Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Remarks at International Poultry and Feed Exposition
Atlanta, Georgia

It is good to be here with the farmers, processors, researchers and all those who make the poultry and egg industry a world leader and keep our nation—and the world—well fed.

It is only appropriate that for 60 years Georgia—which produces more poultry and eggs than any other state—has hosted this, the world’s largest poultry exposition. Industry leaders from around the globe come here to experience the technology, products, and marketing that will influence your industry over the next year.

Poultry and eggs are an integral part of America’s exporting strength, and U.S. exports play an increasingly important role in our growth and competitiveness.

In 2006, we exported more than $71 billion in agricultural exports. Combined with merchandise and services, the United States exported more than $1.4 trillion in 2006. That’s a record and more than any other country in the world.

Exports now account for 12 percent of our GDP—more than at any other time in our history and 2007 promises to be another record year with continued double-digit growth.

For decades, the federal government has been measuring exports by industry. For example of the $71 billion in U.S. agriculture exports in 2006, the poultry industry contributed nearly $3 billion. We also produce trade data for states. Of Georgia’s $20 billion of exports in 2006, nearly $1.4 billion were agricultural products.

I’m pleased to announce today that for the first time in nearly a decade the Department of Commerce will also begin providing annual export data for major metropolitan areas.

For example Metro Atlanta’s exports in 2006 were $11.4 billion, the 17^th largest in the nation. This will be a great tool to help regions compare themselves with other metro areas. It will also be a way to identify trends in export growth over time on a regional basis.

Having this information is essential because international trade is of growing importance to our nation’s prosperity and economic competitiveness. We’ve had six years of economic growth while at the same time overcoming many obstacles—9/11, Hurricane Katrina, global war on terror, and high energy prices, for example.

Now we are facing the challenge of a housing market correction, with possibly slower growth in the first and second quarters of this year than the second half of 2007.

The President is working in a bipartisan way to develop a robust economic stimulus plan to keep our economy growing. It should be:

• Large enough to make a difference in an economy as large and dynamic as ours;
• Built on broad-based tax relief that will directly affect economic growth;
• Temporary and take effect immediately so that it impacts our economy this year; and,
• It should not increase taxes.

This is a one time, short term action—not to be confused with policies that will keep our economy growing in the long-term including:

• Keeping taxes low by making tax cuts permanent;
• Encouraging innovation;
• Keeping the American people secure; and
• Opening international markets.

All of us—workers, business owners and farmers have been through a lot and we will get through this. Pro-growth policies, including being open, leading and engaged with the world will keep our economy dynamic, resilient and globally competitive.

The poultry and egg industry is a good example of that resiliency and international growth. While the industry has traditionally been focused on the domestic market, that environment is changing.

Now international customers are increasingly seeking not only our grain but our meat, dairy and other produce as standards have become harmonized, supply chains more reliable, and trade barriers lowered.

Poultry exports have increased by more than 40 percent between 2002 and 2006. Much of this growth has come from developing economies such as Korea and Colombia.

In Korea today, the U.S. is the number one source of poultry imports, Korea is the 5th largest destination for American farm products.

For evidence of Colombia’s growing interest in American agriculture exports, you need only look at attendance at this expo. Last year Colombia had one of the largest of the 90 international delegations.

In fact, Colombia is now our largest export market for agriculture products in South America, of which the more than $10 million of poultry meat exports is a part.

This interest is mirrored in our overall economic relationship. Last year the U.S. was Colombia’s largest trading partner, with exports to Colombia surging nearly 30 percent.

Yet even with this growth, American exporters are not achieving all the success they could. Both tariff and non-tariff barriers remain significant hurdles for American companies.

The best way to eliminate these barriers are free trade agreements, three of them—with Colombia, Panama and South Korea—now pending in Congress.

It is critical that all of these agreements are passed as quickly as possible.

We appreciate your support of these three FTAs—support that is well founded as they will increase access for American farmers, ranchers and businesses to markets of nearly 100 million consumers with a gross domestic product of more than $1 trillion.

For example, Korean tariffs on chicken imports will decline from 20 percent to zero with full implementation of the FTA. Tariffs on turkey and egg exports will also be zeroed out in the next seven to 12 years. That’s good news for both our exporters and for Korean consumers.

The FTA with Colombia is another great example of an agreement that will benefit not just your industry but enhance the prosperity and security of the United States, Colombia and the entire hemisphere.

Currently, no U.S. agricultural exports enjoy duty-free access to the Colombian market. For example, U.S. poultry producers face tariffs as high as 209 percent for chicken exports to Colombia.

Yet our Congress has already granted 99.9 percent of Colombia’s agricultural imports duty-free access to our markets.

An FTA will provide a level playing field for American exporters by eliminating Colombian tariffs on most agriculture exports—including poultry exports—and recognize the equivalence of U.S. poultry inspection systems. The American Farm Bureau Federation predicts that once fully implemented this agreement could provide $690 million in gains each year for American agriculture.

The Colombia FTA is simply the right thing to do for both our countries.

For us, it gives increased access to the most populous Spanish speaking country in South America. It also provides invaluable support for our staunchest ally in the region.

We’ve partnered with the Colombian government in Plan Colombia, a bi-partisan $5.5 billion investment designed to promote peace, combat the narcotics industry, revive the economy, and helped strengthen democracy.

This investment is paying off. There’s been a remarkable transformation in Colombia, a place where stability has increased and social justice has been spreading in a land that has seen far too little of both.

I have seen this for myself—I’ve visited Colombia three times in the last four months with bipartisan delegations of Members of Congress.

I have to tell you it is the most incredible turnaround story I’ve ever seen.

Consider the following statistics:

• Between 2002 and 2006, violent crime and terrorism dropped nearly in half;
• Tens of thousands of paramilitaries have demobilized, rejoining mainstream society;
• Violence against labor leaders decreased about 70 percent; and
• Cocaine production is down 27 percent, with seizures bound for the U.S. increasing by 112 percent.

At the same time:

• Economy has grown an average of 5.2 percent every year;
• Enrollment in public schools is up to 92 percent;
• Since 2000, the number of Colombians living in poverty has been reduced 25 percent.

But more is at stake—hemispheric stability and prosperity are tied to Colombia’s success. An FTA gives Colombia the tools it needs for further reform, for developing a sustainable, secure economy and for strengthening our relationship.

To deny Colombia’s FTA would be not just a step backwards, but one of the biggest foreign policy mistakes of our time in our region.

Although Colombia’s turnaround and the progress taking place elsewhere in the hemisphere is impressive, we can’t assume democracy, openness and trade will prevail—it’s not inevitable.

In the past, Latin American countries being overrun by guerrilla movements and drug cartels have reacted with dictatorships, martial law and cancelled elections.

Fortunately, Colombia has taken a better path by strengthening their democracy, their ties to the U.S., and their economic development.

There are those that want to take us in a different direction by embracing failed policies of the past. While we seek the empowerment of the individual, they seek to suppress people, ideas and debate. While our ideas are supported by the force of free markets, theirs are maintained by the force of arms.

We simply cannot allow—or afford—failure.

Although the overwhelming, bipartisan support for the Peru FTA in Congress is encouraging, it’s imperative that all these FTAs are passed as quickly as possible.

We must do this, not only for the sake of increasing our agriculture exports but to help secure the sustainable prosperity and social justice we all seek.

Now is the time for those that care about strengthening our alliances, increasing our competitiveness and enhancing regional stability to have their voices heard.

There is no single action we can take right now that will have a greater impact towards achieving these objectives than the passage of these FTAs. The world is watching, and we are fast approaching a critical time of decision.

Thank you for all you do to keep our nation a leader in the poultry and egg industry and our economy the engine that feeds prosperity here at home and around the world.