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Mexico is a growing economy with 90 million consumers who like 

 to eat beef, and it is a natural market for the United States. 



We export presently to Mexico about $260 million worth of beef 

 and variety meats. Our economist predicts by the year 2000 that 

 that could reach $1 billion, about what we presently export to 

 Japan. 



So the market is there. It is growing, but it is bumpy. The North 

 American Free Trade Agreement is needed to smooth out that mar- 

 ket. Last fall Mexico imposed tariffs on imports of live cattle and 

 beef. Those tariffs have already slowed the growth of our market 

 there. I have figures from the U.S. Meat Export Federation that 

 say in the first 6 months of this year that both value and dollar- 

 wise and tonnage the market has dropped by 40 percent. And that 

 is a significant figure. 



It is unfortunate that the critics of the North American Free 

 Trade Agreement have based their arguments on fear, fear that the 

 United States will not be able to compete with Mexico. Mr. Chair- 

 man, the United States beef industry is not afraid to compete with 

 any country in the world on a level playing field. We are the most 

 efficient producer in the world of high-quality beef. 



We have heard claims that NAFTA will shift the U.S. beef indus- 

 try south of the border. This is just not going to happen. The real 

 issue is productivity, and Mexico does not have the efficient produc- 

 tion practices, the feed supplies, the infrastructure, or the capital 

 to steal the United States beef industry. 



They also say that NAFTA will increase imports to this country 

 from Mexico, exports of Mexico feeder cattle to this country. That 

 is a market-driven basis, and if we look at the figures for the last 

 2 years, it has actually dropped as the economy of Mexico im- 

 proves. 



Disease control was brought up, and it was answered very clearly 

 today. They have got to meet the controls and the rules and regula- 

 tions of this country to come in here. 



Some critics of NAFTA have argued that countries desiring ac- 

 cess to the United States market with their beef may use Mexico 

 as a platform to enter the United States market. We believe the 

 agreement answers these critics by including strong rules of origin. 

 All fresh, chilled, and frozen beef is considered of one character re- 

 gardless of the processed state. 



We agree with President Clinton's strong statement at the White 

 House the other day when he said, "Every single, solitary thing you 

 hear people (critics) talk about, that they are worried about, can 

 happen whether this trade agreement passes or not, and most will 

 be worse if it fails." 



Jobs have been an important part of the debates on NAFTA. We 

 know that increased exports, particularly exports of high-value or 

 value-added products, will create jobs to rural America. That was 

 addressed earlier by both the Ambassador and the Secretary. 



A good trade agreement is a win-win situation for all countries 

 involved. We are excited about the opportunities presented by 

 NAFTA. The NAFTA will improve the economies of all three coun- 

 tries. 



We strongly urge the Congress of the United States to pass this 

 trade agreement. If it fails, you are telling the American people 



