116 



and Commercialization Center, USDA. Two familiar faces, I am 

 happy to see you both once again. 



Mr. Condit will be here shortly, but he has asked that I get the 

 hearing initiated in his absence and that will save us all some 

 time, so I would ask that you begin Mr. Walker, and then we will 

 hear from Paul. 



STATEMENT OF ROBERT L. WALKER. SECRETARY, MARYLAND 

 DEPARTMENT OF AGRICULTURE, AND CHAIRMAN, WORLD 

 TRADE COMMITTEE, NATIONAL ASSOCIATION OF STATE DE- 

 PARTMENTS OF AGRICULTURE 



Mr. Walker. Good morning. Chairman Penny. Thank you for the 

 chance to appear before you today to discuss the future of the For- 

 eign Agricultural Service as we approach the 21st century. 



I want to commend you at the outset for scheduhng these hear- 

 ings. All too often we spend our energies on issues of the moment, 

 on putting out fires, and do not step back, in this case, to see the 

 international landscape and to assess how changes in that land- 

 scape affect our Federal priorities, policies, and programs. 



Let me say, too, at the outset, that I have a strong interest in 

 the international marketing of U.S. agricultural products. Both as 

 Maryland's secretary of agriculture and chairman of the world 

 trade committee of the National Association of State Departments 

 of Agriculture and as a participant on various overseas missions for 

 the World Bank and other organizations, I have had an opportunity 

 to travel in this hemisphere, in Europe, Asia, and the Middle East. 



Everywhere I travel, Mr. Chairman, the story is the same. U.S. 

 agriculture is the envy of the world. People around the globe want 

 what we produce. This is our strength and, in my view, it is imper- 

 ative that we play from this strength. 



Since it was established 39 years ago, FAS has produced its full 

 share of economic benefits for U.S. agriculture. This has been espe- 

 cially true for bulk commodities. But the world is changing and 

 FAS must change along with it. 



We are poised on an extremely exciting time. We are the leading 

 food producer in the world and everywhere you turn, there are 

 growing consumer markets eager for what we produce. We must 

 position ourselves to take advantage of the tremendous economic 

 opportunities now before us. 



More and more, as each day passes, there is an increasing de- 

 mand for our processed food products. In fact, exports of high value 

 and value-added products have surpassed exports of bulk commod- 

 ities, a trend that will likely continue. 



Three markets that are particularly significant in my opinion for 

 United States exports are East Asia, Mexico, and Latin America — 

 including the Caribbean — and the vast potential of the former So- 

 viet Union. 



The East Asian nations have some of the most djmamic econo- 

 mies today with a growing middle class searching for more sophis- 

 ticated food products. Their life-style is changing dramatically as 

 well. These consumers are increasingly interested in ready-to-eat 

 and easy-to-prep are food products. 



A similar picture of demand is clear in Mexico and Latin Amer- 

 ica. The approval of the NAFTA tomorrow will enhance export op- 



