Farmers Union Opposes TPA

April 17, 2002

The National Farmers Union board of directors advised Senate leadership not to consider "fast track" trade negotiating authority, also known as trade promotion authority (TPA), an authority other major farm organizations have supported.

In letters to Senate Majority Leader Tom Daschle and Senate Minority Leader Trent Lott, the NFU board urged opposition to the "Bipartisan Trade Promotion Authority Act of 2002," previously approved by the Senate Finance Committee. The letter insists the legislation inadequately addresses U.S. trade objectives, domestic economic growth and fair trading relationships with other nations.

"The prospect of TPA as proposed in the Senate bill raises significant concern among farmers and ranchers about the United States' commitment to maintaining a strong and diverse domestic production agriculture sector," the letter stated. "The legislation fails to ensure that issues critical to the competitiveness and long-term economic stability of U.S. farmers and ranchers are addressed."

NFU's position is not shared by most major commodity and farm groups, who have generally supported TPA as a way to make it easier for U.S. negotiators to strike agreements to open foreign markets and reduce overseas trade barriers and export subsidies.

Specifically, NFU maintains that the legislation fails to address exchange rates and currency valuations, enforcement of fair labor standards and harmonization of environmental regulations.

"Each of these issues, individually, likely has a greater influence on agricultural trade flows and U.S. farm prosperity than all of the market access and tariff issue priorities of the administration combined," said NFU President Dave Frederickson. Frederickson said adoption of TPA would indicate congressional approval of trade deals that place the few remaining economic and unfair trade protections on the table.

NFU said TPA also forces Congress to give up its mandated oversight responsibilities. "We oppose providing trade promotion authority to any administration until the problems and inequities with current trade agreements can be resolved and these issues are fully addressed," Frederickson said.

"These objectives should not be ignored in a rush to approve 'fast track' authority that is ill-considered and may further damage the already fragile agricultural and rural economic base of this nation."