MR. GAMBLE: I thank you on behalf of the peanut growers of this Nation to have an opportunity to testify here today. My name is Wilbur Gamble and I'm a peanut grower from Taylor County, Georgia. I am Chairman of the National Peanut Growers Group to be representing peanut growers across this nation.

The United States relies on its predominant world market supply of peanuts based on a combination of price and quantity. With past trade agreements ensuring Argentina a share of the U.S. market we have encouraged an expansion of peanut protection to that country which now supplies not only part of the U.S. market but also much of the world market.

Asia has historically been one of the largest markets for U.S. exported peanuts but now recent fines and problems have dramatically reduced the amount of peanuts exported to this region. China is the largest producer of peanuts in the world, while only a small quantity of these peanuts can enter the U.S. venue. Instead they enter through other countries such as Canada.

In countries like Canada these Chinese peanuts are made into peanut butter and enter the U.S. in extended quantities. China has also recently came a major world supply of the market that has been driven by prices rather than quality.

It is our sincere hope that the trade policy staff committee can structure policies which will fairly deal with the problems currently we encounter by setting and developing new peanut policies.

Number one, U.S. peanut growers have not benefited from the past trade agreement. To the best of our knowledge, there is not a single country now importing U.S. peanuts mainly as a result of the trade agreement. Rather than seeing export increases as a result of trade agreements we have, instead, seen them decline. U.S. peanuts and peanut production have deceased.

Number two, no consideration was given in the past agreements that the U.S. government regulatory system as compared to that of other countries. U.S. must comply with numerous environmental regulations, work protections, minimum wage rates, local and state taxes, and the cost of any other rules are dictated by U.S. standards of living. We must be given an opportunity to compete on a level playing field, which in our case has not been equal to the definition of free trade.

Number three, many excesses must be controlled by strict rules of -- market excess must be controlled by strict rules of origin. Canada has built an entire infrastructure of processing peanuts and peanut products for export to the U.S. market while some of these quantities come from the GATT import quota of peanuts -- paste and peanut butter. Those products are not comprised of this quota.

In the past peanut containing confectionery items have entered the U.S. as confectionery items rather than peanut items. Beginning in January of 1998 all peanut containing confectionery items were set out in the customs WTS system separately. From January to December of 1998 over 240 million of these type of products entered the U.S. outside of peanut tariff rate quotas. This equates to approximately 40,000 tons of farm stock peanuts or nearly one-half of the excess granted under GATT for peanuts.

Any new agreement should make sure that peanut items are counted against tariff rate quotas and not be allowed to be outside of these miscalculations. Under NAFTA Mexico is allowed, duty and tariff-free quota free, to send peanut products into the U.S. as long as they were made from Mexican grown peanuts. The same rules of origin standards should be adopted in future agreements for all of our trading partners.

Number four, the current agreement fails to adequately provide safeguards in the event of changes in the exchange rate between countries. This is an important issue and must be considered in any trade initiative.

Number five, it was clear at the last meeting of the WTO in Geneva for the anniversary celebration that any listing of current sanitary and phytosanitary standards are unacceptable. Contrary to this position to date, those that were dumping peanuts in the world market for little or low quality standards, we need to strengthen and curb sanitary and phytosanitary standards. Through the USDA we have developed the safest, highest quality in the world. To delete or ignore these efforts is a violation against the consumers in the peanut industry.

Number six, the elimination of Section 20(T) during the NAFTA negotiations, import protection to peanut growers, are very few. Other commodities have very strict border assistance programs and import protection through an active U.S. trade representative office. The USTR has never shown an interest in protecting the peanut growers from similarly imported products. We ask that the Administration take a look at possible snapback provisions that would protect the peanut growers at any time the import company causes an interference in the operation of the peanut program.

The peanut industry opposes both NAFTA and GATT, clearly the policy of the Administration, moving forward without our support. Our reason for opposing an agreement is we have lost over 20 percent of our share which would be more competitive. Our price quota has been cut 10 percent. We are not better off today than we were prior to NAFTA. We ask that the Administration review the impact of these agreements on the peanut industry before any new negotiations are completed.

We ask that you take into account our issues of concern and encourage growth through new trade policies in the U.S. peanut industry and not continue the demise. Thank you.

(Applause.)