H.Res. 583 (105^th): Expressing the sense of the House with respect to barriers between the United States and Canada with regard to certain agriculture products.

HRES 583 IH

Expressing the sense of the House with respect to barriers between the United States and Canada with regard to certain agriculture products.

October 8, 1998

Mr. SMITH of Oregon (for himself, Mr. BARRETT of Nebraska, Mr. THUNE, and Mr. HILL) submitted the following resolution; which was referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

Expressing the sense of the House with respect to barriers between the United States and Canada with regard to certain agriculture products.

Whereas the Canadian beef industry benefits from being able to freely market slaughter cattle and beef in the United States through provisions contained within the Canadian Free Trade Agreement, the North American Free Trade Agreement, and the General Agreement on Tariffs and Trade (hereinafter in this resolution referred to as ‘GATT’);

Whereas through these agreements the Canadian beef sector enjoys treatment that provides its beef producers a comparative advantage when marketing its product in the United States, including--

(1) shipping ungraded beef carcasses from cattle slaughtered in Canada to the United States for grading using USDA beef quality grade markings, allowing the Canadian beef to be marketed in a manner identical to United States product; and

(2) shipping live cattle in sealed trucks for immediate slaughter in United States plants, which allows Canadian beef producers to avoid the costs of APHIS cattle health inspections and testing that would otherwise apply. The beef from these cattle, once slaughtered in a United States plan, is also assumed by United States consumers to be United States beef;

Whereas Canadian beef producers are able to utilize the United States beef marketing system virtually without restriction thereby enabling them to redistribute their marketing resources in promoting Canadian beef products in competitive foreign markets to the detriment of the United States exporters;

Whereas United States cattlemen do not benefit from commensurate access or treatment with respect to Canadian marketing opportunities;

Whereas the Canadian Wheat Board, a state trading enterprise, maintains a monopoly on export trade in wheat and does not operate in a transparent manner;

Whereas Canada has not agreed to terms of reference under which an audit of the Canadian Wheat Board, as provided for in the North American Free Trade Agreement (hereinafter in this resolution referred to as ‘NAFTA’), may go forwarded;

Whereas the practices of Canada in failing to expand market access have a long term adverse impact on the domestic production of American agricultural products; and

Whereas Canada has resisted efforts to expand market access for dairy, poultry, and eggs, which it protects with limited minimum market access quotas and prohibitively high tariffs, which for some products exceed 300 percent ad valorem: Now, therefore, be it

Resolved, That it is the sense of the Congress that--

(1) the Secretary of Agriculture (hereinafter in this resolution referred to as the ‘Secretary’) should analyze trade between the United States and Canada with regard to beef, beef cattle, wheat, barley, dairy, poultry, and eggs and report the findings to the Committee on Agriculture in the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry in the United States Senate;

(2) the report of the Secretary should include a description, status, and analysis (including apparent benefits and limitations to farmers and ranchers of either country) of--

(A) the applicable general and specific provisions of the GATT, CFTA, and NAFTA that facilitate or restrict trade in these commodities and products between the 2 countries; and

(B) past, present, and anticipated future actions and negotiations to resolve trade concerns and complaints by either country with respect to these commodities and products; and

(3) the Secretary should identify, analyze, and report on the economic impact of trade agreements and other agreements affecting trade between Canada and the United States on the beef, wheat, and barley sectors of both countries, including--

(A) an aggregate and regional analysis of the impact on the beef, wheat, and barley industries; and

(B) a comparative national and regional analysis of the impacts on specific segments of the beef, wheat, and barley industries;

(4) the Secretary should analyze and report on macroeconomic factors including currency exchange rates and interest rates, which impact trade of agricultural commodities between Canada and the United States;

(5) based on the analyses described in this resolution, the Secretary should identify any provisions of the agreements and the implementation thereof that limit, inhibit, or otherwise restrict the ability of the United States farmers and ranchers to benefit from or mitigate the economic impact of trade between the United States and Canada;

(6) the Secretary should identify and analyze the long term effect of the comparative advantage of Canadian agricultural producers on the production and competitiveness of American agricultural producers; and

(7) the Secretary should identify and analyze the long term effect of the lack of market access on the production and competitiveness of American agricultural producers.

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