MS. KEENAN: Thank you, Bruce. Ladies and Gentlemen of the panel, thank you for allowing me the opportunity to participate today with the World Trade Organization's listening session. I also want to thank the representatives of the US Department of Agriculture, your US trade representatives, the State Department, of course, our own Department of Agriculture here in Montana. But most importantly, thank the farmers and ranchers that are here with us today for taking time out of their day, which is a very busy time of year, so that they all could share with your their views. They're the ones that know firsthand the impact multilateral trade policies have on their daily lives.

My goal in being at this meeting is, first, to listen also to the challenges confronting Montana agriculture today and the rural international trade place and the economic livelihood of our families and our agriculture producers. I don't claim to be an expert on agricultural policy or agriculture, but one thing I do know is that Montana farmers and ranchers are facing a crisis of proportions not seen since the Great Depression. Our state's number one industry, our Main Street businesses, and our unique irreplaceable rural way of life is truly at risk. Montana's agriculture producers aren't asking for any sort of preferential treatment. All they want is a little fairness in their lives, a level playing field. In 1996, the price of wheat was $4.24 per bushel. In June, that price is $2.80. It doesn't take and economist or anyone that is a rocket scientist to understand or figure out that you can't stay in business for long when your costs of production so greatly exceed your market price.

As Montana State Superintendent of Schools, I have experienced firsthand how bankruptcies and business closures have impacted our rural schools. I have experienced firsthand the lack of hope that many of our young children, many of whom are here today, the lack of hope they have in staying and working on that land. Now, we all know that international trade agreements are neither the complete cause nor are they the complete solution to the crisis we face here in rural Montana.

To help our state's ag producers to turn the corner and get past these tough times, will require a number of policy changes, both domestic and foreign. Here at home, raising the loan caps for grains and rigorous enforcement of our antitrust statutes as it pertained to the concentration of capital and market share in the agribusiness industry is a good place to start. However, insofar as WTO negotiations impact our family farmers' and ranchers' bottom line, we need to make sure that legitimate needs of our agriculture producers are not sacrificed at the alter of international trade relations.

So at this next round of world trade negotiations, and as they get underway, we need to make sure that US negotiators do not make concessions which hurt agriculture in order to gain advantages for other industries. That's why I would urge you to keep the upcoming negotiations focused on agriculture and not the multisector negotiations that re-examine all components of trade agreements.

It is also unfair that the average US tariffs for US agriculture products, averaging 3 percent, are so far below the rest of the world's agricultural producing countries. Montana and American producers deserve fair access to those international markets. We should not allow the European Union to use questionable health concerns as disguised trade barriers to American beef imports. EU member nations should be compelled to live up to their commitments fairly and freely entered into during the Uruguay Round of WTO negotiations. The world trade dispute settlement process needs to be able to compel the EU to change its policy on beef imports. Not simply to allow the US to put tariffs on truffles and Rochefort cheese.

In conclusion, I want to reiterate that all Montana family farmers and ranchers are asking for in these upcoming rounds of WTO discussion is an honest deal. It's important that US trade representatives to Seattle negotiate to be champions for the voices and concerns of Montana and America's agricultural producers. You've heard it today already, be strong, stand your ground. And when in doubt, recall the voices you heard here today in Montana, and we welcome you back or call us up and, again, recall what you heard from these producers here. And if I might be so bold, on behalf of the children of Montana, they would also say the force be with you. Thank you for allowing me this opportunity.

MR. NELSON: Thank you, Nancy. Panel, any questions or comments?

MR. GALVIN: Thanks for your statement. Just a quick comment on the beef hormone issue. I do want to assure people that the position of the US Government has been -- our primary objective has been to get the EU to lift that ban. And we only resorted to this retaliation because, of course, the EU has been resistant to that. But our number one objective remains having the EU lift that ban so that we can enjoy access to their market and hopefully $100 million to $200 million worth of increased sales on behalf of US beef producers.

MS. KEENAN: Thank you.

MR. NELSON: Thank you, Nancy. Now, we will take a break for lunch.