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benefits of various agricultural exports must be incorporated into the 

 decision-making process for allocating USDA's export resources. It is 

 imperative that we measure, compare and apply the direct, indirect and 

 induced economic benefits of exporting value added agricultural products 

 when making export policy decisions. 



3. The mission statement of the new ITSA must reflect realities in the 

 global marketplace, emphasizing products where demand is growing and 

 responding to the aggressive role of competitor governments in 

 facilitating exports of these products. These activities should be 

 extended to include competing for domestic U.S. markets for high value 

 products. 



4. The present commodity division structure of FAS should be 

 complemented by creation of a World Market Analysis Division. In 

 addition, an Export Coordination Division should be established to 

 facilitate cooperation and support among USDA and non-USDA agencies 

 with responsibility for trade policy and program implementation. Staff 

 and funding for these new units could be drawn from the Agriculture and 

 Trade Analysis Division of ERS. 



5. The Secretary should establish a Government/Industry Task Force on 

 Agricultural Trade to provide a working partnership between USDA and 

 the private sector on export competitiveness. The Task Force would 

 identify domestic and foreign market opportunities and develop specific 

 strategies for making U.S. products competitive. We woiald suggest that 

 the Task Force be chaired by the Secretary's representative and its initial 

 term could be limited to three years. 



The back row status of the United States in the value added agricultural 

 product sector is by no means an accident. Our competition is fierce. From 

 politics to policy to programs, our foreign agricultural competitors are 

 delivering a knockout punch to U.S. agriculture in the fight for world market 

 share in value added and high value agricultural exports. 



Mr. Chairman, members of the joint subcommittee, the vision for tomorrow 

 is clear. The future of American agriculture is in producing, processing and 

 exporting value added and high value agricultural products. The U.S. must 

 revitalize its agricultural trade policies and programs, or be prepared to face 

 the obvious and inevitable outcome. We have staked the competition a 

 significant advantage. We must now move aggressively and decisively to earn 

 back our share of the world market. We believe that the specific 

 recommendations we have shared with this joint subcommittee today are 

 great strides in reorganizing FAS into an effective and responsive 

 International Trade Service Agency capable of meeting the challenges of the 

 21st century. 



Thank you for the opportunity to testify on behalf of the Export Processing 

 Industry Coalition on this important matter. 



