National Conference of State Legislatures

COMMITTEE REPORT

Economic Development, Trade, & Cultural Affairs Standing Committee

Volume 1, Issue #5
September 23, 2003

Previous Issue

The Committee Report is a periodic publication of the National Conference of State Legislatures' Economic Development, Trade & Cultural Affairs Standing Committee.

The fifth World Trade Organization (WTO) Ministerial in Cancun came to a grinding halt after delegates from developing nations dropped out of talks concerning the so-called "Singapore issues" on foreign investment and government procurement. While the Singapore issues seem have been the catalyst for failure by the WTO body in Cancun, another significant reason for the collapse of talks was a divide between the developing and the developed world over agriculture. At the heart of the issue was the case made by 21 developing nations that some $300 billion in subsides every year are paid to farmers in developed nations designed to undervalue market prices for many crops, effectively putting poor farmers in developing nations out of business. The United States and other rich nations contend that lowering tariffs and allowing for more open markets around the world will stimulate continued economic growth in poor nations struggling under the heal of poverty.

The U.S. Senate has agreed to the negotiated free trade agreements with Singapore and Chile. These FTAs are considered the models for future agreements to be negotiated under the Presidential Trade Promotion Authority (TPA), or fast track, that requires Congress to either accept or reject negotiated trade agreements without amendment. In general, NCSL supports free trade and recognizes that both of these FTAs show some improvement over the North American Free Trade Agreement in areas of concern to states, such as investor-state relations and consultation processes. However, many areas of interest and concern to NCSL and the states remain as USTR uses TPA to negotiate more agreements.

The Senate Appropriations Committee recently approved an amendment allowing U.S. farm product exporters greater access to Cuba as part of a $17.005 billion discretionary spending package for agriculture in fiscal year 2004. The amendment makes it easier for Americans to sell U.S. farm products in Cuba, by loosening travel restrictions for U.S. citizens who wish to travel to Cuba to negotiate such sales. Instead of needing specific authorization, in the form of a specific travel license from the Department of Treasury, to travel to Cuba, travel would be permitted under a general license--similar
to how journalists and Cuban-Americans travel to Cuba. The House also passed similar language in it's FY04 Transportation and Treasury appropriations package, prohibiting the Treasury Department from using funds to stop Americans from traveling to the island nation. NCSL policy currently supports dissolution of the embargo on food products and medicine to Cuba. NCSL staff will keep you informed of activity on this issue as the spending packages for FY2004 head to conference committee (Excerpted/adapted from BNA DRE, 7/17/2003, 9/11/03).

This report is designed for those who are interested in helping distressed places and determining how state economic development funds might contribute. The goal of most public economic development initiatives is to encourage business investment and improve business productivity, with a desired cumulative effect of increased employment and personal income. This report explores policies and programs related to these goals, with the intent to strengthen connections among economic development, human services and other activities aimed at improving the well-being of communities. For more information visit http://www.ncsl.org/programs/econ/commdev.htm.

2002-2003 Officers
Chair
Representative S. Weston Broom
Louisiana

Vice Chairs
Representative Sheryl Allen
Utah

Sentor Richard Kneeland
Maine

Senator Larry Mumper
Ohio

Representative Peter Lewiss
Rhode Island

Represenative Opio Toure
Oklahoma

Staff Chair
Mr. John Rappa
Connecticut

Staff Vice Chairs
Ms. Hanna Shostack
New Jersey

Ms. Anna Blackshaw
California

Committee Staff
Jeremy Meadows
Committee Director
202-624-8664
jeremy.meadows@ncsl.org

Mandy Rafool
Program Principal
303-856-1506
mandy.rafool@ncsl.org

Nick Steidel
Research Analyst
202-624-8673
nick.steidel@ncsl.org

Offices
Headquarters
7700 East First Place
Denver, Colorado 80230

State-Federal Relations
444 North Capitol Street, NW
Suite 515
Washington, DC 20001