A U.S.-Japan working party will meet in Washington the week of April 12th to discuss the GATT consistency of Japan's agricultural quotas with a view toward liberalizing those restrictions. If we're to take full advantage of our agricultural resources, we must establish a clear policy for the benefit of our farmers, those who market our crops, and those who buy our commodities at home and abroad. And for this reason, I am presenting today our long-term policy on farm exports. The agriculture export policy of the United States will ensure three essential priorities. First, no restrictions will be imposed on the exportation of farm products because of rising domestic prices.
Farm prices go up, and farm prices go down.
High prices signal market-oriented farmers to produce more, and they will if we allow them to compete freely in export markets. This is best for everyone from farmer to consumer. For this reason the embargo of 1980 was almost totally ineffective, and yet it caused great economic hardship to U.S. agriculture. And we won't repeat such an action. Third, world markets must be freed of trade barriers and unfair trade practices.