Grassley is chairman of the Senate Committee on Finance, which is responsible for international trade legislation. He has long been an outspoken advocate for trade policies to open new markets for Iowa farm products, manufactured good and services.
The economic summit this weekend will focus on a free trade zone that would stretch from Canada to Chile. Grassley said this Free Trade of the Americas Agreement represents significant opportunities. Already, the Western Hemisphere accounts for about 40 percent of total U.S. merchandise exports.
"These numbers are impressive, but we can do better. Too many of our goods and services still can't compete because of prohibitive tariffs and uneven regulation," Grassley said. "I want to make sure the United States is in a position to negotiate strong agreements for American workers and farmers."
The U.S. Constitution mandates a partnership between the executive and legislative branches of government in international trade negotiations. As chairman of the Committee on Finance, Grassley is a full partner in the process.
In Canada, Grassley will meet with Chilean President Ricardo Lagos to address Chile's practice of refusing to accept exports of U.S. pork from all USDA-approved processing facilities. Grassley said Chile's position is unacceptable considering the unsurpassed U.S. production and food safety standards. U.S. pork is sold in 87 foreign markets, and Chile is one of the smallest purchases. Under a proposed U.S.-Chile free trade agreement, all tariffs on U.S. pork and pork products could be reduced to zero.
Grassley also has a meeting planned with Canadian Minister of International Trade Affairs Pettigrew. Grassley will hand-deliver a letter addressed to the Canadian agriculture minister raising concerns about expanded hog production in Canada, which the senator fears could result in a pork price crash in the United States next year. "We need to work together now to avoid a problem in the near future," Grassley said. "I'm committed to raising the profile of this issue in Canada so that independent hog producers in Iowa aren't devastated by unfair practices."
On Saturday, Grassley will also meet with Brazilian Minister of Foreign Affairs Celso Lavfer and Mac Harb, who chairs the subcommittee on trade in the Canadian House of Commons. Finally, Grassley will meet with Bush administration officials, including Agriculture Secretary Ann Veneman. International trade has a big impact on Iowa's agricultural landscape, with exports responsible for $5 billion in economic activity in the state.
President George W. Bush is one of the 34 heads of state gathered for the Summit of the Americas. Grassley said the President's willingness to reassert U.S. leadership on trade is critically important. "The ability of individuals to trade freely in an open and transparent environment can be a major catalyst to political reform. Today, democracy thrives throughout the vast majority of this hemisphere, but economic instability, corruption and narcotics trafficking threaten the foundations of democracy in too many nations. Free trade can be a powerful tool in the fight to consolidate the hard-fought roots of democracy that exist today," he said.