answer it again. 



Under GATT rules, Mexico has the opportunity to initiate an in- 

 vestigation. We're going to monitor it closely to make sure that 

 they stick to GATT rules in this respect. They have alleged dump- 

 ing practices and have not proven any dumping practices. We are 

 working with the both the private sector of the industry as well as 

 USD A in carrying out this monitoring process. We are as deeply 

 concerned as you are about it. 



Mr. BOEHNER. What, if any, signals are we getting, in your opin- 

 ion, as a result of the actions from the Mexican Government on 

 pork? Some of us believe that they are signaling that they are 

 going to continue to be tough, and selectively tough, in allowing 

 certain commodities into their country. 



Ambassador Kantor. Frankly, some of these considerations 

 would be taken care of if we come back with the North American 

 Free-Trade Agreement with the proper supplemental agreements 

 that take care of these major problems we have been discussing, 



I think the Mexican Government, like our Government some- 

 times, does not speak with one voice. I am not sure that there is 

 a conspiracy, as you might put it, to raise these issues in various 

 areas in order to create some concern. I think this is just one 

 area — I don't know the background of it. I don't know the genesis 

 of the concern, but it is something that continues to be a problem 

 that plagues us. 



We are well aware of it. We are concerned. We know it is an im- 

 portant problem. 



Mr. BoEHNER. The country of Mexico is a signatory to GATT. 

 Under GATT there are pretty strict rules for bringing allegations 

 of dumping. If in fact these allegations and this investigation are 

 unwarranted, are we prepared to go to GATT and ask for sanctions 

 against Mexico under the GATT rules? 



Ambassador Kantor. We are prepared to take any action nec- 

 essary to protect this industry in this regard that is available to 

 us. 



Mr. BoEHNER. Thank you, Mr. Ambassador. 



Thank you, Mr. Chairman. 



Mr. English. Thank you. 



Mrs. Clayton. 



Mrs. Clayton. Thank you, Mr. Chairman. 



I want to submit my statement for the record. 



Mr. English. Without objection, your prepared statement will 

 appear in the record. 



Mrs. Clayton. But I would also like to express my appreciation 

 to Ambassador Kantor for his resolve to make NAFTA possibly a 

 productive instrument by which we can include not only agri- 

 culture products but all economy because we recognize the impor- 

 tance of having free trade. Our hope is not that we put some com- 

 modities at a disadvantage. 



