49 



Agreement and its implementation on American agriculture as part 

 of our testimony, and just summarize it. 



I want to thank you for the opportunity to present the position 

 of the farm, ranch, and rural families of the National Farmers 

 Union on the NAFTA agreement. Since becoming president of the 

 National Farmers Union in 1988, I have tried to be a strong advo- 

 cate of trade and support the establishment of international rules 

 and regulations which enable the trading of commodities, goods 

 and services in a manner which provides a fair return to producers 

 and promotes environmentally sound production methods, and also 

 provides assurances to consumers in regard to the quality and safe- 

 ty of the products that are traded. 



We support trade which advances the social and economic struc- 

 ture of all people within the participating countries. And we have 

 taken a look at the expansion that has occurred with Mexico over 

 the last number of years, we know that those gains have been sig- 

 nificantly linked with the possibilities of assisting those sales with 

 credit provisions. 



As we take a look at the NAFTA agreement and its side agree- 

 ments, we feel that it comes up short of the overall objectives that 

 we think need to be put in place for trade. It especially lacks a 

 number of safeguards that we feel need to be put in place to make 

 it a good trade agreement. 



I am as concerned as the chairman expressed about the political 

 rhetoric which exaggerates the concerns on both sides, but also 

 that which exaggerates the unfounded negatives if the agreement 

 as proposed is not accepted, because I take a look at the fact that 

 we cannot accept status quo but that we have to make sure within 

 a renegotiated NAFTA agreement that certain safeguards are put 

 in place. 



As we take a look at the proposed agreement and a number of 

 the points which we feel need to be addressed and have been dis- 

 cussed in great detail today, I want to draw your attention to the 

 Mexican tariff schedule. It points out that corn, barley, wheat, 

 beans, milk, and cheese products have either less access or higher 

 tariffs, or both, for the immediate future. Yet the proposed agree- 

 ment allows Canada to maintain significant commodity protection 

 and transportation assistance. And on wheat, Mexico has imposed 

 a new 5-percent addition to the existing 10-percent tariff on Durum 

 wheat and imposed a new 15-percent tariff on other wheat in ex- 

 change for free license. 



Canada, meanwhile, as has been discussed here, will maintain 

 its transportation assistance and pricing system in marketing its 

 wheat to Mexico as well as into the United States. 



And I would draw your attention to a chart which shows the in- 

 crease in Durum wheat that has come into the United States under 

 the Canadian Free Trade Agreement, an increase of Durum wheat 

 of 130 percent since before the Free Trade Agreement. 3 If you look 

 at all wheat, an increase of 76 percent; barley, up 213 percent. 



Now, the Clinton administration has announced Mexico's eligi- 

 bility as the Export Enhancement Program recipient for wheat to 

 offset Canadian assistance, and support that as a means of com- 



3See page 101. 



