Release No. 0376.96

Remarks

  PREPARED FOR DELIVERY BY SECRETARY OF AGRICULTURE DAN GLICKMAN
                 INTERNATIONAL AGRICULTURE SUMMIT
                 KANSAS CITY, MO.--JULY 15, 1996

WELCOME

     I'm glad to be here in Kansas City.  I find it quite fitting to be
standing in America's heartland talking about the role of U.S. agriculture
in a changing world.  It's equally fitting to be joined today not just by
America's agriculture community, but our friends and counterparts from
around the world.  Welcome.

     Where I live, in Washington, D.C., you can go on a two-hour's drive
and stand at the shore of the Atlantic Ocean, look out across its vast
expanse, and contemplate the opportunities that lie beyond our borders. 

     Here in Kansas City, you don't have to go quite so far.  All you have
to do is walk out into a farmer's field and stand among the corn and
soybeans or go to a ranch and stare a cow in the face.  Today, there are no
greater symbols of American opportunities abroad than those you find right
here in the heartland.

AG's TRADE SUCCESS 

     Agriculture is America's brightest spot on the trade horizon. 1/3 of
American crops are destined for foreign shores, as are nearly 1 in every 12
head of cattle.  Our $30 billion trade surplus makes us the leading positive
contributor to the U.S. trade balance. Not cars, not computers, American
agriculture is number one.

     Why?  Because America has the most productive farmers and ranchers in
the world.  We regularly produce far more than our people can consume. Trade
is a matter of survival -- economically for our producers, and often
literally for those around the world whom we feed. 

     America's agricultural abundance is a source of great pride. But the
phenomenal productivity of our farmers is only half the story.  A strong
exporting nation needs a strong government -- one that's committed to
opening markets, building trade ties, and promoting freer and fairer trade.

CLINTON TRADE ACCOMPLISHMENTS

     President Clinton understands that trade will determine our economic
future.  That's why he's made creating global opportunities for America
abroad a top priority of this Administration.  From NAFTA, to GATT, to
bilateral agreements on beef with Korea, almonds with India, poultry with
Russia, and a slew of other trade deals -- both great and small -- this
Administration has achieved more in the area of trade policy than any other
post-war administration. 

     As trade barriers fall and market liberalization becomes the clear
trend around the world, we're now competing in the most open global economy
since the Nina, the Pinta, and the Santa Maria sailed in search of new
worlds (and Indian spices). 

     Prosperity has been our reward.  This year, America's agricultural
exports will reach $60 billion for the first time in history. All told,
agricultural exports have gone up $18 billion under President Clinton, and
they will continue to grow in the years ahead. 

     Trade with our neighbors-- Mexico and Canada -- is at an all-time
high.  This year, we expect to sell $4.4 billion worth of agricultural goods
to Mexico -- a new record and a stunning feat considering their recent
economic woes.  All told, trade with 7 of our top 10 markets reached new
heights last year, and the arrows are likely to keep pointing up.            
                                                  
     As all eyes turn toward the big emerging markets of tomorrow, we'll
focus more attention and resources on trade strategies in Eastern Europe,
Latin America, and particularly the Pacific Rim. 

     These developments are good news for American agriculture and for
American workers.  Study after study shows that businesses that export --
whether they're farms or computer manufacturers -- create jobs on American
soil that pay higher wages and offer better benefits. 

     Farm exports created 1 million U.S. jobs last year -- 1/3 of them in
rural communities where unemployment runs above the national average. So
while the future of U.S. agriculture lies in distant markets in far-away
lands, it has a very real, positive effect on our people here at home. For
many in agriculture, access to foreign markets makes the critical difference
between bankruptcy and solvency, efficiency and prosperity.

     So our tremendous trade success gives us good reason to celebrate.
We've made great progress in the global marketplace. But we have yet to reap
its full bounty. We must maintain America's reputation as a reliable
supplier. We must ensure our trading partners live up to the commitments
they've made on paper. We must challenge political science with sound
science and aggressively take on bogus sanitary or phytosanitary
regulations, the trade daggers of the future. And, we must welcome
additional countries into the circle of free and fair trade. 

TRADE VALUES

     I mention America's trade agenda and accomplishments not to gloat, but
to illustrate the vast opportunities available to every country. 

     Some will always doubt the wisdom of embracing the world. They have
many allies in history. After World War I, America looked across the
Atlantic and decided to pull up the drawbridge. The Great Depression and
global economic collapse soon followed. The second world war reconnected us
to the world beyond our shores and reminded us that we're all in this
together.

     But that doesn't mean we will be passive witnesses to the world trends
around us. As President Clinton said when he signed the Uruguay Round
agreement,  No country can escape the global economy ... (Therefore) we must
lead it in a direction that is consistent with our values.'

     America's values are well known: Equality. Opportunity. Fairness.
Democracy. Freedom. From helping struggling countries become vibrant
democracies to opening our own markets while others clung to protectionism,
America has long served as a flagship of stability in a changing world --
emanating steady progress that's allowed others to follow in our wake --
sailing together toward a more prosperous, peaceful world.

ECONOMIC/MARKET DEVELOPMENT

     From the geopolitical shifts of the  80s to the market liberalization
of the  90s, more and more countries are coming to this same conclusion: No
nation can go it alone. 

     Nowhere is this more true than in developing countries. I want to
applaud this conference for making the critical link between emerging
markets and the importance of development. It's a link that's not made often
enough. And it's a link that has its own set of critics -- those who want to
see the global marketplace divided into winners and losers. That's a short-sighted vision that would only lead us back down the road to greater
conflict and isolationism.

     The United States takes great pride in sharing our values with
developing nations. For many years, our efforts were built around a strategy
of promoting  emerging democracies.' This year, we made an important shift
to  emerging markets' in recognition of the fact that market liberalization
often precedes and then fosters democratic reforms.

     The Emerging Markets Program will spend $10 million annually over the
next 7 years helping developing countries reach the point where they can
enter the global marketplace from a position of strength. By sharing our
expertise -- in agriculture, technology, trade, and business -- we can help
them shore up their economies and transform them into stronger markets for
U.S. goods.

     Where the old  emerging democracies' program focused primarily on the
former Soviet Union, Eastern Europe, South Africa and Central America, the
new  emerging markets' program will expand to include places like China,
Vietnam, Pakistan, Algeria, Turkey, Peru and Ecuador.

     This allows us to shift resources from the stable markets of Europe to
the rapidly expanding markets of East and Southeast Asia. We're opening
agriculture offices in Hanoi and Jakarta and adding marketing expertise in
Tokyo and Seoul.

     These countries are showing a good-faith desire for greater openness
and an improved standard of living for their people. They see food security
through the prism of free trade and market-oriented domestic farm policies.
We will help them achieve these goals, and one of the ways we'll do that is
by developing their agriculture. 

     Inevitably, some will say we shoot ourselves in the foot by doing so.
To them, I would say two things: 1) We have an overriding humanitarian
obligation to help countries feed their people; and 2) We know from
experience that productive agricultural sectors spur strong overall economic
growth in developing nations, increasing incomes, promoting political
stability, and setting off a chain reaction in trade that benefits both our
countries. 

     Look at China. Rising populations, the emergence of a large middle
class and a growing preference for Western diets have made it the fastest
growing market for America and the world. 

     Or take the country we helped rebuild 50 years ago after it was
devastated by war. In the short run, we helped them feed their people. More
importantly, we helped them regain their economic footing -- putting them
back on track to independence and prosperity.

     This year, that country will buy $10.4 billion in U.S. agricultural
goods. I am, of course, referring to Japan. We played a similar role in
Korea, starting in the 1970s. Today, they're a $4.6 billion market for our
farm products. Taiwan, too. They'll come in at about $2.8 billion this year.

     It comes down to the basic question of whether you want a customer
with money or without. It doesn't take a Harvard economist to figure out
that economic development is market development. Call it the karma of
humanitarianism -- what you give to a country in need eventually comes back
to you -- frequently in greater abundance. 

FOOD SECURITY

     By the year 2000, half our exports will be to the Pacific Rim. For
import-dependent Asian nations, food security will remain of paramount
importance. As long as markets remain open, free trade can serve as a
critical safety valve -- relieving pressure on the domestic markets of
exporting nations, and ensuring a steady flow of food into importing
nations. 

     This relationship, of course, does not work for every country. Famine,
drought and other crimes of nature, along with civil strife, ensure that
some nations will always need special help. The United States is the largest
contributor to food aid in the world. We also give heavily to international
research, technology transfer and world bank initiatives. Our commitment
will not waiver.

     We will continue to pursue through research the holy grails of
agricultural productivity -- how to increase yields with less water, with
less wear on fertile soil, and in harsh weather conditions.

     And we will remain a reliable supplier. Tight grain markets have been
a lightning rod in the food security debate. The United States, from day
one, has been firm in our resolve that there will be no U.S. grain embargo.
We've made the commitment to free and fair trade, and we will not waiver.
The old ways are not an option for us. 

     Exporting nations, like the U.S., have an obligation to be reliable
suppliers. But importing nations have obligations, too. They should be
consistent buyers, and must avoid jumping in and out of the market,
disrupting the purchasing power of other nations in need of food.

     We also need to see more regional responsibility. In recent years,
many countries have stepped forward and increased their contributions to
food aid. Countries in developing regions whose economies are ahead of the
curve must join our efforts.
  
     These and other issues will be at the heart of the World Food Summit
this November in Rome. The United States will participate fully. For many
countries, food security is a matter of national security. Therefore, it is
a matter of world peace, and we all must take up the challenge. 

A LOOK AHEAD

     We must work together to ensure no country is left behind as we enter
this new era of openness. When we started down this road after World War II,
trade was in commodities or manufactures. Tariffs and quotas -- easily
recognizable -- were the primary barriers. Now, trade includes intellectual
property, and sanitary and phytosanitary requirements are becoming major
factors affecting trade. Negotations to open markets and keep them open will
be more complex.

     Future negotiations will also focus on new issues. This creates
opportunities for us to shape the principles of world trade, for example, by
better promoting sustainability. Increased trade does not have to mean
environmental degradation. In fact, through improved living standards, free
trade can make environmental protection more affordable.

     Our most recent breakthrough for global trade was the Uruguay Round of
GATT. For the first time, export subsidies were reduced, non-tariff trade
barriers were virtually eliminated, trade distorting subsidies were reduced,
a code of conduct to challenge phony science trade barriers was established
and many outright import prohibitions -- such as Japan's and Korea's ban on
imported rice -- were abolished. This is an impressive list of firsts.

     And we agreed to continue our trade liberalization efforts even before
the results of the Uruguay Round were completed. This will ensure forward
progress and help avert the natural tendency to backslide toward
protectionism. Now we will begin focusing on the next round for agriculture
which will take place in 1999. We'll want to further improve market access,
further reduce unfair subsidies, and challenge market distorting mechanisms,
such as state trading enterprises. 

     All of this, of course, will take place in the context of additional
countries seeking membership in the World Trade Organization. So
opportunities abound to continue improving the global trading environment.

CONCLUSION

     So I'm optimistic. Our global economy is young, but it is strong. Our
countries are letting in the free markets of the future and pushing
protectionism into our past. 

     These are exciting times to witness. Earlier this year, I went on a
trade mission to the Pacific Rim. One of my visits there was to a Chinese
supermarket where I learned about all kinds of produce that I'd never seen
before. But I also felt oddly at home amid Gerber baby food, Washington
apples and Doritos.

     Before then, I'd only talked about the global farmers' market.
Standing there in a Beijing grocery store, I saw it with my own eyes.
Looking at all of you, I'm reminded once more of how closely intertwined our
futures have become. The rising tide of world trade can and must lift all
boats. 

     Together, we can build a global farmers market where our agricultural
goods are traded freely across borders meeting the food needs of the world.
Its construction will not always be easy, but our reward will be a new era
of peace, plenty and prosperity for all our people. It is worth it.

     Thank you.

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