Lugar Suggests Quid Pro Quo on Trade Pact

February 1, 2000

Senate Agriculture Committee Chairman Richard Lugar (R-IN) says that if the European Union continues to be the major thorn in the flesh of international trade negotiators, it may be time to remind the EU that the region’s security is not divorced from its commerce. "Our strategic relationship is NATO," says Lugar, yet "bit by bit we’re being blockaded by unreasonable European import policies."

"We’re going to have to talk with the Europeans about our strategic relationship, and that is NATO," Lugar said Monday at a news conference. "We protect Europe and have been doing that for a long time. It’s very important that in this relationship we have that security and commerce are not divorced. It’s a comprehensive relationship."

It’s "vital" that a new round of World Trade Organization talks get underway, he said. "There’s no way for price to move dramatically unless we move goods. With Europe stopping us cold, we’ve got to talk about that. If we can’t do it in the WTO, we’d better get busy on bilateral (agreements)."

Lugar said his committee may hold hearings on the issue of labeling biotech crops, as required by an agreement reached last weekend among 130 nations. The agreement, sponsored by the United Nations, does not apply to processed foods. "I’m concerned about this whole business"of biotech labeling, Lugar said. The EU is putting "a damper on trade" with its position against accepting any imports of crops that have been genetically engineered. "And it’s under the guise of protecting the environment, not consumer safety."

The chairman also said the Clinton Administration’s expected proposal for a supplemental income program for farmers again brings up the question of whether farmers are entitled to financial relief year after year. "So far, the answer is yes," he said.

Beyond that, the crucial question is whether Congress should go back to supply controls or stay with a market economy for agriculture. President Clinton and Agriculture Secretary Dan Glickman have said they don’t want a return to supply controls, Lugar noted, but "if we’re talking about raising price, it means lower supply."