No Reductions in Domestic Support without Clear Market Access Gains

USA Rice Federation on New U.S. WTO Proposal

WASHINGTON, October 11, 2005 — The USA Rice Federation today viewed as aggressive Ambassador Rob Portman’s comprehensive negotiating proposal for moving the Doha Round forward, but remains cautious of the proposal’s implications for agriculture, particularly rice. USA Rice urges U.S. negotiators to remain focused on the key goal — real and sustainable market access gains as a condition for any cuts by the United States in domestic supports.

“Ambassador Portman took a necessary step in leading World Trade Organization (WTO) members to the next, more intensive level of negotiations,” said Carl Brothers, chairman of USA Rice’s International Trade Policy Committee and senior vice president, Riceland Foods Inc., in Stuttgart, AR. “The rice industry needs to remain vigilant and to hold U.S. negotiators to their commitment that any offers to cut U.S. farm programs are conditional on meaningful and enforceable market access openings and subsidy cuts in other countries,” Brothers continued.

“While the U.S. proposal for capping and cutting agricultural tariffs is aggressive and inclusion of a ‘peace clause’ to protect against WTO litigation is positive, we still have many questions about the proposal,” said Paul Combs, a Kennett, MO, rice producer and chairman of the USA Rice Producers’ Group, a member organization of the USA Rice Federation.

“In addition to high tariffs, U.S. rice exports have long suffered non-tariff trade barriers from countries that treat rice as a sensitive commodity and from ineffective implementation of existing trade agreements. Our producers, millers and marketers always seem to have one hand tied behind their backs, a handicap that’s made worse by unilateral U.S. trade sanctions,” Combs continued.

“We share the concerns about the WTO trade talks expressed last week by Agriculture Committee chairmen Sen. Chambliss (R-GA) and Rep. Goodlatte (R-VA) in their joint letter to Ambassador Portman, and we look forward to a close dialogue with the administration and Congress as we assess further today’s proposal,” Combs concluded.

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CONTACT: Bob Cummings, (703) 236-1473, rcummings@usarice.com

USA Rice Federation is the national advocate for all segments of the rice industry, conducting activities to influence government programs, developing and initiating programs to increase worldwide demand for U.S. rice, and providing other services to increase profitability for all industry segments.