Farming's Prosperity Tied to Trade

NASHVILLE - Jan 9/06 - AFB -- The future prosperity of American farming and ranching is tied to a worldwide expansion of the middle class, said Ambassador Richard Crowder, the country’s new chief agricultural negotiator, during his address at the American Farm Bureau Federation’s 87th annual meeting today.

Because more than 95% of the world’s population lives outside the U.S., Crowder said the U.S. is pursuing a trade policy to raise the incomes of billions of people and improve access to those markets.

“U.S. farmers have a lot at stake in the economic growth of other countries,” Crowder said. “Most of the world would spend more on food if they had more money—the best thing we can do for our farmers is empower consumers in other countries to increase demand for food products. Fostering this demand requires increasing income in other countries.

“As incomes rise in the rest of the world and our market further matures, trade will be ever more important for agriculture,” Crowder said. “Consumers around the globe will not only want but will also be able to pay for products from the United States.”

China is a good example of the power of economic growth among the middle class, Crowder said. Since 2001, when China joined the World Trade Organization, U.S. agricultural exports to China have increased 189%, from $1.9 billion to $5.5 billion. Other countries with growing middle classes and are therefore, opportunities for American agriculture, include Turkey, the Philippines and Indonesia.

Regarding ongoing WTO negotiations, Crowder said countries must focus on market access issues leading up to April 30, 2006, the date by which WTO member countries agreed to establish basic formulas and rules for further negotiations.

“This is an aggressive timetable, but it is needed to conclude the Doha Round by the end of 2006, before the expiration of the president’s trade promotion authority in 2007,” Crowder said.

Crowder said it is his job to “get the best possible deal” for American agriculture in the Doha Round before Congress writes the next farm bill.

Crowder said the best way to help bring economic benefits to all farmers is through the WTO negotiations. However, he added, “the potential to improve trade opportunities also exists” outside the WTO in the form of free trade agreements. He said the U.S. has concluded FTAs with 17 countries that represent significant markets for U.S. agricultural products. Negotiations are under way to establish agreements with 10 more countries.