Agricultural Trade Issues in the 108th Congress (CRS Report for Congress)
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| Release Date |
April 3, 2003 |
| Report Number |
RL31841 |
| Report Type |
Report |
| Authors |
Charles E. Hanrahan, Geoffrey S. Becker, Remy Jurenas, and Randy Schnepf, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
Agricultural exports contribute to the prosperity of the U.S. agricultural economy. Their value
is
projected at $57 billion for FY2003, and they are expected to grow over the long term. These
exports are the equivalent of about a quarter of the gross income of U.S. farmers and generate both
farm and nonfarm employment. U.S. agricultural imports, expected to reach $43 billion in FY2003,
are fostered by low average U.S. tariffs, the relative strength of the U.S. dollar, and consumer tastes
and preferences for high value food products, the largest component of imports. A large share of
agricultural imports compete against U.S. products, but they also generate economic activity in the
U.S. economy.
Although many world economic and other factors influence exports, many farm groups believe
that U.S. agriculture's future prosperity also depends on such U.S. trade policies as 1) negotiating
improved market access for U.S. products bilaterally, regionally, and multilaterally; 2) assuring
market access and consumer acceptance at home and abroad for products of agricultural
biotechnology; 3) assuring that China adheres to its World Trade Organization (WTO) agricultural
market access commitments; and 4) resolving contentious commodity trade disputes. Some farm
groups, mainly producers of import-sensitive commodities, question opening U.S. markets to foreign
competition. Agricultural trade issues that are being or could be considered during the 108th
Congress
include:
Free trade agreements (FTAs) with Chile and Singapore, which Congress will
take up according
to expedited or fast track procedures in the Trade Act of 2002 ( P.L. 107-210 ). The 2002 Trade Act
also requires congressional-executive branch consultation on trade negotiations, which currently
include negotiation of FTAs with 12 other countries or regional groups, negotiations with 34
western hemisphere countries for the Free Trade Area of the Americas (FTAA), and multilateral
trade negotiations in the WTO.
Biotechnology regulations in other countries, especially in the EU, which will
affect U.S.
commodity exports.
China's implementation of its WTO market opening commitments for
agriculture , which has
been slow and uncertain, and has failed to meet expectations of U.S. agricultural exporters.
Country-of-origin labeling for meats, fresh produce, seafood and peanuts,
established by the 2002
farm bill, but whose implementation has raised questions about benefits versus compliance costs.
Other trade issues of interest to the 108th Congress include commodity trade
disputes over
cotton, wheat, meat and poultry, and sweeteners; the scope of restrictions that should apply to
agricultural sales to Cuba ; and funding for U.S. agricultural export and
food aid programs.
This report will be updated.
