TRADE NEGOTIATIONS AND THE FUTURE OF AMERICAN AGRICULTURE



major U.S. market and a major U.S. supplier. U.S. agricultural im-
ports from Canada totaled nearly $2 billion in 1986 and Canadian
imports from the United States totaled $2.4 billion.

Canada consistently ranks as the fifth or sixth largest U.S. agricul-
tural customer. It is our biggest foreign buyer of a number of high-
value products such as oranges and orange juice, fresh grapes, fresh
tomatoes, lettuce and nursery stock and flowers. About 70 percent of
U.S. agricultural exports to Canada is comprised of more than 100
products with a relatively small export value—less than $40 million
annually.

Canada also is one of our foremost competitors in third country
agricultural markets, with nearly three-fourths of its exports des-
tined for countries other than the United States. Besides being our
No. 1 rival in world wheat markets, especially for spring varieties
and durum, Canada also is a major competitor in barley, oilseeds,
horticultural and livestock items.

Canada is the United States’ largest supplier of competitive agri-
cultural products. Frozen pork, beef and veal plus live cattle and
hogs head the list at nearly $1 billion. Other significant Canadian
exports to the United States include horticultural items and grain
products. Some of Canada’s most important exports to the United
States are commodities for which it has few alternative markets—for
example, live hogs and fresh potatoes.

US--Canadian free trade talks are also significant because they
offer both our countries an opportunity to get a head start on issues
that will undoubtedly be addressed in the multilateral forum of the
Uruguay Round.

The Uruguay Round of multilateral trade negotiations represents
the best opportunity U.S. and Canadian agriculture will have in this
decade, and possibly for the rest of the century, for developing ground
rules that will facilitate expanded trade.

If the United States and Canada—both of which have highly devel-
oped agricultural systems and a big stake in freer and fairer agricul-
tural trade—can find ways to resolve the issues that trouble our
trade, our chance for success in the Uruguay Round will be greatly
improved.

Our achievements in these bilateral talks may well be perceived as
a test of whether progress in resolving agricultural trade disputes is
possible in the multilateral GATT forum.

Conclusion

I am optimistic about success in our talks with the Canadians and
in our negotiations with our Uruguay Round partners, provided we
set ourselves the right goals.

99



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