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CONGRESSMAN

FOR IMMEDIATE RELEASE: May 22, 2002
CONTACT: Allison Myhre/218-847-5056

Peterson signs agreement for $1.2 billion in grain sales to Taiwan

(Washington DC) - Congressman Collin Peterson has joined four other members of the House and Senate in signing a Memorandum of Understanding between the United States and the Republic of China (Taiwan) which will result in the sale of more than $1.2 billion in grain from the United States.

The agreement, signed by representatives of the soybean, wheat and grain organizations from both the United States and Taiwan, commits Taiwan to purchasing 14.7 million metric tons of American grain during 2002 and 2003. Western Minnesota is expected to reap the most significant rewards from Taiwan’s promise.

Peterson joined Senators Tim Johnson (D-SD) and Larry Craig (R-ID), and House Members Roscoe Bartlett (R-MD) and Rick Larson (D-WA) in shepherding this agreement to the table.

“Taiwan’s purchase of nearly 20 million bushels of red spring wheat represents nearly one quarter of Minnesota’s yearly crop and consistently places them in the top three buyers of grain from our state,” Peterson said. “This new agreement will continue those purchases, and will expand Taiwan’s position in our soybean and corn markets as well.”

In 2001, nearly one third of U.S. crops went abroad, representing roughly eight percent of all U.S. exports to the world. According to the U.S. Department of Commerce, Taiwan purchased more than $2.4 billion in agricultural products in 2001, making it the fifth largest consumer of U.S. agricultural products worldwide, out-doing strong allies like Britain, Germany and Australia. Taiwan, an island of 23 million people, still purchases more than its neighbor the PRC, which has a population of over 1.1 billion.

Peterson, who serves on both the House Agriculture and Intelligence Committees, has opposed past trade agreements that he felt lacked hard evidence of positive results or might compromise our national interests.

“This agreement demonstrates the kind of trade relationship we must foster,” Peterson said. We should not be signing agreements that force our agricultural community to sell crops at a loss because other nations fail to have the commitment to quality and equality we have in the United States. With Taiwan, we have a relationship based on both the quality of our product, and the friendship our two nations share as democracies.”

As a follow-up to this important agreement, a delegation from Taiwan will travel to Minnesota to meet with the Minnesota Wheat Research and Promotion Council to discuss expanding the trade relationship, and to sign an additional letter of intent to purchase 1.7 million metric tons of wheat, with an approximate value of $264 million.

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