U.S. Rice Industry seeks support of Congress to rebuild trade with Iraq

Annual rice import needs of former top market for U.S. rice projected at one million tons.

Washington, D.C., June 16, 2004 — The U.S. rice industry is working to rebuild trade with Iraq, once the number one market for American rice, and urging Congress to support that effort, said John King III, a rice producer from Helena, Ark., in testimony before the House Agriculture Committee today. He testified on behalf of the USA Rice Federation and the U S Rice Producers Association.

USDA estimates Iraq will need to import more than one million tons of rice per year for several years. Renewed Iraq market access could have a tremendous impact on value-added U.S. rice sales and enhance economic activity in rural rice-producing communities, King said.

Market development will be vitally important in the months and years to come, King said. He stressed the essential roles USDA’s Market Access Program and Foreign Market Development Program will play in U.S. agriculture’s efforts to rebuild its markets in Iraq. Further, the rice industry has recommended USDA establish a program for GSM-102 credit for Iraq as soon as possible, King said.

In the late 1980s, Iraq was the top market for U.S. rice. The United States provided nearly 90 percent of Iraq’s rice imports, which totaled more than 500,000 metric tons in peak years. In 1991, the U.S. government imposed export sanctions, which closed the market to America’s rice industry. Thailand, China and Vietnam are now major rice exporters to Iraq.

“We estimate the United States lost about $1.9 billion in rice export sales to Iraq from 1991 to 2003,” King said. During this time, the Oil for Food Programme, administered by the United Nations, was the main source of Iraq’s food supply. Only a small amount of U.S. rice was shipped to Iraq under this program in 2000.

In February 2004, U.S. rice industry leaders met with members of the Iraqi Grain Board in Amman, Jordan, to facilitate re-establishment of a commercial trade relationship. A follow-up meeting with an Iraqi trade delegation is planned, King said. While the rice industry works to rebuild trade, King urged Congress for its support.

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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.

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