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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
]]]] 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
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