The Dairy Trade Coalition
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Press Release

Dairy Advocates Seek Clarification on Domestic Food Programs Affected by World Trade Talks

WASHINGTON, DC (April 5, 2001) - Two state lawmakers who advise the Dairy Trade Coalition (DTC) today asked the leadership of the U.S. Senate and House Agriculture and Finance Committees to clarify which federal nutrition programs, farm policy options and other important domestic programs are threatened by the U.S. trade negotiating position.

New York State Assemblyman Chris Ortloff (R-110th Dist.) and Wisconsin State Rep. Joe Plouff (D-29th Dist.), members of the DTC's Dairy Trade Advisory Council, made the request in letters to Sens. Richard Lugar (R-IN), Tom Harkin (D-IA), Charles Grassley (R-IA), Max Baucus (D-MT), Reps. Larry Combest (R-TX), Charles Stenholm (D-TX), Bill Thomas (R-CA) and Charles Rangel (D-NY).  In addition, they wrote to USDA Secretary Ann Veneman and  USTR Robert Zoelick.

"On behalf of the members of the Dairy Trade Advisory Council (DTAC), we are writing to request your assistance in ascertaining answers to some challenging issues which have been the subject of a recent New York state news story published in the Watertown Daily Times on March 25, 2001.  Specifically, the article reports that members of the Cairns Group, the European Union and possibly other nations are preparing to challenge the legality of several key domestic programs such as milk price supports, the Capper-Volstead Act, etc.," Ortlof and Plouff said.

"This news report is consistent with separate reports issued by Dairy Farmers of Canada and the Dutch Dairy Association in recent years.  The Canadian report identified 99 U.S. programs as subsidies subject to challenge at the World Trade Organization.  These programs increased American farmers' milk price by $5.63 per hundredweight, the Canadians allege.  The Dutch report reached similar conclusions - that federal milk marketing orders, regional dairy compacts and other programs may be illegal because they increase farm income and influence farm production decisions in a trade-distorting manner," the two officials said.

"The Canadian report suggests that even federal feeding programs may be illegal under World Trade Organization rules.  The Women, Infants and Children Program and other federal nutrition and feeding programs are important to the well being of many low-income American families.  Our request for guidance from you is straightforward.  Specifically, what important domestic programs, including nutrition programs, federal farm policy options and even farmer cooperatives, are at risk as agricultural trade negotiations continue in Geneva?," they continued.

DTC Executive Director Mario Castillo said, "Rep. Plouff and Assemblyman Ortloff deserve much credit for raising the tough questions that need asking now on behalf of their rural and urban constituents.  These courageous leaders are standing up for family farmers, consumers and others who have no voice in the process.  Our citizens deserve a much clearer explanation of what they stand to gain and lose under the WTO agriculture negotiations as the talks continue in Geneva."

"If Canadian and other foreign trade negotiators are going to take aim at vital programs like food stamps, WIC, senior nutrition and others, the public needs to know it sooner, rather than later," said Assemblyman Ortloff.  "Our U.S. trade representatives need to know who seriously concerned we at the state and local level will be if our concerns are true."

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