United States-Peru Trade Promotion Agreement Implementation Act

Floor Speech

UNITED STATES-PERU TRADE PROMOTION AGREEMENT IMPLEMENTATION ACT -- (House of Representatives - November 07, 2007)

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Mr. SMITH of Nebraska. Mr. Speaker, I thank Ranking Member Herger and the chairman of the Ways and Means Committee for leading, I think, a terrific bipartisan effort.

I rise today in support of expanding our Nation's export markets by passing the bipartisan Peru Trade Promotion Agreement. The agreement will create significant new opportunities for American farmers, ranchers, businesses and certainly consumers by opening new markets and reducing trade barriers, leveling that playing field.

More than two-thirds of current U.S. farm exports to Peru will become duty free immediately. This trade agreement gives U.S. farmers an advantage over competitors. For example, U.S. exporters of wheat and white corn currently pay a 17 percent tariff in Peru, while Argentina pays only 3.4 percent and controls two-thirds of Peru's market.

You eliminate the 17 percent tariff and give U.S. grain exporters a leg up. According to the American Farm Bureau Federation, U.S. agriculture exports could exceed $705 million, an increase of over 1,000 percent from current levels. In addition, Peru has committed to recognize the U.S. meat inspection system as the equivalent to its own, thereby allowing imports from facilities approved by our own USDA. Peru has committed to specific sanitary and phytosanitary terms, removing barriers to imports of U.S. beef, pork, poultry and rice.

Opening export markets has long been a priority of mine. Earlier this year I hosted an export seminar which drew forward-thinking individuals from across my district. They recognized just how vitally important access to foreign markets can be to our economy.

In 2006, Nebraska's agriculture exports worldwide were around $3.3 billion. A total of 1,125 companies exported goods from Nebraska in 2005. Of those, 877 were businesses with fewer than 500 employees. Despite high tariffs and other barriers on most agriculture products, including beef, corn and soybeans, U.S. exporters shipped more than $209 million in agriculture products to Peru.

Nebraska would benefit from this free trade agreement which provides U.S. suppliers with access to foreign markets and levels the playing field with our competitors. As the Omaha World Herald newspaper put it in today's edition, ``Greater trade opportunities hold clear benefit for the Midlands. In terms of Nebraska's economic interests alone, tariffs would be sharply reduced on the State's primary exports to Peru: chemical manufactures, machinery, and processed foods.''

But more than just economic interests, this agreement builds trust between two countries. By opening the doors for our exports, we also open lines of communication. We help improve lives. We foster a sense of community.

Agriculture markets are tremendously important to my district and the Nation as a whole, and I hope to help Nebraska's products continue to compete in the global marketplace. But I also want to help America remain the greatest Nation in the world. We can do so by opening the lines of trade and communications to trading partners across the globe.

Mr. Speaker, I urge support for this bipartisan measure.

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