50 



petition. Yet because of the lack of end-use certificates, there is a 

 chance that we may be exporting Canadian wheat within our Ex- 

 port Enhancement Program. I am not sure that that is the wisest 

 use of our taxpayer dollars to benefit American wheat producers. 



But in addition, in the Mexico-U.S. agreement, it removes one of 

 the only tools of recourse if a trade abuse occurs, and that has been 

 discussed as Section 22. 



Let me just raise on particular point of concern. We have had the 

 Canadian Free Trade Agreement in place since 1988. And the pre- 

 vious administration, even with political pressure, agricultural 

 pressure, resisted the implementation of a Section 22 when we 

 were seeing an economic impact on Durum wheat producers in this 

 country. It wasn't until the Clinton administration, in responding 

 to the political pressure and the agricultural pressure, enacted or 

 is considering enacting Section 22. And I am concerned of adopting 

 the NAFTA as proposed with no recourse. What happens if a new 

 administration comes in? What assurance do we have that Mickey 

 Kantor is going to stay in place for the next 50 to 60 years to make 

 sure the program is implemented appropriately. 



Transshipment of product and peanut butter and peanut paste 

 has increased 567 percent. Sugar products into the United States 

 increased 3,021 percent since the implementation of the Canadian 

 Free Trade Agreement. It shows clearly that transshipment is oc- 

 curring. 



And I was interested in the response of Secretary Espy to the 

 questions, but he did not clearly identify the mechanism we would 

 use with Mexico if transshipment — or who would have to prove it. 

 Because it is my understanding that it will be producers in regards 

 to agricultural products that will have to prove if transshipment is 

 a concern. We analyzed that within the U.S. -Canadian agreement 

 and found out it cost anywhere between $250,000 and $500,000 to 

 have a case follow all the way through. 



Another very important safeguard that is missing is the border 

 inspection. There is a lot of verbiage in the agreement, but we are 

 concerned about enforcement, especially in regards to livestock as 

 it moves across the border, the increase of feeder cattle, and the 

 increase in TB that has already been documented. There is concern 

 about a number of safeguards that we sense are lacking, and I look 

 forward to addressing the questions you may have. 



Thank you, Mr. Chairman. 



Senator Conrad. Thank you, Mr. Swenson. 



Mr. Bauerle. 



STATEMENT OF MIKE BAUERLE, IMMEDIATE PAST CHAIRMAN, 

 NEBRASKA CORN DEVELOPMENT, UTBJZATION, AND MAR- 

 KETING BOARD, CHAMPION, NE 



Mr. Bauerle. Thank you. Mr. Chairman, I will ask that my writ- 

 ten testimony be placed in the record, and I will, in the interest 

 of brevity, speak from some abbreviated notes, if that is okay. 



Senator Conrad. Let me just say that we will introduce 

 everybody's statements into the record as if presented in full, and 

 as you know, these statements are important to us because they 

 provide a basis for future debate and discussion among colleagues 

 here in the Senate. 



