News Releases for December 2003
December 17, 2003
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Hoeven: Negotiate Sugar Trade Agreement In WTO, Not Bilaterally In CAFTA
BISMARCK, N.D. - Gov. John Hoeven today said a final accord on sugar in the Central American Free Trade Agreement has come a long way from the original plan, but does not adequately create a level playing field for North Dakota sugar beet producers and processors.
In the accord agreed to by U.S. negotiators today, the second tier duty on sugar remains the same; however, the agreement increases foreign sugar quotas 90 thousand metric tons in the first year of a 15-year agreement, up to 123 thousand metric tons in year 15. Thereafter, the quota increases an additional 2 percent annually.
“We’re pleased the U.S. Trade Representative has responded to our push and kept the tier two duty on sugar in place,” Hoeven said. “The problem is they’ve negotiated yet another bilateral agreement that allows increased imports from low-cost producers. High-cost, subsidized producers, like the European Union, still retain their barriers, creating unfair competition. Any negotiations on sugar should be done at the World Trade Organization, with all of the players at the table, so that we have a level playing field for our producers and processors. That is the right venue and the right approach.”
Hoeven has worked hard with the White House, the office of U.S. Trade Representative Robert Zoellick, and sugar industry leaders to support fair treatment for sugar beet producers and processors. Last week, he organized an effort to send a letter to President Bush signed by sugar state governors in support of the industry. He made a similar request in earlier letters to President Bush last August and September. Since then, Hoeven has repeatedly pressed the issue with administration officials, including U.S. Commerce Secretary Don Evans.
The Governor last week also met with officials of the Red River Sugarbeet Growers Association; American Crystal Sugar; Minn-Dak Farmers Cooperative and North Dakota sugar beet producers. Most recently, he met this morning in Washington, D.C. with U.S. Agriculture Trade Ambassador Allen Johnson, who briefed him on the details of the agreement.
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