Since assuming the position as the Secretary of Food and Agriculture for the State, I've dedicated considerable amount of time and energy to focusing on U.S. policymaker's attention on specialty policy needs of California agriculture.

I've joined forces with a number of my colleagues from specialty agricultural states to form a coalition that was NFACT. NFACT, which is derived from the New Mexico, Florida, Arizona, California and Texas is designed to address issues of great important to our states and the diverse agricultural industries we represent.

I was in Washington D.C. last week with a number of my NFACT colleagues including Arizona Director, Sheldon Jones. I had the opportunity throughout the week to speak with a number of policymakers about the specialty crop policy needs of the west. Foremost is trade policy. International trade is critically important to the economic health of this state's agricultural industry with a significant impact of other industries, such as transportation, banking, local economies and the local workforce.

California leads the nation in agricultural exports. The total value of California agricultural exports in 1997, for example, was nearly $7 billion. California depends heavily on the purchasing power of overseas customers. Nearly 20 percent of all California's agricultural production is shipped to foreign markets. The reality, however, is that California's specialty crops are much more dependent on export markets.

Some commodities like almonds export two-thirds of their production. Additionally, California producers of more traditional commodities such as cotton are more reliant on exports than growers in other parts of the nation. Producers of California's unique staple export four-fifths of all of their production. Our continued success in the international marketplace demands further progress with lower tariffs, reduced barriers and we need to strengthen trade adherence mechanisms for agricultural products, all items included in the Uruguay Round of negotiations.

The next round of negotiations needs to build on the Uruguay Round agreement, which has helped boost agricultural exports through meaningful trade reform. The Uruguay Round was only the first step toward a global cultural trade organization. The next round of negotiations must address issues important to California's specialty, perishable and traditional agricultural commodity industries.

While in Washington D.C., my colleagues from Arizona, Texas, Florida and New Mexico joined me in calling for further WTO enforcement of scientifically based sanitary and phytosanitary regulations, the development of workable and timely safeguard mechanisms for seasonal and perishable commodities, implementation of rapid dispute settlement resolution procedures, further negotiations on market access and the elimination of tariff and non-tariff barriers to trade.

The agenda should include continued discussion on substantial and progressive reduction in the remaining agricultural support and protection. I believe you will hear from a number of individuals today with justifiable concerns regarding unfair subsidization by foreign competitors.

For California the upcoming Ministerial meeting offers a real opportunity to push for a global trade organization that can significantly impact agriculture's competitiveness. You will hear today from a number of industry representatives offering greater detail about trade, concerns and opportunities. And I strongly request that those views will be reflected in the policy positions taken by our federal negotiators in the next round of WTO negotiations.

I look forward to working with the United States Department of Agriculture, the United States Trade Representative's Office and our Congressional delegation to affect trade policy matters and to recommend changes in U.S. law to protect and promote free trade of agricultural products.

At this time, we're going to take a brief break. We'd like to reconvene the session say approximately at 10:20. So if you could be back, I'd appreciate that.

Thank you.

(Thereupon a brief recess was taken.)