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Wheat industry testifies
on rebuilding Iraqi market
Montana Wheat grower Lochiel Edwards testified June 16 before the House Agriculture Committee on rebuilding the market for agricultural goods in Iraq. Edwards, president of the Montana Grain Growers Association and chairman of the National Association of Wheat Growers' (NAWG) Domestic Policy Committee, testified on behalf of NAWG, the Wheat Export Trade Education Committee, and U.S. Wheat Associates. He had also testified the previous day before the Senate Finance Committee, expressing the Wheat industry's support for the U.S.--Morocco Free Trade Agreement.
Edwards highlighted two fundamental considerations of U.S. Wheat producers in addressing export markets: First, 96 percent of the world's consumers live beyond our border. The four percent within the United States do not consume enough Wheat to sustain a viable Wheat industry.
Second, the U.S. consistently exports nearly 50 percent of our total Wheat production. Therefore, trade is a vital component for ensuring the financial viability of U.S. Wheat farmers. Every market, regardless of size, is an important market.
Edwards reviewed some of the historical market development work that has been carried out by U.S. Wheat Associates in the Iraqi market. Iraq has been a market for U.S. Wheat as early as 1963, and there was one year in the 1970s when we had 100 percent market share. However, in most years leading up to the 1991 Gulf War, the U.S. maintained about a third of the total annual Iraqi Wheat import market at around three million tons per year.
The fall of the Hussein regime opens the door to an open and competitive Wheat market in Iraq, and U.S. Wheat producers look forward to participating in that market, he said.
"Unfortunately, we've faced many roadblocks on the road to normal trade relations," he observed. "For nearly a year, despite the fact that our competitors were allowed into Iraq, our government prohibited us from travel into Iraq. Finally, in February of 2004, almost a year after the war began, our market development experts were able to meet with Iraqi Wheat buyers. The process of rebuilding friendships and providing assistance has begun."
"There have been roadblocks in recent attempts to bring Iraqi teams to the U.S. for training. One of these has been difficulty in getting visas issued in a timely fashion, even when the individuals were invited and sponsored by the U.S. government, and representatives from the government were to accompany the team. Efforts were made to bring a team to the U.S. in April for training, but the clearances could not be obtained. Belatedly, the visas were issued, and we are now trying to reschedule the trade mission."
Edwards called for some specific actions on the part of the U.S. government to facilitate the rebuilding and opening of this market.
--Work with the other countries in debt forgiveness and debt restructuring;
--Allocation of GSM export credits;
--Expeditious approval of visas for approved Iraqis to visit the United States;
--USG funding for market development activities and improvement in Iraq's port and grain handling facilities;
--Travel authority to visit Iraq for market development activities;
--The UN and other bodies are investigating alleged kickbacks of the previous Iraq regime. The U.S. government needs to firmly support that effort.
"I am very pleased to be able to report that Iraq has purchased U.S. Wheat this year," he concluded. "As the Iraqis regain their familiarity with the U.S. marketing system, and rediscover the unique qualities of U.S. wheat, we are confident of a brighter future. We look forward to a time in the near future when we once again control a strong share of this important market."
Date: 6/22/04
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