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News from the Minnesota Association of Wheat |
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MINNESOTA WINS WITH CHINA TRADE As
we complete World Trade Week, which directs our attention to how important international trade is to our entire economy, we look anxiously at a painfully close vote on Permanent Normal Trade Relations (PNTR) with China
in the House of Representatives. To me and a vast majority of Senators, this is--as Governor Ventura terms it--a no brainer. PNTR is a big win for the United States. It helps farmers and all exporters. It
will create new, improved jobs for workers. It will improve China's record of keeping its commitments. It will lead to improved worker rights in China and it will not affect our ability to address the
disagreements we have with China in other arenas. Increased trade and investment opportunities in China will help bring western values to China. It will help China move toward reforms, including more
privatization, transparency of its policies, and a strengthened rule of law, all of which will improve working conditions and lessen poverty. U.S. companies in China are known for providing better jobs. Amidst
all of the reasons you have heard why we should not grant China PNTR, one telling point looms in the debate--why would we turn down a one-sided agreement in our favor? It makes no sense whatsoever, especially to
farmers and all Minnesota exporters who will benefit significantly from the US-China World Trade Organization (WTO) agreement signed last November. It will subject China to the disciplines of a multilateral trade
regime. This will improve China's record of keeping its agreements, and it will help China improve its record in the areas of human rights, worker rights and environmental protection. Another point I would like
to make, which you rarely hear in this debate, is that China is under no obligation to live up to its US-China WTO agreement if we do not grant them PNTR. Renewing NTR each year does not convey the same treatment
to China we must provide all WTO members. If we fail to grant China PNTR by losing the House vote, and China subsequently thumbs its nose at us, refusing to grant the new benefits agreed to in November to our
farmers and exporters, there are many other eager exporters waiting to take our place. Most farmers are painfully aware of how long it takes to restore markets lost due to unilateral trade sanctions. They also
face rejection abroad when the United States is labeled an unreliable supplier through its many attempts to pass sanctions and change the behavior of our trading partners. Perhaps you've seen the
statistics--Minnesota's reliance on agriculture exports has risen from 24% to 32% since 1991. The U.S. Department of Agriculture says China will account for over 1/3 of the growth in US agriculture exports over
the next 10 years. Minnesota's ag exports tripled in volume since 1996. Lower tariffs, higher or no quotas and improved trading and distribution rights will help Minnesota farmers as well as companies such
as Land O'Lakes, Minnesota Wire & Cable, Image Sensing Systems, Inc., Pillsbury, 3M and many others prosper over the long term in China. Some have said the WTO agreement does not provide an enormous new market for
Minnesota exporters, but it does offer Minnesotans a steadily growing market for the future--one that can be easily usurped by other nations. As in most countries, the exporters who are there first reap the
long-term benefits more than those who cannot guarantee supply due to the annual NTR review process. As the Chinese people continue their quest for better lives, there will be even more demand for housing,
infrastructure projects, business development as well as less available crop land, all of which helps Minnesota exporters. There will also be more demand for consumer goods as the Chinese people earn more money.
The WTO agreement toughens U.S. trade law applications to China, improving our ability to enforce the bilateral agreement unilaterally. China will be subject to WTO disciplines which will bring pressure from all
WTO members for China to keep its commitments. Our government is placing far more resources to ensure China keeps its commitments. The enforcement concerns are just not an issue, in my judgment. We
have plenty of tools to encourage China to improve. Let's get beyond the politics and pass PNTR--a policy which will help all Americans.
NEWS RELEASE FROM CHINA CONSUL GENERAL: WHEAT SHIPMENT The wheat sale is one of the direct results of the "China-U.S. Agricultural Cooperation Agreement", which was signed in April 1999 through long
negotiations between China and the United States, and served as an important part of the bilateral agreement on China's WTO accession. Following the agreement in March 2000, the Chinese Ministry of Agriculture,
Ministry of Foreign Trade & Economic Cooperation, and State Administration of Entry/Exit Inspection and Quarantine announced that wheat could be imported from all regions of the United States, including the Pacific
Northwest. The shipment demonstrates the sincerity of the Chinese government to fulfill its commitments and obligations of the agreement on its WTO accession. According to U.S. Department of Agriculture estimates,
China, after WTO accession, will increase its imports of wheat by US$485 million on an annual basis from 2000 to 2009. The potential increase of exports of US agricultural products to the vast China market will not only
benefit Chinese consumers, but will also benefit the Northwest economy, including the agricultural sectors, ports, and other export related sectors, thereby helping to create more jobs in the region. The United States
must grant China Permanent Normal Trade Relations (PNTR) status to realize all the benefits of the agreement. PNTR is the commitment of the US government to offer the same nondiscriminatory trade treatment it grants to
other trading partners and is a pre-condition for executing the bilateral agreement. China will join WTO with or without PNTR. However, unlike its competitors, the US will lose all the benefits from the agreement if
China PNTR is not granted. PNTR and China's accession to WTO will greatly push forward the steady and healthy development of US-China relations and economic cooperation.
THE CHINA PNTR VOTE EMBARKS ON CRITICAL STAGE -- The Senate Finance Committee and the House Committee on Ways and Means voted
overwhelmingly in support of the measure. The vote in the Senate Finance Committee, conducted early Wednesday, was recorded as 18 in favor to 1 against. Only Senator Jeffords (R-Vermont) voted against granting China
PNTR status. The Ways and Means Committee, later that day, provided a similarly sound victory with a vote of 34 to 4. The House version of the China trade bill includes several additional provisions pulled from
proposed parallel legislation authored by Congressmen Sander Levin (D-Michigan) and Doug Bereuter (R-Nebraska). One of the additional provisions would write into U.S. law anti-surge protections that the United States
Trade Representative (USTR) successfully negotiated with China last fall. The provision would protect U.S. industries from surges in imports from China once they have joined the World Trade Organization (WTO). The
bill would also allow for the establishment of a joint committee to oversee China's human rights record. Additionally, it includes a resolution of support for Taiwan's entry into the WTO and calls for increased scrutiny
of China's trade practices through the WTO. The Senate version will not contain the Levin-Bereuter provisions. The vote count has also shifted in favor of those supporting PNTR. A survey by Congress Daily indicates
182 will vote 'yes' or are 'leaning yes' while 162 oppose the measure or are 'leaning no'. This leaves 91 members undecided or not ready to announce. This is a swing from last week when those against or leaning
against out numbered those in favor or leaning in favor. This change comes on the heals of the agricultural fly-in that took place this week (May16-17). Over 50 growers representing 14 states delivered their pro-PNTR to
every House members office. Eight wheat delegations split up to deliver personalized letters and information regarding the benefits of PNTR to each Congressman. The magic number for passage is 218 and supporters are
busy trying to nail down every last vote possible. Proponents on the Hill and in the Administration remain cautiously optimistic about the final tally. Federal Reserve Chairman Alan Greenspan made a rare endorsement
of Clinton Administration policy as he came out publicly this week in favor of PNTR for China, stating that a 'yes' vote is in the nations best interest. Expected Republican Presidential nominee George W. Bush also
endorsed the measure and encouraged the Congress to vote for China trade.
EUROPEAN UNION AND
CHINA INK WTO ACCESSION AGREEMENT. The E.U. was unable to improve significantly on the deal brokered between China and the U.S., but they were able to achieve progress on quickening the pace of China's implementation of market opening
commitments in some key areas for Europe. The E.U. also advanced tariff reductions on 150 major products including pasta. The pasta tariff will be reduced from 25 percent to 15 percent. As with each accession agreement
signed by China, every WTO member country is afforded the greatest benefit negotiated. With the signing of the E.U. / China deal it is even more imperative that the U.S. Congress vote to grant PNTR to China. Without
PNTR, farmers in the Europe will benefit fully from the concessions the U.S. and the E.U. were able to negotiate with China. China could conceivable become a WTO member in a matter of months with just a few bilateral
agreements left to be negotiated (Costa Rica, Ecuador, Guatemala, Mexico, and Switzerland). Chinese President Jiang Zemin promised that China would be a "responsible member of the World Trade Organization."
SANCTIONS REFORM SLOWED BY PARTISAN APPROPRIATIONS DISPUTES. The House and Senate versions of the Appropriations bill contain language that would reform unilateral sanctions to exempt food and medicine. The House Rules
Committee meeting to detail the rules for the Agricultural Appropriations debate has been delayed; likely until next week. A letter circulated by Congressman George Nethercutt (R-Washington) to Rules Committee
Chairman David Dreier garnered 92 signatures encouraging the Rules committee to exempt the sanctions reform provision from a point of order on the House floor. The situation remains tenuous as both sides jockey for
position. Tom Delay (R-Texas) remains staunch in his defiance despite the substantial number of Congressmen who favor the reforms.
AFRICA-CBI LEGISLATION IS SIGNED INTO LAW THIS WEEK. This position, formally held by Ambassador Peter Scher and currently by Mr. Greg Frazier, had not been formally
codified into U.S. law until this week. The language signed by President Clinton reads," The principal function of the Chief Agricultural Negotiator shall be to conduct trade negotiations and to enforce trade
agreements relating to the United States agricultural products and services. The Chief Agricultural Negotiator shall be a vigorous advocate on behalf of United States agricultural interests." Christopher Shaffer
Chairman of WETEC and US Wheat, Barbara Spangler Executive Director of WETEC, Nelson Denlinger of US Wheat and Michael Punke of Mayer, Brown and Platt met with the new Chief Agricultural negotiator, Mr. Greg Frazier,
this week. The group welcomed Mr. Frazier to his new position and offered their support for on-going efforts to open markets for wheat around the world. Mr. Frazier was appraised of work that the wheat industry has
done to prepare for the World Trade Organization's agriculture negotiations and asked how they might be of service to USTR as the process moves forward. A major topic of discussion was how the industry and the U.S.
government might work together to find a way to address the monopolistic practices of state sanctioned trading entities; particularly the Canadian Wheat Board and AWB Limited in Australia. Mr. Frazier offered to help
facilitate future meeting with the USTR legal council and was encouraged by the wheat industry's efforts to meet with our trading partners around the world and with the developing countries in particular. The Trade
and Development Act of 2000 also contains a "carousel retaliation" provision. This would allow the United States Trade Representative to revise the retaliation list of products from countries that fail to
implement WTO recommendations after a dispute settlement decision. Aimed at the European Union, this measure is meant to increase the effectiveness of WTO trade remedies by affecting as many products from the offending
countries as possible in order to more quickly influence a change in the offending behavior. Additionally, the Act includes a provision that requires the Secretary of Labor, in consultation with the Secretary of
Agriculture and the Secretary of Commerce to submit a report that would examine the applicability of trade adjustment assistance for agricultural commodity producers. The report is also required to give recommendations
to improve how these programs apply to agricultural commodity producers or a recommendation to "establish new trade adjustment assistance program for agricultural commodity producers."
IMPEDIMENTS TO CONTROLLING LEAFY SPURGE IN THE NORTHERN GREAT PLAINS Authors: Randall S. Sell Dated May 2000 Abstract: Leafy spurge is an invasive noxious weed, which by
definition means it is inordinately difficult to control. The objective of this report is to present the results of focus group meetings and personal interviews with ranchers, local decision makers, and public
land managers to discover strategies to improve leafy spurge management. Participants in the interviews and focus group meetings managed property in Fallon, Carter, and Wibaux Counties of Montana; Golden Valley,
Bowman, Billings, and Slope Counties of North Dakota; Harding County of South Dakota; and Crook County of Wyoming. Ranchers and local decision makers believe that leafy spurge control must become more proactive rather
than reactive; current strategies are largely reactive. Interviews with ranchers and local decision makers revealed that a considerable gap in understanding how to control leafy spurge exists between researchers
and those attempting to combat the weed. Interviewers often mentioned that they have been unable to eradicate leafy spurge, which indicates that the current mind set of ranchers and land managers needs to change
to one focusing more on controlling and managing leafy spurge rather than eradication. Specific recommendations would include 1) reducing the current levels of herbicide application rates - which are often two to
three times higher than rates recommended by weed scientists, 2) must appreciate that herbicides are but one tool in the battle against leafy spurge, 3) must understand that in many cases eradication of leafy spurge
will not be possible - the goal should be trying to control it, and 4) rangeland rental rates need to reflect current levels of weed infestations. Records of weed infestations (e.g., acreage, location, rate of
spread, attempts at control) on public lands are woefully inadequate. Cooperation between ranchers, county weed boards, and public land agencies could be improved to enhance the effectiveness of existing control
programs. Weed control regardless of land ownership is important for ranchers, absentee landowners, and public agencies to effectively control leafy spurge. In general, ranchers and land managers need to
generate a broader base of support for control of leafy spurge, since the weed attacks the entire ecosystem and is not just an agricultural problem.Web Site: The Extension Service has several web-based guides to identify weed seedlings, notes Schwartau. Go to the Extension Service home page at
www.extension.umn.edu/ and at the search line, enter "weed seedlings." This will provide several links to images of weeds in seedling stages, when they are often harder to identify but easier to control.
A web site at Another site Schwartau recommends is
Those who prefer to use a book for weed identification can check "Weeds of the North Central States." This book has a keying
system to help identify plants based on characteristics such as flower color and leaf shape, as well as sketches of plants. The book is available in many bookstores, including those at the University of Minnesota.
Source: Chuck Schwartau, (651) 385-3100
APHID CONTROL
APPLY FUNGICIDES Check out the following for more informationApplying Fungicides More Effectively to Control Scabhttp://www.ext.nodak.edu/extpubs/ageng/machine/ae1148w.htm |
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