News from the Minnesota Association of Wheat
Growers for Wednesday, March 8,  2000

U.S. WTO MEMBERSHIP TO COME BEFORE CONGRESS.
On March 1, Representative Ron Paul (R-TX) introduced a joint resolution "Withdrawing the approval of the United States from the Agreement establishing the World Trade Organization." Passage of this legislation would rescind U.S. membership in the WTO. The legislation was referred to the House Ways and Means Committee, which has 45 days to act on the legislation before it comes before the entire House of Representatives. As a privileged resolution it is not amendable and must be acted upon within 90 days.

Joining Representative Paul in this dubious action are Congressmen John Duncan (R-TN), Dana Rohrabacher (R-CA), Gene Taylor (D-MS), Jack Metcalf (R-WA), and Duncan Hunter (R-CA).

This action was taken despite the numerous facts that bolster the arguments for the promotion of free and faire trade. According to USTR, opening markets by lowering trade barriers contributed as much as 36 percent increase to U.S. exports between 1994 and 1999 despite the Asian crisis which has been very hard on American agriculture.  The number of U.S. jobs supported by exports increased by 1.4 million from 1994 to an estimated 11.7 million in 1998 (the last year available).  Jobs supported by goods exported from the United States are estimated to pay between 13 percent to 16 percent more than the U.S. national average wage.

The approval of this legislation would deal a devastating blow to the WTO and the current rules-based world trading system which American agriculture depends on. This action would precipitate a return to an era of obscene tariffs, outrageous non-tariff barriers to trade and massive trade distorting subsidization. Choices for American consumers and open markets for our producers provide the backdrop for U.S. progress and innovation. The high and consistent growth of the U.S. economy necessitates an active role for the U.S. in promoting global trade.

During the Wheat Industry Conference and Exposition in Las Vegas, the National Association of Wheat Growers, U.S. Wheat Associates and WETEC Boards of Directors each passed a motion endorsing the continued membership in the WTO. Defeat of this legislation will be another priority of the industry during this legislative session.

WHEAT GROWERS TAKE CHINA PNTR CASE TO THE HILL .
Jerry Kress, a wheat producer from Idaho and past Chairman of the Wheat Export Trade Education Committee, testified on behalf of the U.S. wheat industry Wednesday in a hearing on permanent normal trade relations (PNTR) for China before the Senate Committee on Agriculture, Nutrition and Forestry.

Testifying in support of PNTR for China, Kress stated, "In order for wheat producers to realize the full potential of the Chinese market, it is absolutely critical that Congress approves legislation to grant China PNTR as soon as possible." As the rural economy continues to suffer and legislators look for solutions, Kress advised that "nothing else on the horizon could have such a big impact in the short-term on U.S. wheat exports and the economic stability of wheat producers or hold such potential for expanded growth in the future."

Kress signaled to the committee that failure to approve PNTR "would amount to another self-imposed sanction on the agriculture community out of a major world market."

In concluding the past Chairman stressed, "the Administration must make this an absolute top priority, and not be deterred from the right course by the difficulties of the primary and general election campaigns. We have heard disturbing opinion expressed that it does not really matter whether PNTR is passed this year ? this is absolute folly! The time is now; the opportunity is at hand."

Kress warned the Administration and Congress to "not be lulled by any temporary political advantage into believing that you can always set right next year what you failed to do right today. This is an opportunity we can not afford to let slip away."

LEGISLATION INTRODUCED TO MONITOR CHINA AFTER WTO ACCESSION.
Senator Baucus introduced legislation to replace the annual normal trade relations (NTR) for China vote. The "China WTO Compliance Act" was introduced to quell the fears of opponents of permanent NTR who feel China will retreat from its market opening commitments. Baucus stated in a press release that the bill "is designed to ensure continuous and rigorous monitoring of China's WTO commitments."

The "China WTO Compliance Act" would require the President to submit an annual report to Congress detailing plans for monitoring China's compliance with WTO rules.  Additionally, the General Accounting Office (GAO) would be required to survey 50 of the top firms in various sectors, including agriculture, to monitor China's compliance within various parts of the economy. The bill would also require an annual report from the United States Trade Representative and an automatic section 301 from the Senate Finance or House Ways & Means Committee if China is found to not be in compliance. The bill also suggests that a multilateral mechanism within the WTO be in place to monitor China.

The legislation would call on the President to submit a plan to assist China in its construction of institutions that could carry out the necessary steps for WTO compliance. However, it is primarily a safeguard measure meant to assuage any uneasiness over China's history of uneven compliance with international agreements.

NAWG TESTIFIES THAT A MORE COMPETITIVE RAILROAD INDUSTRY NEEDS TO BE RE-INTRODUCED
Addressing the US Surface Transportation Board (STB), the president of the National Association of Wheat Growers, Mr. Terry Detrick, suggested a "competitive framework" desperately needs to be re-introduced into the US railroad industry.  According to a newswire article, Detrick and his group would like to see the STB reject future railroad mergers until such a framework were instituted.  Trying to underscore his point, Detrick indicated there are only two major railroads in the western US and two major railroads in the eastern US and these lines are far enough apart in most areas to render the US wheat farmer captive to non-competitive "monopoly" railroads.  They would also like to see wider access be given to shortlines in order to provide improved competition to Class I carriers.

GREENPEACE TRIED TO STOP A CARGILL SHIP FROM UNLOADING IN THE U.K.
A newswire article indicates the US agribusiness giant Cargill Inc. is seeking legal advice on the recent actions of the environmental group Greenpeace after five of its members tried to stop Cargill's ship from docking in Liverpool, UK.  According to a Cargill spokesperson, the ship was carrying non-GM soybeans and GM soybeans that will be processed for use in animal feed in the UK.  The article suggests that Greenpeace states the actions are part of a continuing "campaign" to stop GM crops from being imported into the UK.

RAINS HIT THE WHEAT BELT
Rains fell across much of the US hard red winter wheat belt Thursday night benefiting early crop development.  Most of the precipitation was received in Kansas and Oklahoma, but eastern portions of north Texas also got a shot of moisture as well.  Moreover, current weather forecasts show another round of rain showers are expected to track through the area over the weekend.  However, this event could mark the end of a series of significant rain storms in the central US.  According to one weather forecast, a change to less frequent and lighter rain events will occur by mid-March.

On Tuesday, US hard red winter wheat crop conditions continued to improve in the central and southern US plains states as mild temperatures and frequent rain showers eased dry conditions.  According to one report, Kansas HRW wheat conditions rate 5% excellent, 35% good, and 40% fair.  State officials also estimate 2% of the wheat crop is jointing, compared to 1% last year.  Oklahoma's hard red winter wheat crop conditions have improved significantly.  In total 61% of the HRW wheat crop is now rated good to excellent, up from 41% last week.  Furthermore, only 14% of the crop is rated poor to very poor, up from 25% last week.  On the other hand, the state of Texas still has some major problems with their HRW wheat crop.  As of Sunday, 62% of the Texas wheat crop is rated poor to very poor, compared to 65% last week.  Moreover, 29% of the crop rated fair, 9 rated good, and none has been rated excellent yet.