
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 17, 1994                   TAG: 9403170171
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

GATT PACT BENEFICIAL, ESPY SAYS

A new worldwide trade agreement would add as much as $8.7 billion to U.S. farm exports in the year 2005, Agriculture Secretary Mike Espy said Wednesday in urging congressional passage of the pact.

At the same time, the agreement will cut the amount the government spends for farm programs except for the dairy program, Espy's department said in an analysis of the General Agreement on Tariffs and Trade.

The analysis was released as Espy and Trade Representative Mickey Kantor outlined the terms of the agreement to the House Agriculture Committee.

``We were able to create a level playing field in order that U.S. agriculture could benefit all over the world,'' Kantor said.

However, dairy-state lawmakers raised doubts about the benefits of the agreement to milk producers.

``I'm really hard pressed to find out how I will be justified in supporting GATT,'' said Rep. Steve Gunderson, R-Wis. He said the agreement will let Europe continue to subsidize a far higher volume of dairy products than the United States.

Lawmakers also questioned the administration's progress in resolving a dispute with Canada over its subsidized wheat exports and barriers to U.S. dairy, poultry and eggs.

The agreement would open markets to U.S. products in 116 countries, while forcing member countries to cut their export subsidies. Import barriers such as licenses would be replaced by tariffs, which would be reduced over six years.

by CNB