Harkin, Lugar Want USDA Rule on Trade Impacts

September 4, 2001

Senate Agriculture Committee Chairman Tom Harkin (D-IA) wants USDA to decide if current farm legislation meets U.S. international trade commitments. In a letter to Agriculture Secretary Ann Veneman, Harkin and ranking Republican Sen. Richard Lugar (R-IN) said concerns over the House farm bill suggested the legislation may violate existing trade agreements and interfere with efforts to reach new agreements favorable to U.S. farmers.

"Our first priority is to craft farm policy that meets the needs of U.S. agriculture, but it is also important that we carefully consider all of the ramifications of various policy approaches," Harkin said."Trade is an integral part of U.S. agriculture policy, and it is important that we have the best judgment of the Department of Agriculture about the potential impacts on future agricultural trade of any proposed new farm legislation."

A decision in June to report market loss assistance payments as non-exempt domestic support has driven home the relationship of U.S. farm assistance policies to the nation's Uruguay Round Trade Agreement commitments, according to Harkin. He and Lugar asked Veneman to provide USDA's best estimates of the aggregate measurement of domestic support that would be provided under the House bill and a comparison of that support to the U.S. Uruguay Round commitment to limit certain types of domestic support that may distort production or trade.

"As we proceed in the Senate with work on a new farm bill, it is essential that we have the advice and guidance of Secretary Veneman and USDA on how any new legislation fits into our nation's objectives to increase future opportunities for agricultural exports," Harkin said.