24 February 1999
EXCERPT: GLICKMAN SAYS RUSSIAN FOOD AID SHIPS THIS WEEK
(USDA continues to challenge trade barriers) (1000) Washington -- Secretary of Agriculture Dan Glickman says the first shipment of the $1,200 million U.S. food assistance package for Russia will leave in days through a Virginia port and arrive in St. Petersburg by March 10. Glickman said the package includes food intended for vulnerable groups and regions, and feed grains and oilseed products for Russia's ailing livestock sector. The package amounts to more than 3.1 million metric tons, including 1.5 million metric tons of wheat under President Clinton's Food Aid Initiative, Glickman said before the Senate Agriculture, Nutrition and Forestry Committee February 24. The first shipment leaving within days will include vegetable seeds, and shipments of wheat should begin in about two weeks, he said. Grain tenders under the Food for Peace Program -- formally known as P.L. 480 Title 1 -- are expected to begin shortly, he said. Glickman said the United States and Russia have established a monitoring program to ensure that the food assistance package reaches the targeted populations. He also said that market disruptions in Asia, Latin America, Russia and elsewhere have hurt the U.S. farm economy, but that the U.S. Department of Agriculture (USDA) is using export credit programs to boost agricultural exports. The United States has also begun preparing for agricultural and other trade issues at the World Trade Organization ministerial meeting later this year in Seattle. Following is an excerpt of Glickman's remarks as prepared for delivery: (Note: In the text "billion" means 1,000 million.) (begin excerpt) STATEMENT OF DAN GLICKMAN SECRETARY OF AGRICULTURE BEFORE THE COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY UNITED STATES SENATE FEBRUARY 24,1999 Exports Events of the past year have clearly demonstrated that strong export markets are a critical component of the farm safety net, but they have also demonstrated that exports are but only one dimension in providing a comprehensive safety net. Market disruptions in Asia, Latin America, Russia, and elsewhere have had negative effects felt throughout the farm economy and rural America. We have responded to those challenges by utilizing our program authorities aggressively to ensure the continued flow of U.S. agricultural exports. We increased the programming of export credit guarantees to Asian markets. As a direct result, sales registrations under the programs were up 40 percent last year. We also continue our strong efforts to open new markets through trade policy actions, including preparation for the new round of multilateral trade negotiations set to begin later this year and through negotiations in the Asia Pacific and Western Hemisphere regions. The growing challenges posed by technical barriers to trade, such as sanitary and phytosanitary barriers that are not scientifically based, also continue to be addressed vigorously. For 2000, the budget provides a total program level of nearly $6.5 billion for USDA's international programs. This includes $4.5 billion for the Commodity Credit Corporation (CCC) export credit guarantee programs, which will continue at last year's expanded level. I will not hesitate to make more credit available if it is needed. Foreign Food Assistance We have taken a number of important actions to assist countries meet their food and agricultural import needs this year -- actions which also help maintain agricultural export levels and support farm income. Last July, the President announced his Food Aid Initiative under which approximately 5 million metric tons of wheat and wheat products are being made available for donation overseas through foreign governments, private voluntary organizations, and the World Food Program. We expect to complete programming this wheat by the end of the fiscal year and to complete shipments by the end of the calendar year. We have also developed and are implementing a major package of assistance for Russia, which is intended to alleviate serious food and feed shortages there. The package includes over 3.1 million metric tons of commodity assistance, including 1.5 million metric tons of wheat, which is being made available under the President's Food Aid Initiative. The total package is valued at $1.2 billion, including $880 million for the estimated value of the commodities and about $300 million for associated transportation costs. This aid package has several objectives. We want to increase food supplies to vulnerable groups and regions, making sure the food reaches its intended destinations. We are also providing feed grains and oilseed products to help bolster Russia's ailing livestock sector, and we are looking at other ways to assist agriculture. The first shipment of commodities, vegetable seeds, is scheduled to leave Norfolk this week and is expected to arrive in St. Petersburg around March 10. Shipments of wheat to Russia under the President's Food Aid Initiative should begin in about 2 weeks, and grain tenders under the P.L. 480 Title I credit agreements are expected to begin shortly. We have concluded agreements with four of the five private voluntary organizations that will be involved in the direct distribution of food. Shipments under the first of these agreements are expected to begin by mid-March or sooner. The U.S. and Russian governments have established an unprecedented monitoring program to ensure that the food aid reaches the targeted populations throughout Russia. USDA is devoting substantial resources to monitor the delivery and distribution of the assistance, including stationing additional USDA staff in Russia to aid in this effort. USDA is also working with other U.S. government agencies at our Embassy and Consulates to expand the oversight effort, and we will, if necessary, send additional staff. Our aid to Russia is a temporary measure. As we look down the road, our interest, along with that of the rest of the world, is in the recovery of the Russian economy and its purchasing power, and the resumption of its role in global commercial trade. Russia has been an important market for U.S. agriculture, especially our poultry industry, and it is in our best interests to see the Russian economy improve. (end excerpt)
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