MR. SCHUMACHER: Do you want to hear from Nathan before I start from New York?

MR. ALLBEE: I think that's -- that would be fine. I'm sorry. Nathan Rudgers from New York, Commissioner.

COMMISSIONER RUDGERS: I'm from the small state to the west, New York. Good morning. Thank you very much for the opportunity.

My name is Nathan Rudgers. I'm Commissioner of Agriculture from New York State. I wanted to welcome Paul, who turns out to be my neighbor, actually, from near Schenectady, New York.

Gus, you're a legend. It's a pleasure to meet you and Bob. And I would also like to thank and commend U.S. Secretary of Agriculture, Dan Glickman and Charlene and their representative agencies for organizing these listening sessions.

Thanks also, Commissioner Leon Graves, the Vermont Department of Agriculture for their part in hosting this session. Like Leon, I also just returned from the meeting to prevent (inaudible) this was a gathering of agricultural representatives from 44 states and provinces of Canada, the United States and Mexico. The accord was able to come to agreement on positions for the upcoming World Trade Organization negotiations, positions that will guide the WTO and guide increased probability and long-time viability of Vermont -- New York's 36,000 agricultural producers. I'm honored, therefore, to have this opportunity to address this distinguished panel, speaking from the accord.

Suggestions. I urge you to refrain from using these listening sessions to glean solutions to easy trade issues, leaving the difficult agricultural issues unresolved. Quoting a joint letter to this body, which you already heard, this strategy will be detrimental to the future growth and prosperity of agricultural industries in different countries if WTO does not include substantially improved rules and agricultural trade will be judged a massive failure by farmers and ranchers. To the point of (inaudible) a complete letter into the record already.

I am from New York, a very diverse state and a state that has agricultural trade issues similar to the midwest. About one in every two rows of soybeans grown in New York is exported. We also export agricultural products, products like apples and like wine. And although it is not normally thought of as an agricultural product, we export significant amounts of things like bagels, and these are specific and significant economic impacts on New York State.

New York State has provided interest in the outcome of these negotiations. Our state is home to a large and diverse group of industries. Our farmers generate millions of dollars in farm gate sales each year, hundreds of food manufacturers and processors for $15 billion worth of food products like fresh and processed fruits and vegetables, dairy products, baked goods, beverages, meat and poultry products. The international harvest is critical to our industry's continued success.

In our industry in New York, to grow, it is essential that the upcoming negotiations produce results that afford our producers and processors fair treatment in the world marketplace. Our negotiators must enter these and determine -- with the determination on a level playing field for U.S. exporters.

Despite the perceived size of the food industry, the majority of producers and food manufacturers New York are small businesses. We tell them that the future is the international markets. When they make an effort to export, they find a very -- many companies, especially new to exporting, small firms, simply don't have the resources to deal with some of the issues they face. They become discouraged and too often throw up their hands and concede defeat. Other producers find it difficult and, frankly, unfair to have to compete against heavily subsidized exports, especially those from the European group. If all other countries live up to the spirit of the VTO, we can move closer toward resolving these problems.

New York is a target for heavy food products, commodity from around the world. We welcome these products, enjoy the diversity and are more than willing to compete with their producers for market share. But that is also what we look for in the international marketplace, fair and equal treatment. Our producers should not be expected to compete openly in their own backyards with competitors from around the world while at the same time being unfairly shut out of export markets.

For example, free trade must be sought in apples, which are currently excluded, and in the dairy products, which were similarly excluded. Our challenge for negotiations is to establish equal footing for competitors in the marketplace. Unreasonable tariffs, non-tariffed rate barriers, unreasonable subsidies and unwarranted and scientifically based need to be eliminated from our food and agricultural industry as we move into the next century.

Thank you very much.