BEEF INDUSTRY URGES ADMINISTRATION TO FOCUS ON AG IN TRADE NEGOTIATIONS

WASHINGTON, D.C. (Sept. 23, 1997) - Beef industry leaders are urging the Clinton Administration to ensure agriculture is a top priority for the United States in trade negotiations with other nations. Producer leaders of the National Cattlemen's Beef Association met recently with top officials at the State Department, USDA, the Department of Commerce and the office of the U.S. Trade Representative. Cattlemen met with Under-Secretary of State for Economic, Business and Agricultural Affairs Stuart Eizenstat, U.S. Trade Representative Charlene Barchefsky and U.S. Trade Representative Ag Ambassador Peter Scher.

   "We received a united message from all agencies that ag issues will be addressed in trade negotiations," said Clark Willingham, Dallas, Texas, NCBA president-elect. "I think there is an increased awareness of the importance of agriculture to the overall balance of trade," he said. Willingham noted the World Agriculture Outlook Board estimates 1998 U.S. agricultural exports will reach $58.5 billion resulting in an agriculture trade surplus of more than $20 billion for the year. The export value of high value products, including products like beef, is projected to increase $1.5 billion compared to 1997 projections.

   "With the 1996 Farm Bill moving us toward a market-based production system, it becomes more critical than ever to open new markets and enforce existing agreements," said Willingham. "The message we received from the White House on down is that they are committed to address these issues. Fast track may be the word of the week, but there's a lot more behind it," he said.

   The international market is the future growth market for U.S. agricultural products, including beef, according to Willingham. During 1996, exports accounted for approximately 8 percent of total U.S. beef production and more than 12 percent of beef's wholesale value. During 1996, beef and beef variety meat exports totaled $3.05 billion. When cattle and by-product values are included, the value of beef-related exports totals $4.805 billion for a beef trade surplus of $1.813 billion. In specific markets, the Japanese tariff for imported beef declined to 44.3 percent effective April 1, 1997 and will continue to decline to 38.5 percent in the year 2000. These factors, plus liberalization of the Korean market, strong import demand in Mexico, progress in gaining access to the Chinese market and possible access to the European market indicate that export growth in beef tonnage will resume during the next several years. Higher beef prices will increase the value of exports faster than the growth in export tonnage.

   "Only four percent of the world's population lives within U.S. borders," said Willingham. "Population demographics indicate that the U.S. generally, and agriculture specifically, will increasingly market products in countries having younger, faster-growing populations with increasing disposable incomes. It's very important the U.S. government recognize this and work to ensure agriculture is a high priority in trade negotiations," he concluded.

   Initiated in 1898, the National Cattlemen's Beef Association is the marketing organization and trade association for America's one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation's food and fiber industry.