1. Trade Programs and Policies 2002 Farm Bill Education Conference Kansas City, Missouri May 20-21, 2002 Joe Outlaw Texas A&M University

2. Market Access Program Primarily directed toward promoting exports of value-added agricultural products –By subsidizing market research, technical assistance, and marketing activities Funding increased from $90 million per year to: 200220032004200520062007 FY funding (million)$100$110$125$140$200$200 Adds language to give equal consideration to: –Current participating organizations –Eligible organizations that are non-participants –Proposals from: «Emerging markets «Other than emerging markets

3. Foreign Market Development Cooperator Program Known as cooperator program Intended to enhance exports through market development activities –Previously was directed toward unprocessed bulk commodities –Adds language regarding value-added ag products Funding increased from $27.5 million to $34.5 million annually Continues emphasis on the promotion of value added agricultural products into emerging markets

4. Food for Progress Program Provides U.S. commodities to support countries that have made commitments to expand free enterprise in their agricultural economies Reauthorized and funded at $308 million Funding caps for transportation and administrative caps are increased Establishes a minimum level of commodities (400,000 metric tons) to be purchased for food aid programs

5. McGovern-Dole International Food for Education and Child Nutrition Program Provides $100 million in FY 2003 mandatory money to continue the pilot program, authorized 2004-2007 Requires procurement of ag commodities and provision of financial and technical assistance to carry out: –Preschool and school food for education programs –Maternal, infant and child nutrition programs Any ag commodity is eligible to be provided as well as transportation costs President shall designate 1 or more federal agencies to carry out

6. Miscellaneous Country of Origin Labeling –Voluntary for 2002-2003, mandatory thereafter –Meat, fish, produce and peanuts by 2004 –For a product to be labeled a USA product, it must be born, raised, and processed in the U.S. –2 Loopholes: «Does not include food service «Does not includes commodities that are ingredients in processed products

7. Miscellaneous (Cont.) Biotechnology and Agricultural Trade Program –Purpose shall be to remove, resolve, or mitigate significant regulatory nontariff barriers to U.S. exports by providing grants to public and private sector projects –Authorizes $6 million annually Technical Assistance for Specialty Crops –Export assistance program to address unique barriers that prohibit or threaten exports of specialty crops –Funded at $2 million annually by the CCC

8. Miscellaneous (Cont.) Global Market Strategy –Sets up schedule for Secretary to report to relevant committees on the formulation of a global market strategy for the Department that: «Identifies opportunities for the growth of ag exports «Ensures that resources, programs, and policies of the Department are coordinated with those of other agencies «Remove barriers to trade Report on Use of Perishable Commodities and Live Animals Sense of Congress Concerning Foreign Assistance Programs Sense of the Senate Concerning Ag Trade

9. Other Issues Trade Promotion Authority –Appears the President will get a chance to use the veto pen –Senate provision would allow package to be amended WTO and U.S. commodity programs –Questions remain regarding CCPs –How likely the AMS cap is exceeded