| QUEBEC CITY (Reuters) - A free trade pact covering North and
South America would create new U.S. agricultural export
opportunities, particularly for high-value and processed farm
goods, Agriculture Secretary Ann Veneman said on Saturday.
Coupled with other initiatives being discussed at the
Friday-to-Sunday Summit of the Americas, the proposed Free
Trade Area of the Americas (FTAA) pact would help boost income
throughout the hemisphere as well as reduce import tariffs
that restrict U.S. agricultural exports, Veneman said.
``As incomes rise, one of the first things people buy is
more and better food. Agriculture generally has a lot to gain
from enhanced economic status of the countries in the region
and that's what this summit is all about,'' she said.
But the U.S. Agriculture Department has projected mixed
results from a FTAA pact, which may be one reason why many
U.S. farmers have not paid much attention to it yet, House
Agriculture Committee Chairman Larry Combest said.
A 1998 department report showed ``there'd be very small
gain if we entered into it and very small loss if we did
not,'' the Texas Republican said at a briefing at the U.S.
consulate.
``They said basically rice, wheat, corn, soybeans and
cotton will probably receive some boost in export sales and
that peanuts, sugar and orange juice would have potentially
some loss,'' Combest said.
For the last three commodities, the United States would be
under pressure in the talks to lower its high import barriers.
Veneman acknowledged competition from huge agricultural
exporters Brazil and Argentina could limit the impact of a
FTAA agreement on U.S. bulk commodity exports.
``But I think there's also a lot of opportunity,
particularly on the high-value and processed side,'' she said.
The FTAA also would increase opportunities for the U.S.
agricultural producers to forge ``strategic alliances'' with
partners in Latin American, Veneman said.
Some California fruit farmers already have arrangements
with Chilean producers so they can keep their global customers
supplied during the off-season, she said.
On Sunday, regional leaders are expected to reaffirm their
goal of creating a free trade pact covering 34 countries in
North, South and Central America and the Caribbean by 2005. |