United States-Peru Trade Promotion Agreement Implementation Act -- Continued

Floor Speech

UNITED STATES-PERU TRADE PROMOTION AGREEMENT IMPLEMENTATION ACT--Continued -- (Senate - December 04, 2007)

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Ms. CANTWELL. Mr. President, I would like to briefly address H.R. 3688, the Peru Trade Promotion Act. While this agreement stands to provide significant benefits to our country's agricultural industry, it comes with unfortunate consequences for our country's asparagus growers. My home State of Washington is one of the top asparagus producing States in the country. However, since the passage of the Andean Trade Preferences Act, Washington has lost 21,000 of its 30,000 acres dedicated to asparagus and all three of Washington's asparagus canning facilities have now moved to Peru. This is the reason that I worked so hard to include a $15 million Market Loss Program dedicated to asparagus growers in the Senate's version of the 2007 farm bill. This program will support domestic asparagus producers, helping them plant and harvest more efficiently and remain competitive in the international market. In the past 17 years, the $200 million Washington asparagus industry has been reduced to a $75 million industry. To say that I am concerned about this trade agreement's effect on Washington's asparagus farmers would be an understatement. I implore the Senate, as it continues negotiations on the farm bill to support these hard working individuals remain competitive in our international economy.

With that said, the Peru Trade Promotion Act stands to significantly benefit the majority of farmers both in Washington and throughout our Nation. Under this agreement, Washington businesses will increase their exports to Peru by an estimated 45-62 percent and will immediately eliminate significant tariffs on many key goods. For example, Washington leads the Nation in potato exports and the current tariffs, now reaching up to 25 percent, will be eliminated immediately on most potato products. Washington's wheat farmers, whose exports are currently valued at over $314 million, will benefit greatly by the elimination of the 17-percent tariff on wheat. Washington's third largest industry, beef, has much to gain from the elimination of the 25-percent duty on beef. Dairy, our second largest farm industry will benefit from the elimination of a tariff system that has reached as high as 68 percent for dairy products being exported to Peru. Perhaps the most significant impact for Washington, however, will be for our fruit growers. Washington ranks as the second largest fruit exporter in the Nation, bringing in $833 million for the State. Duties on fruit exported to Peru are currently 25 percent and would be immediately eliminated under the PTPA--a huge win for Washington and its fruit growers. Peru is a new growth market for Washington's fruit industry and the elimination of these tariffs will make our fruit much more competitive in the export market.

Given the significant benefits the vast majority of farmers in my State stand to reap from the Peru Trade Promotion Act, I will vote in favor of it, despite my grave concern for its effect on our asparagus industry. As PTPA is implemented, I will continue to fight to support asparagus growers through the Market Loss Program included in the Senate farm bill or any other means available to me and I strongly urge this body to do the same. The PTPA will benefit many, but it is up to us to assist those whose livelihoods are affected in the process of its implementation.

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