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RCED-95-280R 1 (1995-09-29)

handle is hein.gao/gaobackym0001 and id is 1 raw text is: GAO United States General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-262140 September 29, 1995 Congressional Requesters In April 1994, leaders from more than 117 countries signed the Final Act of the General Agreement on Tariffs and Trade's (GATT) Uruguay Round negotiations. The Uruguay Round agreement represented the first time that participants had addressed substantial reform of agricultural trade. In an attempt to stabilize the world agricultural market and liberalize trade, the agreement requires member countries to make specific reductions in three areas--market access restrictions, export subsidies, and domestic support--over 6 years, from 1995 through 2000. To reduce restrictions on market access, the United States and other GATT-member countries agreed to certain provisions. Exporters of dairy products to the United States will gain a 30,992-metric ton increase in the import quota for cheese, from 110,999 metric tons to 141,991 metric tons. For this additional imported cheese, the United States also agreed to increase the proportion of cheese for which exporting countries may select a U.S. importer. In addition, the United States will reduce both the volume subsidized and the level of subsidy offered on exports through its Dairy Export Incentive Program (DEIP). One issue not resolved by the Uruguay Round agreement was the treatment of state trading enterprises. These enterprises are generally considered to be governmental and nongovernmental enterprises that are authorized to engage in trade and are owned, sanctioned, or otherwise supported by the government. While state trading enterprises are generally subject to GATT provisions, some U.S. agricultural producers are concerned that state trading enterprises, especially those with a monopoly on imports or exports, may operate in ways that bypass the Uruguay Round agreement and adversely affect U.S. agricultural producers. You expressed particular interest in the operations of one state trading enterprise--the New Zealand Dairy Board--and asked us to report on its operations in the United States. GAO/RCED-95-280R, Cheese Imports

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