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If we fail, I fear we would hurt the round terribly. I think it 

 would be viewed as this administration, for whatever reason — al- 

 though we are doing everything in our power to get this passed — 

 that we weren't as committed to free and open trade as some would 

 want us to be, that we weren't leading global growth. I think that 

 others then would begin to advocate that they wanted more out of 

 the Uruguay Round than might be acceptable to us. And lastly, 

 frankly, it would have an incredibly negative effect in Central and 

 South America. Those growing market economies and democracies 

 are looking to this agreement as a commitment by the United 

 States to join with them in the future to grow the most successful 

 and largest economic market in the world. I think we would have 

 a very negative effect on that movement. 



Secretary Espy. I agree with the Ambassador. I think it would 

 have really negative consequences for the GATT because, after all, 

 what we are trying to do is to embrace a philosophy of reduced tar- 

 iffs and nontariff barriers to open markets and to have appreciable 

 increases in market access. And if we don't do it, it would give rise 

 to the actions that some of our friends, including the French, are 

 trying to do right now with regard to the GATT, and it is a contin- 

 uum of a philosophy that we need to evidence here. 



Senator Lugar. Let me just say I appreciate the leadership Am- 

 bassador Kantor and Secretary Espy have given, likewise very 

 strong statements by the President of the United States and the 

 great leadership he is giving on this issue. As you know, on our 

 side of the aisle we have signed a letter — I am among the signato- 

 ries — in which 34 Republicans have pledged to support the Presi- 

 dent. And we are hopeful that we will have a very strong biparti- 

 san support as we approach the final vote. We thank you for com- 

 ing today. 



Secretary Espy. Thank you. 



Ambassador Kantor. Thank you, Senator. 



Senator Lugar. I yield to my colleague. 



Senator Conrad [presiding]. Thank you, Senator Lugar. 



First I want to thank Secretary Espy and Ambassador Kantor for 

 the attitude that they have brought to the problems that we faced 

 with Canada. I think you give a very good description of some of 

 the problems that we confront. We very much appreciate the re- 

 sponsiveness that you have shown. 



Let me just try to sum up for my colleague from Indiana what 

 we face, because the fact is there are real problems with the Cana- 

 dian Free Trade Agreement, the rail subsidy that does not count 

 under the terms of the agreement, the lack of price transparency 

 by the Canadian Wheat Board when you can discover on any hour 

 of any day what our prices are on the Chicago markets, and finally, 

 the very direct problem we have with the question of what con- 

 stitutes dumping into the U.S. market. 



The plain language of the Canadian Free Trade Agreement says 

 we will look to their full acquisition price. Only that is not what 

 happens. That is not what happens because of a side agreement 

 that was made that was not revealed to Congress by former Trade 

 Representative Clayton Yeutter. Trade Representative Yeutter 

 made an agreement that said, well, the agreement doesn't really 



