Trade Programs and Policies

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Trade Programs and Policies
2002 Farm Bill Education Conference Kansas City,
Missouri May 20-21, 2002 Joe Outlaw Texas AM
University
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Market Access Program

• Primarily directed toward promoting exports of
  value-added agricultural products
• By subsidizing market research, technical
  assistance, and marketing activities
• Funding increased from 90 million per year to
• 2002 2003 2004 2005 2006 2007
• FY funding (million) 100 110 125 140 200 200
  
• Adds language to give equal consideration to
• Current participating organizations
• Eligible organizations that are non-participants
• Proposals from
• Emerging markets
• Other than emerging markets

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Foreign Market Development Cooperator Program

• Known as cooperator program
• Intended to enhance exports through market
  development activities
• Previously was directed toward unprocessed bulk
  commodities
• Adds language regarding value-added ag products
• Funding increased from 27.5 million to 34.5
  million annually
• Continues emphasis on the promotion of value
  added agricultural products into emerging markets

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Food for Progress Program

• Provides U.S. commodities to support countries
  that have made commitments to expand free
  enterprise in their agricultural economies
• Reauthorized and funded at 308 million
• Funding caps for transportation and
  administrative caps are increased
• Establishes a minimum level of commodities
  (400,000 metric tons) to be purchased for food
  aid programs

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McGovern-Dole International Food for Education
and Child Nutrition Program

• Provides 100 million in FY 2003 mandatory money
  to continue the pilot program, authorized
  2004-2007
• Requires procurement of ag commodities and
  provision of financial and technical assistance
  to carry out
• Preschool and school food for education programs
• Maternal, infant and child nutrition programs
• Any ag commodity is eligible to be provided as
  well as transportation costs
• President shall designate 1 or more federal
  agencies to carry out

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Miscellaneous

• Country of Origin Labeling
• Voluntary for 2002-2003, mandatory thereafter
• Meat, fish, produce and peanuts by 2004
• For a product to be labeled a USA product, it
  must be born, raised, and processed in the U.S.
• 2 Loopholes
• Does not include food service
• Does not includes commodities that are
  ingredients in processed products

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Miscellaneous (Cont.)

• Biotechnology and Agricultural Trade Program
• Purpose shall be to remove, resolve, or mitigate
  significant regulatory nontariff barriers to U.S.
  exports by providing grants to public and private
  sector projects
• Authorizes 6 million annually
• Technical Assistance for Specialty Crops
• Export assistance program to address unique
  barriers that prohibit or threaten exports of
  specialty crops
• Funded at 2 million annually by the CCC

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Miscellaneous (Cont.)

• Global Market Strategy
• Sets up schedule for Secretary to report to
  relevant committees on the formulation of a
  global market strategy for the Department that
• Identifies opportunities for the growth of ag
  exports
• Ensures that resources, programs, and policies of
  the Department are coordinated with those of
  other agencies
• Remove barriers to trade
• Report on Use of Perishable Commodities and Live
  Animals
• Sense of Congress Concerning Foreign Assistance
  Programs
• Sense of the Senate Concerning Ag Trade

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Other Issues

• Trade Promotion Authority
• Appears the President will get a chance to use
  the veto pen
• Senate provision would allow package to be
  amended
• WTO and U.S. commodity programs
• Questions remain regarding CCPs
• How likely the AMS cap is exceeded