05/18/06 FTA`s and U.S. barley

Farm and Ranch May 18, 2006 The U.S. has concluded free trade agreements with Peru and Columbia but the trade pacts have yet to be sent to Capitol Hill for congressional approval. Kevin Natz, Director of Trade Policy for the U.S. Grains Council, says getting those two trade agreements in place would be beneficial for U.S. malting barley growers. Natz; "Because they are large malting barley markets and as a result of those agreements they will have immediate duty free access into those markets." And Natz says that would give the U.S. an advantage over the traditional suppliers to Peru and Columbia. Natz: "Whether it is the Europeans, the Canadians, or the Australians, the U.S. will be at a cost advantage and it will force those brewers to take a look at U.S. product." Natz says the Administration hasn't signaled when it is going to send the FTA's to congress and Natz thinks it's up to congress to signal to the Administration when the time would be appropriate. Natz: "But I think it is important to get these agreements passed as soon as possible because once the agreements go into effect that is year one. So if we don't get them passed this year we won't receive the benefits this year. We will have to wait until next year." Natz says the Peruvian and Columbian FTA's shouldn't be as contentious as the Central American Free Trade Agreement was. He says another free trade agreement in the works that would benefit U.S. barley is one with South Korea. Of course barley acreage in the U.S. has been declining in recent years so; Natz: "Some of these markets overseas would hopefully prop up and make it more attractive for U.S. producers to plant barley." I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.