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state and local governments can enact their own import standards 

 if they are based on scientific grounds. Each country in the 

 Agreement can maintain the grade standards to fit its marketing 

 rules. The local content reguirements of Mexico's manufacturing 

 rules will be eliminated under the Agreement, opening up new 

 markets for U.S. goods. 



Some of the highlights on increased U.S. farm exports to 

 Mexico under the NAFTA are: 20% increase in wheat, 2.5 million 

 ton duty-free quota for corn that will increase 3% each year, 10% 

 to 20% increase in rice, $400 to $500 million increase for 

 soybeans, 8% rise in peanut exports, pom fruits (peaches, apples, 

 and pears) may nearly double, 20,000 ton increase in milk powder, 

 and increased exports of pork and hogs. 



We live in a global economy, and no sector of the United 

 States' economy can escape that fact. The fastest growing sector 

 of our economy is our exports, and Mexico is an important part of 

 that growth. The NAFTA will lock in the gains in exports we have 

 made with Mexico and open new opportunities for growth. 



New trade agreements will be more important to the restruc- 

 tured United States' agricultural sector and rural America than 

 any new farm bill. U.S. agriculture heavily depends on exports. 

 About one-third of our production is sold to foreign customers. 

 If we are to just maintain the present agricultural productivity, 

 let alone bring back the millions of acres that are now being 

 held out of production, help preserve family farms, and enhance 

 rural America, we have no choice but to expand agricultural 



