Cattlemen Gain Greater Market Access with U.S. Agriculture Proposal

The Bush administration Wednesday unveiled a bold, innovative proposal for reforming current rules of global agricultural trade. The National Cattlemen’s Beef Association (NCBA) participated in the press conference and is in support of these proposed changes. The reforms would “level the playing field for all countries by substantially reducing global trade barriers, slashing trade-distorting subsidies and eliminating export subsides,” according to the USDA. 

“This proposal calls for an ambitious reform of global trade as we know it. America’s cattle producers would greatly benefit from increased export opportunities, and opening up these markets would effectively balance the inequities existent within the current system of international trade,” said Chuck Lambert, NCBA’s Chief Economist.

The United States is proposing a new vision for global agriculture. The comprehensive proposal would eliminate export subsidies and reduce worldwide tariffs and trade-distorting domestic support over a 5-year period. The second phase of the proposal would propose the eventual elimination of all tariffs and trade-distorting support.

“The U.S. package addresses the disparities that exist under current WTO commitments and increases the market orientation of world agricultural trade,” said U.S. Trade Representative Robert B. Zoellick, “The average U.S. agricultural tariff is 12 percent, while the average worldwide tariff is 62 percent, with many in excess of 100 percent.”

The U.S. Agricultural Trade policy rests on three legs:  1) The U.S. Farm Bill; 2) This Proposal for Global Agricultural Trade Reform and 3) Trade Promotion Authority (TPA).  TPA is part of the trade legislation (H.R. 3009 – the Andean Trade Preference Act) in conference this week.  Chairman Thomas (WY) and Chairman Baucus (MT), as well as the other conferees, hope to reach an agreement by the end of the week. 

“We can’t say it enough—passage of TPA is critical for cattlemen, and it is the only way that the President can effectively lead these trade policy changes. Without it, he has little negotiating authority, and other countries will not seriously deal with our negotiators. This is a critical step for implementing this aggressive proposal for change,” said Lambert.

NCBA staff and cattlemen across the country will continue to pressure members of the House and Senate on the importance of this legislation.

The next negotiation session on agriculture will take place the week of July 29th in Geneva.  NCBA will continue to work closely with the Administration on this proposal.