A24-Lancaster Farming, Saturday, December 15, 1990
PFA Speaks Out On GATT Collapse
CAMP HILL (Cumberland Co.)
A state farm leader said the
European Community was “steal
ing U.S. farm income and markets,
while destroying the business of
farming in this country.” This cri
ticism was voiced recently by
Keith W. Eckel, president of the
Pennsylvania Fanners’ Associa
tion (PFA), after the collapse of the
General Agreement on Tariffs and
Trade (GATT) negotiations in
Brussels.
Failure of a compromise to low
er the high European Community
(EC) farm trade barriers was the
reason given for U.S. negotiators
to leave the discussions with no
trade pact. Eckel said that it was
his “hope that the stalemated talks
is in fact the first step toward
liberalizing world agricultural
market trade for the benefit of
U.S. fanners.”
Eckel serves as an agricultural
policy advisory to the U.S. delega
tion and was in Brussels.
“EC proposals were self
serving,” he said. “The entire
approach was motivated by pro
tectionism on the part of the Com
munity. The EC did not come to
the negotiating table with the idea
of progress. They wished to keep
their farmers happy with high sub
sidy payments at the expense of
farmers around the world, espe
cially the U.S. and developing
countries.
“The U.S. farmers will lose
markets because of this unfair
competition. Developing coun
tries, dependent on agricultural
exports, will suffer severe eco
nomic setbacks,” Eckel said.
The stumbling block to a GATT
trade agreement centered around
the high level of subsidies paid EC
farmers. “It’s impossible to com
pete on a fair basis for export
markets, when EC countries dump
highly subsidized products in
world markets,” Eckel explained.
There is talk that the negotia
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“If fanners in this country were
subsidized to the extent of EC far
mers, they would be cutting down
forests and growing crops on
rocks,” he contends. “The EC
countries have no cap on produc
tion for most commodities and
thus no control over the ultimate
subsidy a farmer receives.”
The U.S. domestic farm subsidy
program has dropped from $26
billion in 1986 to $9 billion in
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Eckel said that the average
Dutch dairyman with a 50-cow
herd receives an annual subsidy of
$115,000.
“Needless to say dairy exports
by the EC countries are skyrocket
ing,” Eckel reports. Between 1967
and 1970 EC countries were $lOO
million net importers of butter. By
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net exporters. Cheese exports are
up from a net of $3 million
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between 1967-70 to $375 million
in exports by 1984,
“These increased exports were
not attained as a result of a compe
titive advantage,” he said, “but
through subsidized farm prices.”
Because of high farm EC export
subsidies ($l3 billion for EC
countries versus $4OO million for
the U.S.) the EC has become the
largest exporter of dairy products,
and the second largest for beef and
wheat.
Since 1986 EC soybean produc
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tons to 1.8 billion tons. Soybeans
in the U.S. domestic market are
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This year the EC farmers will
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(Turn to Pag* A3B)
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