International Grains Council Release No. 0196.97 Remarks of Secretary Dan Glickman International Grains Council London, England -- June 19, 1997 INTRODUCTION Thank you. It is an honor to be here. Thomas Macaulay, 19th century British historian, lived in a time when free trade was, as it is now, a major issue. He wrote, Free trade, one of the greatest blessings which a government can confer on a people, is in almost every country unpopular.' Many of us share this paradox today. Our countries are thriving in the new global economy, yet our people are skeptical of it. We find ourselves making the case to our international partners that free trade benefits them, while at home we argue that it is good for our own people, too. Coming out of an era of us versus them, East versus West antagonisms, it's hard for people to grasp that freer trade is simply good for all of us. It is true, we do not live in a perfect world. In a perfect world, trade would not be a prickly issue at all. Buyers and sellers would simply find mutually agreeable terms and each be on their way. But today, buyers and sellers are only part of a large cast of characters, entities, and policies that control the exchange of goods, making trade vastly more complicated, and sometimes unfair ... unfair to those who do the trading, and -- in the case of trade in food -- unfair to citizens who must pay heavy-handed subsidies, and unfair to hungry people around the world. Liberalizing agricultural trade is about much more than business. It is about our emerging community of nations. It is about how we deal with one another to the benefit of our own citizens and the world's. These are economic issues, certainly. But they also have to do with our environment, with world hunger, with war and peace. All this, we call world food security.' I raise these issues not because I took a wrong turn and was meant to be addressing a humanitarian relief organization. I raise these issues before the International Grains Council because we who work in agriculture, and we who define the terms of agricultural trade, must never forget why we have embarked on this shared -- sometimes irksome -- endeavor. Fifty years ago this month, one of our great American Secretaries of State, George Marshall, told his countrymen and women, 'whether we like it or not, we find ourselves, our nation, in a world position of vast responsibility. We can act for our own good by acting for the world's good.' With those words, the United States began a historic effort to rebuild this continent. That same year, 1947, GATT was born. It's no coincidence. The nations of the free world were on a mission. We used freer trade to build economic strength, international relations, and peace. That is our history. It can also be our destiny. A DIFFERENT WORLD Already, it's a different world. We live in a global environment that's transformed quite dramatically from what it was just a few years ago. From South Africa, to South America, to Eastern Europe, we see freer markets and freer people marching hand in hand. As governments untangle themselves from the marketplace, farmers are planting more for world demand, and less to satisfy bureaucrats. We in government like to think that we can fix everything. But today's food trade is a classic retort. It shows that perhaps the best way government can help right now is by facilitating the private sector, encouraging competition, discouraging concentration, and letting markets signal producers as to what world food needs actually are. We are all making progress on that front: The European Community is changing its Common Agricultural Policy, including reducing support prices on grains. Australia is restructuring its Wheat Board. In Canada, rail transport subsidies are gone. And, Brazil has removed the export tax on soybeans. The United States, too, is fundamentally changing its agriculture programs. In most cases, government no longer manages supply and demand. We are phasing out traditional farm income supports, and our producers are largely free to make their own planting decisions. That freedom is literally changing the American landscape -- as the corn belt plants soybeans, as Southern cotton growers try corn, and other regional crop traditions are supplanted by what the market wants. Despite last year's volatile grain markets, we kept our word that the U.S. would remain a reliable supplier -- no export taxes, no embargoes. Foreign buyers had equal access to U.S. grains. Of course, we reserve the right -- as all countries do -- to self defense. I am prepared to use export subsidies to protect U.S. producers from unfair trading practices. For nearly 2 years, we've held our fire in hopes that others would cease theirs. But we will not do so alone forever. Free and fair trade -- by definition -- can only be mutual. But overall, world agricultural trade is freer, more competitive and more fair. It is also more complex. We see that quite clearly with grains. My country and many others are now exporting more value-enhanced products -- from baked goods to products with special characteristics, such as high-oil corn. These products require more processing, better technology, faster transportation, and more people involved in their production and shipment. Much of the labor stays at home, as do the profits. So complexity is not always a bad thing. We have made a good start. TRADE CHALLENGES Yet even with our reforms, trade distortions continue to be a major drag on government coffers, on our people's wallets, and on the efficiencies we need to feed a growing world and empower our people to compete to their best advantage in global markets. Export subsidies encourage producers to maximize income by maximizing production, regardless of the cost or demand. The result? Lower prices for farmers in other countries, likely trade wars as nations are forced to retaliate with subsidies of their own -- not to mention various food gluts and shortages. State trading disrupts and manipulates markets through artificial pricing. On the export side, they often hide subsidies. On the import side, they can contrain supply and raise prices for consumers. High tariffs are equally damaging, and far more widespread. They shield producers from the realities of the marketplace, and fuel the need for expensive subsidies and price supports. We have made good progress in reducing tariffs, but we can and should go even further. But perhaps the greatest threat to freer trade is phony science. Unfounded sanitary and phytosanitary objections have the potential to wreck the delicate balance of fairness we are trying to establish. They threaten to replace tariffs and other barriers just as they come down in earnest -- leaving us walking in place when we ought to move forward. Sound science must be the final arbiter of trade disputes. Of late, we have seen significant breaks in the logjam. The United States was able to expand market access for U.S. fruits and vegetables in Chile, Japan, and China. We reached general agreement with the EU on veterinary equivalency, smoothing the path for freer trade in meats. Unfortunately, we haven't resolved our difference on poultry. But where we have succeeded, there has been a strong willingness on both sides to work through these issues in a good faith, science-based manner. We have all made the critical decision that some degree of agricultural trade liberalization is in each of our best interests. Now, we must have the courage to step forward yet again. We need to build trust and move forward together -- not grudgingly, but willingly -- in a good-faith effort to set a positive and lasting precedent for world trade. CHINA That, of course, requires that we all play by the same rules. Take China. 1 in 5 people on this earth live in China. It is the world's largest and fastest growing market. China's accession to the World Trade Organization could be a win all around. Grain exporters would gain greater consistency and a more level playing field in the world's largest market. But China, too, would benefit from fair trade. After all, it is a net agricultural exporter. We can't afford to forget that. We can't have a WTO member -- especially one of China's size and economic strength -- that doesn't play by the same rules as everyone else. Tariffs and subsidies need to come down. They need to abide by sound science. State trading needs to be phased out. We have seen some progress. China has agreed to let foreign grain traders deal directly with private importers, once they are in the WTO. It's important that we continue to see progress, and continue to push for it. Right now in my country, there is an earnest debate underway over whether we continue Most Favored Nation trade status -- which is actually normal trade relations -- with China. The debate actually has very little to do with trade. It has to do with how the United States can be most effective in encouraging China to be a responsible member of the world community on other issues -- most notably human rights and the transition of Hong Kong. The answer for President Clinton and the vast majority of our foreign relations community is obvious: Trade is the currency of the post-Cold War era. Often, it is our primary means of dealing with one another. The world is no longer carved up into opposing camps. Democracy has prevailed, and we are defining a new world -- a more peaceful, prosperous and open world. Creating unity is not easy. We see this here in Europe right now with the debate over the Euro. I won't throw myself into it, except to say that it is human nature for people to want to preserve their cultural identity. Stronger global economic ties don't have to threaten that. This is a debate we have all the time in trade negotiations, particularly with food. Negotiators always say that food issues are the toughest to iron out, and for understandable reasons. They cut to the heart of deeply held beliefs about how a country feeds itself -- what we call self-sufficiency. During the Cold War, dependence on imports was seen as a sign of weakness. It doesn't have to be today. A robust, reliable and interdependent world marketplace could give our nations unprecedented strength. For one thing, it would free our people to produce what the market values most from them. When I make this case in places like New York City where there aren't too many farmers, I frame it this way. I say, look at your own circumstances. You need to feed yourself every day. How do you do it? Most of you go to work, you earn a paycheck and you go to the grocery store. I even go further out on a limb and bet that they do significantly better for themselves buying food through the marketplace with their earnings than if they spent half their time digging up their backyards. Clearly, it's more complicated on a national scale, but it's equally outdated. We need to be able to rely more on each other. To do that, we have got to free agricultural trade. Building on the progress of the Uruguay Round is the challenge of the 1999 negotiations. My challenge to all of you today is: Why wait? Freer and fairer agricultural trade will leave a lasting, positive imprint on our world. It will leave a more peaceful, more prosperous and less hungry world. We should not wait for that world. We should make it. I understand that some countries do want to put on the brakes. They say that trade in food is different. I agree. But it takes me to the polar opposite conclusion. Agricultural trade is the most important trade that we do. It is at the heart of our 50-year endeavor. It will help us build a community of nations that rises together economically, democratically, and peacefully. BIOTECHNOLOGY Achieving this vision for our future will require living up to the commitments we made at the World Food Summit in Rome. Each of us must do our part to cut in half the number of the world's hungry by 2015. At its heart, freer agricultural trade is about feeding the world. Uninhibited trade allows food to flow easily to those who need it. Free market reforms allow countries to develop to the point where they can buy or grow the food they need. We cannot feed a world of isolationist nations. But will we even have enough food to go around? The honest answer is maybe. I talked earlier about the importance of sound science governing our decisions, nowhere is that more critical than in waging world war on hunger. In subsaharan Africa -- where hunger is most epidemic -- it is estimated that a doubling of the projected increase in grain yields over the next 10 years could cut the region's hungry by half -- making a 25% dent in total world food aid needs. That is why, on the shores of Lake Victoria, you'll find Kenyan researchers developing maize seeds that have been genetically altered to resist a parasite that's cut corn crops in half for millions of African farmers. Those researchers are working not to boost farm incomes, but to save the lives of their people. Technology has given us the means to help them. The best scientists in the world have shown these means to be safe. Can we stand idly by and not use them? Can we not share what we know with countries who are desperate for these advances? Surely, the answer is no. I know that biotechnology is an extremely sensitive issue here in Europe. I know this from personal experience. When I led the U.S. delegation to the World Food Summit, protesters pelted me with genetically-engineered soybeans, then took off all their clothes to draw the media's attention. I'll admit that's not likely to occur in my country. But America's consumer movement is stronger than ever. President Clinton is a very committed advocate of it. He has done more than any President in our history to improve America's food safety. Sound science is the sole arbiter of our public health decisions. In fact, our record is so strong that -- despite the public's growing cynicism toward government, in general -- food safety is an area where Americans feel that government does an outstanding job looking out for them. I have the utmost respect for consumers here in Europe who have a genuine concern for the public health. I, too, take a first do no harm' approach. I, too, value healthy skepticism. But I also believe that sound science must trump passion when it comes to answering the most critical question of the 21st century: How do we feed a growing world in a sustainable way? This spring, I travelled to the international wheat and corn research center -- CYMMET -- in Texcoco, Mexico, looking for answers. These laboratories are the birthplace of the Green Revolution -- the massive technological advances of the 60s that enabled us to feed a rapidly growing world without destroying our environment. Since that visit, I've met the father of the Green Revolution, Dr. Normal Borlaug. I hope that all of you get the chance to meet him, too. When I toured his facility, I was stunned into silence by a sign on one of the walls. It had to do with Norin 10 -- the dwarfing gene for wheat -- the sign read: A single gene ... has saved 100 million lives.' Their work, and others like it, can save millions more ... which leaves us with some choices to make. We know that biotechnology holds out our greatest hope of dramatically increasing yields ... in harsh weather climates ... using less water ... less pesticides ... crops with more nutritional value ... ... and without the destruction of fragile lands and forests. We also know that test after rigorous scientific test have proven these products to be safe. We'll continue to insist on an arms-length, objective testing process that is independent from industry. Given these assurances, what do we do? I can only speak for the United States, but our position is very firm. As long as these products prove safe, we will not tolerate segregation. We will not be pushed into allowing political science to govern these decisions. The stakes for the world are simply too high. Ask diabetics why they choose to take insulin -- which is genetically engineered. Ask cancer patients and AIDS patients who are treated with a whole generation of genetically engineered drugs. Their answer is simple: It's life or death. Ultimately, that is our choice as well. It is our choice. But those who turn a blind eye to this technology must ask themselves: What is the alternative? How do we feed more people without tearing up the rainforests to create more farmland? How do we decrease pesticide use? How do we do it? ... Hope? ... Crossed fingers? ... Wishful thinking? ... Blind adherence to culture and history? The truthful answer is: We can't. There is currently no alternative that gives us these dramatic advances. In one hand, we have a technology that has proven safe and promises a second revolution in food production. The other hand is empty. There is no way to feed a hungry world, or an economically growing world, without embracing the future. We must make this choice. We have an obligation to our world, and it cannot wait. If we leave these decisions to future generations, it may very well be too late. If we do not act soon to acheive sustainable agricultural growth, we cannot sustain this world. CONCLUSION This is not an easy time to lead. But the times have handed us a tremendous opportunity to change the way of the world. Our chapter in history may not provide the dramatic fodder of allies and enemies, battles won and lost. But it's certainly the chapter I want my children to live. A sustainable earth. Soils that last another 10,000 years. A less hungry world. A peaceful, prosperous community of nations. These can all be our legacy. How we trade in food will say a lot about our commitment to seeking it. Let us graduate together from tentative first steps to the confident, bold strides of global leadership. 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