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ADM to expand operations in Brazil, U.S. and Brazilian ag chiefs announce 'Consultative Committee on Agriculture'

(Wednesday, June 25, 2003 -- CropChoice news) -- Archer Daniels Midland announced its start on construction of five grain origination and storage silos in Brazil. The facilities in Tapurah, Mato Grosso; Vipishi, Mato Grosso; Carazinho, Mato Grosso; Ranchao, Mato Grosso and Caarapo, Mato Grosso do Sul, will be operational by 2004. Including the additions, ADM will have a total of 85 silos in Brazil, Paraguay and Bolivia. For more on this see, the ADM news release at http://www.admworld.com/news/articles/06_24_03_sa.htm . Meanwhile, the USDA announced this week that Agriculture Secretary Ann M. Veneman and Brazilian Minister of Agriculture, Livestock and Food Supply Roberto Rodrigues have signed a Memorandum of Understanding establishing a U.S.-Brazil Consultative Committee on Agriculture (CCA). The signing was in conjunction with the U.S.-Brazil Presidential Summit between President George W. Bush and Brazilian President Lula da Silva.

The consultative committee provides an opportunity to coordinate policy in a number of areas including market access, food safety, research, technical assistance and standards setting. It provides a forum for the two countries to address bilateral trade issues as they arise, develop recommendations, share ideas and better coordinate policies to benefit farmers, businesses and consumers.

"The United States and Brazil have so much in common," said Veneman. Agriculture plays a major role in our economies and our way of life. We share many of the same interests and goals, such as on trade and technology. This agreement provides a framework to facilitate our pursuit of mutual interests and objectives."

The United States, Brazil and other countries are currently negotiating trade issues for the global Doha Development Agenda of the World Trade Organization and the hemispheric Free Trade Area of the Americas (FTAA). Brazil (as a member of the Cairns Group) and the United States share a commitment to reduce agricultural support and protection and to achieve significant reform in the WTO negotiations. In the FTAA, the United States and Brazil serve as co-chairs of the negotiations and will preside over the next ministerial to be held in Miami in November.

USDA and Brazilian officials will meet in early fall to establish a work plan structuring future discussions in areas of mutual concern, including ongoing trade negotiations, sanitary and phytosanitary issues, and technical cooperation.

Source: USDA, June 20, 2003