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POSITION STATEMENT OF- 

 FLORIDA FARM BUREAU FEDERATION REGARDING THE 

 NORTH .AMERICAN FREE TRADE AGREEMENT (NAFTA) 



Since the International Trade Conunission's rep>ort in 1991, it has been recognized 

 that Florida's winter fruit and vegetable industry would suffer economically from a 

 Mexican Free Trade Agreement. Other economic reports indicated that winter fruit 

 and vegetable producers would be the segment of the agricultural economy that 

 suffered while feed grains, soybeans, certain horticultural crops and the livestock 

 sector, as a whole, would benefit. 



Floinda Farm Bureau and its members have participated through the public comment 

 process as well as serving on the private sector Agricultural Technical Committee 

 (ATAC). The public comments were focused on the U.S. International Trade 

 Commission, U.S. Trade Representative and her staff , Secretary of Agriculture and 

 his staff as well as the Florida Congressional Delegation . 



Through Florida Farm Bureau's policy process, our members directed that our 

 organization was to become an active participant in the negotiations process . It was 

 the organizations goal to work with negotiators to develop the best agreement for 

 Florida agriculture. Now that the NAFTA has been initialled and made public, it is 

 up to our members to formulate Florida Farm Bureau's position. Our members must 

 now decide if the negotiated agreement provides Florida agriculture enough fairness 

 in competition with Mexican agriculture. 



Specific Provisions: 



1. PHASE OUT PERIODS - Florida's winter fruit and vegetable industry asked 

 for exclusion from the agreement, but did not receive it. The agreement 

 allows import sensitive crops a 10 to IS year phase out with Tariff Rate Quota's 

 ( TRQs ) . While winter fruit and vegetables are the only commodities to receive 

 this benefit, our members feel that the phase out should be extended to 20 

 years for all import sensitive crops . 



2. CONVERSION OF QUOTAS - Certain farm program crops utilize Section 22 to 

 limit imports quantitatively to tnnintnin the integrity and viability of those 

 programs . The quantitative import restrictions were converted to tariffs with 

 those tariffs being reduced emd eliminated under the NAFTA. Our producer 

 members are concerned that increased production in peanuts or other crops 

 as well as imports being processed and exported to the U.S. could damage and 

 destroy certain programs. Feeder cattle producers also have expressed 

 concern for the integrity of the Counter Cyclical Beef Import Law and the loss 

 of market for over half a million feeder calves shipped out of Florida on an 

 anniial basis. The signatories must develop a dependable and reliable data 

 gathering system to track both imports and exports. 



3. RULES OF ORIGIN - Florida Farm Bureau continues to support a strong 

 country of origin rule and the necessary data to assure that it is implemented. 

 This issue is strategic in assuring the success of the NAFTA and providing 

 protection to the domestic industries of all members of the NAFTA. 



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