37 



down to 20 percent, taking inflation down to single digits, talking 

 about privatization, moving to the market to try and keep the ac- 

 tion out in the private sector, one hears and sees a great deal of 

 political risk that they are taking, and feels a considerable amount 

 of excitement, in fact, in becoming a more complete partner with 

 Mexico as they make this transition. 



Very few of us in this Congress resist the notion that we ought 

 to be a partner with Russia as they move from Communism to de- 

 mocracy and to free markets. We get excited about it. We are en- 

 thusiastic about it. There is very little protectionist impulse when 

 it comes to trying to assist Russia in making their transformation. 

 And it seems to me that we are talking about a similar kind of ven- 

 ture, and as I indicated, I think in particular those two ministers 

 might be very helpful in presenting to the American people what 

 it is that Mexico is trying to do, and specifically, perhaps, assisting 

 us in working out a very, very thorny and to this point irresolvable 

 issue. So I appreciate, Mr. Ambassador, your comment on that, and 

 I look forward to talking with you about inviting them up here in 

 a private setting and perhaps allowing me to make another appeal 

 for why at least a part of the meeting should be in a public envi- 

 ronment. 



Thank you. 



Senator Conrad [presiding]. Senator Harkin. 



Senator Harkin. Thank you, Mr. Chairman. 



Mr. Ambassador, I want to cover another aspect of this. I don't 

 know if it was covered before I got here or not. A number of studies 

 have predicted that we will have some increased agricultural ex- 

 ports to Mexico under NAFTA, although these increases are spread 

 out over 10 to 15 years, so they are some time down the pike. I 

 think in selling this NAFTA to many farmers, it has been held out 

 that all of a sudden there is going to be a huge increase in exports 

 to Mexico, but the studies show that it is going to be 10 years or 

 more down the line when we get the big benefits. So it is quite a 

 bit in the future. 



In Iowa, the livestock industry is an important part of our econ- 

 omy, especially the pork industry. It literally has saved our State 

 on more than one occasion. There are over 30,000 individual hog 

 operations in the State of Iowa. I always like to brag that one out 

 of every four pigs in America lives in Iowa, and that is about right. 

 It is about 25 percent. And we are very proud of that industry. It 

 is a big industry. I think it is something in the neighborhood of $6 

 billion a year to our State economy. 



Now, again, it will be great if NAFTA enables us to ship more 

 pork to Mexico. You know, if their wages go up and they are able 

 to buy more meat and we can ship them more pork, that is great. 



Is it possible that the agreement will tend to facilitate shifting 

 livestock production and processing from the United States to Mex- 

 ico? Or at least encourage Mexico to satisfy any increased demand 

 that they might have for meat by producing it there rather than 

 buying it from us? 



Ambassador Kantor. Well, I think anything is possible, but we 

 have 5 years of evidence that goes in the opposite direction. 



Senator Harkin. Five years of what? 



