January 13, 2004...Saint Louis, Missouri... The 25,000 producer-members of the American Soybean Association (ASA) expressed appreciation for the efforts of United States Trade Representative (USTR) Robert B. Zoellick to restart trade negotiations that will address global market access, domestic support, and export competition. These three trade issues are of vital importance to U.S. soybean producers because nearly half the value of the U.S. soybean crop is exported each year. ASA supports Ambassador Zoellick in his hope that 2004 should be a productive year for World Trade Organization (WTO) negotiations.

"Ninety-five percent of the world’s population lives outside the United States, and 87 percent of the market growth for our soybeans has been outside the U.S.," said ASA President Ron Heck, a soybean producer from Perry, Iowa. "The future of the U.S. soybean industry depends on successful trade agreements that improve market access for U.S. soy and livestock products, and eliminate unfair export practices."

Ambassador Zoellick believes there is general interest in advancing the Doha Development Agenda (DDA), but that there is uncertainty among the ministers about how to reengage the negotiations. On January 11, Ambassador Zoellick sent to trade ministers around the world a letter containing ideas on how the ministers might move ahead.

"ASA has supported the goals of the Doha mandate, and the direction of the U.S. negotiating position on agriculture," Heck said. "Ambassador Zoellick’s letter makes clear that the United States is prepared to make substantial offers to improve the world trade environment, but that these offers must be matched by a willingness by other countries to also make substantial commitments and reforms."

In his letter, Ambassador Zoellick listed agriculture as "the essential topic and catalyst" for the negotiations. ASA supports Ambassador Zoellick’s goal of establishing a framework for negotiations by mid-year, and having the ministers meet, perhaps in Hong Kong, before the end of 2004. ASA’s support for any final agreement will depend on whether specific objectives are achieved within and between the principal areas of the negotiations.

"Market access is the critical element of trade negotiations," Heck said. "Any final agreement must harmonize tariffs and substantially improve market access for U.S. soy and livestock exports in both developed and developing countries. Since most of the growth in future demand for agricultural products will occur in developing countries, these developing countries must also make substantial improvements in market access and not be allowed to exempt ‘special products’ from required tariff reductions or increases in Tariff Rate Quotas."

The degree to which ASA members will support reductions in trade-distorting domestic programs is dependent on the degree to which market access is improved in both developed and developing countries. Similarly, the degree to which U.S. soybean producers will support reductions in trade-distorting domestic support is dependent on whether developing countries that are major agricultural exporters agree to accept similar disciplines on their own trade-distorting credit, investment, and tax subsidies. Toward this end, ASA insists that domestic support disciplines must be applied consistently to both developed and developing countries that are major agricultural exporters, and that developing countries who are net food exporters must not be allowed to be exempt from production, marketing, risk management and transportation or other subsidies that developed countries must discipline.

Soybeans were planted on 28 percent of the United States’ cropland last year, and are the highest value U.S. agricultural commodity export. Half the value of the $15 billion U.S. soybean crop is exported each year as whole soybeans, as processed soybean meal and soybean oil, or in the form of value-added foods such as pork, poultry, dairy and fish products.

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Ron Heck, ASA President, 515/275-2853, checkers@netins.net
Bob Callanan, ASA Communications Director, 314/576-1770, bcallanan@soy.org
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