[The following is the text of a letter sent to the Dairy Trade Coalition
by USTR Robert B. Zoellick. In order to view actual images of the
letter, follow the following links: Representative
Joe Plouff and Assemblyman Chris
Ortloff.]
Thank you for your letter of April 3, 2001 regarding
the compatibility of U.S. dairy programs with World Trade Organization
rules.
As you note in your letter, U.S. farm laws, programs
and policies have a significant impact on the U.S. diary industry.
The United States administers these programs in accordance with its
obligations under the World Trade Organization (WTO) Agreement on
Agriculture, and notifies the WTO of its dairy-related measures and
outlays as appropriate. While we certainly have heard various
countries express concerns regarding some of the programs mentioned in
your letter, no country has initiated formal dispute settlement
proceedings against the United States on these issues.
You are also correct to point out that negotiations on
the continuation of the agricultural reform process began in Geneva last
year, and many countries have submitted ambitious proposals. Most
of these proposals, including that of the United States, focus on
reducing tariffs, expanding quotas and disciplining trade distorting
domestic support measures. More in-depth discussions are now
beginning under the work program for the second phase of the
negotiations that were initiated in March. While a primary U.S.
objective in these talks is to achieve further reductions in trade
distorting measures, the United States also believes that domestic
measures that are not trade distorting, e.g., school feeding programs,
should continue to be exempt from such disciplines.
As the talks progress, our negotiators will be
refining these concepts and assessing the proposals that other countries
put on the table. USTR has consulted with members of the U.S.
dairy industry on a regular basis since these negotiations began and
will continue to do so as the negotiations move forward. We would
welcome your input as part of this process.
Thank you again for your letter. An identical
reply has been sent to Representative Plouff.
Sincerely,
Robert B. Zoellick |
