Trade panel presents U.S., European, Japanese perspectives
HONOLULU - Insisting that
European Community exports
have not resulted from com
parative advantage in production,
James Starkey, Universal Leaf'
Tobacco Co., pointed out that EC
export subsidies constitute about
30 percent of the value of sub
sidized exports.
In remarks made last week at
the 54th annual meeting of the
National Council of Farmer
Cooperatives, Starkey said that the
EC has moved from an importer of
grain in the 1970 s to the fourth
largest exporter in the 1900 s. In
addition, he said, the EC is now the
world's largest exporter of sugar,
poultry, eggs and dairy products.
Although the United States
exports food products valued at
about $9 billion to the EC, Starkey
is concerned that this market has
not grown during the last three
years.
The former U.S. trade official
pointed out that the fastest
growing markets have been third
world' countries and Eastern
Europe, countries which he calls
“broke.” And since they are not
good credit risks, “there will be
intense competition for the few
hard cash markets left,” he said.
"We need to be clear and con
sistent so there is no doubt of our
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Working for people who work the land
resolve to defend our legitimate
trade interests," Starkey asserted.
“But we are far more likely to
make progress through con
sultation and cooperation then we
are through confrontation.”
Ulrich O. Knueppel, secretary
for agriculture. Commission of the
European Communities, said that
U.S. farmer cooperative leaders
should concern themselves more
with whether developing countries
will be able to buy food, rather
than fret over market shares and
supply factors.
Knueppel defended U.S. ac
cusations that the EC is protec
tionist by indicating that it is the
biggest importer of agricultural
goods in the world, accounting for
a quarter of all world agricultural
imports in 1980 and running a trade
deficit on agriculture of |32 billion.
He pointed out that the U.S. and
EC account for about one-third of
all international agricultural
trade, a figure that jumps to one
half when intracommunity trade is
added. Therefore, he feels
developed countries must either
finance large-scale food imports
and development efforts in the
third world, or be prepared to
revise agricultural production
policies.
Brookings Institution trade
specialist Fred H. Sanderson
called for “quietly persistent,
patient and flexible" trade policy
to open channels to Japan.
However, according to Starkey,
the Japanese must “understand
that we have to be able to sell what
we produce efficiently if they are
to continue to enjoy access to the
U.S. market.”
Sanderson used calculations by a
prominent Japanese agricultural
economist to show that eliminating
DALLAS, Tx.—Secretary of
Agriculture John R. Block said the
export credit program announced
here last Tuesday by President
Reagan will provide at least an
additional $1.25 billion in blended
credit beyond the £5OO million
authorized in late 1982.
Block said the Commodity Credit
Corporation would make available
an additional £250 million in direct
interest-free export credit under
the GSM-5 program. This will be
blended with at least |1 billion in
rrr vmnrt credit guarantees to
a five-week program consistently gained
weight faster and consumed less feed per
pound of weight gain. Plus, Early Wean Pig
Pellets helped eliminate the problem of
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Early Wean Pig Pellets are specially formu
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iur Early Wean Pig Pellets program as a free
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beef quotas, offset by deficiency
payments financed by a temporary
surcharge on imports, could:
lower Japanese retail prices 30
percent; increase domestic
demand 45 percent; and increase
imports 150 percent. All at no oast
to Japanese beef producers or the
Japanese treasury.
These policy changes, Sanderson
added, could result in an additional
1300 million in U.S. beef trade.
Elimination of qv«tas on imported
Block announces $1.25 billion
blended export credit
in new
produce interest rates below
commercial levels. The CCC
guarantees private credit at
commercial rates under the GSM
-102 program.
“We were very pleased with the
success in the $5OO million blended
credit offer made last year,” Block
said. “We expect this new offer to
be just as successful in providing
exports that we would not have
otherwise realized. The president’s
announcement will give an added
thrust to our goal of relieving the
downward pressure on U.S. farm
AGWAY
Lancaster Farming, Saturday, January 22,1983—A29
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oranges during the off-season, he
noted, could be worth $l5O million
to American orange growers.
Sanderson declared that
although the desire to be self
sufficient in food production is
popular everywhere, it is en
trenched in Japan. Nontheless,
Japan accounts for about |7 billion
annually in U.S. food exports,
primarily feedgrains and
soybeans.
prices caused by excessive sup
plies.”
Block said the new export credits
will be offered principally to
developing countries, with terms
up to three years.
The earlier blended credit
program, announced last Oct. 20,
allocated $lOO million in govern
ment credit to be blended with $4OO
million in credit guarantees in
fiscal year 1983. Within a month,
use of the total $5OO million had
been applied for by foreign
customers. This cleared the way
for the sale by private U.S. ex
porters of more than two million
tons of wheat and significant
amounts of com, vegetable oil,
soybean meal and cotton.
The result was $5OO million in
additional U.S. export sales for an
outlay of government funds of $lOO
million, which ultimately will be
repaid.
Block said that we must con
centrate on both fronts—increased
demand and reduced supply—to
move farm prices up. While our
commodity programs to reduce
supplies are essential, it is just as
important to pursue programs to
expand agricultural exports.
PH: 717-786-2173
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Furnace Road