Cattle Groups Applaud WTO Elimination of Export Subsidies

Washington, D.C. (August 2, 2004) – A framework for U.S. agriculture trade negotiations appears to be moving forward thanks to the efforts of U.S. Trade Representative Robert Zoellick and Chief Agriculture Negotiator Al Johnson during trade talks in Geneva.  In the aftermath of stalled trade talks in Cancun and Seattle, the 147 member nations of the World Trade Organization (WTO) agreed to eliminate agriculture export subsidies.

“This represents a victory for U.S. negotiators and U.S. producers,” says Jan Lyons, president of the National Cattlemen’s Beef Association (NCBA) and a cattle producer from Kansas.  “We had some initial concerns – previous talks ended without progress being made and that is disappointing to our producers – but it appears we’re finally moving forward.”

The agreement will provide much-needed structure and direction for the ongoing talks which are aimed at expanding access for America's producers to overseas markets through reductions in tariffs and other restrictions, and reducing trade-distorting domestic subsidies. 

“This breakthrough would not have occurred without the tremendous efforts of Ambassador Zoellick and his team,” says Gregg Doud, NCBA chief economist. “This will finally level the playing field for trade with Europe, which has historically supported subsidies.”

“This agreement sets the framework for additional market access for U.S. beef and beef variety meats,” says Richard Fritz, trade development vice president for the U.S. Meat Export Federation.  “Additional market access will enhance U.S. exports, which in turn support beef producers.”

The next step is to agree upon how fast and how far to reduce tariffs.  Many of these details will be worked out during negotiations in 2005, and an agreement could be operational as soon as 2006.

“These multilateral negotiations are the best way for U.S. cattle producers to expand export market access opportunities for U.S. beef and beef products,” says Doud. “We still have some work ahead of us in the area of market access, and we want to see tariffs lowered – particularly in our largest markets, Japan and South Korea.”

More information on the agreement is posted at www.ustr.gov.