MR. WITMER: Distinguished Panel, honored guests, ladies and gentlemen, I'm Peter Witmer, Chief of the Domestic International Trade Division with the Pennsylvania Department of Agriculture.

On behalf of Governor Tom Ridge, Secretary of Agriculture Samuel Hayes, I would like to commend the United States Department of Agriculture and the United States Trade Representative for holding these listening sessions.

Agriculture is the number one industry in Pennsylvania. The hard work and dedication of Pennsylvania's 50,000 farm families results in $4 billion in cash receipts. Pennsylvania agriculture generates an additional $40 billion annually in related economic activity and creates jobs for one in every five Pennsylvanians.

With more than 2300 food processors, the highest number in the northeast, Pennsylvania ranks in the nation's top five among food processing states. And nowhere in the United States is there a greater source of Appalachian hardwood than in the world renowned forests of Pennsylvania.

Detailed testimony will be submitted later in written form. Our recommendations come as a result of the Commonwealth of Pennsylvania and the Department of Agriculture proactively seeking and building relationships around the world through their trade development programs. The statements here are experience-based.

First of all, Pennsylvanians believe in fair trade, that is, a level playing field. World demand for agricultural products continues to increase, but so does competition among suppliers. If Pennsylvania's agriculture, food and hardwoods industries are to compete successfully for the export opportunities of the 21st century, they need fair trade and fair access to growing global markets. Hopefully this listening session as well as the previous ones this summer will provide you with the input to address some of these issues at the WTO conference in Seattle.

I would now like to enumerate just some of the more pertinent trade issues affecting Pennsylvania agriculture, many of which have been already addressed by early industry speakers.

Dairy export subsidies and import tariffs are still very common in the world dairy trade. These allowable subsidies are the primary reason for world dairy prices being depressed below domestic prices, shackling Pennsylvania dairy exporters.

Although the United States is not considering the renegotiation of the sanitary and phytosanitary agreement, Pennsylvania continues to face a number of issues that we believe need to be addressed on sound scientific principles rather than political or cultural factors.

The Mystery Swine Disease known as PRRS continues to be an issue with Mexico.

Pennsylvania apple producers are effectively barred from exporting apples to Mexico because of inspection requirements.

Statements of disclosure requiring detailed ingredient and process information are onerous requirements of various countries.

Organic foods and inputs need an internationally recognized standard for labeling products, establishing certification bodies and reciprocity, where possible.

Pennsylvania exporters have encountered various problems with customs and labeling procedures.

An arbitrary increase in a product tariff or a reassignment of harmonized systems code numbers to raise the tariff.

Onerous mixed container requirements regarding paperwork and samples for inspection purposes.

The lack of standardization of labeling, stickering, language and ingredient requirements.

The U.S. Trade Representative must continue to press the issue of the EU's beef hormone ban based upon sound science.

To summarize, Pennsylvania agricultural exports continue to increase in volume and importance to meet global demand. It is very important that the trade issues outlined above be addressed during the November WTO conference.

These listening sessions are helpful and symbolize the importance WTO issues hold for the states.

Many trade disputes have to be handled by the states. They must have an active role in these negotiations.

We hope that you would have a come back session for us. This would keep us informed throughout the process. We need to know from our colleagues the plans for addressing these important issues as things progress.

Thank you for inviting us to appear before your panel.

UNDER SECRETARY SCHUMACHER: That's the first I've heard of a suggestion that maybe Teresa and Mark and the young people sitting here negotiate this agreement, that we, a year-and-a-half from now, we come back and do this again, update and let people comment on how far we've gotten. That's the first I've heard of that. I think that's a really good idea. Our staff would be grouchy about all the organizational arrangements, but I think it's an important issue and I think, you know, perhaps maybe in the summer of 2001 it would be helpful to see where we are and see if prices come back in terms of Dr. Putz's -- how do you feel about that, Teresa? Come back and revisit and maybe some of the same people testifying, some neutrally, some grouchily. We'll see if there'll be more grumpy statements or even more neutral statements. We shall see. But that's a very good idea.

MS. HOWSE: Presumably we'll be halfway through the negotiation. We'll still have time to change course a little bit and tackle it.

UNDER SECRETARY SCHUMACHER: Exactly. Let's put that in as a strong recommendation for coming out of the Delaware session. Thank you very much.

MR. WITMER: I appreciate that. Thank you.