Farm groups and agribusinesses are well aware that many world factors influence U.S. agricultural exports. In some cases, other countries are using tradenegotiations and, sometimes, dispute settlement procedures in the WTO, to enhance their access tothe U.S. market for agricultural products, or to reduce competition in third-country markets fromsubsidized U.S. production. It is within this context of competing U.S. agricultural interests and other countries' concerns, that agricultural trade issues are likely to be taken up in legislation, congressional-executive branchconsultations on trade negotiations, or in oversight hearings during the 108th Congress. The Free Trade Area of the Americas ( FTAA) isintended to go beyond NAFTA to encompass all trade and services among all of the region'scountries (except Cuba), and eventually supersede both NAFTA and regional trading agreements,including the free trade agreement the United States has just negotiated with Chile and the FTAbeing negotiated with Central America. Agricultural Negotiations in the World Trade Organization. Proponents maintain that the expected benefits to U.S.farmers, ranchers, and consumers will outweigh implementation and compliance costs. Debate continues,though, among policymakers on the scope of restrictions that should apply to agricultural sales toCuba. Bilateral Trade Disputes. USDA currently forecasts FY2003 export value at $57 billion. U.S. agricultural export and food aid programs, domestic farm policiesthat affect output and price, and trade agreements with others also influence the level of U.S.agricultural exports. Though a large share of agricultural imports-about 80% on average of total agriculturalimports-compete against U.S. products, they also generate economic activity in the U.S. economy. Chile views improved market access for its agricultural products to the large and growing U.S. market as important to its economic growth, because agricultural exports ($1.2 billion in 2002)represent about one-third of Chile's total exports to the United States. Singapore . The new regulations are expected to be in place by mid-2003. A number ofU.S. China and U.S. Agriculture (12)

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There is mounting concern from U.S. producer groups, Administration officials, and other trading partners that China has been slow to implement, only partially implemented, orin some instances has failed to comply with agricultural trade commitments made underrecent international trade agreements. Tariffs. Biotechnology Regulations. 107-171 ) soon will require many food stores to provide country-of-origin labeling (COOL) on fresh fruits,vegetables, red meats, seafood, and peanuts. For More Information

WTO. Meat and poultry products are among the fastest growing components of U.S. agricultural exports. Under provisions established by the Trade Act of 2002 ( P.L.107-210 ), Congress and the Administration will be consulting on these negotiations and theirimplications for legislatively authorized programs.
Agricultural exports contribute to the prosperity of the U.S. agricultural economy. Their value is projected at $57 billion for FY2003, and they are expected to grow over the long term. Theseexports are the equivalent of about a quarter of the gross income of U.S. farmers and generate bothfarm and nonfarm employment. U.S. agricultural imports, expected to reach $43 billion in FY2003,are fostered by low average U.S. tariffs, the relative strength of the U.S. dollar, and consumer tastesand preferences for high value food products, the largest component of imports. A large share ofagricultural imports compete against U.S. products, but they also generate economic activity in theU.S. economy.
Although many world economic and other factors influence exports, many farm groups believe that U.S. agriculture's future prosperity also depends on such U.S. trade policies as 1) negotiatingimproved market access for U.S. products bilaterally, regionally, and multilaterally; 2) assuringmarket access and consumer acceptance at home and abroad for products of agriculturalbiotechnology; 3) assuring that China adheres to its World Trade Organization (WTO) agriculturalmarket access commitments; and 4) resolving contentious commodity trade disputes. Some farmgroups, mainly producers of import-sensitive commodities, question opening U.S. markets to foreigncompetition. Agricultural trade issues that are being or could be considered during the 108th Congressinclude:
Free trade agreements (FTAs) with Chile and Singapore, which Congress will take up accordingto expedited or fast track procedures in the Trade Act of 2002 ( P.L. 107-210 ). The 2002 Trade Actalso requires congressional-executive branch consultation on trade negotiations, which currentlyinclude negotiation of FTAs with 12 other countries or regional groups, negotiations with 34western hemisphere countries for the Free Trade Area of the Americas (FTAA), and multilateraltrade negotiations in the WTO.
Biotechnology regulations in other countries, especially in the EU, which will affect U.S. commodity exports.
China's implementation of its WTO market opening commitments for agriculture , which has been slow and uncertain, and has failed to meet expectations of U.S. agricultural exporters.
Country-of-origin labeling for meats, fresh produce, seafood and peanuts, established by the 2002farm bill, but whose implementation has raised questions about benefits versus compliance costs.
Other trade issues of interest to the 108th Congress include commodity trade disputes overcotton, wheat, meat and poultry, and sweeteners; the scope of restrictions that should apply to agricultural sales to Cuba ; and funding for U.S. agricultural export and food aidprograms.
This report will be updated.