U.S. HOUSE PANEL EXTENDS EEP, URGES USSR OFFER
The U.S. House Agriculture Committee
approved proposals to extend the life of the Export Enhancement
Program, EEP, through fiscal 1990 and urged the Reagan
administration offer EEP wheat to the Soviet Union.
    The proposals were approved as amendments to a
comprehensive trade bill moving through Congress this year.
    In addition to the amendments on EEP, the committee
approved several proposals which could restrict imports of
lamb, casein, sugar-containing products and tobacco. Those
amendments affecting imports face an uncertain future because
the House Ways and Means Committee, which has overall
jurisdiction over trade legislation, will oppose them,
Congressional sources said.
    The effect of the EEP amendments would be to extend the
life of the program five years through fiscal 1990 rather than
the current three years through fiscal 1988.
    The amendments, offered by Rep. Dan Glickman, D-Kan., also
would increase funding for the program to 2.5 billion dlrs from
1.5 billion now.
    Furthermore, the committee passed an amendment offered by
Rep. Glickman which instructs the U.S. Agriculture Department
to value EEP bonus commodities at market value, not acquisition
value. Glickman said the change would make the program 30 pct
less expensive to operate.
    The provision on EEP wheat to the Soviet Union, offered by
Rep. Bob Smith, R-Ore., does not require the administration
make an offer, but urges such action.
    The committee approved an amendment, offered by Rep. Glenn
English, D-Okla., requiring the Secretary of Agriculture to
begin discussions with other major grain producing countries
aimed at jointly reducing world grain production.
    Trade Representative Clayton Yeutter yesterday opposed the
amendment, saying such commodity agreements do not work.
    Among the host of amendments to restrict imports approved
by the panel, the most significant would require quotas on
imports of goods containing more than 25 pct of a bulk farm
product that is subject to U.S. quotas. The amendment, offered
by Rep. Arlan Stangeland, R-Minn., is aimed primarily at
curbing imports from Canada of products containing sugar and
foreign foods containing dairy products. It also may affect
peanut, cotton and tobacco imports, Committee sources said.
    Another amendment would place a quota on U.S. imports of
casein, a dairy product shipped to the U.S. primarily by New
Zealand and Ireland.
    The panel also voted to apply to lamb imports the same
countercyclical import quota law which is operating for U.S.
beef imports.
    Other miscellaneous amendments included:
    -- Urging the administration consider retaliating against
Japan and South Korea if those countries do not remove
restrictions on beef imports.
    -- Boosting the amount of U.S. grain which must be shipped
each year under a food aid program called Section 416 to
800,000 tonnes from 500,000 tonnes now.
    -- Requiring the Agriculture Secretary conduct a study of
the Canadian Wheat Board import licensing system for wheat to
determine if it is a non-tariff trade barrier.
    -- Requiring the Agriculture Secretary reimburse the
National Corn Growers Association up to 500,000 dlrs for the
costs of defending the U.S. feedgrains program against a
Canadian countervailing duty case this year.
    -- Urging the administration oppose the Canadian decision
to apply a duty on U.S. corn imports, and a proposal by the
European Community to apply a vegetable oils tax.
    -- USDA conduct a study of the findings of a National
Commission on Agricultural Export Policy, which recommended a
reorganization of USDA's trade policy apparatus.
 Reuter
