2005 Legislation
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HOUSE JOINT MEMORIAL NO. 4 – CAFTA/FTAA, renegotiation urged

HOUSE JOINT MEMORIAL NO. 4

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Bill Status



HJM004.....................................................by STATE AFFAIRS
CAFTA/FTAA - Stating findings of the Legislature and urging the federal
government, in negotiating any national trade agreements, to recognize the
economic impact of such trade agreements on the states and consider those
impacts to maintain the viable economic health of agricultural industries,
as well as all industries, with an emphasis on fair trade, rather than free
trade; and further urging the federal government to renegotiate the
provisions of CAFTA and the FTAA to limit exports from the involved foreign
countries to fairly protect agricultural producers in the United States.
                                                                        
03/01    House intro - 1st rdg - to printing
03/02    Rpt prt - to Agric Aff
03/09    Rpt out - rec d/p - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/11    3rd rdg - ADOPTED - voice vote
    Floor Sponsor - Bolz
    Title apvd - to Senate
03/14    Senate intro - 1st rdg - to Agric Aff
03/18    Rpt out - rec d/p - to 10th Ord
03/21    10th Ord - ADOPTED - voice vote
    Floor Sponsor - Corder
    Title apvd - to House
03/22    To enrol
03/23    Rpt enrol - Sp signed
03/24    Pres signed - To Secretary of State

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                 HOUSE JOINT MEMORIAL NO. 4
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                   A JOINT MEMORIAL
  2    TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED  STATES  IN  CONGRESS
  3        ASSEMBLED,  AND  TO THE CONGRESSIONAL DELEGATION REPRESENTING THE STATE OF
  4        IDAHO IN THE CONGRESS OF THE UNITED STATES.
                                                                        
  5        We, your Memorialists, the House of Representatives and the Senate of  the
  6    State  of  Idaho  assembled  in  the First Regular Session of the Fifty-eighth
  7    Idaho Legislature, do hereby respectfully represent that:
                                                                        
  8        WHEREAS, the state of Idaho is very diversified in its  agricultural  pro-
  9    duction; and
 10        WHEREAS,  in  January  2002,  the federal government announced that it was
 11    initiating negotiations on a free trade agreement involving the  countries  of
 12    El  Salvador,  Guatemala, Honduras and Nicaragua. These negotiations concluded
 13    in December 2003. Negotiations with Costa Rica and the Dominican Republic were
 14    subsequently completed and are now included in the  agreement.  Congress  must
 15    now decide whether to ratify the Central America Free Trade Agreement (CAFTA);
 16    and
 17        WHEREAS, the federal government is also negotiating the Free Trade Area of
 18    the Americas (FTAA) agreement; and
 19        WHEREAS,  both  CAFTA  and the FTAA would allow these foreign countries to
 20    export commodities to the United States, harming Idaho  agricultural  industry
 21    in the process; and
 22        WHEREAS,  the  agricultural  producers  of  the  United  States  cannot be
 23    expected to compete with these foreign countries under free  trade  agreements
 24    due  to  the labor practices, lack of environmental regulations and subsidized
 25    agricultural production of these foreign countries; and
 26        WHEREAS, sugar is an import-sensitive commodity which will  be  negatively
 27    impacted by CAFTA. Idaho is our nation's second-largest producer of sugarbeets
 28    and  a recent University of Idaho study concludes that the demise of the sugar
 29    industry in the state would also have a serious impact on market prices relat-
 30    ing to other Idaho crops such as potatoes and onions which would be  grown  in
 31    place of sugarbeets; and
 32        WHEREAS,  the  CAFTA  nations already enjoy preferential, duty-free access
 33    into the United States market for 311,700 metric tons  of  sugar.  The  United
 34    States  is  presently  the  world's fourth-largest net importer of sugar under
 35    existing trade agreements  and  its  sugar  market  is  already  oversupplied,
 36    resulting in our region's sugarbeet processing company recently announcing the
 37    temporary  closure  of one of its factories due to the existing low sugar mar-
 38    keting allocations for United States producers; and
 39        WHEREAS, the United States International Trade Commission in August  2004,
 40    concluded  that  the  Central  American  Free  Trade  Agreement would actually
 41    increase the U.S. trade deficit with the region by $100 million a year to $2.4
 42    billion a year; and
 43        WHEREAS, concerns over free trade agreements face the agricultural  indus-
 44    try  at  a  time  when  the domestic consumption of United States agricultural
                                                                        
                                           2
                                                                        
  1    products is declining, forcing domestic producers out of business; and
  2        WHEREAS, the state of Idaho stands to lose thousands of jobs and  millions
  3    of  dollars if these free trade agreements are implemented, potentially devas-
  4    tating the state's agricultural industry, moving production into other supply-
  5    sensitive crops, and severely harming the state's economy as a whole; and
  6        WHEREAS, the economic impact of any trade agreement must be recognized and
  7    considered to maintain viable economic health of agricultural  industries,  as
  8    well  as  all  industries,  with  an  emphasis on fair trade, rather than free
  9    trade; and
 10        WHEREAS, the provisions of CAFTA and the FTAA should  be  renegotiated  to
 11    limit  exports  from  foreign  countries to a needs-based access, allowing the
 12    United States agricultural policy to properly function and fairly treat  agri-
 13    cultural producers in the United States.
 14        NOW, THEREFORE, BE IT RESOLVED by the members of the First Regular Session
 15    of  the  Fifty-eighth  Idaho Legislature, the House of Representatives and the
 16    Senate concurring therein, that in negotiating any national trade  agreements,
 17    the federal government is urged to recognize the economic impact of such trade
 18    agreements  on  the states and consider those impacts in order to maintain the
 19    viable economic health of agricultural industries, as well as all  industries,
 20    with an emphasis on fair trade, rather than free trade.
 21        BE IT FURTHER RESOLVED that the federal government is urged to renegotiate
 22    the  provisions  of CAFTA and the FTAA to limit exports from the involved for-
 23    eign countries to fairly protect agricultural producers in the United States.
 24        BE IT FURTHER RESOLVED that the Chief Clerk of the  House  of  Representa-
 25    tives  be, and she is hereby authorized and directed to forward a copy of this
 26    Memorial to the President of the Senate and the Speaker of the House of Repre-
 27    sentatives of Congress, and  the  congressional  delegation  representing  the
 28    State of Idaho in the Congress of the United States.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15067

The purpose of this House Joint Memorial is to convey to the
United States Senate and House of Representatives and the
Congressional delegation representing the State of Idaho that the
Idaho Legislature desires that potential trade agreements
recognize and consider economic impact.  This consideration is to
include the economic impact to all of the state's industries,
including agriculture.  Both the Central America Free Trade
Agreement (CAFTA) and the Free Trade Area of the Americas (FTAA)
trade agreements will have economic impacts on Idaho's
agricultural industry.  Emphasis for trade agreements should be
on "fair trade" rather than "free trade". 


                           FISCAL NOTE

There is no fiscal impact on the general fund.
       
        

Contact
Name:  Rep. Darrell Bolz
Name:  Rep. John A. Stevenson 
Phone: 208-332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                      HJM 4