PETER MISHEK: My name is Peter Mishek. I'm the international trade manager for Ag Processing, Inc. We're headquartered in Omaha, Nebraska. We're a multi-faceted agribusiness engaged in procurement, processing, marketing and transportation of grains and oilseed products for animal and human consumption. We hold the distinction of being the largest cooperative soybean processor in the world, cooperative. And we are directly owned by nearly 300 local and regional cooperatives in the United States and Canada. Our company has 300,000 farmer/owners.

In Nebraska, AGP owns and operates a soybean processing facility. We operate an ethanol manufacturing plant, and we are currently constructing a vegetable oil refinery. We also operate numerous grain terminals in Lincoln and also in Hastings, Nebraska.

We're also part of the National Oilseed Processors Association, so my remarks will be reflective of that organization's viewpoint.

First off, it is our view that further trade liberalization is needed to open new marking opportunities for the ever-increasing output of U.S. agriculture. We think the U.S. should set an ambitious agenda for negotiations and use its leadership role to aggressively pursue a comprehensive trade liberalization package.

First off, with regard to the scope, we think that the scope of the negotiations should be comprehensive. Although agriculture is only one of three negotiating areas on the built-in agenda for 1999 WTO negotiations, further reductions in market access barriers and trade-distorting subsidies affecting agricultural trade should be a top priority for the United States. But we recognize that concessions there may bring more pain than benefit for some other agriculture sectors. In order to offset these politically painful political reforms in agriculture, these countries will demand trade liberalization in other areas that bring them benefits. Therefore, we hope the scope of negotiation has to be broad enough to ensure that countries being asked to make difficult concessions in agriculture are assured some offsetting benefit in other areas.

In terms of structure, for the same reason we support comprehensive scope, we also support a comprehensive round of negotiation that concludes with the single undertaking. If negotiations in some sectors are allowed to conclude before negotiations in other sectors, we could lose the negotiating leverage in sectors where we are demanding concessions from other countries. Therefore we would like a single undertaking -- a single undertaking will result in a more balanced outcome in our opinion.

In terms of the timeframe, we think that the three-year timeframe suggested by some countries is reasonable to us.

And with regard to oilseed specific issues and the WTO negotiations, we have advanced the concept of a level playing field for oilseed and oilseed products domestically and internationally.

In the -- our objectives cover the broad range of the Uruguay Round agreement on agriculture. Market access, export subsidies and domestic support and as well as areas outside the agreement such as state trading enterprises and differential export taxes.

Our specific LPF objectives are first the largest possible reduction in individual oilseed and oilseed product tariffs with the eventual elimination of all tariffs on oilseed and oilseed products.

Second, harmonization at the lowest possible level of all tariffs on oilseeds and oilseed products.

Third, elimination of export subsidies.

Fourth, elimination of export taxes and other trade-distorting measures.

Fifth, discipline on export credits and export financing.

And, sixth, the elimination of coupled domestic support. That is support tied directly to production that support trade -- distorts trade, excuse me.

We believe that the reduction of barriers to trade and oil and oilseed products and all agriculture products is the only way to expand the markets for our highly production agriculture industry. The simple fact that 96 percent of the world's consumers live outside the U.S. and in many countries the demand for food and agricultural products is growing as income and population increases. Thank you very much.