We are having some problems here. It's not going to work. Is there some other place we can --

MS. CORNELIUS: You're okay.

DR. SIDDIQUI: Is it okay?

MS. CORNELIUS: Yes, sir.

DR. SIDDIQUI: As we begin for the WTO Round in Seattle, we felt that we needed to go around the country -- and this is a very ambitious agenda here with holding 12 Joint USDA/USTR sessions in terms of listening to what the different segments of the agriculture industry around the country are thinking. This will help us to prepare for the next Round.

As you know, the next meeting will be in Seattle at the end of November. This will kick off the negotiating process in 134 nations. We appreciate the time and effort that you had made to attend this session today. As we prepare for the beginning of the new Round of multi-national negotiations it is critical that we hear and understand the issues that should be priorities for us as we go around the country. This will help us in developing the U.S. negotiating status.

I think as a background I need to discuss with you where we have been. This slide -- I apologize for the distortion of it because of the wall -- but this gives you the terms of the General Agreement on Tariffs and Trade or GATT that was established in 1948. There have been altogether eight multilateral negotiations or Rounds, the last being concluded in 1994. For your information, it took eight years in the making from 1986 to 1994.

The establishment of the World Trading Organization or WTO, and a number of other issues as I go along I will discuss, was a major accomplishment of that last Round, especially in creating a trade disputes resolution process was a major accomplishment of the last Round. Now we are about to begin the next Round at the end of November. Next, please.

This is exactly what we are trying to do with the series of Listening Sessions here and around the country. We are seeking your input and help in terms of shaping our trade policies for the new Round under the WTO process as we enter the new millennium. As you are fully aware, while our national economy has been booming, it has been a year of struggle and hardship in many parts of rural America.

We at USDA, from Secretary Glickman on down, recognize the hardship you folks are, especially in parts of the country where agriculture is not as diversified as in Florida, going through because of the low grade prices and commodity prices. At USDA we are marshalling all of our resources in working with Congress in terms of finding ways to help the farmers across the country. We are making sure that emergency economic relief gets to the farmers as soon as possible. The strengthening of the farm safety net is one of the top agendas for the work for Secretary Glickman as well as the Administration, that consolidations and mergers which are sweeping agriculture are subject to proper oversight and scrutiny. We continue to press for opening new markets overseas.

I'd like to, as I begin, to go over what our agenda should be. These are the three priorities I'd like to discuss in the next few minutes -- the critical role that exports play to the U.S. agriculture. There will be slides following this which will demonstrate this. The role that trade agreements have played in obtaining current levels of exports, and thirdly U.S. goals for WTO negotiations for the coming Round. Next, please.

As you can see, the U.S. agriculture exports 53.6 billion dollars in 1998. Agriculture exports -- supports nearly 750,000 jobs across the country and crops of nearly one in three acres are exported overseas. Exports account for nearly 25 percent of total cash receipts in agriculture and 96 percent. This is a major factor -- 96 percent of potential customers for U.S. agricultural products do not live here; they live overseas. Next, please.

If you look at the overall trend in terms of agricultural exports play in the general overall economy around the country, you're only talking about 11.3 percent contribution of exports in the general overall economy, but this is not true in the case of agriculture. In agriculture, 26.4 percent of total agriculture is exported. So I think this is a major factor. We are more reliant in terms of overseas markets in terms of exporting products. This is especially true of the states like Florida where you are exporting a lot of high quality products overseas.

This plan is not really going to the state. As a matter of fact, because of the slump we have had in recent years, couple of years, we expect the export sector to grow even further. Next, please.

If you look at the exports, they reached a high in terms of 1996 but there is a decline. If you move the slide slightly -- I think it's blocking -- to my left, please. With the slump we are experiencing in 1999 we expect that all the projections by the Economic Research Service, as the economies in Asia improve we expect the export trends to grow.

The key to expanding markets and increasing our access to customs outside the U.S. is through trade agreements which are good for American agriculture. We would not be at the level we are at today had we not negotiated such a good multi-international agreement as the WTO last Round as well as NAFTA.

Trade agreements are -- next slide, please. If you look at the trade contributions some of the commodities play this slide will show you that quantities like almonds, which 71 percent of total production is being exported, some of the problems should be of interest to you in this room are grapefruit -- 37 percent is exported. In terms of lemons, 48 percent and oranges 46 percent of the total production -- this is based on 1996, the average volume which is exported.

Now, if you go to the next slide which will also confirm these things in terms of dollar values. This lists all the commodities which are exported, any quantity which is one billion dollars or more. If you look at vegetable oils, fresh vegetables, they are 1.1 billion. Then you have fresh fruit 1.9 billion dollars. Then highest commodity in terms of coarse grain, 5 billion dollars, and soybeans to the tune of 6.1 billion dollars.

In the slides I'm going to show you it emphasizes the importance of export -- commodities which are exporting and how they are contributing to the national economy. We recognize that although we have many benefits for agriculture from recent trade agreements, the playing field is not level yet and we need to do a lot more. U.S. tariffs, on an average, are much lower than those of our major trading partners. When it comes to subsidies, one of the major trading partners, the EU, outspent the U.S. 20 to 1. We must continue to work in terms of making sure that health and safety measures do not act as a disguised protection for some of the countries and are based on sound science.

A major part of our strategy to level this playing field will be to be successful and work hard in terms of overcoming those problems we did not resolve in the last Round. The next Round I think is very critical, before we go into the next Round, where we have been -- if I could have the next slide, please.

This is another angle which I would like to emphasize here. The correlation between the farm equity and total export. If you look at the red line which shows the growth of exports from 1962 to 1998, this curve is increasing and so is the farm equity. But at the same time in those years the farm exports declined. We have seen a decline and a slump in farm equity. So I think without a doubt, economists will tell you that our future lies in terms of opening more export markets. This is why the next Round will be most important for us to resolve those issues.

This slide shows some of the growth in exports and imports. And again, the point I am making, is some of the major events which took place in the agreements we have had on Japan beef and citrus. That shows that it added into the economy about 1.1 billion dollars. The total export growth is the green. While imports have also increased, the exports have all displaced the imports, and this is again continuous different -- at the bottom you see different agreements in terms of time line -- the Uruguay Round, NAFTA, Gluten Feed Agreement, as well as the Korean Beef and U.S./Canada Free Trade Agreement. So all of those major agreements have applied.

I think another factor there to consider, as we talk about the next Round, is that our exports have done well in those years when, in terms of if you look at the slump scheme when there is appreciating U.S. dollars, in those years where they are depreciating the U.S. dollars we can compete more in terms of using an interline or a steep increase in exports because of the dollar working to our advantage, but it is in those years in terms of the depreciating dollar that you see some of the slumps here.

Overall, I think the Uruguay Round has been fair to us. It has already continued to increase U.S. agriculture exports and higher incomes for U.S. farmers who are taking advantage of the U.S. markets in terms of overseas. But the Uruguay Round was just one start. A major part of our strategy to level the playing field for agriculture is to be successful in the upcoming WTO Round of negotiations. If I could have the next slide, please.

Oh, back up. I'm sorry. I think this is just an explanation of what I was showing in the previous chart. This just captures more in terms of billions of dollars. By the year 2005, if we continue to make the progress, the contribution of Uruguay Round is estimated to be about 5.1 billion dollars. NAFTA overall throughout the country about 2.7 billion. Japan's beef interest, as I said, 1.2 billion. Mexico is in excess of 690 million and Euconn Gluten 670 million. Next.

This gives you a pretty good comparison. I think this is where we are seeing a decline because of the Asian economies. You see a slump in the green line in 1998 and also the good year production crops across the wall. But then you also see the red line is declining, the dual export to EU countries and for a lot of reasons, as Ambassador Esserman mentioned -- there are policies in terms of not basing their decisions on sound science.

But if you look at the exports increase, both NAFTA countries, Canada and Mexico, there has been an increase in these years and the trend is leading in that direction. The same thing is in terms of percentages. This was in absolute dollars in U.S. export and then the next one to your right is the same information, it's just converted into percentages and totals.

If you look at the goals which we are looking at for the future, we have to really look at what the roles have been. The major highlights of the last Round are captured in the slide in terms of increasing market excess throughout the world in terms of reducing export subsidies which are provided by some of these countries, and especially EUs. Domestic subsidies, sanitary and phytosanitary agreements -- Ambassador Esselman mentioned this -- this was a major accomplishment. If I may add one more is the dispute resolution process which has brought success for us in terms of dealing with those countries which are not basing their decisions on sound science. Next slide, please.

This slide will show you the average tariff rates which the WTO -- the role of WTO in terms of reducing the tariffs. Total tariffs WTO around the world at this time are about 50 percent, EU are 20 percent and our tariff rate is the lowest, which is 8 percent. So our goal will be in the future Round, as Ambassador Esserman mentioned, to work in this major area reducing tariffs. Next slide.

This is my favorite slide. It shows the Pacman. Again, if you look at the total subsidies in terms of global subsidies, EU is the major source of that -- 83.5 percent or 7 million dollars. If you look at the small slide which is here, the United States is 122 million. So they are expanding in terms of total on tariff 80 to 1 ratio in U.S. and EU. Next slide, please.

This is the comparison in terms of just picking a few countries in terms of the domestic subsidies which are provided to agriculture in EU countries in terms of 1996 agriculture values. Marketing, you are talking about EU close to more than 40 billion dollars, Japan about 30 billion and we are talking about 6 million the U.S. domestic subsidies. Next slide, please.

I'd like to summarize -- this slide essentially summarizes our goal in terms of the future Round where we are talking about negotiating substantial tariff reductions, eliminate export subsidies, tighten rules on domestic support, reform state trading enterprises as they can also affect, in terms of these monopolies and distort in terms of supply and demand and set up practices which are not transparent and then can deny us final access to some of the markets, so we'd like to see expanded access and improve limitation tariff quotas, and finally facilitate trade in new technologies like biotechnology. Next slide.

As we prepare for the next Round, I think that what we really want to emphasize in closing is that those of you who are most affected by the next Round of trade negotiations, and that's most of you in this room, we would like to hear early on in the game in terms of what are your concerns, what are your suggestions as USDA and USTR work together in terms of getting ready for the next Round.

We need your support and suggestions, including any specific proposals you may have for improving our negotiating strategy. You can make your voices heard on this issue by making your views known to the local farm groups who are present here, elected representatives, board, state and federal, and members of the Executive Branch -- some of the members are here this morning, as well as will be available in terms of you can write to. USDA and USTR, both of them have websites which are listed here, and in the handout sheets you received. You can write to Secretary Glickman or Charlene Barshefsky, who is the representative in terms of your suggestions.

In all of our activities we want to send a clear message to the rest of the world that agriculture is a top priority for the next Round and we remain fully committed to open markets and exercise in terms of free and fair trade, but we need your support and advice to make trade decisions continue to work and these agreements to continue to work for American farmers and U.S. agribusiness.

I would like to hear more as we go along, and I think this is the purpose of the second half of this program.

In conclusion, I would like to emphasize that U.S. agriculture is already a global economy and we have -- are foreseeing a more globalized role for U.S. agriculture in terms of opening up more markets and increasing our share of international trade.

To establish the best international rule for U.S. agriculture we must stay engaged in these multilateral and bilateral negotiations and trade agreements. Our next major opportunity, of course, is the next coming Round as we get ready for the November Ministerial meetings.

In closing, I would like to thank you all this morning for coming here and for allowing us to make this presentation, and for allowing us to hear your suggestions and adding any suggestions and information that you would like to suggest to us this morning. Thank you.

(Applause.)