U.S.-Korea FTA Rice Exclusion Shocks Industry

WASHINGTON, April 3, 2007 — FOR IMMEDIATE RELEASE — APRIL 2, 2007

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

David Coia, (703) 236-1444, dcoia@usarice.com

The USA Rice Federation was shocked by yesterday’s news that rice had been excluded from the United States – South Korea Free Trade Agreement (FTA) concluded Monday in Seoul.

“USA Rice is clearly disappointed with the news we received today,” said USA Rice Federation Chairman Al Montna, a California rice producer.

“While we appreciate and applaud the diligent efforts by USTR Susan Schwab, Ambassador Richard Crowder, and Agriculture Secretary Johanns on behalf of U.S. rice in this agreement, the fact is that U.S. rice farmers and marketers have been excluded from one of the most significant bilateral trade agreements in over a decade,” Montna said. “This is the message we will be delivering to Capitol Hill.”

“This is a bad precedent for all future free trade agreements,” said Carl Brothers, senior VP, Riceland Foods, and chairman of USA Rice’s International Trade Policy Committee. “Rice was one of the last agricultural products to close in the Central America Free Trade Agreement, and the Colombia, Peru, and Panama FTA’s.

“Today’s decision by the administration to agree to the exclusion of rice in the Korea agreement will likely encourage other potential free trade partners to expect similar treatment,” Brothers said.

“Today's action is a clear example of the importance of the farm safety net for U.S. agriculture,” said USA Rice Producers’ Group Chairman Paul Combs, a Missouri rice farmer. “Arguments about the need for reform in farm programs ring hollow when rice producers are denied the market access benefits in a purported free trade agreement.”

— 30 —

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.