Well, it's my pleasure to continue here as we introduce the guy that has really been responsible for helping to put all of this together and coordinate it.

A lot of work has gone into this on the state level. The State Ag Department has done a lot of the legwork, and the individual that has been responsible here for doing the coordinating of that is Merlyn Carlson. And what do we say about Merlyn? Everybody in the ag circles in the state of Nebraska are well acquainted with Merlyn. He goes back with a lot of leadership in the beef industry, past President of the Nebraska Cattleman, past President of the National Cattleman. He has been the Chairman of the Nebraska Beef Council. Right now he's the Vice Chairman of the U.S. Meat Export Federation, next year will be serving as Chairman and at the same time will be doing all the duties as State Agriculture Director, so here's an overachiever. Merlyn Carlson, let's welcome him to the podium.

DIRECTOR CARLSON: Thank you very much, Mike, and I can't say thank you enough for the opportunity to be here and for all of you to have taken time to have come. I just can't say enough for the presenters this morning, Jim Schroeder, Jim Murphy, and now Senator Kerrey and Senator Hagel and Congressman Barrett for all of the good messages they've had. It's been -- it's been worth it just to have those.

But now we come to the listening part of the day that really we have designed this program for, a listening session. And I just am so glad, I guess you would say this is act two now as we begin in our discussions this afternoon.

And let me say that I've had a great, great interest in this export and this whole trade area in creating greater opportunities for agriculture products in the ever-growing world.

And this listening session, as I said, is your session, and it's yours. We want to hear from you, and it's your testimony that we want and the open mike sessions, if something comes to your mind, you know, please share in those now following here later this morning as well as later this afternoon.

But I would also like to thank Mike LePorte and that golden voice and the golden personality that he brings for agreeing to moderate and to coach this very important event. So thanks to Mike.

Thanks to the Farm Service Agency, its Director Mark Bowen and the State Committee member Ruth Leech and Susan Frazier, Wayne Ziebarth, Allan Wenstrand of the Department of Economic Development and his team, we say thanks, Allan, for the University of Nebraska at Lincoln and Kearney, we say thank you. And all to the State Senators who are here and will be coming, we say thanks to you for being here, our Congressional delegation, our distinguished Governor, we say thanks for your help in putting this all on.

I would also like to alert you that the proceedings of this day will be recorded as you see at the time, and if you would like a copy, please ask them.

But as we begin this morning talking about and focusing on the World Trade Organization, the ministerial meeting that's about to occur out in Seattle, this is our focus, this is our area that we're going to be talking about. I've had great interest in that and you do too or you wouldn't be here. I think our access to the world marketplace is going to be addressed there and the level of subsidies, the tariffs, the nontariffs, the trade barriers that many, many countries place against our products will be considered.

You know the figures used by the Governor and by the Jims now this morning I think probably is a good way for me to start out too. That the need to consider the facts that the United States produces nearly half the world's food yet only 4 percent of the world's population is within our borders, but we have markets like in Asia that have half of the world's people. And so that clearly underlines the need for opening and strengthening relationships with those export markets.

And you know agriculture should be first to the forefront as we've heard our Congressional people say in the negotiations as it was in the Uruguay Round. This will assure an opportunity to address many of the international agriculture reforms which are essential to providing greater demand for our U.S. agriculture products. If world trade rules are going to open trade and agriculture products, the United States and other exporting nations will have to lead the way, and we've heard that this morning from Jim Schroeder so eloquently presented.

The United States needs strong trade negotiating authority to clearly demonstrate our commitment to trade levelization, and I too would echo the -- Ambassador Barshefsky and the Secretary Glickman and the work that they're providing in leadership.

Another area that needs to be mentioned of equal importance is the impact of our currency devaluation on trade flows. And that should be considered in our next round in Seattle. Probably would be a side agreement -- should be considered.

Under the 1996 farm bill, our nation's farmers and ranchers accepted the challenge to move to production-based market signals. These market signals came from a very competitive world market, and unfortunately now many other countries have policies that we've heard about earlier that have distorted these market signals through subsidizing their nation's farmers.

These subsidy programs can only be sustained by keeping out competition, keeping out our products and by dumping their surplus products on the world market. More work needs to be done during the Seattle rounds to address cuts in these existing trade-distorting supports.

Agriculture tariffs as we've heard earlier range in the area of 50 percent. In other countries while U.S. tariffs are running in the 5 to 8 percent as we've heard. And these high tariffs drive consumer prices higher and insulate domestic producers from the international marketplace. So the Seattle Round needs to substantially cut and where possible eliminate tariffs on farm products, and we've heard that by previous speakers.

Those of us in agriculture are excited to think about China's possible ascension into the WTO. That's also been mentioned, and I would find it's almost too good to be true. The opportunity to visit China here this spring, and China represents an emerging and dynamic market which previously has been closed to U.S. for a variety of reasons. And China could be one of the very important markets for Nebraska with significant growth potential.

China has 20 percent of the earth's population which is nearly 1.3 billion people and yet only 6 percent of the airable land. China has one of the fastest-growing economies in the world, and the Chinese market could easily become one of the top three markets for U.S. within the next five years. So we've got a lot at stake here, and entry of China into WTO will bring vast markets to agriculture products here in the United States and in Nebraska.

And could I enumerate some of the facts that's been mentioned earlier here as we talk about what are the facts and what kind of market is that going to open up in China? Corn quotas would begin at 4.5 million tons, would rise to 7.2 million tons by 2005 with only a 1 percent duty. That's big time stuff.

Wheat quotas would begin with 7.3 million tons, rising to 9.3 million tons by the year 2005.

Soybean oil quotas would begin at 1.7 million tons and would to rise 3.3 million tons by the year 2005.

Pork tariff production, 20 percent to 12 percent by the year 2004.

As mentioned earlier beef tariff reduction of 45 percent to 12 percent by the year 2004.

Other features of China's entry into the WTO will level the playing field as China commits to eliminating export subsidies for their agriculture products. And that was a big coy for our Ambassador Barshefsky to have done that, and we just say thanks to Jim and Jim, and please carry that back.

Total elimination of agriculture export subsidies worldwide should be and will be our major U.S. goal.

Trade disputes with the European Union as we talked about earlier has typically fallen into two broad categories. One, the unfair competition through the use of export subsidies. And, two, the sanitary and phytosanitary barriers to trade.

The first issue, that of export subsidies was addressed in the Uruguay Round with a volume and value caps placed on those who have signed in the round. And this has led to a reduction attention although some issues still remain.

The second issue of sanitary and phytosanitary barriers that was dealt with in the Uruguay Round if anything has become more problematic. The most high profile problem centers around the EU's illegal ban on the importation of conventionally produced U.S. beef due to our industry's use of FDA's approved hormonal implants. For the livestock sector, the most important issue is one of access which as I have already said, this means a return to policies based on sound science coupled with veterinary equivalency agreements. We must be watchful of any moves by the EU to deny their own consumers a choice by the use of social or socio protectionism.

Actually ten years of delayed tactics, ten years of lost markets of the United States government brings us to a time for the EU to play fair and to level that playing field and open their markets.

Also since the Uruguay Round, concerns over products of bio technology have emerged to challenge our trade opportunities. Unfortunately the anti-tech fever is spreading from Brittain and the EU to countries such as Japan, Australia, New Zealand. Each is considering labels on genetically altered foods. We need to prevent the EU from rolling back progress and enforce strict science-based trading rules as established in the sanitary and phytosanitary agreement. And the continued expansion of U.S. exports depends on science remaining the only method for resolving these issues. And that environment, labor, and social issues should be addressed in side agreements separate from trade.

Other issues emerging in the international trades rise is that the socio protectionism. Socio protectionism uses trade barriers that are based on the grounds of particular production techniques, management methods, or environment controls. So we would ask the administration to oppose any moves by the EU or any other countries to limit restrictions falling under these categories as new tariff barriers.

So other areas we need to mention very, very quickly, we must watch and reign in state trading enterprises that have been alluded to earlier that have been implemented which in essence block our path to an open, transparent trading system.

I would like to now yield to the impressive group of Nebraska producers who represent grass-roots operations, farmers and ranchers with the impressive leadership skills and credentials, and I'm confident that they will bring to you to carry back and influence your reports into Seattle. Their testimony you'll hear today would be very beneficial as we prepare for those talks.

I also challenge the producers here to testify to be frank and to be candid in your comments so that you could be constructive and informative. This is a unique opportunity with the Governor, Senator Hagel, Senator Kerrey, and Congressman Barrett have provided for all of us to share ideas and concerns and hopefully influence the very people who will shape our trade destiny over the coming year.

Also encourage any attendants to take advantage of the open microphone session as we express our views to the USTR and USDA officials who are here.

So in closing, I would encourage the USTR and USDA to keep agriculture in the front and be strong lead negotiators to protect sound science and have broad-based negotiations and place many agriculture issues on the table.

So with that, may I again say thanks to all of you who have shared their time to invest in this listening session and thanks to the USTR and USDA and all of the team that has helped put this together from our agriculture to DED to FAS and all of them. So thank you very, very much for that time.