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Washington, D.C. - Today, U.S. Rep. Adam Smith (D-WA) and U.S. Rep. Jim Kolbe (R-AZ) are sending and releasing their letter to the President calling for continued bold U.S. leadership in the World Trade Organization (WTO) Doha Round negotiations, including a commitment to substantial reductions in U.S. agricultural subsidies. This bipartisan letter, signed by 38 Members of Congress, demonstrates that these Members are united in support of the agriculture reform necessary to make the WTO Doha round successful.
In part, the letter states that “the Doha negotiation represents a once-in-a-generation opportunity to spur U.S. economic growth” as well as “an opportunity for the U.S. to take a leadership role in addressing developing country poverty.“ The letter goes on to state that “the prolonged stalemate in the WTO over domestic agricultural subsidies and market access has blocked progress on industrial tariffs and services … we welcome your commitment at the United Nations that the U.S. stands ready to eliminate its trade-distorting agricultural supports and trade barriers if only our trading partners will do the same.”
"The importance of the Doha Round negotiations can't be overstated," said Smith. "In addition to the benefits for the U.S., the Doha round gives the world community an opportunity to help developing nations compete and lift their people out of poverty. For too long, the U.S. and other developed countries' farm subsidies have created an unfair playing field for developing countries, where more than 2.7 billion people struggle to survive on less than $2 a day. It's time for the status quo to change, and the Doha round gives us that opportunity."
The letter also goes on to state that “We welcome the recent U.S. proposals, which signal to our trading partners that the United States is prepared to take seriously their concerns about trade-distorting domestic supports.”
"It is critical we break the impasse and help these negotiations move forward," said Rep. Kolbe. "Our letter supports Ambassador Portman and the President as they put added pressure on the European Union and France to offer meaningful reductions in the EU's trade distorting subsidies."
The letter concludes that “we approach the Doha Round from different perspectives, but are committed to building common ground. At this vital juncture in the Doha negotiations, we recognize your efforts and reaffirm the call for bold WTO leadership to convert words into actions, and rhetoric and meetings into concrete commitments to open markets. We stand ready on a bipartisan basis to work with you on this vital endeavor.”
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December 8th, 2005
The Honorable George W. Bush
The White House
Washington, D.C. 20500
Dear Mr. President:
We urge continued bold American leadership to break the deadlock in the Doha WTO Round. For the better part of a century, successive U.S. Presidents and Congresses -- Republican and Democratic alike -- have worked to expand American trade. The GATT, WTO, and post-war construction of an open, rules-based global trading system stand as abiding testaments to American leadership.
The Doha negotiation represents a once-in-a-generation opportunity to spur U.S. economic growth and to open new markets for American manufacturers, farmers, financial institutions, service providers and their managers and employees. It offers, moreover, an opportunity for the U.S. to take a leadership role in addressing developing country poverty and helping generate the economic growth envisioned by the Monterrey Consensus on the Financing for Development and essential to achieving the Millennium Development Goals. Consumers, families, and workers in developed and developing countries alike can benefit from a successful WTO Round.
In the last decade, all of us have witnessed the onward advance of the global marketplace. Trade touches the lives of all Americans and represents a key pillar of American prosperity, but also presents difficult economic and political challenges.
We are concerned that the current difficulty in the Doha Round and the increasing partisanship surrounding Congressional trade votes threatens to undermine U.S. support for open trade. The prolonged stalemate in the WTO over domestic agricultural subsidies and market access has blocked progress on industrial tariffs and services. The Round’s unprecedented promises to expand opportunities for third-world development, increase environmental stewardship, and address longstanding inequities in global trade are unrealized. We welcome your commitment at the United Nations that the U.S. stands ready to eliminate its trade-distorting agricultural supports and trade barriers if only our trading partners will do the same. A healthy international trading system that more fully integrates developing countries is a critical component of a safe and secure world and a natural complement to U.S. national security.
The time has come for bold action and new ideas. Unlocking agriculture negotiations is key to moving the trade round forward, and also central to fulfilling the needs of developing countries, where more than 2.5 billion people rely on agriculture as a livelihood. Without leadership, the WTO negotiations will continue to flounder. We would welcome an opportunity to work with the Administration and the House and Senate Agriculture Committees on bipartisan reforms of U.S. farm policy, including significant reductions in trade-distorting farm subsidies.
Certain U.S. agricultural programs have drifted far from their original purpose of protecting family farmers from the ravages of the Great Depression. Though subsidies cost more than $20 billion in some years, most farmers are ineligible for subsidies, and those who grow crops which are eligible for subsidies typically receive less than $100 a month. Furthermore, escalating U.S. budget deficits, Hurricane Katrina, new regulatory burdens, and tightening constraints on government spending impose even greater responsibilities on Congress and the Administration to reduce farm subsidies and to ensure that existing programs actually help family farmers and reward environmental stewardship. Recent WTO rulings also indicate that major U.S. farm subsidy programs may not withstand WTO scrutiny.
We agree that any WTO Agreement must be contingent on the broad based willingness of our trading partners to open their markets to American farm products. We welcome the recent U.S. proposals, which signal to our trading partners that the United States is prepared to take seriously their concerns about trade-distorting domestic supports. New ideas should be explored such as non-trade-distortive and environmentally conscious tools that would help all farmers and ranchers weather the ups and downs of agriculture without encouraging crop surpluses that reduce world prices.
The WTO Round holds vast promise for opening overseas markets to American exporters, including American farmers, manufacturers, and service providers, rewarding environmental stewardship, and addressing developing country poverty. As legislators, we understand the challenge of making far-reaching changes in government programs and cutting taxes and tariffs. We approach the Doha Round from different perspectives, but are committed to building common ground. At this vital juncture in the Doha negotiations, we recognize your efforts and reaffirm the call for bold WTO leadership to convert words into actions, and rhetoric and meetings into concrete commitments to open markets. We stand ready on a bipartisan basis to work with you on this vital endeavor.
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