Grassley Says UK Agriculture Compromise Is 'Protectionist'

Senate Finance Committee Chairman Chuck Grassley, R-Iowa, rejected a compromise position that the United Kingdom reportedly is considering -- ending its ban on U.S. hormone-treated beef and chlorinated chicken, but taxing those imports, and letting food that meets U.K. standards in without a duty. He said the British negotiators believe that this bifurcated approach will encourage U.S. producers to “change our farming practices. But it’s another way of being very protectionist,” he told reporters on a June 16 call. “Agriculture's going to be tough,” he said.

He also expressed pessimism that the U.K. and the U.S. could reach an agreement before early November, which the British consul general said is his goal (see 2006110044). “I think it’s being too hopeful,” Grassley said. “But I hope it gets done.”

On the plus side, a lot of the trade between the U.S. and the U.K. is in services, which is less controversial, he said. “I’m not so hopeful, but boy, I would be very thankful if it got done that quick,” he said, referring to the November deadline.

U.S. Trade Representative Robert Lighthizer is going to testify in front of Grassley's committee June 17, and Grassley said he wants to hear more about how things are progressing with the U.K., with Kenya and in other negotiations. He said he'll also complain “that we haven’t had enough communication between him and the Congress, and that’s important because all this constitutional authority to do trade comes from Congress.”

Grassley said he doesn't expect to hear many specifics about how the U.S. can get the World Trade Organization to change to its liking. But, he said, that doesn't mean the committee wants the U.S. to quit the body. “There’s one bill to withdraw from WTO, it’s got no support, as far as I can tell,” he said.