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World Pork Expo June 7, 2003 Report 15
(Episode 1272)

The National Pork Producers Council says the reduction of international import tariffs and European export subsidies on pork must be a key focus during the next round of World Trade Organization negotiations.

International Trade Council Nick Giordano says import tariffs and export subsidies put American producers at a substantial disadvantage.

"Average global tariffs on pork are 77 percent. That's ridiculous.

As good as we've done since the Uruguay round and the NAFTA, and our pork exports have exploded since that time, there's a lot more that can be done.

You've got average global tariffs at 77 percent. You've also got countries like the European Union eligible for obscenely huge export subsidies.

It's legal under the Uruguay round but we've got to get those export subsidies abolished in this new round.

The amount of subsidy that the European Union could put on pork would be equivalent, I think, to maybe 70, 75, 80 percent of all US pork muscle meat exports in volume terms. It would give them a benefit of over a dime a pound. It's just obscene".

Giordano says the Europeans haven't actually used those subsidies to that extent but there is talk about using them now as the value of the US dollar weakens.

He says the weakening dollar is a positive development for US producers, in terms of exports, but the European are now saying they need those subsidies.

He says, while negotiators need to protect gains made in previous trade agreements, they also must focus on making new inroads.

At World Pork Expo, I'm Bruce Cochrane.