| Free trade doesn’t mean fair trade, and fair trade is crucial in keeping our agricultural producers in the fold. While I support trade agreements that level the playing field in which American producers market their goods, I continue to hear from producers throughout the state who are tired of the unrealized promises of this Administration’s trade negotiations. Time and time again, this Administration offers up agriculture as a bargaining chip to push trade agreements through. Not only is the United States now importing more commodities than we export, but our rural communities continue to struggle with out-migration. I believe that our trade policies must be fair to agricultural producers and rural communities. I voted against the North American Free Trade Agreement (NAFTA) because I felt that the agreement would have few positive economic consequences for South Dakotans. I am concerned that the Central American Free Trade Agreement (CAFTA), based on the unsatisfactory NAFTA model, contains serious flaws. Proponents of CAFTA tout the possibility of increased agricultural exports to Central America as a reason for supporting the agreement. The United States already controls 94 percent of the grain export market to CAFTA countries and 95 percent of the oil seeds market. The fact that we already control their commodity import market, combined with their minimal purchasing power for meat and other high value commodities, makes CAFTA a raw deal for American producers. This agreement will also encourage ethanol imports from Central American and South American countries. Under CAFTA, for example, Costa Rica will be able to import up to roughly double what that country is currently shipping to the United States. As the U.S. ethanol market grows, so does the quantity of the market afforded to CAFTA countries. Domestic producers are concerned that ethanol imports may increase drastically under these provisions. These actions would undermine the ethanol industry in the United States, negating all the work we have done to grow the industry over the last decade to ensure marketing opportunities for our producers. In late July of 2005, CAFTA passed narrowly in both the House of Representatives and Senate. I strongly opposed the implementing legislation of this trade agreement and voted against the measure. Today, I still have many concerns about the effects of NAFTA, CAFTA, and other free trade agreements. It concerns me greatly that this Administration chooses to go forward with more trade agreements when it is clear that American workers and farmers are the big losers in these agreements. I
will continue to represent the interests of South Dakota as Congress
considers trade agreements in the future, and will promote fair
trade for economic opportunities.
Below are links I hope you will find helpful about U.S. Trade: http://www.fas.usda.gov/ustrade/
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