MS. IRWIN: On behalf of the Iowa Turkey Federation and Iowa's three turkey processors, I thank you for the opportunity to present our recommendations on agriculture trade priorities for the next round of the World Trade Organization negotiation.

The U.S. poultry exports overall have grown tremendously since 1990. In 1990, exports accounted for only 1 percent of the total U.S. turkey production. Today over 10 percent of the total production is exported. The desire for more white meat products in America has made the price for dark meat products depressed. Most of the turkey meat exported is dark meat, since that is what our trade partners prefer. Being able to supply them with their preferred choice helps the bottomline for the turkey industry.

During the past nine years we have had some bumps in the road. Turkey exports have declined since the record levels of 1997. During January, February of 1999, turkey exports were 6 percent below the same period in 1998. Turkey exports to Russia and eastern European countries were down sharply; however, some markets were stronger. Exports to Mexico were nearly 4 percent above already high levels of last year, and Mexico took 52.6 percent of all U.S. turkey exported during the January, February months of 1999, compared with 42.5 percent a year earlier. Also, exports to South Korea, Taiwan and China were up sharply while those to Hong Kong were little changed.

Iowa has three turkey processing plants: West Liberty Foods in West Liberty is a producer-owned value-added co-op; Iowa Turkey Producers in Postville is an independently held company; and Bil-Mar Foods in Storm Lake is part of the Sara Lee corporation. All three turkey processing plants export. Following are some of the issues that have hindered their ability to export more turkey:

We need to establish strong sanitary and phytosanitary rules. The World Trade Agreement on the application of sanitary and phytosanitary measures may be reopened by the European Union to try to fix perceived efficiencies. The European Union can be expected to try to introduce a provision that would permit countries to justify food safety or other regulations on social rather than scientific rounds. If this concept were to be legitimized, many products could be banned in response to nothing more than domestic political pressures. In many cases, countries use these rules arbitrarily as protectionism measures. The U.S. should staunchly oppose any sanitary regulations based on anything other than sound science.

For example, currently Mexico requires that all turkey imports be from flock that are deemed free of Avian Influenza. Our processors fill out the forms and comply with this, but this has added a high compliancy cost to their export and has no scientific basis for such a requirement. We have to establish rules regarding genetically modified products that are based on science, not on motion. This is potentially the most serious issue on the table during the upcoming negotiations in that much of our poultry is fed rations made from corn, soybeans, wheat and other raw materials grown in the United States from genetically modified seeds. If the European Union ends up banning the grains and the foods containing genetically modified foods -- or excuse me, modified grains, this could eventually include meat and poultry.

The inability to test the meat for proof that they were fed a GMO will make this very difficult for our industry to police. Even though the U.S. turkey is not allowed into the European Union currently because of their ban on chlorine in our rinse water, we are afraid that other countries could be influenced by these European actions which would have a detrimental effect on our poultry exports.

The industry also will benefit by reducing import tariffs on poultry, eliminating export subsidies, and eliminating internal price supports. Our processors also need one uniform form to fill out for all exports. The paperwork needed to export lacks continuity. Our processors try to keep up with all the different requirements for each of the countries, but when paper errors do occur, their loads are often cut back.

They also need the ability to allow already shipped product into countries that have erected a trade barrier. Product has been allowed -- excuse me, product has not been allowed to enter a country because a trade barrier has been erected by that country after a product has been sent. Assistance in getting that product into the country is then needed.

This concludes my comments. Thank you for the opportunity to present the issues of the Iowa Turkey Producers and the processors industry.