167 



more detailed list of its concerns and how these concerns were addressed in the 

 agreement is attached to its letter. 



USA Dry Pea & Lentil Council 



The Council is upset that the agreement did not address Canadian transportation 

 export subsidies. While these subsidies are prohibited under the U.S. -Canada FTA 

 for products entering the United States, the NAFTA does not prohibit these sub- 

 sidies for products going to Mexico. It is also concerned about article 56 vagueness 

 in addressing export subsidies and failure to provide a solution. 



USA Poultry & Egg Export Council 



Supports the agreement overall. The long-term benefits for all the Council's com- 

 modities, especially value-added products, Tar outweigh any short-term limitations. 

 It is concerned that the agreement may be delayed or dismantled by reopening nego- 

 tiations. It is concerned about the 100-kilometer free trade zone in Mexico and if 

 U.S. products entering this area will be exempt from quota levels. Another concern 

 is that the agreement makes no distinction between table eggs and hatching eggs. 



U.S. Beef Breeders Council 



Reservations about agreement. It is concerned about the many unknown problems 

 that will arise after the agreement is implemented. Elimination of tariffs will en- 

 courage increased U.S. breeding stock. Feeder calf reciprocal trade will increase. In- 

 creased competition might result in decreased prices for U.S. ranchers and feeder 

 calf producers. It is also concerned about the rules of origin standards and the pro- 

 tection of U.S. animal and plant health. 



U.S. Chamber of Commerce 



The agreement meets all of the Chamber's requirements, and it will benefit all 

 parties involved. It adequately addresses the issues of labor impact, the environ- 

 ment, food safety, rules of origin, administrative barriers, custom regulations and 

 enforcement. Expanded regulatory systems will be necessary to ensure that health 

 standards are upheld. 



United States Hide, Skin & Leather Association 



Supports the agreement. Mexico has traditionally been a strong market for U.S. 

 hides and skins, and the agreement will encourage market growth by eliminating 

 licensing requirements and quotas. It is concerned about the enforcement of the 

 rules of origin, and that Mexico not attempt to impose artificial barriers to trade. 



U.S. Meat Export Federation 



Supports agreement. Barriers to trade with Mexico are already low, but MEF pre- 

 dicts that beef and pork exports to Mexico under agreement could double or triple 

 by the end of the decade. The major benefit is agreement will stop Mexico's arbi- 

 trary implementation of trade barriers, such as increasing tariffs on beef and live 

 cattle. The Federation also stressed the importance that programs like the MPP 

 that have played in assisting its export programs. 



U.S. Rice Producers Group 



Supports the agreement. Disappointed that NAFTA did not reduce Mexican tariffs 

 immediately or reduce duty on milled rice immediately to level of paddy rice tariff. 



United States Egg Marketers and Wampler-Longacre Chicken, Inc. 



Supports the agreement. While the rules of origin and tariffs for processed egg 

 products are acceptable, the Mexican tariff levels for poultry are too high for the 

 first 6-7 years and hatching eggs and table eggs should have separate tariff rate 



?uotas. The agreement must preserve all health standards for products entering the 

 Fnited States. Safeguards should also be enacted to ensure that products entering 

 the 100-kilometer zone or maquiladoras are not counted toward quota levels. 



The State of Vermont Department of Agriculture, Food and Markets 



NAFTA has great potential, but at the same time it poses many dangers. Specifi- 

 cally, firms will entice firms to move to Mexico. It is important that the agreement 

 truly does maintain the rights of States to maintain higner standards without pro- 

 tracted dispute settlements. Rules of origin must be strictly enforced to prevent 

 Canada from exporting dairy products through Mexico to the United States, prevent 

 Mexico from meeting its domestic needs with New Zealand dairy products and ex- 

 porting its supply to the United States, and prevent the reexport of non-NAFTA 

 dairy products. Vermont is also concerned about the loss of Section 22 and the 

 precedent it will set for the GATT. 



Vienna Beef 



Supports the agreement. Over time, the U.S. food industry will win out because 

 of its ability to produce high quality products efficiently. Mexican labor costs and 



