Release No. 0376.96 Remarks PREPARED FOR DELIVERY BY SECRETARY OF AGRICULTURE DAN GLICKMAN INTERNATIONAL AGRICULTURE SUMMIT KANSAS CITY, MO.--JULY 15, 1996 WELCOME I'm glad to be here in Kansas City. I find it quite fitting to be standing in America's heartland talking about the role of U.S. agriculture in a changing world. It's equally fitting to be joined today not just by America's agriculture community, but our friends and counterparts from around the world. Welcome. Where I live, in Washington, D.C., you can go on a two-hour's drive and stand at the shore of the Atlantic Ocean, look out across its vast expanse, and contemplate the opportunities that lie beyond our borders. Here in Kansas City, you don't have to go quite so far. All you have to do is walk out into a farmer's field and stand among the corn and soybeans or go to a ranch and stare a cow in the face. Today, there are no greater symbols of American opportunities abroad than those you find right here in the heartland. AG's TRADE SUCCESS Agriculture is America's brightest spot on the trade horizon. 1/3 of American crops are destined for foreign shores, as are nearly 1 in every 12 head of cattle. Our $30 billion trade surplus makes us the leading positive contributor to the U.S. trade balance. Not cars, not computers, American agriculture is number one. Why? Because America has the most productive farmers and ranchers in the world. We regularly produce far more than our people can consume. Trade is a matter of survival -- economically for our producers, and often literally for those around the world whom we feed. America's agricultural abundance is a source of great pride. But the phenomenal productivity of our farmers is only half the story. A strong exporting nation needs a strong government -- one that's committed to opening markets, building trade ties, and promoting freer and fairer trade. CLINTON TRADE ACCOMPLISHMENTS President Clinton understands that trade will determine our economic future. That's why he's made creating global opportunities for America abroad a top priority of this Administration. From NAFTA, to GATT, to bilateral agreements on beef with Korea, almonds with India, poultry with Russia, and a slew of other trade deals -- both great and small -- this Administration has achieved more in the area of trade policy than any other post-war administration. As trade barriers fall and market liberalization becomes the clear trend around the world, we're now competing in the most open global economy since the Nina, the Pinta, and the Santa Maria sailed in search of new worlds (and Indian spices). Prosperity has been our reward. This year, America's agricultural exports will reach $60 billion for the first time in history. All told, agricultural exports have gone up $18 billion under President Clinton, and they will continue to grow in the years ahead. Trade with our neighbors-- Mexico and Canada -- is at an all-time high. This year, we expect to sell $4.4 billion worth of agricultural goods to Mexico -- a new record and a stunning feat considering their recent economic woes. All told, trade with 7 of our top 10 markets reached new heights last year, and the arrows are likely to keep pointing up. As all eyes turn toward the big emerging markets of tomorrow, we'll focus more attention and resources on trade strategies in Eastern Europe, Latin America, and particularly the Pacific Rim. These developments are good news for American agriculture and for American workers. Study after study shows that businesses that export -- whether they're farms or computer manufacturers -- create jobs on American soil that pay higher wages and offer better benefits. Farm exports created 1 million U.S. jobs last year -- 1/3 of them in rural communities where unemployment runs above the national average. So while the future of U.S. agriculture lies in distant markets in far-away lands, it has a very real, positive effect on our people here at home. For many in agriculture, access to foreign markets makes the critical difference between bankruptcy and solvency, efficiency and prosperity. So our tremendous trade success gives us good reason to celebrate. We've made great progress in the global marketplace. But we have yet to reap its full bounty. We must maintain America's reputation as a reliable supplier. We must ensure our trading partners live up to the commitments they've made on paper. We must challenge political science with sound science and aggressively take on bogus sanitary or phytosanitary regulations, the trade daggers of the future. And, we must welcome additional countries into the circle of free and fair trade. TRADE VALUES I mention America's trade agenda and accomplishments not to gloat, but to illustrate the vast opportunities available to every country. Some will always doubt the wisdom of embracing the world. They have many allies in history. After World War I, America looked across the Atlantic and decided to pull up the drawbridge. The Great Depression and global economic collapse soon followed. The second world war reconnected us to the world beyond our shores and reminded us that we're all in this together. But that doesn't mean we will be passive witnesses to the world trends around us. As President Clinton said when he signed the Uruguay Round agreement, No country can escape the global economy ... (Therefore) we must lead it in a direction that is consistent with our values.' America's values are well known: Equality. Opportunity. Fairness. Democracy. Freedom. From helping struggling countries become vibrant democracies to opening our own markets while others clung to protectionism, America has long served as a flagship of stability in a changing world -- emanating steady progress that's allowed others to follow in our wake -- sailing together toward a more prosperous, peaceful world. ECONOMIC/MARKET DEVELOPMENT From the geopolitical shifts of the 80s to the market liberalization of the 90s, more and more countries are coming to this same conclusion: No nation can go it alone. Nowhere is this more true than in developing countries. I want to applaud this conference for making the critical link between emerging markets and the importance of development. It's a link that's not made often enough. And it's a link that has its own set of critics -- those who want to see the global marketplace divided into winners and losers. That's a short-sighted vision that would only lead us back down the road to greater conflict and isolationism. The United States takes great pride in sharing our values with developing nations. For many years, our efforts were built around a strategy of promoting emerging democracies.' This year, we made an important shift to emerging markets' in recognition of the fact that market liberalization often precedes and then fosters democratic reforms. The Emerging Markets Program will spend $10 million annually over the next 7 years helping developing countries reach the point where they can enter the global marketplace from a position of strength. By sharing our expertise -- in agriculture, technology, trade, and business -- we can help them shore up their economies and transform them into stronger markets for U.S. goods. Where the old emerging democracies' program focused primarily on the former Soviet Union, Eastern Europe, South Africa and Central America, the new emerging markets' program will expand to include places like China, Vietnam, Pakistan, Algeria, Turkey, Peru and Ecuador. This allows us to shift resources from the stable markets of Europe to the rapidly expanding markets of East and Southeast Asia. We're opening agriculture offices in Hanoi and Jakarta and adding marketing expertise in Tokyo and Seoul. These countries are showing a good-faith desire for greater openness and an improved standard of living for their people. They see food security through the prism of free trade and market-oriented domestic farm policies. We will help them achieve these goals, and one of the ways we'll do that is by developing their agriculture. Inevitably, some will say we shoot ourselves in the foot by doing so. To them, I would say two things: 1) We have an overriding humanitarian obligation to help countries feed their people; and 2) We know from experience that productive agricultural sectors spur strong overall economic growth in developing nations, increasing incomes, promoting political stability, and setting off a chain reaction in trade that benefits both our countries. Look at China. Rising populations, the emergence of a large middle class and a growing preference for Western diets have made it the fastest growing market for America and the world. Or take the country we helped rebuild 50 years ago after it was devastated by war. In the short run, we helped them feed their people. More importantly, we helped them regain their economic footing -- putting them back on track to independence and prosperity. This year, that country will buy $10.4 billion in U.S. agricultural goods. I am, of course, referring to Japan. We played a similar role in Korea, starting in the 1970s. Today, they're a $4.6 billion market for our farm products. Taiwan, too. They'll come in at about $2.8 billion this year. It comes down to the basic question of whether you want a customer with money or without. It doesn't take a Harvard economist to figure out that economic development is market development. Call it the karma of humanitarianism -- what you give to a country in need eventually comes back to you -- frequently in greater abundance. FOOD SECURITY By the year 2000, half our exports will be to the Pacific Rim. For import-dependent Asian nations, food security will remain of paramount importance. As long as markets remain open, free trade can serve as a critical safety valve -- relieving pressure on the domestic markets of exporting nations, and ensuring a steady flow of food into importing nations. This relationship, of course, does not work for every country. Famine, drought and other crimes of nature, along with civil strife, ensure that some nations will always need special help. The United States is the largest contributor to food aid in the world. We also give heavily to international research, technology transfer and world bank initiatives. Our commitment will not waiver. We will continue to pursue through research the holy grails of agricultural productivity -- how to increase yields with less water, with less wear on fertile soil, and in harsh weather conditions. And we will remain a reliable supplier. Tight grain markets have been a lightning rod in the food security debate. The United States, from day one, has been firm in our resolve that there will be no U.S. grain embargo. We've made the commitment to free and fair trade, and we will not waiver. The old ways are not an option for us. Exporting nations, like the U.S., have an obligation to be reliable suppliers. But importing nations have obligations, too. They should be consistent buyers, and must avoid jumping in and out of the market, disrupting the purchasing power of other nations in need of food. We also need to see more regional responsibility. In recent years, many countries have stepped forward and increased their contributions to food aid. Countries in developing regions whose economies are ahead of the curve must join our efforts. These and other issues will be at the heart of the World Food Summit this November in Rome. The United States will participate fully. For many countries, food security is a matter of national security. Therefore, it is a matter of world peace, and we all must take up the challenge. A LOOK AHEAD We must work together to ensure no country is left behind as we enter this new era of openness. When we started down this road after World War II, trade was in commodities or manufactures. Tariffs and quotas -- easily recognizable -- were the primary barriers. Now, trade includes intellectual property, and sanitary and phytosanitary requirements are becoming major factors affecting trade. Negotations to open markets and keep them open will be more complex. Future negotiations will also focus on new issues. This creates opportunities for us to shape the principles of world trade, for example, by better promoting sustainability. Increased trade does not have to mean environmental degradation. In fact, through improved living standards, free trade can make environmental protection more affordable. Our most recent breakthrough for global trade was the Uruguay Round of GATT. For the first time, export subsidies were reduced, non-tariff trade barriers were virtually eliminated, trade distorting subsidies were reduced, a code of conduct to challenge phony science trade barriers was established and many outright import prohibitions -- such as Japan's and Korea's ban on imported rice -- were abolished. This is an impressive list of firsts. And we agreed to continue our trade liberalization efforts even before the results of the Uruguay Round were completed. This will ensure forward progress and help avert the natural tendency to backslide toward protectionism. Now we will begin focusing on the next round for agriculture which will take place in 1999. We'll want to further improve market access, further reduce unfair subsidies, and challenge market distorting mechanisms, such as state trading enterprises. All of this, of course, will take place in the context of additional countries seeking membership in the World Trade Organization. So opportunities abound to continue improving the global trading environment. CONCLUSION So I'm optimistic. Our global economy is young, but it is strong. Our countries are letting in the free markets of the future and pushing protectionism into our past. These are exciting times to witness. Earlier this year, I went on a trade mission to the Pacific Rim. One of my visits there was to a Chinese supermarket where I learned about all kinds of produce that I'd never seen before. But I also felt oddly at home amid Gerber baby food, Washington apples and Doritos. Before then, I'd only talked about the global farmers' market. Standing there in a Beijing grocery store, I saw it with my own eyes. Looking at all of you, I'm reminded once more of how closely intertwined our futures have become. The rising tide of world trade can and must lift all boats. Together, we can build a global farmers market where our agricultural goods are traded freely across borders meeting the food needs of the world. Its construction will not always be easy, but our reward will be a new era of peace, plenty and prosperity for all our people. It is worth it. Thank you. # NOTE: USDA news releases and media advisories are available on the Internet. Access the USDA Home Page on the World Wide Web at http://www.usda.gov