Dairy Groups Urge Broad Trade Round

Several U.S. dairy organizations are calling on the U.S. government to initiate a broad round of World Trade Organization negotiations that would include talks in economic sectors beyond agriculture and services. Five organizations representing segments of the U.S. dairy industry also are urging the Bush Administration to accept WTO General Council Chairman Stuart Harbison's proposed agricultural text without amendment.

The five organizations are the American Dairy Products Institute, the Alliance of Western Milk Producers, the International Dairy Foods Association, the National Milk Producers Federation, and the U.S. Dairy Export Council.

"We are pleased with the latest draft of Chairman Harbison's text," said Linwood Tipton, CEO of IDFA. "It provides us with everything we need for a successful negotiation. The chairman has done a good job of striking a balance between differing positions."

The dairy industry is also urging the U.S. government to stand firm and resist any efforts by the European Union or others to inject into the text references to vague and undefined concepts such as the "precautionary principle" or "other legitimate concerns."

Of particular importance to the U.S. dairy industry is a commitment by WTO Members to phase out and eliminate export subsidies. "The Uruguay Round left numerous disparities which can only be corrected by pursuing further negotiations with our trade partners," said Jerry Kozak, President and CEO of NMPF. "American dairy producers appreciate the importance of world markets, but they need to see their government working towards fair trade including the elimination export subsidies. It is simple: American dairy producers want a more level international playing field."

The groups said they understand that further improvement in the trading system will result only from a broad-based round of negotiations that includes sectors beyond agriculture but which concludes in a single undertaking. Improved international trade rules are especially important during times of economic slowdown. Toward this end, the Administration should seek to conclude negotiations within three years.

They also favor further trade reform in dairy rules both to expand opportunities for U.S. exports, and to ensure that access to the U.S. market is matched by access provided in other high income markets.