WASHINGTON (AP) - The Bush administration sought to sell
skeptical farm-state lawmakers Wednesday on a free trade
agreement for the Western Hemisphere, predicting the deal
would boost U.S. agricultural exports by $1.5 billion a year.
That's nearly three times as much growth as the Clinton
administration had estimated from the proposed free-trade
zone. Imports would grow an estimated $1 billion, Agriculture
Department economists said.
``From the agricultural perspective, the United States has
much to gain,'' Agriculture Secretary Ann Veneman told the
House Agriculture Committee.
The agreement would increase U.S. exports in the Western
Hemisphere by about 9 percent a year, she said.
Department officials said the new estimates are preliminary
and based on a revision of a previous study done in 1998. U.S.
farm exports are expected to total $53 billion this year.
Most of the benefits to U.S. farmers from the trade deal
would go to wheat and grains such as corn that are used for
animal feed, Veneman said.
The administration hopes to finish negotiations on the
agreement before 2005 but needs fast-track trade negotiating
authority from Congress in order to do it, said U.S. Trade
Representative Bob Zoellick.
Without such authority, Congress could make changes in any
agreement that the administration works out. Brazil and other
countries are reluctant to negotiate sensitive issues if they
know Congress could alter the deal, Zoellick told the House
panel.
But lawmakers said farm support for new trade agreements is
waning because some producers think they have been hurt by
existing deals, including those with Mexico and Canada.
``The support is narrowing and it is becoming more
concerning,'' said the House committee chairman, Rep. Larry
Combest (news
- bio
- voting
record), R-Texas. ``The frustrations are real and they
touch a lot of different sectors of the ag economy.''
Rep. John Thune (news
- bio
- voting
record), R-S.D., added, ``If you polled producers in our
state you'd get a very mixed bag.''
In addition to wheat and corn, exports of soybeans and
cotton would also rise under the hemispheric while there would
be little impact on rice, meat and dairy products, according
to an analysis by the Congressional Research Service.
Sugar, peanut and orange growers could be hurt because they
would face more competition from imports in South and Central
America, the study found.
Sugar growers, who want to be left out of the negotiations,
are trying to preserve a government support system that props
up U.S. prices by limiting imports of cheaper foreign sugar.
``The U.S. sugar market does not require additional foreign
sugar, through the ... (proposed agreement) or any other trade
negotiation,'' said Jack Roney, an economist for the American
Sugar Alliance, a growers group.
Cattle producers do not want any part of the proposed trade
deal either.
``Access to the U.S. beef market is already relatively
unrestricted and there is a perception throughout the U.S.
industry that we have granted more access than we have gained
during past negotiations,'' said Wythe Willey, president-elect
of the National Cattlemen's Beef Association (news
- web
sites).
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