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Kentucky Capitol: Do not edge tobacco out of FTAs
By TIM THORNBERRY
Kentucky Correspondent

FRANKFORT, Ky. — It is the hope of many in the Kentucky legislature and the agriculture industry that a recently proposed resolution will send a message to the Obama administration to leave tobacco alone when it comes to free trade agreements; the Trans-Pacific Partnership (TPP) agreement, to be specific.

State Rep. Wilson Stone (D-Scottsville), who introduced the resolution along with state Sen. Paul Hornback (R-Shelbyville), hopes the message to Washington will be loud and clear – tobacco should not be excluded from this trade agreement.

“It’s so important that we actively promote all of the ag products in the United States as we negotiate trade deals and as we consider tariffs, and as we consider our export-import balances,” Stone said. “We do export a lot of ag commodities, and certainly tobacco is one of those products produced on the farm in Kentucky that is primarily an export crop, now. We’ve been exporting tobacco since before this was a nation and it’s been a major source of hard currency for over 200 years.”

Organizations including the American Academy of Pediatrics, the American College of Preventive Medicine, the American Society of Addiction Medicine and the Center for Policy Analysis on Trade and Health (CPATH) are looking to put an end to that.

The groups submitted testimony last December to the Trade Subcommittee of the U.S. House Ways and Means Committee for hearing on the TPP recommending “that all tobacco products, including tobacco, cigarettes, cigars, smokeless tobacco and other tobacco products are excluded from all provisions of this and any other Free Trade Agreement (FTA), that tobacco control measures be specifically exempted from any trade rules protecting intellectual property, including trademarks, and also exempted from any investor-state dispute resolution processes and that our trading partners’ current applied tariffs on these products not be reduced or eliminated,” according to information from CPATH.

American Medical Assoc. Executive Vice President and CEO James L. Madara, M.D. sent a letter to U.S. Trade Representative Ron Kirk asking that not only tobacco be excluded from the agreement but alcoholic beverages, as well.

Attempts by groups to make such commodities off-limits in trade agreements is not new, but lawmakers here are showing solidarity when it comes to tobacco farmers having an even playing field when as it pertains to exporting their crop. Stone noted to his knowledge, all of Kentucky’s Congressional delegates have voiced support to keep tobacco from being excluded.

He said tobacco is a legal crop in this country and, therefore, should enjoy the same rights to an export market as other ag commodities.

“We don’t want special treatment for tobacco, but we just want tobacco to be treated as what it is, one of the primary crops produced in the U.S. for export and certainly one of the primary crops produced in Kentucky,” Stone said.

Roger Quarles of the Burley Tobacco Growers Cooperative has experienced firsthand TPP talks, as he serves on the USDA’s Agricultural Technical Advisory Committee (ATAC) for Trade in Tobacco, Cotton and Peanuts. He said there shouldn’t be any discussions going on about excluding a legitimate American product from an export market.

Opponents are using something known as the Doggett Amendment and Executive Order 13193, which basically say the same thing and date back to the Clinton administration. The order states federal agencies cannot promote the sale or export of tobacco or tobacco products.

A letter reportedly circulated by California Democratic Rep. Linda Sanchez to House colleagues said including tobacco in free trade agreements would in essence violate these orders.

Quarles said he is not asking the government to promote tobacco but, rather, not to exclude any agricultural commodity that creates an economic benefit. He added the ATAC passed a resolution late last year that stated all agricultural commodities should be treated the same and have the same opportunities under any trade agreement.

Tobacco remains an economic force, representing nearly $400 million annually in Kentucky and showing signs of stability over the last few years, after a federal quota buyout brought about declines in the number of producers. That stability is something Quarles feels should be noted in the discussion. He said total volumes have remained stable and for farmers who feel tobacco is a good fit in their operations, it remains a strong crop.

“I want to get past this lamenting about how many less tobacco farms there are. That’s an argument that’s well worn out. Let’s move forward and quit looking backwards,” he said.

As far as trade talks go, Quarles is glad for the discussions with state legislators on both sides to make them aware of the issue, and he hopes the president will put some importance behind not only growers’ concerns but those of legislators and the state’s Congressional officials.

While there is no deadline as to when the treaty will be signed, Quarles thinks it will come after the presidential election. “What we would enjoy is a statement from the White House saying ‘we have no intentions of excluding any American commodity from trade agreements.’ I’ll take that before or after the election,” he said.
2/15/2012