22 



committees, but your committee as well, in finding appropriate 

 sources. 



The Chairman. I am undecided on NAFTA, which is one of the 

 reasons for this hearing. I mention that because nobody in the ad- 

 ministration has asked me if I have a position one way or the 

 other, so I will pass it on back that I don't. I want to know if there 

 are any extra costs in here that we are not aware of. So I would 

 be interested, when you reach your final conclusion, how you are 

 going to do it. Let us know. 



Is there anything in NAFTA that would allow Federal preemp- 

 tion, not just the NAFTA preemption, but allow the Federal Gov- 

 ernment to preempt food safety laws in individual States? 



Ambassador Kantor. No, sir. 



The Chairman. Now, if I read the paper, I understand — and we 

 have heard some mention of it here today — that the sugar industry 

 is concerned about NAFTA, that it may have a flood of imports of 

 sugar from Mexico. You have also said you are not going to open 

 NAFTA to amendment. 



How do you take care of the problems of the sugar industry with- 

 out changing the underlying agreement? 



Ambassador Kantor. We believe there are a number of creative 

 approaches we might take. As late as Friday, we were in discus- 

 sions with the Mexican Government regarding this problem. It is 

 not one that is either new to this witness or new to the witness 

 on my left. 



As you know, in the first 6 years, Mexico could not exceed 25,000 

 tons exporting to the United States even if they become a net pro- 

 ducer. They are not a net producer today. They are not expected 

 to be for a while. 



After 6 years, of course, if they become a net producer, that rises. 

 The fact is the concern over the substitution of high fructose corn 

 syrup in soft drinks, the potential of that, and that then relieving 

 Mexico of the need to use that sugar in the production of soft 

 drinks, therefore becoming a net producer as a result of substi- 

 tution. In the formula that was negotiated by the prior administra- 

 tion, high fructose corn syrup (HFCS) was left out. 



We believe because both countries — it is in the NAFTA; I will not 

 quote it directly — have a right to determine what is a net producer 

 and when it occurs that we will be able to work with not only this 

 committee but the others, as well as the Mexican Government, in 

 order to address that problem. 



It is a problem that should be addressed. The Mexican Govern- 

 ment has indicated that they don't intend nor do they foresee at 

 any time that they would substitute HFCS because of pricing dif- 

 ferentials for sugar. But if that is the case, I gently said to them 

 that I thought we might be able to take care of this problem if it 

 is not something they intended to do. 



Secretary Espy. Mr. Chairman, could I just jump in on this one? 



The Chairman. Yes, Secretary Espy. I was going to ask you the 

 same question, so please feel free to comment. 



Secretary Espy. The Ambassador knows that I am concerned 

 about this as well, and I agree with him that we are going to work 

 together to lessen this as a negative concern relating to the agree- 

 ment. But when I went down there to Mexico 2 weeks ago, I raised 



