A couple introductions I’m also going to make as you’re reentering the room. One of the gentlemen is not in here yet, but as long as Herb Halberson (ph) is standing from Congressman Minge’s staff, Herb Halberson is with us this afternoon, has been with us all day, as a matter of fact, and from Minnesota Senator Rod Graham’s staff I’d like to have David Ladd stand. David is with Senator Graham’s staff and was able to join us this afternoon. I also know that the Minnesota director of the FSA is also in attendance, has been most of the day, Tracey Beckmen, and I think he may still be in the hall. So we appreciate all of you being here this afternoon. And as we’re all resituated and seated, again five minutes to make your presentation, some chance for response. We’re just a tad early, so let me introduce to you Justin Dagen of the Red River Valley Potato Growers.

MR. DAGEN:

My name is Justin Dagen and I’m a fourth generation American potato farmer here from -- from Minnesota. And I say American because I am proud to be an American, but I am a fourth generation. My great-grandfather immigrated from Norway in the 1880’s, settled up in the Red River Valley. This is big Scandinavian County, I’m sure you guys are aware of that, and Scandinavians do have a sense of humor regardless of what you’ve heard. And I’d like to ask you a question. Do you know why a Norwegian can’t tell a joke timing? Today I’m here on behalf of the National Potato Growers Council for which I sit on the board of directors. The National Potato Council represents potato growers in all 50 states. Our growers’ production has a farm gate value of over $2.4 billion. The potato is America’s favorite vegetable. You can bake them, boil them, chip them, fry them, slice them, dice them, hash them, mash them. They’re very versatile, they’re very economical. Our potatoes are sold domestically and in export markets in both fresh and processed forms. Total export value for both fresh and processed potatoes is over $700 million. And I appreciate the opportunity today to discuss our industry’s concerns and our goals for the new round of multilateral negotiations in agriculture. We ask that you as our key negotiators on agriculture incorporate these into the U.S. government’s objectives for these negotiations. What our industry seeks most from the upcoming agricultural negotiations are two things. First, we need liberalized and predictable access to foreign markets for our fresh and processed potato exports. This means reduced tariffs and the removal of scientifically unjustified sanitary and phytosanitary restrictions. Second, we need assurances that trade distorting subsidies in the potato sector will be disciplined and reduced or eliminated altogether. Subsidies in Canada have been a longstanding issue for our industry and one that we have yet to receive any relief from. U.S. potato growers are skeptical, however, that the negotiations will, in fact, achieve these benefits for our industry. Our concerns emanate from our experience with the Uruguay Round, NAFTA and the U.S./Canada free trade agreement. Despite the liberalization goals of these agreements, U.S. potato exports still face high tariffs in many export markets, unjustified sanitary and phytosanitary restrictions and increased competition from a growing Canadian industry that still benefits from direct and indirect government aid. To correct the shortcomings of the prior trade agreements we urge four specific improvements to the Uruguay Round agreement and one new area that we propose be covered in the upcoming negotiations. A more detailed description of our goals is included in my written testimony which I ask be made a part of the record for this hearing today. The first area where we urge improvement is tariff reductions. Here the National Potato Council supports the early, voluntary, sectoral liberalization initiative for processed foods, including French-fries endorsed by the Asia Pacific economic cooperation countries. We would like to see tariffs on fresh and processed potatoes go to zero or at least at a minimum be substantially reduced in all WTO member countries. In the Uruguay Round many of the Asia Pacific countries, some of which are our best markets, were considered developing countries and as such were required to make only minimal tariff reductions and from extremely high base rates. Thus, while U.S. tariffs on potato products were reduced, many of our export markets were not required to make similar reductions. We need assurances that this inequity will be corrected in this round and that all WTO countries will be required to substantially reduce their bound tariff rates on potato products. Just as an example, in China and Thailand between the tariffs and the trade and the taxes that exceeds 85 percent of the FOB price. So it was very, very substantial.

The second area in which we urge a more aggressive approach is domestic subsidies. Here we urge U.S. negotiators to seek sector specific reductions. The Uruguay Round did nothing to reduce the level of subsidies benefiting the Canadian potato sector. This was because reduction commitments were made to an aggregate measure of support across a broad group of products rather than requiring reductions be made to aid levels going to a specific sector. In the post Uruguay Round NAFTA period, Canadian subsidies continued to be a problem for our industry. U.S. imports of both fresh and processed potatoes from Canada have increased significantly. The U.S. trade representative Charlene Barshefsky has identified, "Canadian federal and provincial assistance measures on potatoes to be one of several priority issues for formal consultations with Canada. We hope the new round will finally address these subsidies and eliminate the advantages they present for our Canadian competitors. Otherwise our growers will continue to lose U.S. market share to a Canadian industry that is competitive not because of its innate abilities but because of its benefits from government aid and currency advantages. Just on a personal note. I’m familiar with two communities, they’re ten miles apart. The only thing dividing them is the 49th parallel. In one community the potato industry has been severely damaged the last five or six years, acreage is reducing, jobs have been lost. On the north side of the border the industry is growing, contracts are growing, there’s more jobs. I don’t want to continue to export jobs and to damage the infrastructure of our country. So I appreciate your help in this matter people. Thank you.