We're going to begin even though a couple of our listening panel are not currently here. They're on their way back from different facilities. Secretary Glickman is on the phone with Washington at this moment, but he will be back with us and plans to be here until the noon break. We're not as far off schedule as it might look, and we hope to try to keep on time as close as possible. We have about 40 more presentations, for those who were paying attention to this kind of thing, between panel presentations and comments from the audience. So it's important that you stay on time, and I want to thank those who have presented so far for doing your best to accommodate that. The topic, again, remember, needs to be as closely adhering to the world trade issue as possible.

If you have brought any comments with you and aren't on the list as a presenter, feel free to turn them in, and they will become part of the permanent record that will be given to Secretary Glickman at the end of the day. Don't worry about it being typed up or in any particular form just as long as it's legible. Feel free to turn it in, and it will become part of that record. To our speakers on the next panel, we're going to follow the same process as the first round. We're just going to go from your left to right with their 5-minute comments and some Q and A followed by audience participation.

MR. PHILLIPS: My name is Kyle Phillips, and I farm 35 miles southeast of Des Moines in the Knoxville area, and I'm currently serving as president of the Iowa Corn Growers Association, and I represent 5,000 members.

Trade policies in the United States and the policies under the WTO directly impact me and my farm. The price of corn and soybeans reflect the trading of grain in the international market. With today's prices, we must look at new strategies and new ways to export these crops. I made a commitment to Freedom to Farm several years ago by signing a contract with the U.S. Government. At that time the U.S. Government made a commitment to help me by reducing trade barriers, funding research, and market development programs. We feel the U.S. Government has not lived up to its end of the bargain.

Furthermore, our priority for the WTO hearing is to improve the free flow of grain through the world and maintain an open and fair access to markets. Ten years ago the United States controlled almost 8 percent of the world corn exports. Last year this percentage dropped. Although we export additional corn as high-fructose corn syrup, corn (inaudible) as meat and poultry and countless value-added products. Weak export performance contribtes to low prices that plague producers today.

Trade barriers and export subsidies prevent the U.S. corn industry from realizing the full potential of our comparative advantage in corn production. The United States must clearly and consistently promote further liberalization in agricultural trade. We understand that the U.S. is forwarding a proposal to address different sectors in the WTO's negotiations known as Early Harvest. If this means that agriculture will be singled out in the negotiations in the WTO, we would strongly oppose such a proposal.

On the subject of trade sanctions. Agriculture must not carry the burden of political and economic reform around the world. Farmers are producing for the world market and are trying to compete for that market. But government policy that limits our access to potential new markets must change.

Trade embargoes and duties affect the majority of farm customers. Here are a couple of examples. The Mexican trade ambassador has imposed adding up these duties as high as $175 per ton on high fructose corn syrup imported from the United States. This (inaudible) preventing a new processing facility from being built right here in Iowa.

In May 1955, the President tightened sanctions on Iran eliminating an important export market for U.S. corn farmers. On the subject of genetically-enhanced corn, while technology offers significant opportunities to increase the value of corn to our customers for environmental, economic, and health reasons, to name just a few, currently biotechnology provides growers an opportunity to use luseed (phonetic) products which control damage, insect, pests without the need for insecticide application. In addition, some of these new seed products allow growers to use more convenient and environmentally- friendly weed control strategies.

Genetically-enhanced corn is being developed which will provide direct benefit to consumers. Last year 11 different versions of biotech corn were produced commercially in the United States on approximately 20 million acres. These products have all received the necessary approvals from the Environmental Protection Agency, the Food and Drug Administration, and the USDA animal and plant health inspection service. Unfortunately not all of our grain customers accept the U.S. approval process. Approximately 2.5 percent of all corn produced in the United States last year was grown from seed that has not been approved for export through the European Union. These unreasonable delays in Europe are especially frustrating to the Iowa corn growers. With the low prices we are having right now, it compounds the problem.

Our members have readily adopted biotechnology as an environmentally-friendly and cost-effective option to control insects, pests, and weeds. We are confident that our approval process in the United States ensures the food safety. We respect our customer's rights to establish standards for products of biotechnology, but we cannot allow arbitrary and unsubstantiated health and safety claims to deny access to important markets. The USDA can help by taking a more active role in explaining the regulatory approval process to build confidence in these new products throughout the world.

When standards are developed, make sure these standards are realistic and achievable by U.S. agriculture. Simply labeling the product will not solve the problem whether there is an economic cost associated with segregating corn. If segregation occurs and a tier pricing system develops, we want to ensure that we do not penalize growers who adopt the new technology.

The WTO must provide for reviews of products of biotechnology that are scientific, risk-based, rational, and predictable.

Companies and producers should have a reasonable expectation that grain for use in the United States will not be subject to barriers abroad. And in the foreign market development area, the market access program and the foreign market development program help promote our products throughout the world. The Iowa corn growers support full funding for the market access program and the foreign market development program.

In conclusion, first, agriculture cannot wait another six years for adjudication to take place. Action is needed now. Second, with the U.S. trade representative office's proposal known as Early Harvest, agriculture will likely be singled out from the entire World Trade Organization negotiation process, and this may ultimately hurt agriculture. We must rely on the U.S. Government to give agriculture a fair deal in the WTO negotiations. These policy goals must be fair in the negotiation process and not let agriculture be the last one back.

Finally, we want to reiterate our goal here is to establish a U.S. policy that clearly and consistently promotes fair and open trade and to ensure U.S. corn and its products full access to the world markets. Thank you for this opportunity.