y b 



leled setback for that relationship if at this moment we were to 

 spurn that opportunity. 



I do not predict, as the chairman has suggested, all sorts of cata- 

 clysmic results. I simply say that when an opportunity of this sort 

 presents itself in the life of foreign policy, you seize it, because it 

 means not only forging a tie with Mexico but clearly an opportunity 

 to work with the Central American democracies and the free trade 

 agreement they are fashioning, with the Merkersur Group in the 

 southern cone of South America, with Chile or Argentina or various 

 other countries, either in a bilateral fashion or perhaps hopefully 

 in a pan-American free trade zone during this century, and per- 

 haps maybe during the next few years. These are all extremely im- 

 portant developments. 



If we have a setback with Mexico, we are unlikely to see those 

 developments very rapidly, if at all. And we will have dealt our- 

 selves a fatal blow in terms of our export potential by consigning 

 the great solidarity we could have in this hemisphere as we face 

 challenges in Asia and in Europe and worlds to come that are more 

 difficult to fathom. 



So this is an important hearing, Mr. Chairman. I congratulate 

 ou on getting the Secretary and Trade Representative right off the 

 at so that we have an opportunity to hear them, to question them, 

 and likewise for the service you provide for the American people. 



Thank you. 



The Chairman. Thank you very much, Senator Lugar. 



Senator Baucus? First, I should note it is to our advantage on 

 this committee to have Senator Baucus as a member because he is 

 probably the key member on the Senate Finance Committee on this 

 issue. It is very helpful having him here, just as it is having a sen- 

 ior member of the Foreign Relations Committee, Senator Lugar. 

 We try to bring many disciplines into play in this committee. 



Senator Baucus. 



STATEMENT OF HON. MAX BAUCUS, A U.S. SENATOR FROM 



MONTANA 



Senator Baucus. Thank you very much, Mr. Chairman. I very 

 much appreciate your holding a hearing on the agricultural aspects 

 of NAFTA. Many are concerned with other aspects of NAFTA and 

 not enough attention has been focused on agriculture, and I very 

 much appreciate this hearing. 



Mr. Chairman, as I assess the provisions of NAFTA, it seems to 

 me that American agriculture stands to benefit from the passage 

 of NAFTA. Increased market access, decreased tariffs, and in- 

 creased employment are but a few of the benefits that I think 

 America's farmers stand to gain. 



However, I think it is important that this committee focus on 

 some critical unresolved issues with respect to agriculture that are 

 not specifically contained in the agreement. These are issues of 

 concern to many in this Nation's agriculture industry, and, further, 

 these issues are of importance to myself and to other Senators in 

 determining a final position that they will take whether or not to 

 support this agreement. 



In fact, my own informal survey conducted by myself and my 

 staff indicates that as many as 15 Senators have indicated that 



