40 



Now, is it perfect? Absolutely not. But will it make the situation 

 substantially better and is it in the best interest of the American 

 people and American workers? There is not a doubt in my mind 

 that it is. 



Senator Harkin. Well, I am going to continue to look at those 

 side agreements, and I welcome any information you can give me 

 on exactly how they are going to be enforced and what the Mexi- 

 cans actually have to live up to. 



The environmentalists may have one thing that they look at. 

 What I am looking at is the prospect of losing a livestock industry 

 because of lower environmental standards and enforcement that 

 they have and for the three reasons I just gave you, which could 

 be devastating to this country. So I would like to see your side 

 agreements and how they are really going to be enforced, and I 

 don't think very much attention has been paid to the possibility 

 that we could lose a lot of livestock production to Mexico. We have 

 looked at the grains, but we haven't fully looked at the livestock 

 aspect of it. 



Ambassador Kantor. Let me just say one more thing, Senator, 

 with all due respect. Again, I want to make it clear. If you wanted 

 to move your livestock operation, you are better off with the rules 

 as they exist today, with them able to throw up barriers against 

 U.S. livestock exports, than you will be under NAFTA. 



Senator Harkin. Well, I am not certain about that. 



Now, you said there was a preference for U.S. corn? 



Mr. O'Mara. Yes, sir. 



Senator Harkin. Could they extend that to other countries? 

 There is no prohibition against them extending that to other 

 countries? 



Mr. O'Mara. No other party is a member of the NAFTA. 



Senator Harkin. But there is nothing that would prohibit Mexico 

 from extending that kind of preference to any other country. 



Mr. O'Mara. They would have to negotiate that. 



Senator Harkin. Of course they would, and they could. 



Mr. O'Mara. Well, of course they could, but they would have to 

 do it in concert with us as well, sir. 



Senator Harkin. They don't have to ask for our concurrence for 

 them to have a preference to another country. 



Mr. O'Mara. Well, they could certainly negotiate an agreement 

 with Argentina that was 



Senator Harkin. They don't have to get our okay for it. 



Mr. O'Mara [continuing]. That would give Argentina preference 

 in the Mexican market, that is true. 



Senator Harkin. Sure. And they don't have to ask for our leave 

 to do that. 



Mr. O'Mara. No, they do not. But in the absence of that happen- 

 ing, we have negotiated an agreement which gives us the pref- 

 erence. 



Senator Harkin. One last thing I wanted to bring up, and it is 

 something I have written to you about, Mr. Ambassador, since 

 March. It may not seem to be related to agriculture, but it is. A 

 lot of our farm families now depend on off-farm jobs in a lot of our 

 communities — small manufacturing, that type of industry. A major 



