Road Work

Date: Oct. 5, 2003
Issues: Trade

ROAD WORK

Guest opinion submitted by Idaho Senator Mike Crapo

A recent editorial accused me of wanting "one-way traffic on a two-way street." The writer got it exactly backward, and apparently relied too much on editorialized "facts" and commentaries about the World Trade Organization talks in Cancun, Mexico, earlier this month. Some editorials portrayed the United States as a bully. As a member of the Senate Agriculture Committee, I attended the meeting, and want to set the record straight. The truth is that the United States was willing to put all issues on the table. It was other nations who refused to negotiate unless their trade policies were off the table.

So, from one who was there, here are the facts: The United States was prepared to reduce subsidies in exchange for expansion of markets overseas. The U.S. and the European Union were willing to negotiate a framework for trade that would allow production subsidies, export subsidies, and market access elements for all participating nations. This offer, which would level the playing field for producers and exporters worldwide, was flatly refused because certain nations were unwilling to agree to negotiate their market access status or existing tariff and non-tariff trade barriers. Particularly troubling was the way midlevel developing countries behaved.

As U.S. Trade Representative Zoellick noted in a Financial Times editorial, these countries "employed the rhetoric of resistance as a tactic both to put pressure on developed countries and to divert attention from their own trade barriers." Agriculture tariffs worldwide average 62 percent, yet, comparable U.S. tariffs average only 12 percent. We honor many requests for financial assistance from other nations, and we need to make sound financial trade decisions out of consideration for our own economy as well.

Some fall into the delusion that America is inherently bad because of its prosperity, and assume that any action it undertakes won't benefit those less fortunate. Part of the American psyche is to defend the less fortunate; indeed, our commitment to this principle is etched on our own Lady Liberty. But an attitude of collective self-loathing is dangerous when it impedes the ability and desire to preserve our interests, and protect individuals and their livelihood. This is our first priority.

We live in an increasingly interconnected, shrinking world. Cultural and political differences tend to become obscured in the face of the Internet, and the prevalence of American media and entertainment across the globe. Multi-national organizations reach across national and economic borders, leaving some with the illusion that everyone thinks like Americans do when it comes to economic policy and priorities. This is an erroneous assumption. The global market is volatile, and contains stakeholders from widely varying economic and political systems. Therefore, the only path to solving problems and reconciling differences requires collaboration, coming to the table and discussing solutions and options that are acceptable to all involved.

Many developing nations need assistance, and we can provide that in many ways. But our producers must be able to compete fairly in the global marketplace. In policy terms, this means reducing or eliminating tariffs imposed on U.S. products by other countries, and reducing or eliminating export subsidies worldwide. These and other measures will work to end global marketplace discrimination that exists today. In Cancun, the U.S. was very willing to engage in two-way negotiations. Other nations demanded that "one-way street" mentioned in the editorial. As delegates, we made a stand for our own, hard-working American farmers, ranchers, and factory workers. The next step is to come to a workable solution to global trade issues that is beneficial to all involved.

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