The American Soybean Association (ASA) views U.S. proposals unveiled today as a serious effort to move the Doha Round of World Trade Organization (WTO) negotiations forward. ASA leaders met last week with U.S Trade Representative Rob Portman and U.S. Department of Agriculture (USDA) Deputy Secretary Chuck Conner in Washington, D.C., to discuss key ASA trade objectives for the Doha Round.

"U.S. soybean farmers throughout the country agree with the Administration that the status quo in international trade is not acceptable," said ASA President Bob Metz, a soybean producer from West Browns Valley, S. Dak. "We recognize the proposal advanced by the Administration today in Zurich sends a credible signal to the rest of the world that the U.S. is prepared to make substantial cuts in trade-distorting domestic support if, and only if, market access barriers are greatly reduced and export subsidy practices are eliminated."

ASA is calling for major improvements in real market access in both developed and developing countries that are needed to increase incomes and expand demand for U.S. soy protein, soy oil and meat products. ASA is also seeking major improvements in export and domestic support policies of world-class exporters such as Brazil, Argentina and Malaysia that are major U.S. competitors in the export of soy, vegoil and meat products must be subject to disciplines similar to those applied to developed countries. Finally, U.S. soybean producers want a farm program safety net that is beyond WTO challenge, and that does not distort planting signals from the world market.

"The proposed cuts in trade-distorting domestic support would necessitate fundamental changes in the structure of U.S. farm programs, including the marketing loan, which has been critical in supporting soybean producer income when prices fall," Metz said. "Likewise, the proposed cuts in market access barriers to trade by developed countries would be substantial, and could expand U.S. soy and meat exports to developed countries."

However, ASA notes that the U.S. proposal does not include equally aggressive improvements in market access for trade by developing countries.

"Developing countries are the markets of the future," Metz said. "They comprise 81 percent of the world’s population, and their populations and incomes are rising faster than in developed countries. Moreover, per capita consumption of vegoil and meat products is much lower in developing countries, and has the greatest potential to increase. It is critical that these countries open their markets for trade with each other, as well as with developed countries."

ASA also notes that the U.S. proposal does not include specific language requiring world-class developing country exporters to undertake disciplines on their domestic support and export subsidy programs similar to those required of developed countries.

Before the ASA could support a WTO agreement that requires deep cuts in trade-distorting domestic support, such as contained in the U.S. proposal that would significantly reduce the effectiveness of the soybean marketing loan, the Administration would need to achieve the following objectives:

1. Substantial improvement in real market access in both developed and developing countries to expand world demand for soy and livestock products;
2. Agreement that developing countries that are world-class exporters will take on commitments similar to developed countries;
3. Commitment to a 2007 Farm Bill that provides an adequate safety net through WTO compliant programs, and that corrects the imbalances in farm program benefits that have negatively affected U.S. soybean plantings; and,
4. Commitment to infrastructure funding to modernize our waterway, rail, and highway systems that are critical to U.S. agriculture’s export competitiveness.

"Aggressive proposals and agreements in these areas must follow, and are key to ASA support for a WTO agreement," Metz said. "I will be part of an ASA trade advisory team for the next WTO Ministerial in Hong Kong in December, where it will be ASA’s mission to keep these critical objectives at the forefront of agricultural negotiations."

Soybeans and soy products are the highest value U.S. agricultural export. Half the value of the $18 billion crop is exported each year as whole soybeans, soybean meal, soybean oil and value-added meat products.