IDFA: WTO Talks Provide Great Opportunity for U.S. Dairy Industry

Preparing for the approach of next month's World Trade Organization (WTO) Ministerial in Hong Kong, the House Agriculture Committee held a hearing on November 2 to review the status of the agricultural negotiations. IDFA submitted testimony for the hearing, stating that the WTO Doha Round holds "great promise" for the U.S. dairy industry and that the association strongly supports the current U.S. position in the talks. The association also urged U.S. policymakers to remain steadfast in their efforts to reduce tariffs, slash domestic subsidies and eliminate export subsidies.

"We are on the verge of a great moment for the U.S. dairy industry," stated IDFA President and CEO Connie Tipton in the comments. "If we handle the Doha negotiations carefully, not only will we open new markets around the world for U.S. dairy producers, but we will position our industry in a policy environment that can ensure we meet the needs of consumers around the world."

After the hearing, Tipton expressed appreciation for Committee Chair Bob Goodlatte's (R-VA) opening remarks that included his strong disappointment with the European Union's (EU) push to include geographic indications (GI) protections for food names in the WTO agreement. As reported previously in News Update, the EU would like to restrict the worldwide use of such food names as parmesan and feta cheese that were originally based on a regional link.

"We were very pleased to hear Chairman Goodlatte voice his opposition to EU's demands on GI protection for food names, as this is a crucial issue for our members," said Tipton. "The EU's position is untenable, and we are working closely with U.S. officials so that this does not become part of the WTO agreement."

Hearing witnesses included U.S. Secretary of Agriculture Mike Johanns and U.S. Trade Representative (USTR) Robert Portman, both of whom appeared before the committee to discuss the recent U.S. agriculture proposal to WTO members. IDFA has been very supportive of the Bush Administration's approach to the global trade talks, strongly believing that the Doha Round will have a positive effect on U.S. dairy exports and provide a catalyst for domestic dairy policy reform.

During his testimony, Ambassador Portman outlined the White House's reasoning on why it is important to keep the Doha Round moving forward. For instance, he noted that the agreement could help level the playing field, outlining that the EU is able to subsidize its farmers three-to-four times as much as the United States does. Worldwide, the average agricultural tariffs are about 62% while the U.S. tariffs are about 12%. He reiterated his promise that the United States will not withdraw from the WTO discussions, no matter what happens in Hong Kong. However, he did acknowledge that the viability of the Doha Round would be in jeopardy if significant progress is not made next month.

Secretary Johanns also reaffirmed the strong commitment that the United States has to the WTO, adding that the United States needs a Farm Bill that takes into account world trade rules. He pointed out that about 25% of U.S. agriculture income depends on exports.

Secretary Johanns and Ambassador Portman are traveling to Europe next week to continue the WTO negotiations.

To read IDFA's full testimony to the House Agriculture Committee, click here. (.pdf) For more information, members can contact Helen Medina at hmedina@idfa.org, 202/220-3507.

Posted November 7, 2005