World Trade: WTO, Free Trade, BSE, and Trade Promotion Authority

As I have said before, the U.S. feeds the world, and because of this we must have fair trade throughout the world. A pro-trade agenda from our government helps to strengthen our economy, grow businesses here at home, open and/or expand international markets, and can help improve relations between us and other countries. The U.S. must stay competitive in the world market place in order to continue to be a world power, especially with the emergence of Brazil, China, and India. The room for error is small and will continue to shrink, it the U.S. does not work with the World Trade Organization (WTO) and similarly pass more free-trade agreements with other countries.

The WTO is not always a popular subject and is even despised by many. However, it is now a fact of life that we will have to conduct business within this organization and its members or face financial ruin as a country. The most recent round of WTO talks, the Doha round, have been suspended for almost two years (since July 28, 2006), over other countries demanding that the U.S. cut more of its farm subsidies and other programs. Of course the U.S. resisted these demands, but only because these other countries wouldn’t reduce or do away with their tariffs, quotas, or allow greater market access to American products. Granted, subsidies can be detrimental to other countries, especially small and developing countries that depend on agriculture, but we must find a way to slowly reduce and eventually do away with these various payments so that we can guarantee greater market access and improved economic relations with other countries.

I know none of this sounds good to the row crop farmers, but it must be done for all agriculture commodities to benefit. However, we should not get rid of crop or livestock damage grants or loans, if a government has the means to help out its farmers and ranchers in a time of need, they should do so every time. But to put in an artificial market floor is not always the best option for producers, instead market situations should be allowed to dictate prices for everyone in the world. Just imagine a world without trade barriers such as tariffs and quotas, it would be a more profitable venture for everyone involved and could even bring about more peace. However, this is a long way from being accomplished, because like everything in life, trade revolves around politics and is used in many ways for countries to get what they want, only time will tell.

Currently, the U.S. Congress is in the midst of debating or has already passed free trade agreements between the U.S. and Peru, Colombia, and Panama. All of these agreements have been well thought out and negotiated, and the only thing left is for Congress to ratify them for the good of our economy. Another free trade agreement that has almost been worked out involves South Korea, however the Korean’s have been very stubborn (for lack of a better word) on the importation of U.S. beef. This trade deal could be potentially bigger and better than all three of the previous deals mentioned, but until the South Koreans accept all American beef imports (including meat with bones, and meat from animals regardless of age, but at least up to 30 months of age) no deal will be done, thereby hurting both countries.

Also the U.S. government must focus on re-establishing beef exports to all markets especially those that were large U.S. beef importers prior to the discovery of BSE (South Korea, Japan, Russia, and China). Some of these countries do currently import some U.S. beef, but maintain tight rules and regulations that handcuff our beef industry in an unfair way and these rules are not always scientific based, but more so based on human emotion. The fact is that the BSE is a dead disease, and there is now some scientific research that has begun to determine that BSE may not even cause the brain wasting disease variant-CJ disease. And because the U.S. implemented a ban on meat and bone meal being fed to ruminants, there should be no other cases of BSE in the U.S., and we also have measures in place that continue to safeguard our beef supply. Therefore, these and all countries should be able to trust our research and our food safety enough to start importing American beef just as they did before the discovery of BSE in America.

Finally, the president of the United States should be granted Trade Promotion Authority before it expires in July of 2007! This responsibility should rest with the president in order to accomplish time sensitive trade deals that may get bogged down in bureaucratic red tape if solely left up to Congress. TPA assures that the U.S. stays competitive in the arena of world trade instead of letting our competitors gain greater access for their products in other countries.

All of these issues are paramount for American agriculture, especially the beef industry, and should be focused on by all involved. By expanding free trade and the tools used to obtain it, the U.S. economy will benefit for years to come.