WASHINGTON, DC – At a hearing of the Senate Committee on Finance regarding the Peru Free Trade Agreement (FTA), U.S. Senator Pat Roberts today made the following remarks:

"In Kansas, as it is with the United States as a whole, international trade is very important to our state economy.

"While the bloom is off the trade lily, farmers and ranchers know the role of international trade in their bottom line. This past weekend I was back in the state talking to ag producers at the Kansas State Fair. Time and again, folks would come up to me and talk about how Congress needs to push these trade deals through - specifically citing the pending trade agreements. Kansans are paying attention.

"But it’s not just Kansans. Our global trading partners are paying close attention because how we as policy makers handle this first of four trade agreements will either have a profound affect on the U.S.’s role as a leader in the global economy, or relegate us as observers.

"In 2006, almost 32 percent of Kansas’s farm economy relied on agricultural exports. Kansas’s farm cash receipts totaled $10 billion, and agricultural exports amounted to $3.2 billion.

"As the top wheat producer with almost half of all wheat produced exported, the importance of opening and expanding foreign markets is crucial to ensuring rural America’s survival.

"We often talk about the problem of saving and preserving rural America. Trade is a key factor in this survival and growth.

"The Peru FTA levels the playing field and opens up two-way trade between our two countries. Right now, nearly all of the exports from Peru coming into the United States comes in duty-free under the umbrella of a one of the various preference programs. However, our exporters face duties that range from 12 - 25 percent, in some cases.

"The agreement before us provides immediate duty-free access to more than two-thirds of current U.S. farm exports and phases out all agricultural tariffs within 17 years. Zero percent is better than 25 percent.

"But it’s not just Kansas Agriculture that benefits from this deal. Kansas manufacturers exported $10.3 million in transportation equipment last year. $10.3 million is a big number in Kansas, and the promise for growth is significant.

"Looking at the numbers, almost a quarter of total merchandise exports are generated by small and medium sized enterprises in Kansas. Lowering barriers will help these small- and medium-sized businesses to grow.

"Finally, I’m compelled to mention my growing concern that trade agreements are increasingly looked to as an end-all-be-all solution for issues unrelated to trade. At some point trade agreements must be more about opening trade markets and agreeing to the same set of rules.

"While more could be said about this troubling trend, I’ll focus on the merits of the trade agreement. We must do more to talk about the successes of opening foreign markets through trade and expanding access for our exporters.

"I am hopeful that this is the beginning to more action on trade agreements and eventually, trade promotion authority. The United States should not be warming the bench in the global economic arena."

Senator Roberts is a member of the Senate Committee on Finance and the Senate Committee on Agriculture, Nutrition and Forestry.

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