Nevada County Picayune and Gurdon Times Newspaper Archive

Ross Looks For 1999 Trade Agreement To Benefit Arkansans

MIKE ROSS

STATE SENATOR, DISTRICT 3

The historic trade agreement signed last November by the United States and China probably will bring economic benefits to Arkansas exporters, particularly farmers and producers of agricultural products.

The trade agreement requires China to reduce taxes and tariffs on a wide range of products and services. It will be more economically feasible for American companies to do business in China and take advantage of the huge, untapped consumer markets there.

Congress is expected to vote later this month on a measure to accept China as a member of the World Trade Organization. Congressional approval would finalize the trade agreement.

Arkansas exports to China have grown steadily. Between 1993 and 1998, Arkansas exports to China increased by 98 percent. In other words, we almost doubled our exports to China in a five- year period.

That increase in Arkansas exports was achieved in spite of a severe economic and monetary crisis in east Asian countries in 1997 and 1998 that crippled the economies of many of China's trading partners. The economic downturn in east Asia caused a sharp decline in exports to China from all across the South. Even after accounting for the losses from 1997 to 1998, however, Arkansas exports grew at a healthy rate over the long term.

Economic experts report that the trade agreement with China, after all its provisions are phased in, will enhance U.S. exports to China by as much as $11 billion of goods and services to China while Americans bought $68 billion in Chinese products.

China is the fourth largest trading partner of the United States, behind Canada, Mexico and Japan, and ahead of traditional business partners, such as Germany and Britain.

American commerce officials anticipate growth in exports of agricultural products and livestock to China. Surprisingly, the farm sector now accounts for a very minor portion of Arkansas exports to China. According to the U.S. Department of Commerce, agricultural products and livestock make up less than one percent of all Arkansas exports to China.

With the opening up of Chinese consumer markets under last year's trade agreement, many trade officials expect strong growth of American exports of farm products. Arkansas should be prepared to take advantage of this marketing opportunity.

The trade agreement will open the sectors of China's economy to American investors. Those areas include telecommunications and Internet companies, banking and the manufacturing and distribution of motor vehicles.

Changes in the Chinese economy could cause social upheaval in a country that has lived under a rigidly state-controlled economy for decades. However, foreign diplomatic observers are convinced that China is intent on becoming a major force in the world trading system, and for that reason its leaders will steadily liberalize its economy.

Assistance for Poultry Growers

Poultry growers who lost chicken houses in the recent snow and winter storms that hit Arkansas may be eligible for low-interest loans from the state Department of Environmental Quality.

The loans are to finance clean up and disposal projects resulting from the storms. They can be used to buy composting equipment, freezers for storing carcasses, waste oil burning heaters or litter handling equipment.

For information call 1-888-233-0326 or 501-682-0709.