Release No.  0623.96

                                        Tom Amontree (202) 720-4623
                                        Jay Ziegler (202) 395-3230

Statement
                               by
Secretary Glickman and Acting U.S. Trade Representative Charlene Barshefsky
on the Release of the NAFTA Panel Report on Canadian Agriculture Tariffs
                        December 2, 1996
                                
                                
                                
     Agriculture Secretary Dan Glickman and Acting U.S. Trade
Representative Charlene Barshefsky today released the following joint
comment  in response to the final report of the NAFTA dispute settlement
panel.

     "We are deeply disappointed that the panel supported Canada's view that
it could apply extremely high tariff rates to imports of dairy, poultry,
egg, barley, and margarine products from the United States.

     "We think that open trade -- rather than prohibitive tariffs -- is
consistent with the NAFTA, and open trade in these agricultural products
would benefit U.S. farmers and Canadian consumers, who pay some of the
world's highest prices for milk, butter, and other affected products.  The
United States will do everything possible, consistent with our trade laws,
to seek the ultimate elimination of these duties and to improve U.S. access
to the Canadian market for dairy, poultry, egg, barley and margarine
products."

     "We will also continue our review of Canada's dairy industry support
programs to determine whether they are consistent with Canada's NAFTA
obligations and Canada's obligations in the WTO to limit subsidies.  The
United States and other countries have recently expressed concern with these
programs at the WTO.  

     "We will carefully review the panel's report and consult closely with
the U.S. industry and the Congress to further evaluate the panel's findings
and determination."

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