Grassley is chairman of the International Trade Subcommittee in the Senate.
"These numbers confirm what Iowa farmers already know: when we can't sell our products in foreign markets, families suffer. We need trade agreements that open new world markets and increase U.S. farm income.
"This week, agriculture ministers from the 15-member states of the EU are meeting to discuss an overhaul of the EU's Common Agricultural Policy, or CAP. The EU spends almost half its annual budget to subsidize European farmers and lock American farmers out of its market. This morning, I met with the director general for trade policy in the United Kingdom. He's a member of the EU policy-making trade committee. I told him that immediate reform of the CAP is vital. American farmers deserve a level playing field on which to compete with European farmers.
"In addition, this week I will meet with Ambassador Barshefsky before she returns to high-level trade talks in China. I want to discuss with her the critical importance of U.S. negotiators understanding what is at stake for American farmers as China seeks membership in the WTO. China maintains a vast network of subsidies for its farmers, along with numerous non-tariff trade barriers. If these are not broken down before a decision is made to let China into the WTO, the United States will lose its leverage and the gains made for U.S. farm exports during GATT could evaporate overnight. It is essential that our trade negotiators do not lose sight of this issue as talks continue with Chinese officials."