Glickman, Barshefsky Talk Trade, Mostly Biotech and the EU

October 21, 1999

Two of the thorniest issues with which the next round of international trade talks will deal are the acceptance of biotechnology and import problems with the European Union. Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky made that clear Wednesday when they testified before the House Agriculture Committee.

Not only did the two explain the problems with both issues, but biotechnology generated a large number of questions from committee members. Barshefsky said the Clinton Administration wants to form bilateral groups of scientists and regulators with the EU early next year. More progress might be possible with that approach, she said.

"In biotechnology, the EU's slow pace, indecision and failure to develop a consistent, science-based approval process have disrupted trade and threaten to constrain innovation in one of the most promising new technologies that would ensure future global food security," Glickman told the committee.

"Under the rule-based system of the relevant World Trade Organization agreements, countries must base their policies on science," he added. "To do otherwise will lead to trade chaos and thwart progress for agricultural issues in the next round."

Barshefsky said the administration hopes the round will "ensure (that) trade in agricultural biotechnology products is based on transparent, predictable and timely processes. While WTO rules cover trade measures affecting biotechnology products, we are concerned about the EU's non-functioning approval process for biotechnology."

She said "clearly" many of the most difficult negotiating challenges in agriculture will be with the EU. The United States is working "to develop consensus in as many areas as possible."

Glickman said the U.S. trade relationship with the EU "illustrates the need for agricultural reforms." In its Agenda 2000 proposal, he added, the EU "retreated from fundamental reform of its domestic agricultural policies (that) have invariably led to the continued use of export subsidies and domestic support programs that distort world prices and agricultural trade."

Import sensitive commodities drew several comments from committee members. Both Glickman and Barshefsky promised to work with the committee and the affected industries to deal with commodities such as sugar, peanuts and citrus.

Barshefksy said the administration did not want to exclude any commodities from consideration in the talk, since the result would be to "pick apart" the agenda for liberalization.

Barshefsky suggested the Administration would oppose cutting all tariffs by the same percentage, since that would leave extremely high "peak" tariffs above the levels of other duties. The United States has some of these peak tariffs for products like sugar and peanuts, and some observers said Barshefsky's comments logically implied significant cuts in these tariffs too.