New 'Food Trade Alliance' To Press For Global Trade
Reforms Benefiting Consumers, Producers

Washington, DC: Declaring "now is the time" to reform the global system of food trade, a broad-based group of consumers and consuming industries today launched the Food Trade Alliance, a new coalition advocating for global food and agriculture trade policy reform. The new trade coalition is the first to bring together consumer advocates, and companies and trade associations from all major industries that purchase food and food products, including restaurants, retailers and food processors.

"Now is the time to reform the global network of food trade restrictions," said Clayton Yeutter, former U.S. Secretary of Agriculture and U.S. Trade Representative and Senior Advisor to the Food Trade Alliance. "Together, we intend to work to remove government-imposed trade barriers that drive up food prices, limit consumer choices and hurt farmers and food companies by impeding them from exporting their products."

Yeutter continued, "With the World Trade Organization (WTO) negotiating changes to the international trading system, including agricultural trade, and a growing consensus in both developed and developing countries that the system needs to be changed, there is a unique opportunity to bring about much-needed reforms. While some protectionist interests have blocked progress in the past, the Food Trade Alliance will be a strong, unified voice for consumers and consuming industries in the upcoming trade policy debates in Washington and capitals around the world."

The Food Trade Alliance, which held its inaugural meeting today in Washington, DC, plans to actively support policymakers in the U.S. and abroad who favor expanding international food trade, and raise awareness of the damage that trade barriers in food causes consumers and businesses in the food industry, including farmers. The group also intends to educate policymakers on these issues.

For example, the coalition plans to sponsor and disseminate research that shows how reducing or eliminating barriers to food exports and imports will benefit the U.S. economy, including consumers, farmers and food processing companies. Each farm export dollar earned stimulates another $1.61 in business activity, according to the U.S. Department of Agriculture. U.S. farmers now earn 25% of their incomes from exports but the potential global marketplace is much larger. Moreover, the United States International Trade Commission estimates that if trade barriers on key U.S. food imports were simultaneously eliminated (2002 levels), the U.S. economy would experience a net "welfare gain" of $3 billion.

"Consumers in the U.S. and around the world pay the cost of protectionism, but few of them realize it," said Pam Slater, Legislative Director for Consumers for World Trade. "It is a hidden food tax that hits the poorest Americans the hardest — single-parent families, minorities, senior citizens — because they devote the largest share of their incomes to food."

Other Food Trade Alliance members include Consumers for World Trade, National Retail Federation, National Restaurant Association, Food Marketing Institute, National Council of Chain Restaurants, Consuming Industries Trade Action Coalition and other trade associations and companies representing the food processing, restaurant, retail and other sectors.

The Coalition will announce additional activities in the coming months to raise awareness among policymakers and the public on the importance of food and agricultural trade reform. For more information, contact George Felcyn at (202) 466-6210.