May 21,2004

Grassley Seeks Progress on Agricultural Trade

WASHINGTON – Sen. Chuck Grassley, chairman of the Committee on Finance, today urgedChile, South Africa, and Thailand to encourage the G-20 group of developing countries to make aviable agricultural market proposal in the current Doha Development Agenda negotiations of theWorld Trade Organization (WTO).

The text of Grassley’s letters to representatives of Chile, South Africa, and Thailand follows.


May 21, 2004

His Excellency Andrés Bianchi
Chilean Ambassador to the United States
Embassy of Chile
1732 Massachusetts Avenue, N.W.
Washington, D.C. 20036

Dear Ambassador Bianchi:

I am writing with regard to the current Doha Development Agenda negotiations of the WorldTrade Organization (WTO). I would like to provide you with my views as to how the Group of 20(G-20) developing countries, of which Chile is a member, could become more effective in helpingWTO members reach a final agreement in these negotiations.

I am certain that you share my view that a successful conclusion of the WTO negotiationswould greatly benefit both the United States and Chile. With this in mind, I am concerned that theG-20 countries have yet to offer a proposal on agricultural market access that will lead to broad tradeliberalization for all members of the WTO. Indeed, the Fifth WTO Ministerial Conference in Cancúncollapsed last September in large part due to the inflexible negotiating positions of the G-20countries.

Given our experience of working together to conclude the U.S.-Chile Free Trade Agreement,I know that you and your government are committed to trade liberalization. For this reason, I amdisappointed that Chile remains associated with the G-20, a group which has yet to make areasonable market access proposal for agricultural liberalization. I hope that in the coming days Chilewill work actively to encourage the G-20 countries to make constructive suggestions as well asmeaningful concessions on agricultural market access in order to move the WTO negotiationsforward. If the G-20 fails to make a viable offer in these negotiations, I would question its continuedutility as a negotiating bloc.

I appreciate your attention to this matter of importance to both our countries. I would bepleased to discuss this issue with you in greater detail.

Sincerely,

Charles E. Grassley
Chairman


May 21, 2004

Mr. Chirachai Punkrasin
Chargé d'Affaires of the Royal Thai Embassy
1024 Wisconsin Avenue, N.W., Suite 401
Washington, D.C. 20007

Dear Mr. Punkrasin:

I am writing with regard to the current Doha Development Agenda negotiations of the WorldTrade Organization (WTO). I would like to provide you with my views as to how the Group of 20(G-20) developing countries, of which Thailand is a member, could become more effective inhelping WTO members reach a final agreement in these negotiations.

I am certain that you share my view that a successful conclusion of the WTO negotiationswould greatly benefit both the United States and Thailand. With this in mind, I am concerned thatthe G-20 has yet to offer a proposal on agricultural market access that will lead to broad tradeliberalization for all members of the WTO. Indeed, the Fifth WTO Ministerial Conference in Cancúncollapsed last September in large part due to the inflexible negotiating positions of the G-20countries.

Given the fact that the United States is currently negotiating a free trade agreement (FTA)with Thailand, I am concerned that the lack of an offer by the G-20 calls into question Thailand’scommitment to the trade liberalization process. Without such a commitment, continued negotiationsof a U.S.-Thailand FTA might not be productive. Moreover, when the U.S.-Thailand FTA iscompleted, I am confident that you will encourage me in my position as Chairman of the SenateFinance Committee to help advance it through the Senate, and a demonstrated commitment ofThailand to trade liberalization at the WTO would make this task much easier. I hope that in thecoming days Thailand will work actively to encourage the G-20 countries to make constructivesuggestions as well as meaningful concessions on agricultural market access in order to move theWTO negotiations forward. If the G-20 fails to make a viable offer in these negotiations, I wouldquestion its continued utility as a negotiating bloc.

I appreciate your attention to this matter of importance to both our countries. I would bepleased to discuss this issue with you in greater detail.

Sincerely,

Charles E. Grassley
Chairman

May 21, 2004

Her Excellency Barbara Joyce Mosima Masekela
Ambassador of South Africa to the United States
Embassy of South Africa
3051 Massachusetts Avenue, N.W.
Washington, D.C. 20008

Dear Ambassador Masekela:

I am writing with regard to the current Doha Development Agenda negotiations of the WorldTrade Organization (WTO). I would like to provide you with my views as to how the Group of 20(G-20) developing countries, of which South Africa is a member, could become more effective inhelping WTO members reach a final agreement in these negotiations.

I am certain that you share my view that a successful conclusion of the WTO negotiationswould greatly benefit both the United States and South Africa. With this in mind, I am concernedthat the G-20 has yet to offer a proposal on agricultural market access that will lead to broad tradeliberalization for all members of the WTO. Indeed, the Fifth WTO Ministerial Conference in Cancúncollapsed last September in large part due to the inflexible negotiating positions of the G-20countries.

Given the fact that the United States is currently negotiating a free trade agreement (FTA)with South Africa and other nations of the South African Customs Union (SACU), I am concernedthat the lack of an offer by the G-20 calls into question South Africa’s commitment to the tradeliberalization process. Moreover, when the U.S.-SACU FTA is completed, I am confident that youwill encourage me in my position as Chairman of the Senate Finance Committee to help advance itthrough the Senate, and a demonstrated commitment of South Africa to trade liberalization at theWTO would make this task much easier. I hope that in the coming days South Africa will workactively to encourage the G-20 countries to make constructive suggestions as well as meaningfulconcessions on agricultural market access in order to move the WTO negotiations forward. If the G-20 fails to make a viable offer in these negotiations, I would question its continued utility as anegotiating bloc.

I appreciate your attention to this matter of importance to both our countries. I would bepleased to discuss this issue with you in greater detail.

Sincerely,

Charles E. Grassley
Chairman