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June 13, 2003 The Honorable J. Dennis Hastert U.S. House of Representatives 235 Cannon House Office Building Washington, DC 20515-1314 Dear Congressman Hastert: We are writing to urge Congress to enhance the appropriation for the Office of the U.S. Trade Representative for FY04. Our request is prompted by concern that current USTR resources are inadequate to address the growing number of trade policy issues confronting the United States, particularly in the agricultural area. USTR plays a critical role in the U.S. effort to maintain and expand our agricultural exports. However, USTR resources have recently been stretched thin by a rapidly expanding number of trade policy concerns. The current World Trade Organization "Doha Round" trade negotiations are already demanding a significant expenditure of resources at USTR and will require even more if the Cancun Ministerial is successful. Perhaps even more important, there has been a dramatic increase in the number of free trade agreements (FTAs) USTR is negotiating. In 1998, USTR was involved in only one FTA negotiation, the Free Trade Agreement of the Americas (FTAA). USTR is now involved in eight FTA negotiations. The agency is also engaged in negotiations with foreign governments on over 100 bilateral trade policy disputes, either formally in the WTO, or informally through bilateral discussions. Ambassador Zoellick and his staff have, to this point, done an outstanding job of pursuing trade policy issues of concern to the U.S. agricultural community. However, it will be impossible for USTR to give adequate attention to all of the trade policy issues now confronting U.S. agriculture, particularly with respect to the enforcement of existing trade laws, with current resources. We are especially concerned about USTR's ability to adequately address the ever-growing number of unfair sanitary and phytosanitary practices being implemented by our trading partners. It is vitally important that USTR be given the resources needed to aggressively address these and other issues of concern to the U.S. food and agricultural community, both through informal bilateral discussions and formal WTO dispute settlement. Congress is considering a budget of $38 million for USTR for FY04. That figure is a remarkably small amount for such a valuable and essential agency and represents a six percent increase over FY03, barely covering increases in normal operating costs. The proposed budget is entirely inadequate to meet the growing number of trade policy challenges faced by USTR. In order to give USTR the resources it needs to vigorously defend U.S. trade policy interests, we urge you to increase funding for USTR by an additional 20 percent in FY04. We hope that a good proportion of that increase would be provided to USTR's Agricultural Office and the Office of the General Counsel in order to pursue U.S. agricultural trade policy interests. Sincerely, Agricultural Retailers Association American Farm Bureau Federation American Feed Industry Association American Meat Institute American Soybean Association American Sugar Alliance Archer Daniels Midland Blue Diamond Growers CF Industries Corn Refiners Association Distilled Spirits Council of the United States, Inc. Georgia Fresh Fruit and Vegetable Association Georgia Peanut Commission Grocery Manufacturers of America National Association of Wheat Growers National Corn Growers Association National Dry Bean Council National Grain and Feed Association National Grain Trade Council National Milk Producers Federation National Oilseed Processors National Potato Council National Pork Producers Association Northwest Horticultural Council North American Millers' Association Pet Food Institute Sun Maid Growers of California Transportation Elevator and Grain Merchants Association The Fertilizer Institute The National Turkey Federation United Egg Producers United Egg Association USA Rice Federation U.S. Apple Association U.S. Dairy Export Council U.S. Rice Producers Association U.S. Wheat Associates Wheat Export Trade Education Committee For more information on the corn refining industry, visit the Corn Capsules newsletter page. 
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