WASHINGTON, DC – Yesterday, Bobby Hanks, a Louisiana rice miller and chair of the USA Rice International Trade Policy Committee, testified before the House Committee on Ways and Means Subcommittee on Trade, at a hearing entitled, Advancing America’s Interest at the World Trade Organization’s (WTO) 13th Ministerial Conference (MC13). Hanks was one of five witnesses providing feedback to legislators and the only witness strictly representing the interests of agricultural producers.
“It is widely understood and accepted that the global rice market is among the most distorted of any sector, a factor that underscores the vital importance of the U.S. farm safety net for rice farmers,” Hanks told the panel. “The impact of the price distortion of world rice prices on our industry is the main reason we are represented here today, and because the WTO should and could play a vital role in making sure our industry can compete fairly.”
Hanks also reiterated USA Rice’s role in the formation and leadership of the
Aggies for WTO Reform Coalition.
“One of the coalition’s top goals is to avoid any backsliding on agriculture commitments, including at the upcoming MC13,” said Hanks. “We are especially concerned about the insistence by India that their subsidies for commodities like rice should be exempt from WTO rules. India has threatened to take hostage virtually any outcome at the WTO unless they get what they want. But for our coalition, the status quo is better than any outcome the Indian delegation at the WTO have proposed.”
Hanks continued: “India intends to demand permanent public stockholding exceptions at MC13 by holding up progress on negotiations across the WTO chapters. By tying public stockholding to unrelated discussions, India may prevent any critical breakthroughs around dispute settlement and the eventual restoration of the Appellate Body.”
Both India and China’s consistent side-stepping of their WTO commitments made them prominent discussion topics amongst all five witnesses and a bipartisan swath of subcommittee members.
Full Ways and Means Committee Chairman Jason Smith (R-MO) made an appearance at yesterday’s hearing, and asked Hanks about the impact of India’s egregious policies on U.S. workers and the importance of the U.S. Trade Representative pushing back on India’s efforts to weaken WTO rules.
“As you know, southeast Missouri is home to 187,000 acres of planted rice, making the state fourth in production and generating more than $150 million for the local economy. I regularly meet with Missouri rice producers who have consistently told me that they face an unlevel playing field abroad,” said Chairman Smith. “U.S. export opportunities are being diminished by foreign competitors that flaunt WTO rules and unfairly subsidize rice production. India has been the most egregious violator, flaunting both the letter and spirit of WTO rules.”
Go
here to read Hanks’ full written testimony, and
here to watch the recorded version of the hearing.