U.S. Newswire
WASHINGTON, April 3 -- The following was released today by the U.S. Grains Council:
"The U.S. Grains Council is deeply disappointed over a recent agreement between the United States and India with respect to increased corn and sorghum tariffs in the WTO," says Kenneth Hobbie, USGC President and CEO, in a letter to U.S. Trade Representative Charlene Barshefsky.
"At a time when the administration is promising U.S. producers more access to international markets and is touting exports as one of the keys to future prosperity, this is clearly a step backward for the U.S. feed grains industry," Hobbie says.
Hobbie is referring to "clandestine" Article 28 (GATT) negotiations in which the USTR struck an agreement with India that imposes a 15 percent duty and tariff rate quota (TRQ) schedule on corn, a 60 percent duty on corn out of the quota, and a 70 percent duty on seed corn. U.S. sorghum currently has no duty but faces an 80 percent tariff. India agreed to 15 tariff hikes and lowered 11 others in the agreement reached December 28, 1999, with implementation in April-May 2000.
"While the agreement was inked in December, U.S. agriculture is just learning the details and was not consulted for market information. Since we were not made aware of the negotiations, it is unclear whether USTR's decisions were based on current market information and current growth projections" Hobbie adds.
"The Council has been conducting export market development programs in India for over five years, and we view India as one of the brightest prospects with exceptional growth potential," Hobbie says. "In fact, India is a recent success story importing 200,000 (7.8 mbu) of corn for the first time since 1986. Clearly a tariff hike of this magnitude and a TRQ will stifle India's growing demand for corn and sorghum." The Council's reports and local analysis forecast the broiler industry growing 15 percent per year and the layer industry growing 8 percent per year, "which suggests that India's demand for feed grains will continue to climb," adds Hobbie. With the inclusion of corn in dairy rations, India's corn import needs could exceed one million metric tons within three years.
"To learn about negotiations with such a serious effect on U.S. grain producers months after the fact is unpalatable on the best day -- and unfathomable given the need to create a bright economic future for the U.S. feed grains industry," Hobbie concludes.
The U.S. Grains Council is a private, non-profit partnership of agribusinesses and producers committed to building and expanding international markets for U.S. barley, corn, grain sorghum and their products. The Council has 11 international offices that oversee programs in more than 80 countries. Support for the Council comes from its producer and agribusiness members and the U.S. Department of Agriculture.
Jennifer Morrill of the U.S. Grains Council, 202-789-0789:
