U.S. And Canada Agreement
                                           Release No. 0504.98 

Statement                        
                               OF
             SECRETARY OF AGRICULTURE  DAN GLICKMAN
                   U.S. AND CANADA AGREEMENT
               WASHINGTON, D.C.  -- DEC. 4, 1998
     
     "I am pleased to join Ambassador Barshefsky this afternoon to announce
an important  first step in our efforts to open a new period in our
agricultural trade relationship with Canada, our partner to the North.

     "This agreement, which represents weeks of give and take on both sides,
is intended to put us on the path toward eliminating the many trade irritants
that have plagued our trading relationship for far too long.   

     "Our goal in this process was to immediately fix those problems that we
could, and to identify for resolution under an established timetable, those
issues that by their nature take longer.  But more than anything, we wanted to
get these issues off dead center.  This agreement does that.
                                                  
     "From the U.S. perspective, we sought to increase access for U.S.
products moving North, and inject greater transparency with respect to imports
from Canada.  I believe the agreement makes measurable progress on both these
objectives.  

     "First, in the case of grains, the U.S. Department of Agriculture,
working jointly with the U.S. Customs Service, will collect more detailed
information on the quantity, price, variety, and quality characteristics of
imported grain.  This "continuous audit" will help  provide the information
that we need on an on-going basis to assess whether grain is being imported
into this country in a way that does not undercut U.S. prices.  

     "In addition, USDA representatives and their Canadian counterparts will
meet quarterly to exchange information on grain production and marketing,
including their current projections for exports of wheat, barley, corn and
oats to each other.  We believe that these provisions, taken together, will
add a new measure of transparency and understanding regarding the flow of
grain between our two countries.
                                
     "With regard to increased access for U.S. grain, the agreement for the
first time will allow U.S. wheat to move into designated elevators in Western
Canada.  It will also allow wheat, barley, and other grains to be transhipped
through Canada to U.S. ports, an option that should provide more competitive
transportation alternatives for our producers in the northern tier states.

     "In the case of livestock, the agreement will allow U.S. slaughter swine
to enter Canada without the testing and quarantine restrictions that are
applied to breeding animals.  And the current pilot project that allows feeder
cattle from two states to enter Canada will be expanded to several additional
states, provided those states apply under the program. 

     "The issue of animal drugs and crop pesticides -- which ones are
approved for use in each  country and which ones are not -- remains an
important issue to our producers and one that requires further work.  However,
the agreement calls for the two countries to produce by April 1999 a
comprehensive comparison of their animal drug approval status, and to work
toward the joint evaluation of drug approval and the harmonization of
allowable residues.  The agreement similarly provides a blue print for
resolving the even more complex issue involving pesticide approvals and use.   

     "The agreement solidifies the strong relationship that our two countries
enjoy on the issue of biotechnology.

     "This agreement includes several positive steps, but I'm not here to
tell you that it's going to put a dollar on the price of wheat or lift hog
prices out of the cellar.  However, it is a strong beginning to our effort to
put many of these issues behind us and set the stage for further trade growth.
However, I should emphasize it is but a first step in a strong and continuing
effort this administration intends to pursue to resolve additional problems in
our bilateral trade relationship.

     "To those who would urge that we take more direct steps to halt or limit
imports, I would say this:  Even with the current downturn in exports, the
fact is that in the past year we still exported about $17 billion more in
agricultural products than we imported.  In fact, the U.S. exported 15 times
as much feed grains as we imported; 12 times more wheat, and 60 percent more
red meat.  U.S. farmers have much at stake in making sure that our policy
actions are thoughtful and sound, because when it comes to trade, what goes
around comes around.   It was with that in mind that we worked on this
agreement. 

     "Finally, I want to commend our many partners in this effort, including
the Members of Congress, the Governors, the state secretaries of agriculture,
the producer groups, and the individual farmers who have given us their views
and guidance as this process has advanced over the past couple of months.  I
look forward to continue working with them as we address the remaining items
on our trade agenda with Canada.  Thank you."

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