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China PNTR [Permanent Normal Trade Relations] - AG. Shakopee, MN and Akron, OH 5/12/00 China-Shakopee, MN 5/12/00
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China PNTR [Permanent Normal Trade Relations] - AG. Shakopee, MN and Akron, OH 5/12/00 China-Shakopee, MN 5/12/00
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administrative marker by the William J. Clinton
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Collection/Record Group:
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Speechwriting
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Jeff Shesol
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China PNTR [Permanent Normal Trade Relations] - AG. Shakopee, MN & Akron, OH 5/12/00
China - Shakopee, MN 5/12/00
Stack:
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Section:
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Position:
S
91
6
10
3
'00 MAY 11 PM8:16
Final 05/11/00 7:15pm
THE
5 12.00
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON AGRICULTURE AND
CHINA TRADE
HAUER FAMILY FARM
SHAKOPEE, MINNESOTA
May 12, 2000
copied
gotthermer
Ack
5-12-00
AF-1
SEE GLICKMAN
Scott SHEARER
FARMLAM Imusires
REP MINGE
Nick Giardino
NATL Ponk Producer
LT Gov MAE SCHUNK
SUSAN KEITH
A6 MIKE HATCH
NATL Carn Groun
TREASUrer CAROL JOHNSON
MN STATE AG Comm GENE HUGUSON Www.in
Mayor JoN BREKKE, SHAKOPEF
Min
- - Straine
- Shalles 12n
- Calton
Ambassador WALTER MONDALE
Gov ALAN Olson, Farmer Gov Nath DAKOTA
BoB BERGLAM, farmer CARTER AG SECRETARY
DALLAS BOHNSACK, Introder -Fanner
GENE / Terry / Kitty HAver, farm owner
5-12-00
Acknowledgments: Sec. Glickman; Rep. Minge;
Gene and Terry Hauer; Dallas Bohnsack [Bone-sock];
Mark Yudof, Pres., U. of MN; Bob Bergland, Pres.
Carter's Sec. of Ag. Lt. Gov. Mae Schunk is here; and I
also want to acknowledge Gov. Ventura, who couldn't
join us today, but did come to the White House earlier this
week - along with Presidents Ford and Carter and a whole
host of distinguished supporters of trade with China.
Gov. Ventura has been a strong and consistent advocate;
and I want you know how much I appreciate it.
Thank you for inviting me here to Shakopee. As I
flew here today, heading west across the plains, I could
see the rolling hills rise up above the creeks and rivers
that run through this region. It's an impressive sight.
1
5.12.00
And you know, it really can't look all that different than it
did when missionaries and farmers, and trappers and
traders, first settled here in Scott County.
Here's something interesting about those early
settlers, the first citizens of Shakopee. They were
pioneers in more than one sense. Way back in the 19th
Century, they were already making trade with China.
China was then the biggest and richest fur market in the
world. Many of the pelts that came from here, from the
shores of the Mississippi and Minnesota Rivers, were
bound for markets on the other side of the globe.
that's more than a historical footnote. 1/think it was a sign
of things to come.
2
5.12.00
Trade was a small, if interesting, part of your past;
but it's going to be a much bigger part of your future. I'm
here today to talk about expanding trade with China, and
why it means expanding opportunity for farmers like you,
for states like Minnesota, and for all of America.
In less than two weeks, Congress is going to vote on
a once-in-a-lifetime opportunity for America. They're
going to decide whether to establish Permanent Normal
Trade Relations with China. Now, I know that the
acronym "PNTR" might sound pretty arcane. It might
sound more like foreign policy than farm policy. But I'm
Actually,
here to tell you that it's both, and it's important. Emhere
to tell you that the stakes are just as high in Shakopee as
nedaractod
they are anywhere in America.
3
Farmers are the lifeblood of our land. One of every
three acres planted in America is growing exports,
making us the world's largest exporter of agricultural
products. During the last five years, those exports have
nearly doubled. If you look at gross cash receipts, trade
means roughly twice as much to America's farmers as it
does to our economy as a whole.
We see evidence of that here in Shakopee. Farms
like this have made Minnesota number three in soybean
production, number four in feed corn, and number seven
in overall agricultural exports. In 1998, Minnesota sold
$2.4 billion in agricultural products to foreign markets.
4
More and more of that trade is conducted with China:
from 1993 to 1998, Minnesota's exports to China more
than doubled, to $316 million. This increase spans almost
every sector of Minnesota's economy, covering products
from soybeans to chemicals to information technology.
As Sec. Glickman described, the magnitude of the
Chinese market almost defies measurement. China has
more than a billion consumers within its borders. It's no
wonder that China consumes more pork than any other
nation. It is also the world's largest growth market for
soybeans and soybean products. China's dairy
consumption is going up, as its people's incomes rise and
its government promotes dairy products.
5
5.12.00
When China enters the World Trade Organization, it
won't be able to subsidize its farm sector as it's used to
doing. So Chinese agriculture is already making
adjustments - planting less wheat and less cotton, for
example. There is just no way China's farmers are going
to keep pace with their country's growth in demand. But
herols a fact: you can. American farmers can. Tearan
reap this remarkable harvest - but only if the Congress
gives you the chance to do so, and votes for PNTR.
The deal we've negotiated - the one Congress is
voting on - is 100-0 in our favor. It would give America
unprecedented access to China's markets - and grant
approval to rebert wto but
China^no new access to our own.Mrs.
6
5:13:00
And here's what it would mean for American farmersix was
an
No more/export subsidies, which China now uses to stack
wh how
the deck against you, keeping American corn from being
priced competitively. No more baseless health barriers,
which China uses to keep our beef and poultry outside
their borders. No more of the high tariffs you face on
feed grains, soybeans, vegetables, or meat and dairy
lower than EW-
products/And fewer fears of fluctuating or falling prices,
once China enters the global system of trade and gains a
greater stake in its stability.
But keep this in mind: China's going to grow no
matter what we do. If we don't sell your products to
China, some other farmer in some other country will be
happy to step in. Aus when Chart with was it will regder
flulitarido, Eur favor way get the market access we suggrited
5-12-00
If Congress turns its back on this opportunity, we' re going
to spend the next twenty years regretting it. We're going
to spend the next twenty years wondering why we ever
handed over all the benefits we negotiated, and gave-up
the competitive edge we've earned, to European,
Japanese, and other farmers.
A vote for PNTR is a vote for our economic security.
China has agreed to play by the same trading rules we do.
I say we take them up on it - and hold them to it. Our
negotiators have gained tough new safeguards against
surges of Chinese imports, while maintaining the
strongest possible protections against the dumping of
products.
8
5-12-00
Recently, I announced an unprecedented $22-million
government-wide compliance effort - to ensure that
China makes good on its promises.
A vote for PNTR is also a vote for our national
security. America has a big stake in the stability of Asia
and in a China that contributes to it. We have an abiding
interest in labor and human rights and in a China that
& follows tut Stor + Rele of low,
respects themA If I've learned one thing as President, it's
that foreign policy is a lot like real life. You do a lot
better with an outstretched hand than a clenched fist. We
can't offer that hand if we turn our backs.
why our Att allies, we duroc Jun SK, Plull
why Prei Deco Chen of TW what or to
way HK Duese car all her, Discia we in ca, many
crel we at MIASION, Exper. in a
9
5.12
This deal will not change China, or our relationship
Partof along process turl wpit bel will
with China, overnight.) Still, it is a step in the right
has en to get fews of curses, respons out city
Will a work- in end
direction. Solet's So move forward with our hand
GCT chances greater feve
outstretched. By opening new markets in China, opens
new opportunities right here in America. We can deepen
your roots in the land your families have cultivated for
generations. We can expand the bounty that this rich soil
yields - and enhance your ability to raise your families
with confidence and comfort.
I hope you will work with me to see that Congress
makes the right choice. I am confident it will - because it
is the right thing for our farmers and it is the right thing
for our future. Thank you.
10
Final 05/11/00 7:15pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON AGRICULTURE AND
CHINA TRADE
HAUER FAMILY FARM
SHAKOPEE, MINNESOTA
May 12, 2000
Acknowledgments: Sec. Glickman; Rep. Minge;
Gene and Terry Hauer; Dallas Bohnsack [Bone-sock];
Mark Yudof, Pres., U. of MN; Bob Bergland, Pres.
Carter's Sec. of Ag. Lt. Gov. Mae Schunk is here; and I
also want to acknowledge Gov. Ventura, who couldn't
join us today, but did come to the White House earlier this
week - along with Presidents Ford and Carter and a whole
host of distinguished supporters of trade with China.
Gov. Ventura has been a strong and consistent advocate;
and I want you know how much I appreciate it.
Thank you for inviting me here to Shakopee. As I
flew here today, heading west across the plains, I could
see the rolling hills rise up above the creeks and rivers
that run through this region. It's an impressive sight.
1
And you know, it really can't look all that different than it
did when missionaries and farmers, and trappers and
traders, first settled here in Scott County.
Here's something interesting about those early
settlers, the first citizens of Shakopee. They were
pioneers in more than one sense. Way back in the 19th
Century, they were already making trade with China.
China was then the biggest and richest fur market in the
world. Many of the pelts that came from here, from the
shores of the Mississippi and Minnesota Rivers, were
bound for markets on the other side of the globe. I think
that's more than a historical footnote. I think it was a sign
of things to come.
2
Trade was a small, if interesting, part of your past;
but it's going to be a much bigger part of your future. I'm
here today to talk about expanding trade with China, and
why it means expanding opportunity for farmers like you,
for states like Minnesota, and for all of America.
In less than two weeks, Congress is going to vote on
a once-in-a-lifetime opportunity for America. They're
going to decide whether to establish Permanent Normal
Trade Relations with China. Now, I know that the
acronym "PNTR" might sound pretty arcane. It might
sound more like foreign policy than farm policy. But I'm
here to tell you that it's both, and it's important. I'm here
to tell you that the stakes are just as high in Shakopee as
they are anywhere in America.
3
Farmers are the lifeblood of our land. One of every
three acres planted in America is growing exports,
making us the world's largest exporter of agricultural
products. During the last five years, those exports have
nearly doubled. If you look at gross cash receipts, trade
means roughly twice as much to America's farmers as it
does to our economy as a whole.
We see evidence of that here in Shakopee. Farms
like this have made Minnesota number three in soybean
production, number four in feed corn, and number seven
in overall agricultural exports. In 1998, Minnesota sold
$2.4 billion in agricultural products to foreign markets.
4
More and more of that trade is conducted with China:
from 1993 to 1998, Minnesota's exports to China more
than doubled, to $316 million. This increase spans almost
every sector of Minnesota's economy, covering products
from soybeans to chemicals to information technology.
As Sec. Glickman described, the magnitude of the
Chinese market almost defies measurement. China has
more than a billion consumers within its borders. It's no
wonder that China consumes more pork than any other
nation. It is also the world's largest growth market for
soybeans and soybean products. China's dairy
consumption is going up, as its people's incomes rise and
its government promotes dairy products.
5
When China enters the World Trade Organization, it
won't be able to subsidize its farm sector as it's used to
doing. So Chinese agriculture is already making
adjustments - planting less wheat and less cotton, for
example. There is just no way China's farmers are going
to keep pace with their country's growth in demand. But
here's a fact: you can. American farmers can. You can
reap this remarkable harvest - but only if the Congress
gives you the chance to do so, and votes for PNTR.
The deal we've negotiated - the one Congress is
voting on - is 100-0 in our favor. It would give America
unprecedented access to China's markets - and grant
China no new access to our own.
6
And here's what it would mean for American farmers:
No more export subsidies, which China now uses to stack
the deck against you, keeping American corn from being
priced competitively. No more baseless health barriers,
which China uses to keep our beef and poultry outside
their borders. No more of the high tariffs you face on
feed grains, soybeans, vegetables, or meat and dairy
products. And fewer fears of fluctuating or falling prices,
once China enters the global system of trade and gains a
greater stake in its stability.
But keep this in mind: China's going to grow no
matter what we do. If we don't sell your products to
China, some other farmer in some other country will be
happy to step in.
7
If Congress turns its back on this opportunity, we're going
to spend the next twenty years regretting it. We're going
to spend the next twenty years wondering why we ever
handed over all the benefits we negotiated, and gave up
the competitive edge we've earned, to European,
Japanese, and other farmers.
A vote for PNTR is a vote for our economic security.
China has agreed to play by the same trading rules we do.
I say we take them up on it - and hold them to it. Our
negotiators have gained tough new safeguards against
surges of Chinese imports, while maintaining the
strongest possible protections against the dumping of
products.
8
Recently, I announced an unprecedented $22-million
government-wide compliance effort - to ensure that
China makes good on its promises.
A vote for PNTR is also a vote for our national
security. America has a big stake in the stability of Asia
and in a China that contributes to it. We have an abiding
interest in labor and human rights and in a China that
respects them. If I've learned one thing as President, it's
that foreign policy is a lot like real life. You do a lot
better with an outstretched hand than a clenched fist. We
can't offer that hand if we turn our backs.
9
This deal will not change China, or our relationship
with China, overnight. Still, it is a step in the right
direction. So let's move forward with our hand
outstretched. By opening new markets in China, we open
new opportunities right here in America. We can deepen
your roots in the land your families have cultivated for
generations. We can expand the bounty that this rich soil
yields - and enhance your ability to raise your families
with confidence and comfort.
I hope you will work with me to see that Congress
makes the right choice. I am confident it will - because it
is the right thing for our farmers and it is the right thing
for our future. Thank you.
10
Final 05/11/00 7:1 5pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON AGRICULTURE AND CHINA TRADE
HAUER FAMILY FARM
SHAKOPEE, MINNESOTA
May 12, 2000
Acknowledgments: Sec. Glickman; Rep. Minge; Gene and Terry Hauer; Dallas
Bohnsack [Bone-sock]; Mark Yudof, Pres., U. of MN; Bob Bergland, Pres. Carter's Sec. of Ag.
Lt. Gov. Mae Schunk is here; and I also want to acknowledge Gov. Ventura, who couldn't join
us today, but did come to the White House earlier this week - along with Presidents Ford and
Carter and a whole host of distinguished supporters of trade with China. Gov. Ventura has been
a strong and consistent advocate; and I want you know how much I appreciate it.
Thank you for inviting me here to Shakopee. As I flew here today; heading west across
the plains, I could see the rolling hills rise up above the creeks and rivers that run through this
region. It's an impressive sight. And you know, it really can't look all that different than it did
when missionaries and farmers, and trappers and traders, first settled here in Scott County.
Here's something interesting about those early settlers, the first citizens of Shakopee.
They were pioneers in more than one sense. Way back in the 19th Century, they were already
making trade with China. China was then the biggest and richest fur market in the world. Many
of the pelts that came from here, from the shores of the Mississippi and Minnesota Rivers, were
bound for markets on the other side of the globe. I think that's more than a historical footnote. I
think it was a sign of things to come.
Trade was a small, if interesting, part of your past; but it's going to be a much bigger part
of your future. I'm here today to talk about expanding trade with China, and why it means
expanding opportunity for farmers like you, for states like Minnesota, and for all of America.
In less than two weeks, Congress is going to vote on a once-in-a-lifetime opportunity for
America. They're going to decide whether to establish Permanent Normal Trade Relations with
China. Now, I know that the acronym "PNTR" might sound pretty arcane. It might sound more
like foreign policy than farm policy. But I'm here to tell you that it's both, and it's important.
I'm here to tell you that the stakes are just as high in Shakopee as they are anywhere in America.
Farmers are the lifeblood of our land. One of every three acres planted in America is
growing exports, making us the world's largest exporter of agricultural products. During the last
five years, those exports have nearly doubled. If you look at gross cash receipts, trade means
roughly twice as much to America's farmers as it does to our economy as a whole.
We see evidence of that here in Shakopee. Farms like this have made Minnesota number
three in soybean production, number four in feed corn, and number seven in overall agricultural
exports. In 1998, Minnesota sold $2.4 billion in agricultural products to foreign markets. More
1
and more of that trade is conducted with China: from 1993 to 1998, Minnesota's exports to
China more than doubled, to $316 million. This increase spans almost every sector of
Minnesota's economy, covering products from soybeans to chemicals to information technology.
As Sec. Glickman described, the magnitude of the Chinese market almost defies
measurement. China has more than a billion consumers within its borders. It's no wonder that
China consumes more pork than any other nation. It is also the world's largest growth market
for soybeans and soybean products. China's dairy consumption is going up, as its people's
incomes rise and its government promotes dairy products.
When China enters the World Trade Organization, it won't be able to subsidize its farm
sector as it's used to doing. So Chinèse agriculture is already making adjustments - planting less
wheat and less cotton, for example. There is just no way China's farmers are going to keep pace
with their country's growth in demand. But here's a fact: you can. American farmers can. You
can reap this remarkable harvest - but only if the Congress gives you the chance to do so, and
votes for PNTR.
The deal we've negotiated - the one Congress is voting on - is 100-0 in our favor. It
would give America unprecedented access to China's markets - and grant China no new access
to our own. And here's what it would mean for American farmers: No more export subsidies,
which China now uses to stack the deck against you, keeping American corn from being priced
competitively. No more baseless health barriers, which China uses to keep our beef and poultry
outside their borders. No more of the high tariffs you face on feed grains, soybeans, vegetables,
or meat and dairy products. And fewer fears of fluctuating or falling prices, once China enters
the global system of trade and gains a greater stake in its stability.
But keep this in mind: China's going to grow no matter what we do. If we don't sell
your products to China, some other farmer in some other country will be happy to step in. If
Congress turns its back on this opportunity, we're going to spend the next twenty years regretting
it. We're going to spend the next twenty years wondering why we ever handed over all the
benefits we negotiated, and gave up the competitive edge we've earned, to European, Japanese,
and other farmers.
A vote for PNTR is a vote for our economic security. China has agreed to play by the
same trading rules we do. I say we take them up on it - and hold them to it. Our negotiators
have gained tough new safeguards against surges of Chinese imports, while maintaining the
strongest possible protections against the dumping of products. Recently, I announced an
unprecedented $22-million government-wide compliance effort - to ensure that China makes
good on its promises.
A vote for PNTR is also a vote for our national security. America has a big stake in the
stability of Asia and in a China that contributes to it. We have an abiding interest in labor and
human rights and in a China that respects them. If I've learned one thing as President, it's that
foreign policy is a lot like real life. You do a lot better with an outstretched hand than a clenched
fist. We can't offer that hand if we turn our backs.
2
This deal will not change China, or our relationship with China, overnight. Still, it is a
step in the right direction. So let's move forward with our hand outstretched. By opening new
markets in China, we open new opportunities right here in America. We can deepen your roots
in the land your families have cultivated for generations. We can expand the bounty that this
rich soil yields - and enhance your ability to raise your families with confidence and comfort.
I hope you will work with me to see that Congress makes the right choice. I am
confident it will - because it is the right thing for our farmers and it is the right thing for our
future. Thank you.
3
FEB-21-00 04:35 FROM:
ID:
PAGE 1
DRAFT
REMARKS BY
SECRETARY OF AGRICULTURE DAN GLICKMAN
HAUER FAMILY FARM
MAY 12, 2000 - SHAKOPEE, MINNESOTA
fax: 62505
Thank you very much, Mr. Hauer, for your hospitality. This is actually the second time in the
last few years that I've visited the Hauer farm. One more time and I think I'll have my own
special coffee mug for frequent houseguests.
It's a great honor to be here with President Clinton and Congressman Minge to talk about one of
the most pressing issues facing the nation this year - our relationship with China and the
importance of granting Permanent Normal Trading Relations.
One out of every five people on earth live in China It is the world's largest country, and one
that's in the middle of an incredible transformation. State-run enterprises are giving way to
private industry. Incomes are growing. A new consumer class is emerging. In the 21st century,
по market represents a greater opportunity for American businesses. and especially American
farmers.
And now, after years of restricted access to that market, China is preparing to open its doors by
joining the World Trade Organization. They will eliminate export subsidies immediately. They
will cap and reduce domestic farm support, dramatically reduce agricultural tariffs across-the-
board and more.
The stakes are high for Minnesota, which exports more farm commodities than all but six other
states. China 18 the world's largest growth market for soybeans, one of Minnesota's top crops,
and they have agreed to phase out their soybean oil quota and make permanent their current 3
percent duty on soybean imports. After importing less than 250,000 metric tons of com in 1998,
China has agreed to allow the import of up to 4.5 million metric tons at a mere 1 percent tariff.
We estimate that, by 2005, China's WTO membership could lead to an additional $2 billion in
total American farm exports each year.
But here's the thing: we can only seize this opportunity if we grant China Permanent Normal
Trade Relations - or PNTR, as we call it. If we don't pass it, China will still join the WTO, but
we'll be left on the outside looking in. We would essentially be leaving the door wide open for
our global competitors to march in, take advantage of these concessions WC negotiated and seize
the market share that should have been ours.
Last month, 1 led a delegation of members of Congress to China for a week-long visit. And I
think all of us were struck by what we encountered: an optimistic people, a modernizing society,
a maturing economy. This is not the China of 25 years ago. This is a China with a state-of-the-
art stock exchange in Shanghai. This is a China where Internet use increased more than fourfold
last year. The Catholic Archbishop of Shanghai spent 27 years in prison, but now he has 5,000
people coming to mass every Sunday.
FEB-21-00 04:35 FROM:
ID:
PAGE 2
DRAFT
I'm not a cockeyed optimist about this, because China's record on human rights, labor standards
and religious freedom is still very disturbing. But rejecting PNTR for those reasons is, in my
opinion, misguided because weakening our ties with China won't protect a single political
dissident or raise the wages of a single Chinese worker. The best way to change China's
behavior is to bring China into the rules-based global economic community, where they can be
exposed to our values and our way of life.
During the trip, we met with Chinese employees of American firms, and they talked about the
higher salaries, the benefits, the promotion possibilities, the worker-friendly corporate culture,
the workplace safety rules that are enforced. There's no doubt that the American private sector is
a force for progress in Chinese society.
PNTR is an important trade issue, which will undoubtedly help American farmers during a time
of real challenge and uncertainty in agriculture. But PNTR is more than that. It's a foreign
policy issue, with serious implications for our national security. It's an opportunity for American
businesses and the American people to be catalysts for change that will ultimately benefit us all.
It's a litmus test for American leadership in the world, and it's one that we must pass.
Now, I'd like to introduce a great leader for southern Minnesota a former colleague of mine in
the House of Representatives and on the Agriculture Committee a good friend Congressman
David Minge.
###
** TOTAL PAGF, 03 **
Draft 05/11/00 7:00pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON AGRICULTURE AND CHINA TRADE
HAUER FAMILY FARM
SHAKOPEE, MINNESOTA
May 12, 2000
Acknowledgments: Sec. Glickman; Rep. Minge; Gene and Terry Hauer; Dallas
Bohnsack [Bone-sock]; Mark Yudof, Pres., U. of MN; Bob Bergland, Pres. Carter's Sec. of Ag.
Lt. Gov. Mae Schunk is here; and I also want to acknowledge Gov. Ventura, who couldn't join
us today, but did come to the White House earlier this week - along with Presidents Ford and
trade
Carter and a whole host of distinguished supporters of Permanent Normal Trade Relations with
China. Gov. Ventura has been a strong and consistent advocate for expanded, trade; and I want
you know how much appreciate that.
Thank you for inviting me here to Shakopee. As I flew here today, heading west across
the plains, I could see the rolling hills just rise up above the creeks and rivers that run through
this region. It's an impressive sight. And you know, it really can't look all that different than it
did when missionaries and farmers, and trappers and traders, first settled here in Scott County.
Here's something interesting about those early settlers, the first citizens of Shokopee
They were pioneers in more than one way. Back in the 19th Century, they were already making
trade with China. China was then the biggest and richest fur market in the world. Many of the
pelts that came from here, from the shores of the Mississippi and Minnesota Rivers, were bound
for markets on the other side of the globe. I think that's more than a historical footnote. I think
it was a sign of things to come.
Trade was a small, if interesting, part of your past; but it's going to be a much bigger part
of your future. I'm here today to talk about expanding trade with China, and why it means
expanding opportunity for farmers like you, for states like Minnesota, and for all of America.
In less than two weeks, Congress is going to vote on a once-in-a-lifetime opportunity for
America. They're going to decide whether to establish Permanent Normal Trade Relations with
China. Now, I know that the acronym "PNTR" might sound pretty arcane. It might sound more
like foreign policy than farm policy. But I'm here to tell you that it's both, and it's important.
I'm here to tell you that the stakes are just as high in Shakopee as they are anywhere in America.
Farmers are the lifeblood of our land. One of every three acres planted in America is
growing exports, making us the world's largest exporter of agricultural products. During the last
five years, those exports have nearly doubled. If you look at gross cash receipts, trade means
roughly twice as much to America's farmers as it does to our economy as a whole.
We see evidence of that here in Shakopee. Farms like this one have made Minnesota
number three in soybean production, number four in feed corn, and number seven in overall
agricultural exports. In 1998, Minnesota sold $2.4 billion in agricultural products to foreign
markets. More and more of that trade is conducted with China: from 1993 to 1998, Minnesota's
1
exports to China more than doubled, to $316 million. This increase spans almost every sector of
Minnesota's economy, covering products from soybeans to chemicals to information technology.
As Sec. Glickman described, the magnitude of the Chinese market almost defies
measurement. China has more than a billion consumers within its borders. It's no wonder that
China consumes more pork than any other nation. It is also the world's largest growth market
for soybeans and soybean products. China's dairy consumption is going up, as its people's
incomes rise and its government promotes dairy products.
When China enters the World Trade Organization, it won't be able to subsidize its farm
sector as it's used to doing. So Chinese agriculture is already making adjustments - planting less
wheat and less cotton, for example. There is just no way China's farmers are going to keep pace
with their country's growth in demand. But here's a fact: you can. American farmers can. You
can reap this remarkable harvest - but only if the Congress gives you the chance to do so, and
votes for PNTR.
The deal we've negotiated - the one Congress is voting on - is 100-0 in our favor. It
would give America unprecedented access to China's markets - and grant China no new access
to our own. And here's what it would mean for American farmers: No more export subsidies,
which China now uses to stack the deck against you, keeping American corn from being priced
competitively. No more baseless health barriers, which China uses to keep our beef and poultry
outside their borders. No more of the high tariffs you face on feed grains, soybeans, vegetables,
or meat and dairy products. And fewer fears of fluctuating or falling prices, once China enters
the global system of trade and gains a greater stake in its stability.
But keep this in mind: China's going to grow no matter what we do. If we don't sell
your products to China, some other farmer in some other country will be happy to step in. If
Congress turns its back on this opportunity, we're going to spend the next twenty years regretting
it. We're going to spend the next twenty years wondering why we ever handed over all the
benefits we negotiated, and gave up the competitive edge we've earned, to European, Japanese,
and other farmers.
A vote for PNTR is a vote for our economic security. China has agreed to play by the
same trading rules we do. I say we take them up on it - and hold them to it. Our negotiators
have gained tough new safeguards against surges of Chinese imports, while maintaining the
strongest possible protections against the dumping of products. Recently, I announced an
unprecedented $22-million government-wide compliance effort - to ensure that China makes
good on its promises.
A vote for PNTR is also a vote for our national security. America has a big stake in the
stability of Asia and in a China that contributes to it. We have an abiding interest in labor and
human rights and in a China that respects them. If I've learned one thing as President, it's that
foreign policy is a lot like real life. You do a lot better with an outstretched hand than a clenched
fist. We can't offer that hand if we turn our backs.
This deal will not change China, or our relationship with China, overnight. Still, it is a
step in the right direction. So let's move forward with our hand outstretched. By opening new
markets in China, we open new opportunities right here in America. We can deepen your roots
2
in the land your families have cultivated for generations. We can expand the bounty that this
rich soil yields - and enhance your ability to raise your families with confidence and comfort.
I hope you will work with me to see that Congress makes the right choice. I am
confident it will - because it is the right thing for our farmers and it is the right thing for our
future. Thank you.
3
Draft 05/11/00 6:30pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON AGRICULTURE AND CHINA TRADE
HAUER FAMILY FARM
SHAKOPEE, MINNESOTA
May 12, 2000
Acknowledgments: Sec. Glickman; Rep. Minge; Gene and Terry Hauer; Dallas
Bohnsack [Bone-sock]; Mark Yudof, Pres., U. of MN; Bob Bergland, Pres. Carter's Sec. of Ag.
I also want to acknowledge Governor Ventura, who, couldn't be with us today, but who joined
me at the White House earlier this week - along with Presidents Ford and Carter and a whole
host of distinguished supporters of Permanent Normal Trade Relations with China. Governor
Ventura has been a strong and consistent advocate for expanded trade; and I want you and him to
know how much I appreciate that.
Thank you for inviting me here to Shakopee. As I flew here today, heading west across
the plains, I could see the rolling hills just rise up above the creeks and rivers that run through
this region. It's an impressive sight. And you know, it really can't look all that different than it
did when missionaries and farmers, and trappers and traders, first settled here in Scott County.
Here's something interesting about those early settlers, the first citizens of Shokapee.
They were pioneers in more than one way. Back in the 19th Century, they were already making
trade with China. China was then the biggest and richest fur market in the world. Many of the
pelts that came from here, from the shores of the Mississippi and Minnesota Rivers, were bound
for markets on the other side of the globe. I think that's more than a historical footnote. I think
it was a sign of things to come.
Trade was a small, if interesting, part of your past; but it's going to be a much bigger part
of your future. I'm here today to talk about expanding trade with China, and why it means
steel:
expanding opportunity for farmers like you, for states like Minnesota, and for all of America.
In less than two weeks, Congress is going to vote on a once-in-a-lifetime opportunity for
America. They're going to decide whether to establish Permanent Normal Trade Relations with
China. Now, I know that the acronym "PNTR" might sound pretty arcane. It might sound more
Chalready
like foreign policy than farm policy. But I'm here to tell you that it's both, and it's important.
maling
I'm here to tell you that the stakes are just as high in Shakopee as they are anywhere in America.
changes
Farmers are the lifeblood of our land. One of every three acres planted in America is
in pep
growing exports, making us the world's largest exporter of agricultural products. During the last
planting
five years, those exports have nearly doubled. If you look at gross cash receipts, trade means
less
roughly twice as much to America's farmers as it does to our economy as a whole.
wheat cotton
We see evidence of that here in Shakopee. Farms like this one have made Minnesota
can't
number three in soybean production, number four in feed corn, and number seven in overall
afford
agricultural exports. In 1998, Minnesota sold $2.4 billion in agricultural products to foreign
to subsidize
markets. More and more of that trade is conducted with China: from 1993 to 1998, Minnesota's
i
ben to us
exports to China more than doubled, to $316 million. This increase spans almost every sector of
Minnesota's economy, covering products from soybeans to chemicals to information technology.
The magnitude of the Chinese market almost defies measurement. China has one-fifth of
the world's population - more than a billion consumers - within its borders. It's no wonder that
China consumes more pork than any other nation. It is also the world's largest growth market
for soybeans and soybean products. China's dairy consumption is going up, as its people's
incomes rise and its government promotes dairy products.
There is just no way China's farmers are going to keep pace with that country's growth in
demand. But you can. American farmers can. You can reap this remarkable harvest - but only.
if the Congress gives you the chance to do so, and votes for PNTR.
The deal we've negotiated - the one Congress is voting on - is 100-0 in our favor. It
would give America unprecedented access to China's markets - and grant China no new access
to our own. And here's what it would mean for American farmers: No more export subsidies,
which China now uses to stack the deck against you, keeping American corn from being priced
competitively. No more baseless health barriers, which China uses to keep our beef and poultry
outside their borders. No more of the high tariffs you face on feed grains, soybeans, vegetables,
or meat and dairy products. And fewer fears of fluctuating or falling prices, once China enters
the global system of trade and gains a greater stake in its stability.
But keep this in mind: China's going to grow no matter what we do. If we don't sell
your products to China, some other farmer in some other country will be happy to step in. If
Congress turns its back on this opportunity, we're going to spend the next twenty years regretting
it. We're going to spend the next twenty years wondering why we ever handed over all the
benefits we negotiated, and gave up the competitive edge we've earned, to European, Japanese,
and other farmers.
A vote for PNTR is a vote for our economic security. China has agreed to play by the
same trading rules we do. I say we take them up on it - and hold them to it. Our negotiators
have gained tough new safeguards against surges of Chinese imports, while maintaining the
strongest possible protections against the dumping of products. I nec announced goot
unpred $22 m compliance effort to
A vote for PNTR is also a vote for our national security. America has a big stake in the
ensure
stability of Asia and in a China that contributes to it. We have an abiding interest in labor and
China
human rights and in a China that respects them. If I've learned one thing as President, it's that
meets
foreign policy is a lot like real life. You do a lot better with an outstretched hand than a clenched
its
fist. We can't offer that hand if we turn our backs.
comment.
This deal will not change China, or our relationship with China, overnight. Still, it is a
step in the right direction. So let's move forward with our hand outstretched. By opening new
markets in China, we open new opportunities right here in America. We can deepen your roots
in the land your families have cultivated for generations. We can expand the bounty that this
rich soil yields - and enhance your ability to raise your families with confidence and comfort.
2
I hope you will work with me to see that Congress makes the right choice. I am
confident it will - because it is the right thing for our farmers and it is the right thing for our
future. Thank you.
3
Therers.
16th or 18th
Draft 05/11/00 1:30pm
8:55pm wed.
Jeff Shesol
before ww
PRESIDENT WILLIAM J. CLINTON
"Everyoody coves Cerina"
REMARKS ON AGRICULTURE AND CHINA TRADE
HAUER FAMILY FARM
SHAKOPEE, MINNESOTA
May 12, 2000
Acknowledgments: Sec. Glickman; Rep. David Minge; Gene and Terry Hauer; other
farmer TBD
the rollinghills
Thank you for inviting me here to Shakopee, here in the heartland As I flew here today,
heading west across the plains, I could see them just rise up above the creeks and rivers that run
through this region. It's an impressive sight. And you know, it really can't look all that different
than it did when missionaries and farmers, and trappers and traders, first settled here in Scott
County.
Here's something interesting about those early settlers, the first citizens of the town of
Shokapee. They were pioneers in more than one way. Way back, in the middle of the 19th
Century, they were making trade with China. China was the biggest and richest fur market in the
world. Many of the furs and pelts that came from here, from the shores of the Mississippi and
the Minnesota, were bound for the other side of the world. I happen to think that's more than a
historical footnote. I think it was a sign of things to come.
Trade is a small if interesting part of your past; but it's a much bigger part of your future.
I'm here today to talk to you about expanding trade with China, and expanding opportunity for
farmers like you, for states like Minnesota, and, indeed, for all of America.
In less than two weeks, Congress is going to vote on a once-in-a-lifetime opportunity for
America, and decide whether to seize it or let it slip away. They're going to decide whether to
establish Permanent Normal Trade Relations with China. Now, I know that the acronym
"PNTR" might sound pretty arcane. It might sound more like foreign policy than farm policy.
But I'm here to tell you that it's both, and it's important. I'm here to tell you that the stakes are
just as high here in Shakopee as they are anywhere in America.
Farmers are the lifeblood of our land. One of every three acres planted in America is
growing exports, making us the world's largest exporter of agricultural products. During the last
five years, those exports have nearly doubled. If you look at gross cash receipts, trade means
roughly twice as much to America's farmers as it does to our economy as a whole.
here
We see evidence of that in Shakopee, here at the heart of one of America's leading export
states. Farms like this one have made Minnesota number three in soybean production, number
four in feed corn, and number seven in overall agricultural exports. In 1998, Minnesota sold
$2.4 billion in agricultural products to foreign markets. More and more of that trade is
conducted with China: from 1993 to 1998, Minnesota's exports to China more than doubled, to
1
$316 million. This increase spans almost every sector of Minnesota's economy, covering
products from soybeans to chemicals to information technology.
The magnitude of the Chinese market almost defies measurement. China has one-fifth of
the world's population - more than a billion consumers - within its borders. It's no wonder that
China consumes more pork than any other nation. It is also the world's largest growth market
for soybeans and soybean products. China's dairy consumption is going up, as its people's
incomes rise and its government promotes dairy products.
There is just no way China's farmers are going to keep pace with that country's growth in
demand. But you can. American farmers can. You can reap this remarkable harvest - but only
if the Congress gives you the chance to do so, and votes for PNTR.
The deal we've negotiated - the one Congress is going to be voting on - would do just
that This deal is 100-0 in our favor. It would give America unprecedented what access wd mean to China's
markets - and grant China no new access to our own. And here are the stakes it for American for
Am
American corn from being priced competitively. No more se called sanitary barriers which ing sted
farmers: No more export subsidies, which China now uses to stack the deck against you, to keep
have no basis in sound science, but China uses to keep our beef and poultry out of their country.
No more of the high tariffs you face on feed grains, on soybeans, on vegetables, on meat and
dairy products. And fewer fears of fluctuating or Falling prices, once China eater inte
baseless health
system t has stabe in
its
All told, America could see an increase of $2 billion a year in our farm exports by 2005
stability.
That's almost twice as much as last year's total. But keep this in mind: China's going to grow
no matter what we do. If we don't sell your products to China, some other farmer in some other
country will be happy to step in. If Congress turns its back on this opportunity, we're going to
spend the next twenty years regretting it. We're going to spend the next twenty years wondering
why we ever handed over all the benefits we negotiated, and gave up the competitive edge we've
earned, to European, Japanese, and other farmers.
gand hold them it.
A vote for PNTR is a vote for our economic security. China has agreed to play by the
same trading rules we do. I say we take them up on it! Our negotiators have won new leverage
for American farmers and workers to ensure that China plays fair. We also gain tough new
safeguards against surges of imports, while maintaining the strongest possible protections against
the dumping of products.
chinese
also
And a vote for PNTR is a vote for our national security. America has a big stake in the
stability of Asia and in a China that contributes to it. We have an abiding interest in labor and
human rights and in a China that respects them. And if I've learned one thing as President, it's
that foreign policy is a lot like real life. You do a lot better with an outstretched hand than a
clenched fist. We can't offer that hand if we turn our backs.
sthat
This deal will not change China, or our relationship with China, overnight. Still, it is a
step in the right direction. So let's move forward with an outstretched hand. By opening new
markets in China, we open new opportunities here in America. We can help you meet the
challenges of fluctuating or falling prices. We can deepen your roots in this land your families
2
have cultivated for generations } We can make it easier for you to raise your crops - and most
strengthen your ability to reap the bounty of rich this
soil-
1
important, your families - with confidence.
bounty
and to
vase
I hope you will work with me to see that Congress makes the right choice. I am
your
confident it will - because it is the right thing for our farmers and it is the right thing for our
Fami is
future. Thank you.
confid. w/ hoper
assy
3
Draft 05/11/00 1:00pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON AGRICULTURE AND CHINA TRADE
HAUER FAMILY FARM
SHAKOPEE, MINNESOTA
May 12, 2000
Acknowledgments: Sec. Glickman; Rep. David Minge; Gene and Terry Hauer; other
farmer TBD
the mains
Thank you for inviting me here to Shakopee, here in the heartland. As I flew here today,
heading due west, I could see the plains just rise up above the creeks and rivers that run through
this region. It's an impressive sight. And you know, it really doesn" look all that different than
it did more than a century ago, when fromers, missionaries and traders settled here in Scott County. Those earth
grew wheat and corn, and raised livestock just like the Hauers do on these 1, ,400 acres. today fruits
The trappers + traders who settled in mott ctn
They did
a
But unlike the Hauers, or many of you, those early settlers were just trying to feed their
barteric little
own families. Though they might do a little bartering, they certainly weren't sending soybeans,
But
was
of your past; but-it's very even much bigger a part of your present and your future. That's why I'm here
or feed corn, and or cuts of beef and pork across the sea and around the world. Trade isn a big part
today - to talk to you about expanding trade with China, and expanding opportunity for family
farmers like the Hauers, for states like Minnesota, and, indeed, for every state in our union.
the
In less than two weeks, Congress is going to vote on a once-in-a-lifetime opportunity for
trappers
America, and decide whether to seize it or let it pass slip us by They're going to decide whether to
tradelis
who
establish Permanent Normal Trade Relations with China. Now, I know that this acronym
"PNTR," sounds pretty arcane. It sounds more like foreign policy, Than not farm policy. But it's here both. to
tall
you
that
And I want mine to tell you that the stakes are as high here in Shakopee as they are anywhere in
America.
? like you
Farmers are the lifeblood of our land. One of every three acres planted in America is
growing exports, making us the world's largest exporter of agricultural products. During the last
five years, those exports have nearly doubled. If you look at gross cash receipts, trade means
roughly twice as much to America's farmers as it does to our economy as a whole.
We see evidence of that in Shakopee, here at the heart of one of America's leading export
states. Farms like this one have made Minnesota number three in soybean production, number
four in feed corn, and number seven in overall agricultural exports. In 1998, Minnesota sold
$2.4 billion in agricultural products to foreign markets. More and more of that trade is
conducted with China: from 1993 to 1998, Minnesota's exports to China more than doubled, to
$316 million. This increase spans almost every sector of Minnesota's economy, covering
products from soybeans to chemicals to information technology.
1
The magnitude of the Chinese market almost defies measurement. China has one-fifth of
the world's population - more than a billion consumers - within its borders. It's no wonder that
China consumes more pork than any other nation. It is also the world's largest growth market
for soybeans and soybean products. China's dairy consumption is going up, as its people's
incomes rise and its government promotes dairy products.
There is just no way China's farmers can keep pace with their country's growth in
demand. But you can do it. American farmers can do it. You can do it if the Congress gives
you a chance to do it, and votes for PNTR.
The deal we've negotiated - the one Congress is going to be voting on - would do just
that. This deal is 100-0 in our favor. It would give America unprecedented access to China's
markets - and grant China no new access to our own. And here is the harvest American farmers
can reap: No more export subsidies, which China now uses to stack the deck against you, to
keep American corn from being priced competitively. No more so-called sanitary barriers,
which have no basis in sound science, but China uses to keep our beef and poultry out of their
country. And no more of the excessive tariffs you face on feed grains, on soybeans, on
vegetables, on meat and dairy products.
All told, we could see an increase of $2 billion a year in American farm exports by 2005.
That's almost twice as much as last year's total. But keep this in mind: China's going to grow
no matter what we do. If we don't sell your products to China, some other farmer in some other
country will be happy to step in. If Congress turns its back on this opportunity, we're going to
spend the next twenty years regretting it. We're going to spend the next twenty years wondering
why we ever handed over all the benefits we negotiated, and gave up the competitive edge we've
earned, to European, Japanese, and other farmers.
So a vote for PNTR is a vote for our economic security. China has agreed to play by the
same trading rules we do. I say we take them up on it. Our negotiators have won new leverage
for American farmers and workers to ensure that China plays fair. We also gain tough new
safeguards against surges of imports, while maintaining the strongest possible protections against
the dumping of products.
And a vote for PNTR is a vote for our national security. America has a big stake in the
stability of Asia and in a China that contributes to it. We have an abiding interest in labor and
human rights and in a China that respects them. And if I've learned one thing as President, it's
that foreign policy is a lot like real life. You do a lot better with an outstretched hand than a
clenched fist. We can't offer that hand if we turn our backs.
This deal will not change China, or our relationship with China, overnight. Still, it is a
step in the right direction. So let's move forward with an outstretched hand. By opening new
markets in China, we open new opportunities here in America. We can help you meet the
challenges of fluctuating or falling prices. We can deepen your roots in this land your families
have cultivated for generations. We can make it easier for you to raise your crops - and most
important, your families - with confidence.
2
I hope you will work with me to make sure that Congress makes the right choice. I am
confident that it will - because it is the right thing for our farmers, it is the right thing for our
economy, and it is the right thing for America's future. Thank you.
3
Patrick M. Steel
/
05/10/2000 01:59:29 PM
Record Type:
Record
To:
Charles J. Payson/WHO/EOP@EOP
CC:
See the distribution list at the bottom of this message
Subject: Briefing-memorfor Minnesota.farm.visit
The event will be held at the -Hauer-Farmlocated-in-Shakopee, MN about 15 miles outside of Minneapolis.
The Hauer Farm is amedium-sized;amily runoperatomrunbyGene.Hauerand-hisson-erry-The
Hauer Farm is arvery-diversified-operation-on-1400-acres Crops include:soybeans (700 acres), corn (400
acres), as well as wheat and.oats. Additionally, the Hauer's run a small feeder operation with about 50
head of cattle. The region is an important agricultural one. Metropolitan-expansion-in-this-area-is
continuing to challenge family farm operations making new ever the
future viability of farming.
The event is designed top highlight the benefits of the China PNTR for American agriculture.
Minnesota.is one of of agricultural products and exporter. Forest products
are also important. Forexports, Minnesota ranked seventh among all 50 states, with the value of
agricultural products leaving the state:estimated $2.4 billion in 1998. The:exports help-boost farm prices
and income, while:supportingtjob. both.on the farm and the farm in food processing, storage and
transportation. The following and and meal; and beef and
pork, are-important to Minnesota and expected to reach some of the largest export gains from China's
accession to the WTO.
Shakopee, MN is represented by©ongressman David Minge, who strongly supports PNTR. The second
district extends south and west from the outer suburbs of Minneapolis to the South Dakota and lowa
borders. Soybeans, cattle pork poultry; dairy, and sugar beets are all produced in the district
Senator Gram is a supporter of the PNTR measure while Senator Wellstone is an outspoken opponent.
Governor Ventura, who is unable to attend the event due to a previous commitment, strongly supports the
measure. While the majority_ of groups support ChinaPNTR, including the Farm Bureau,
Corn Growers, Pork Producers, and Soybean Association, the Minnesota Farmers Union (MEU) has
copposed the measure. The MF has concerns over humanrights issues.in.China. Additionally, the MFU
advocates for Trade Adjustment Assistance for farmers to compensate for import surges as well as for
lost export markets due to unfair competition. However, the MFU President Dave Frederickson supports
your farm visit to Minnesota and is planning to attend the event.
Message Copied To:
U.S. DEPARTMENT OF COMMERCE
DEPARTMENT OF COMMERCE
International Trade Administration
April 2000
UNITED
AMERICA
STATES
of
OPPORTUNITIES FROM CHINA'S ACCESSION TO THE WTO
Minnesota
The U.S.-China Bilateral Agreement on China's accession to the WTO opens an important market to Minnesota
exports, benefitting key industries and creating export and employment opportunities. The importance of exports to
China and the benefits of the Agreement for Minnesota and its key industries are outlined below.
Export Profile
Tariff elimination for information technology
products; toys. Major tariff reductions for agricul-
more
Minnesota's merchandise-exports-to-China
tural equipment, wood products, special purpose
Than
2.5
X
totaling$31l6million,represented-a-165-percent
vehicles, medical equipment, scientific and measur-
during
increase from the 1993 total of$119
ing instruments, pumps and compressors, construc-
tion equipment, metalworking machinery, rubber
life of
With Minnesota's exports to China more than doubling
working machinery, engines, paper and printing
admin
between 1993 and 1998 China became Minnesota SD
machinery, power generation equipment, refrigera-
a
more
12th-largest-export-destination,up-ten-places.from-thie.
tors, heating equipment, food processing machinery
more
-22nd-position-in-1993
and environmental technology equipment.
important
mht.
Minnesota's exports to China are becoming more
Low tariffs for most chemicals at WTO harmoniza-
diversifiedwith 1998 exports to China encompassing 25
tion rates, including plastics.
product groups compared to 21 product groups in 1993.
Reflecting the overall increase in Minnesota's exports to
Elimination of import restrictions for products such
China, sales to China in several key Minnesota export
as construction and medical equipment, and printing
categories more than doubled from 1993 to 1998.
machinery.
Included in Minnesota's exports to China in 1998 were
The agreement will open the market for a wide range
sales totaling $254 million from businesses located in the
of services, including telecommunications, banking,
Minneapolis-St. Paul, MN-WI, metro area-an increase
insurance, financial, professional, hotel, restaurant,
of 122 percent over the 1993 level of $114 million.
tourism, motion pictures, video distribution, software
entertainment distribution, periodicals distribution,
business, computer, environmental, and distribution
Sector Snapshot
and related services.
1)
U.S. farmers no longer will have to compete with
export subsidies on China's agricultural products.
Also, China has agreed toveliminate sanitary and
phytosanitary barriers that are not based on sound
scientif fic evidence such as the restrictions on meat
Minnesota Increased Its Exports to China by
3)
and poultry. In addition, exporters will benefit from
$197 Million From 1993 to 1998
broadening.the.rightto-import and distribute imported
products in China and from tariff cuts on a wide range
Minnesota's Merchandise Exports to China (Millions of Dollars)
350
316
of products including dairy products, raw hides, beef,
300
pork, and vegetables, including sweet corn. China also
4)
willend its import monopoly for bulk commodities
250
and establish large low=duty tariff-rate quotas for corn
200
and soybean oil. Soybean oil will be totally removed
150
from state trading in six years
119
100
As a result of the Agreement, Minnesota's key export
50
sectors benefit from reduced tariffs in China, strong
0
intellectual property protection and improved trade rules
1993
1998
protecting U.S. industries against unfair trade practices
Source: U.S. Department of Commerce, Exporter Location Series.
and removing burdensome obstacles, including:
Minnesota
Opportunities from China's Accession to the WTO
Page 1
Key Industry Benefits
Chemicals
Information Technology
This sector includes chemicals and chemical products
such as cosmetics, pharmaceuticals, agricultural
China will eliminate its duties for all information
chemicals, resins, and plastics. China will reduce
technology products, as defined by the WTO Informa-
average tariffs on chemicals by more than half to an
tion Technology Agreement (ITA), by January 1,
average rate of 6.9 percent by January 1, 2005. All
2005. These products include electronics, computers,
priority U.S. chemical exports, as well as all products
fiber optic cable, and other telecommunications
in the Chemical Tariff Harmonization Agreement of
equipment. The current duties on information technol-
the Uruguay Round (CTHA) are included in the tariff
ogy products average over 13 percent. All quotas on
reductions. In addition, China will eliminate all
ITA products will be eliminated at the time of China's
quotas on chemical products by 2002. Trading rights
WTO accession. Within four years of its accession into
will be phased in over three years from accession for
the WTO, China will eliminate its tendering require-
most chemicals. China will not apply or enforce
ments for non-government purchases of ITA products.
export performance or local content requirements as a
Trading and distribution rights for ITA products will
condition for importation or investment approval.
be phased in over three years. China has agreed to
China has agreed to apply tariffs uniformly and all
apply tariffs uniformly and all taxes equally to domes-
taxes equally to domestic and foreign chemical
tic and foreign ITA businesses. This will alleviate the
product businesses. This will alleviate the uncertainty
uncertainty associated with China's inconsistent
associated with China's inconsistent application,
application, refund, and waivers of its 17 percent value
refund, and waivers of its 17 percent value added tax.
added tax. China has agreed that it will not condition
import or investment approvals on technology transfer,
Heating, Ventilating, and Air Conditioning
or on conducting research and development in China.
Machinery (HVAC) and Large Appliances
Scientific and Measuring Instruments
This category includes heaters, ventilators, air condi-
tioners, washers, dryers, refrigerators, and centrifuges.
China will reduce its tariffs on scientific instruments
China will reduce its tariffs on HVAC/large appliances
from an average of 12.1 percent to 6.1 percent. Reduc-
from an average of 24.3 percent to an average of 15.2
tions will commence upon accession and will be
percent by January 1, 2005. Quotas and licenses on air
completed by January 1, 2003, in equal annual cuts. If
conditioners will be phased out by 2002 with an initial
WTO members agree to and adopt the medical and
quota level of $286 million. Quotas and licenses on
scientific equipment sectoral initiative that originated
refrigerators will be phased out by 2001 with an initial
in APEC, China has committed to join this initiative
quota level of $132 million. Quotas and licenses on
and eliminate its tariffs on these products. Tendering
washers will be phased out by 2001 with an initial
requirements for non-government purchases of scien-
quota level of $7 million. All quota levels will grow 15
tific instruments will be eliminated within four. years
percent annually until eliminated. China will eliminate
of China's WTO accession. Trading and distribution
tendering requirements for non-government purchases
rights for scientific instruments will be phased in over
of washers. Upon accession into the WTO, China will
three years. China has agreed to implement the Agree-
eliminate its tendering requirements for non-govern-
ment on Trade-Related Aspects of Intellectual Prop-
ment purchases of centrifugal ventilators. Trading and
erty Rights upon accession to the WTO.
distribution rights for HVAC and large appliances will
be phased in over three years. China will not apply or
enforce export performance or local content require-
ments as a condition for importation or investment
approval. China has agreed to apply tariffs uniformly
Industrial Machinery & Computers and Food Products
and all taxes equally to domestic and foreign- HVAC
Are Minnesota's Largest Exports to China
and large appliance businesses. This will alleviate the
uncertainty associated with China's inconsistent
Industrial Mach. & Computers
application, refund, and waivers of its 17 percent value
added tax.
Other Products
28%
15%
(Beef and Pork
Chemical Products
6%
China_currently-imports-very-little-beef-but-income-
27%
growth-and-rising-demand-from-urban.centers.are
23%
Food Products
expected to result-in significantly increased demand
for imports China consumes far more pork than any
Agricultural Products
other country, but its trade barriers have effectively
Minnesota's merchandise exports to China totaled $315.5 million in 1998
closed its market to imports. Under its WTO accession
agreement, China will lower from 45 percent
Source: U.S. Department of Commerce, Exporter Location Series
to percent on frozen beef cuts, and from 45 percent
Page 2
Opportunities from China's Accession to the WTO
Minnesota
(to. 25 percent on chilled beef, by 2004.1 will also cut. its
under its WTO accession agreement to open its market
tariffs onfrozen pork cuts and beef and pork offal from
to these products. Tariffs will be bound at a low
20 percent to 12 percent There will be no quantity
percent on soybeans and 5 percent on soybean meal)
limits at these tariff levels. Asia result of the 1999 U.S.-
with no quota limits, For soybean oil, the tariff will
China Agreement on Agricultural Cooperation, China
dropito 9 percent, and the tariff-rate quota and state
agreed to accept allbeet and pork from the United
trading will be eliminated by 2006.
States that is certified wholesome by USDA.
Accounting Services
*Dairy Products
China will provide market access and national treat-
China's dairy product consumption is rapidly increasing
ment to foreign accounting firms. CPA licenses will be
due to rising incomes and government promotion.
issued on a national treatment basis. China has also
China's milk production is also growing, but the domes-
agreed to grandfather the existing level of market
tic dairy sectorsis not expected to keep up with the growth
access already in effect at the time of China's acces-
in demand. Under its WTO accession agreement, China
sion for U.S. companies currently operating in China.
will cut its tariffs on selected dairy products by 2004?
Specific reductions include: selected cheeses (from 50
Environmental Services
percent to 12 percent); lactose (from 35 percent to 10
percent); and ice cream (from 45 percent to 19 percent).
For key environmental services, China will allow
In recent years, the United States has supplied approxi-
foreign service suppliers to provide environmental
mately one-fifthoof China' dairy imports.
consultation through cross-border delivery. Other
foreign environmental service providers may operate
Feed Grains and Products
in China through a joint venture. China has also agreed
to grandfather the existing level of market access
China's grain policies are becoming more market-
already in effect at the time of China's accession for
oriented and its WTO accession commitments will speed
U.S. companies currently operating in China.
up this process, opening up real long-term opportunities
for foreign grain suppliers. China committed to a nominal
1 percent tariff on all grains imported within a tariff-rate
Trade Stories
quota (TRQ). The TRQ on will be-initially set at 4.5
million metric and to by
Crystal Fresh, Inc. (Minneapolis) is a marketing
2004. Private traders will be permitted to handle 25
company assisting in establishing a Sno Biz franchise
percent of imports under the TRQ, growing to 40 percent.
chain in China in order to export Sno Biz's powder
In calendar year 1999, China imported 70,000 metric tons
food flavorings and other Sno Biz products to the
of corn from all countries. China' commitment to end
individual franchisees in China. After a year of
export subsidies its for
negotiations, Crystal Fresh is about to make its first
corn in other markets.
shipment to China with an order amounting to 5
percent of its total yearly revenue. Crystal Fresh
Soybeans and Products
believes that its sales to China may increase next year
to as much as 10 percent of its total yearly revenue as
China is the world largest growth market for soy:
more franchises are started.
beans and products, and has taken important steps
(Trade Stories continued on page 8)
ROLE OF SMEs IN EXPORTS TO CHINA
Small & Medium-Sized Companies Account for 55 Percent
Of All Firms Exporting From Minnesota to China
Small and medium-sized enterprises (SMEs) are
responsible for a growing share of U.S. exports to China.
Small
In 1997, SMEs generated 35 percent-more than one-
34%
third-of all U.S. merchandise exports to China. This
figure is up significantly from a 28 percent share in
1992.
Large
45%
The 35 percent SME share of the China market in
1997 was higher than the SME share of overall U.S.
21%
merchandise exports (31 percent) in that year.
More than half of all firms exporting from Minnesota to
Medium
China in 1997 were small or medium-sized enterprises
228 companies exported merchandise from Minnesota to China in 1997
(fewer than 500 employees).
Definitions: small = fewer than 100 employees; medium = 100-499 employees; large = 500 or more
employees. Source: 1997 Exporter Data Base, U.S. Department of Commerce.
Minnesota
Opportunities from China's Accession to the WTO
Page 3
Overview of China WTO Accession Benefits to the United States
The Agreement is a one-way deal that will open
ensure that quota-holders are not impeded in utilizing
China's now largely closed market to U.S. exports. By
their allocations.
enacting Permanent Normal Trade Relations (PNTR),
the United States is merely maintaining the market
China has committed not to use export subsidies for
access policies it already applies to China. If Congress
agricultural products when it joins the WTO. This
enacts PNTR, the agreement is expected to provide a
commitment is particularly useful for China's potential
substantial boost for U.S. exports. If Congress fails to
exports of corn, rice, and cotton, which in the past have
pass PNTR, American companies, workers and farmers
displaced U.S. product from third-country markets.
will be denied the great bulk of benefits of the agree-
ment the United States already negotiated-including
Bilaterally, China agreed to the terms for removal of
broad new market access for critical services such as
scientifically unjustified restrictions on importation of
telecommunications and distribution, strong import
U.S. wheat and other grains, citrus and meat.
protections, and the right to enforce China's commit-
ments through WTO dispute settlement. Failure to
Foreign exchange balancing requirements-which
enact PNTR means fewer U.S. exports to China. U.S.
link a company's level of imports to its level of
competitors in Europe, Asia and elsewhere will gain
exports-will be eliminated upon accession. This
market share at the expense of U.S. exporters as these
allows U.S. companies to make market-driven deci-
countries will enjoy the full benefits of China's market
sions about what to import and export instead of
opening WTO commitments.
decisions driven by the Chinese government.
Deep cuts for tariffs in manufactured products
Local currency banking will be allowed starting with
sectors¹ affecting most U.S. exports-averaging an
foreign clients upon accession, followed by Chinese
across-the-board 60 percent cut in tariffs for industrial
enterprises two years after accession and Chinese
products. Important gains include a 62.5 percent cut in
individuals five years after accession. Foreign currency
tariffs for pulp, paper and printed material and elimina-
business will be allowed without geographic restric-
tion of tariffs for information technology products
tions upon accession. China currently limits foreign
including electronics, telecommunications equipment,
banks to foreign currency business in selected cities.
and computer equipment.
Foreign securities firms may currently only trade in a
Tariff bindings for every sector. U.S. industries gain
limited number of stocks designated for foreign inves-
greater certainty of access with China's commitment
tors and then only via shared commissions. Upon
not to raise tariffs on any products above the negoti-
accession, China will allow foreign firms to trade these
ated ceiling (bound) rates.
shares with no Chinese intermediary. By three years
after accession, foreign entities may establish securities
Huge reduction in paperwork costs-a boon to
joint ventures (JVs) with a minority equity share for
smaller exporters. Simplification, harmonization of
foreign investors to underwrite all shares and corporate
customs procedures and licensing will slash costs of
and government debt, and trade all these securities
processing export orders.
except those equity shares restricted to Chinese inves-
tors. Also upon accession, foreign entities may establish
Elimination of quotas and non-automatic licenses
minority JVs to manage assets of all sorts.
for all manufactured products by year 2005. Only a
handful of quotas will remain after year 2003. While
Insurance licenses will be granted on a prudential
quotas are being phased out, the quota level will be
basis, without numerical restrictions or discretionary
higher than our current export levels and will increase
economic needs tests. China currently only allows
by 15 percent each year until the quota is eliminated.
selected foreign companies (including four U.S.
companies) to operate in China on a limited basis in
By joining the WTO, China is committing to establish
only two cities.
a tariff-only import regime for agricultural products;
all non-tariff barriers will be eliminated. Any other
Majority equity share for foreign non-life insurance
measure, such as inspection, testing, and domestic
entities will be permitted upon China's accession.
taxes, must be applied in a manner that is consistent
Wholly owned subsidiaries will be allowed two years
with WTO rules requiring a transparent and nondis-
after accession. Life insurance joint ventures will be
criminatory system. All health-related restrictions must
permitted at 50 percent equity share upon accession.
be based on sound science.
Easier access to and more control of distribution
China also committed to implementing agriculture
systems in China allowing U.S. companies to operate
tariff-rate quotas (TRQs) on economic rather than
commission agents' services, franchising services,
political criteria. These commitments are designed to
wholesaling, retailing and direct sales of their own
ensure a transparent and consistent system for allocat-
products in three years post accession for almost all
ing shares of the TRQ to end users and provisions to
products.
Page 4
Opportunities from China's Accession to the WTO
Minnesota
Foreign companies will also be permitted greater
Greatly improved enforcement of China's commit-
control and access to other services related to
ments through the WTO dispute settlement process. The
distribution, including maintenance and repair, rental
United States will now have allies in other WTO-mem-
and leasing, advertising, technical testing and freight
bers to address violations of international trade norms.
inspection, packaging, courier, storage and warehous-
ing, and freight forwarding agency services.
Current U.S. practice of using a special, non-market
economy methodology when calculating dumping
The right to trade (import and export) will be permit-
margins in antidumping investigations involving
ted for almost all products within three years of
imports from China will remain in effect for 15 years.
accession. Currently, the right to trade is strictly
Chinese industries will continue to have the burden of
limited; only companies that receive specific authori-
proving to the U.S. government that market economy
zation or who import goods to be used in production
conditions prevail in their industry to avoid application
have such rights.
of this methodology.
Telecommunications services are currently not permit-
China will apply its trade-related laws uniformly
ted to be supplied by foreigners in China. However,
throughout all of China including land and seaports.
with its accession, China has agreed to allow foreign
participation for both value-added and basic services.
China will be required to apply equally the value-
China has also agreed to undertake all the obligations
added tax (currently at 17 percent for most products) to
contained in the WTO Reference Paper on pro-competi-
domestic goods as well as imports under the WTO
tive regulatory principles. Telecom services which
national treatment provisions.
foreigners can supply under the Agreement include e-
mail, voice mail, online information and database
The United States will have access to a product-
retrieval, facsimile, paging, cellular, and internet
specific safeguard mechanism for 12 years which will
services via any technology including satellites.
allow the U.S. to address more easily any rapidly
increasing Chinese imports in a targeted fashion in
Professional service providers will now be permitted
cases of actual or threatened market disruption to a
to operate in China and receive national treatment for
U.S. industry.
accounting, auditing, bookkeeping, management
consulting, legal, tax consulting, architectural, engi-
China has agreed to incorporate into the WTO a
neering, and computer services.
textile-specific safeguard drawn from the U.S.-China
Bilateral Textile Agreement.
The elimination of local content requirements will
result in better access for U.S. exports and eliminate
unfair incentives or requirements to use domestic goods.
'For more information on tariff reductions, see tariff
summary table.
U.S. exports and investments will be free from
government-imposed conditions such as technology
transfer, research and development in China, and
offsets. Upon China's accession, such conditions may
ADDITIONAL INFORMATION
only be negotiated between the parties to a contract
AND ASSISTANCE
and not imposed or enforced by the government.
The reports for each of the 50 states are available at
U.S. companies can sell their products in China and
www.chinapntr.gov, as well as supplemental information
not be forced to export a certain percentage back to
on the benefits of China's membership in the World
the United States or elsewhere. This eliminates the
Trade Organization for U.S. industry and agriculture.
non-market incentive to use China as an export
Additional information on agricultural products is
platform.
available from www.fas.usda.gov and speeches and
testimony are provided on www.ustr.gov.
State-owned and state-invested enterprises will be
For counseling and assistance regarding exporting to
required to buy and sell based on commercial consid-
China, call the Trade Information Center at 1-800-USA
erations, making the purchase process more market-
TRAD(E) or the Agriculture FAS Trade Assistance
driven and transparent for U.S. companies and will
Office at 202-720-7420.
provide new sales opportunities to U.S. firms.
To discuss problems you are experiencing in exporting
to China or a Chinese trade barrier you are encountering
China has agreed to establish judicial review proce-
that is limiting your ability to export, please contact the
dures for the prompt review of all administrative
Commerce Department's Trade Compliance Center. The
actions relating to the implementation of laws, regula-
fastest means to contact the Trade Compliance Center is
tions, judicial decisions and administrative rulings
the internet at http://www.mac.doc.gov/tcc. It can be
related to its WTO obligations. The tribunals will be
reached also via e-mail ([email protected]), fax (202-482-
independent of the agencies entrusted with administra-
6097), or phone (202-482-1191).
tive enforcement.
Minnesota
Opportunities from China's Accession to the WTO
Page 5
Key Industry Tariff Reductions Resulting from the Agreement
Product
Average
Average
Percent
Product
Average
Average
Percent
Description
Base
End
Change
Description
Base
End
Change
Rate¹
Rate²
Rate¹
Rate²
Agriculture equipment
11.5
5.7
50.4
Nonferrous metals
9.3
6.6
29.0
23.4
10.0
57.2
Aluminum
14.2
9.4
34.0
Auto parts
Beer
70.0
0
100.0
Oil and fuel
7.4
4.9
33.7
Paper and printing
Building materials
16.4
14.1
14.0
machinery
14.3
10.8
24.5
Glass fibers
16.0
7.0
56.2
Photographic
Chemicals
11.1
6.9
37.8
equipment
19.4
14.7
24.2
Cosmetics
29.3
11.9
59.3
Fertilizers
5.0
4.0
20.0
Power generation
Pharmaceuticals
9.6
4.2
56.2
equipment
Soda ash
9.0
5.5
38.8
including batteries
13.4
8.5
36.6
Civil aircraft
14.7
8.1
44.9
Precious metals
13.8
11.0
20.0
Compressors and pumps
15.5
9.0
41.9
Prefabricated buildings
22.0
10.0
54.5
Construction equipment
13.6
6.3
53.7
Pulp, paper and printed
material
14.4
5.4
62.5
Distilled spirits
60.8
34.2
44.0
Railway equipment
5.7
4.4
22.8
Engines
12.4
7.9
36.2
Recorded media
10.0
6.8
32.0
Environmental tech-
nologies equipment
13.4
6.9
48.5
Rubber products
14.5
11.4
21.4
Fish
20.5
11.4
44.3
Rubber- and plastic-
working machinery
15.7~
7.7
50.9
Food processing
machinery
13.5
9.8
27.4
Scientific and measuring
equipment
12.1
6.1
49.6
Footwear
25.0
20.8
16.8
Small household
Footwear machinery
11.5
8.4
26.9
appliances
31.2
24.7
20.8
Furniture
22.0
0
100.0
Special purpose vehicles
17.4
12.4
28.7
Heavy machinery
14.5
7.8
46.2
Specialized machinery
14.0
8.4
40.0
Husbandry machinery
10.3
7.3
29.1
Steel
10.3
6.1
40.7
HVAC3
24.3
15.2
37.4
Telecommunications
Information technology
equipment not
covered under ITA⁴
13.5
0
100.0
covered under ITA⁴
24.0
17.2
28.3
Laboratory machinery
12.9
10.2
20.9
Optical fibers
13.5
2.5
81.4
Leather
18.7
16.2
13.3
Textiles and apparel
27.1
11.7
56.8
Machinery parts
8.1
4.7
41.9
Synthetic yarn
18.1
5.0
72.3
Medical equipment
9.9
4.4
55.5
Toys
23.0
0
100.0
Metalworking machinery
15.1
11.4
24.5
Trailers
13.8
10.0
27.5
Molds
10.2
7.3
28.4
Trucks
31.5
18.5
41.2
Motorcycles
58.3
41.7
28.5
Vending machines
23.0
13.6
40.8
Motor vehicles
75.9
23.6
68.9
Welding machines
14.8
9.8
33.7
Passenger motor
Wood
12.5
4.6
63.2
vehicles
84.1
25.0
70.0
'Average 1997-98 applied duties for each product category. Reductions will be made from the 1997-98 base rate for each
tariff line. Most cuts will be made in equal annual increments.
²Average end rate for each product category which will be attained once China phases in all duty reductions agreed bilaterally
with the United States. All reductions will be completed by January 1, 2008, with 70 percent of all reductions on industrial goods
achieved by 2003 and 98 percent of all industrial duty reductions by 2005. China's agreements with other countries may result in
lower rates and shorter staging.
³Includes heaters, ventilators, air conditioners, washers, refrigerators, centrifuges/dryers.
4WTO Information Technology Agreement (ITA), implemented in July 1997.
Page 6
Opportunities from China's Accession to the WTO
Minnesota
Key Agricultural Tariff Reductions Resulting from the Agreement
Product
Base Rate
End
Percent
Product
Base Rate
End
Percent
Description
1997-98'
Rate²
Change
Description
1997-98¹
Rate²
Change
Beef
45
12
73.3
Pecans
35
10
71.4
Pork
20
12
40.0
Pistachios
35
10
71.4
Poultry
20
10
50.0
Cheese
50
12
76.0
Oranges
40
12
70.0
Lactose
35
10
71.4
Grapefruit
40
12
70.0
Ice cream
45
19
57.8
Lemons
40
12
7,0.0
Yogurt
50
10
80.0
Apples
30
10
66.7
Hop cone pellets
30
10
66.7
Cherries
30
10
66.7
Hop extracts
20
10
50.0
Grapes
40
13
67.5
Ginseng
40
10
75.0
Pears
30
10
66.7
Soybean flour
40
15
62.5
Peaches
30
10
66.7
Potatoes: Frozen
Canned peaches
30
10
66.7
hash browns
25
13
48.0
Raisins
40
10
75.0
Potato flour, meal and
flakes
30
15
50.0
Orange/grapefruit juices
35
15
57.1
Potato chips
25
15
40.0
Celery
13
10
23.1
Yellow grease
40
10
75.0
Lettuce
16
10
37.5
Soup
45
15
66.7
Cauliflower
13
10
23.1
Pet food
30
15
50.0
Broccoli
13
10
23.1
Wine
65
20
69.2
Frozen mixed vegetables
13
10
23.1
Protein concentrates
45
10
77.8
Frozen sweet corn
13
10
23.1
Water-based drinks with
Tomato paste
25
20
20.0
sugar
65
20
69.2
Tomato ketchup
30
15
50.0
Other water-based drinks
50
35
30.0
Almonds
30
10
66.7
Cigarettes
65
25
61.5
Hazelnuts
35
10
71.4
Tobacco
40
10
75.0
'Base rate: 1998 current applied duty from which reductions will be made.
2End rate: End rate that will be attained by January 1, 2004, when China finishes phasing in all agricultural duty reductions
agreed bilaterally with the United States. China's agreements with other countries may result in lower rates and shorter staging for
some products.
Key Agricultural Tariff Rate Quotas (TRQ)
Product
Initial TRQ
2004 TRQ
Private Share
1999 Chinese Imports³
Description
(million metric tons)
(million metric tons)
(percent)
(metric tons)
Wheat
7.3
9.6
10
448,000
Corn
4.5
7.2
25 growing to 40
70,000
Rice
168,000
Short/medium grain
1.3
2.6
50
Long grain
1.3
2.6
10
Cotton
0.743
0.9
67
46,000
Soybean oil⁴
1.71
3.2
50 growing to 90
804,000
³Import data from China Customs Administration, on a calendar year basis.
4TRQ quantity and private share will be phased in by 2005. On January 1, 2006, China will eliminate the TRQ and state trading
for soybean oil, with nothing but a 9 percent duty remaining.
Minnesota
Opportunities from China's Accession to the WTO
Page 7
(Trade Stories continued from page 3)
American Medical Systems, Inc. (Minnetonka)
designs, develops, manufactures, and distributes
implantable devices and services for use by urologists
in more than 50 countries. AMS concluded an agree-
ment with a Chinese distributor in January 2000 and
has already made $50,000 in sales in the first three
months in China. AMS believes that there is great
potential for its products and services in the Chinese
market and reports that Chinese doctors are very
excited about using these high-quality American
products in their medical procedures.
ADC Telecommunications (Minnetonka) is a leading
global supplier of transmission and networking
systems for telecommunications. ADC currently
achieves approximately 20 percent of its annual
revenues from international markets, with revenues
from China representing 1 to 2 percent of ADC's total
revenue. The company has been doing business in
China for several years, primarily through exporting
from the United States but also through a manufactur-
ing joint venture. ADC has experienced some diffi-
culty at the Chinese central government level regard-
ing the company's efforts to protect and enforce its
intellectual property rights. Under the WTO, China
will be required to enforce the rules of the Agreement
on Trade-Related Aspects of Intellectual Property
Rights and, thus, will improve ADC's ability to
enforce its intellectual property rights in China.
China's membership in the WTO will also require
China to open its market to non-Chinese companies
and reduce tariffs, "buy local" directives, paperwork,
and the number of government entities that become
involved in business decisions. ADC expects its
shipments to China to increase substantially as a result
of the telecommunications reform that China has
agreed to pursue if it is admitted to the WTO.
Auto Tech International, L.L.C. (Minneapolis) has
been exporting refurbished computers and other
equipment such as automatic teller machines for the
banking industry for the last five years. More than 50
percent of the company's annual revenue is derived
directly from its export sales to China. Auto Tech's
sales to China are growing exponentially each year,
and the company is currently selling products to nine
companies, including the Bank of China.
Page 8
Opportunities from China's Accession to the WTO
Minnesota
USDA
Fact Sheet
U.S. Department of Agriculture
Permanent Normal Trade Relations with China
Foreign Agricultural Service
February 2000
What's at Stake for Minnesota?
Minnesota is one of the leading producers of agricultural products and a major exporter. Forest
products are also important. The state's farm cash receipts and forest product shipments totaled $7.7
billion in 1998 and $2.6 billion in 1996, respectively. As
for exports, Minnesota ranked seventh among all
states with the value of agricultural products leaving the
Minnesota's Agricultural Exports
state estimated at $2.4 billion in 1998 These exports
help boost farm prices and income, while supporting jobs
$ Billions
both on the farm and off the farm in food processing,
$4 -
storage, and transportation.
Trade Benefits
$3.0
$3
$2.4
The following key products are important to Minnesota,
and expected to reap some of the largest export gains
$2
$1.7
from China's accession to the World Trade Organization
(WTO).
$1
(# Soybeans and Products As the nation's third largest
soybean producer, Minnesota's soybeans and product
exports worldwide were estimated at $857 million in
$0
1991
1996
1998
1998. {China-is-the-world's-largest-growth-market-for.
Source: Economic Research Service, USDA
soybeans and products, and has taken important steps
under its WTO accession agreement to open its
market to these products. Tariffs will be bound at a low 3 percent on soybeans and 5 percent on
soybean meal with no quota limits. For soybean oil, the tariff will drop to 9 percent, and the
tariff-rate quota and state trading will be eliminated by 2006.
(# Feed Corn: As the nation's fourth largest feed corn producer, Minnesota's coarse grain exports
worldwide were estimated at $557 million in 1998. China's grain policies are becoming more
market-oriented and its WTO accession commitments will speed up this process, opening up real
long-term opportunities for foreign grain suppliers. China committed to a nominal 1-percent
tariff on all grains imported within a tariff-rate quota (TRQ). The TRQ on corn will be initially
set at 4.5 million metric tons and grow to 7.2 million metric tons by 2004. Private traders will be
permitted to handle 25 percent of imports under the TRQ, growing to 40 percent. In 1998, China
imported less than 250,000 metric tons of corn from all countries. China's commitment to end
export subsidies will reduce its price competitiveness for corn in other markets.
# Beef and Pork Minnesota has some of the largest hog and cattle inventories in the nation. Its
live animal and red meat exports worldwide were estimated at $231 million in 1998. China
currently imports very little beef, but income growth and rising demand from urban centers are
expected to result in significantly increased demand for imports. China consumes far more pork
than any other country, but its trade barriers have effectively closed its market to imports. Under
its WTO accession agreement, China will lower its tariff from 45 percent to 12 percent on frozen
beef cuts, and from 45 percent to 25 percent on chilled beef, by 2004. It will also cut its tariffs on
frozen pork cuts and beef and pork offal from 20 percent to 12 percent. There will be no
quantity limits at these tariff levels. As a result of the 1999 U.S.-China bilateral agreement,
China agreed to accept all beef and pork from the United States that is certified wholesome by
USDA.
#
Vegetables- Minnesota also has a large vegetable industry, and is the top grower of sweet corn
and peas and a large carrot producer. Its fresh and processed vegetable and product exports
worldwide were estimated at $192 million in 1998. Under its WTO accession agreement, China's
tariffs on vegetables will drop up to 60 percent, depending on the product, by 2004. For
example, existing tariffs of 16 percent on lettuce and 13 percent on broccoli, celery, frozen sweet
corn, and mixed vegetables will fall to 10 percent. Tariffs on canned tomato paste will fall from
25 percent to 20 percent. Deeper cuts are planned for canned sweet corn and tomato ketchup.
Tariffs on these products, now set at 25 percent and 30 percent, will fall to 10 percent and 15
percent, respectively.
Almanac'of American Politics 2000 - Minnesota - Minnesota's Second District
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Laura Ingalls Wilder's family came on
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and stopped by the shores of Plum
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For district profiles and additional
not long after the Indians were forced out
information on the elected officials of
by U.S. troops following the Dakota
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rebellion of 1862. The creeks and rivers
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(cut crevasses into these plains, spotted
with occasionali hills and settled more than 100 years ago by Yankee,
German and Scandinavian farmers. This is a hard place to make a living,
Laura's family, after all their struggles, left the farm for town as soon as they
could. Even in the 1990s, farmers still toil against the elements to make a
profitable living, and even their successes hurt; with higher productivity,
fewer people live on the land or even in town.
The 2d Congressional District takes in roughly the southwestern quadrant of
the state. The farm counties young
people move off farms o.smallt and, more to the Twin.Cities
or other-big metro areas The 2d District's boundaries were shifted eastward
after the 1990 Census and now take in outlying counties and townships of
the Twin Cities metro area. Some, around Chanhassen and Shakopee,
southwest of Minneapolis, are relatively high income-areas. Others, farther
out, like Waverly where Hubert Humphrey had his lakeside home, are more
humble--places where modest-income young families are moving into what
was once open countryside punctuated by small villages. This outlying part
of the Twin Cities metro area and media market wasthe heartland of support
for Jesse _Ventura's-Reform-Party-candidacyfor governor in 1998 and, with
turnout sharply rising, cast 48% of the district's votes that year.
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"Almanacof American Politics 2000 - Minnesota - Minnesota's Second District
wysiwyg://8/http://nationaljournal.com/members/almanac/2000/states/mn/mn02.htm
The congressman from the 2d District is David Minge (pronounced with a
hard G), a "common sense Democrat," as he puts it, first elected in 1992.
Minge is close to a personification of "Minnesota nice," a
Norwegian-American with the quiet earnestness and pleasantness which
permeate life in Minnesota. He grew up in Worthington, the son of a doctor
who became a medical missionary, practiced law in Minneapolis, taught law
for seven years in Wyoming and worked briefly on Capitol Hill. Then he
returned to Minnesota to practice law in Montevideo, the town where Walter
Mondale grew up, where he worked with community organizations to clean
up the Minnesota River and resettle Vietnamese refugees and served on the
school board.
In 1992, Minge decided to run against Congressman Vin Weber, one of the
leading-edge Republican conservatives in the House. But Weber had
overdrafts on the House bank and decided to retire. Against conservative
state legislator Cal Ludeman, the Republican nominee for governor in 1986,
Minge campaigned with less money but more energy, riding 500 miles on his
bicycle and stopping in 47 towns in nine days. He attacked Ludeman for
voting against minimum wages, drug abuse programs, and federal disaster
relief, and called for handling the deficit with a commission like the one
Congress used for military base closings, and for a "unified" national health
care plan. Bill Clinton carried the district 37%-35%, and Minge won
47.9%-47.7%. Ludeman was proclaimed the winner on election night, but
Minge, with Norwegian stoicism, went to sleep and woke up to find out he
had won by 569 votes.
Minge was one of the founders of the conservative Blue Dog Democrats and
is a co-chairman of the House Porkbusters Coalition; he voted against the
1998 transportation bill though it funded projects in his district. His
middle-of-the-House voting record includes support for early unpopular
Clinton bills, but his energy seemed directed more at budget issues; he
supported the balanced budget amendment, line-item veto and, on the Budget
Committee since 1997, the Blue Dog budget which was a model for the 1997
balanced budget agreement. He brags about returning $620,000 in salary
increases and office allowances to the Treasury and promised to serve no
more than six terms. When the balanced budget was achieved in 1998, he
responded with Minnesota-nice caution (though with metaphors more
effusive than Minnesota), "The victory party had best be modest. We need to
redouble our efforts to build a much sturdier financial structure. The El Nino
of baby boom retirements is about to hit, and we are living in a sod house on
the prairie."
Minge supported the 1996 Freedom to Farm Act, but with enough
reservations to vote against the House version. As corn, soybean and hog
prices slumped in 1998, he moved to reopen the law from his post as tranking
Democrat the General Commodities Subcommittee. He wanted
improved marketing loan and crop insurance programs to help farmers
manage risks. He strongly backs the Conservation Reserve Program, and
helped write a CRP Enhancement program to pay farmers to idle
environmentally-sensitive land along rivers to prevent topsoil erosion and
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"Almanacrof American Politics 2000 - Minnesota - Minnesota's Second District
wysiwyg://8/http://nationaljourmal.com/members/almanac/2000/states/mn/mn02.htm
Sherader
Johns
other runoff. Like many farm state Republicans, he called for expanding
202-319-1752
trade and supported the IMF funding bill. He also supported Republicans'
RE: Apartment
bill for early payment of $5.5 billion in phase-out payments for farmers, but
added, "It's more like offering chicken soup when you are sick. It can't hurt. It
may make you feel better." In tones redolent of the prairie politicians of 100
years ago, he expressed unease about corporate mergers, citing the big delays
getting wheat to market after Union Pacific bought two other lines, the
purchase by grain-trader Cargill of Continental, and the smaller number of
meat-packers ready to buy livestock. He met with antitrust and agriculture
officials to see if something could be done, but tried not to demagogue
constituents in town meetings: "People shouldn't lose faith, even if they look
at prices that seem so blatantly wrong."
Minge has continued to ride his bicycle through the district every year, and
has won re-election with increasing margins every two years. In 1994 he won
52%-45% and in 1996, against the same candidate, 55%-41%. In 1998, he
faced a challenge from a retired Air Force colonel who accused him of not
being conservative enough, and a challenge from Jesse Ventura's Reform
party, which fielded a candidate here and whose new voters in the Twin
Cities media market showed little affection for the old DFL. Outside the
Twin Cities media market, Minge ran far ahead, 63%-34%. Inside, it was
closer, but he still prevailed, 51%-42%, for a 57%-38% victory overall--his
best yet.
In April 1999, Minge announced he was forming an exploratory committee
to challenge Senator Rod Grams in 2000. He began his campaign by
denouncing "extremism of every type" and said he would focus on the debt,
Social Security, health insurance and education.
Cook's Call:
Potentially Competitive. This very marginal district gave Minge some
trouble in the early 1990's, but his middle of the road voting record and
down-home style have helped him to gain a pretty solid foundation here. A
down year for Democrats could make Minge vulnerable, but, after surviving
the 1994 election and an onslaught of Republican money in 1998, he looks
good for 2000. If Minge runs for Senate in 2000, holding onto this district
could be a real problem for Democrats.
The People:
Pop. 1990: 546,890
59.6%-rural;-16.2% age 65+;
98.6% White, 0.1% Black, 0.5% Asian, 0.4% Amer. Indian, 0.9%
Hispanic origin; 0.5% Other.
Households: 64.4% married couple families; 32.3% married couple
fams. v..children; 36.9% college educ.; median household income:
$26,937; per capita income: $12,043; median gross rent: $247; median
house value: $54,700.
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Almanac of American Politics 2000 - Minnesota - Minnesota's Second District
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1996 Presidential Vote
1992 Presidential Vote
Clinton (D)
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(45%)
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103,246
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Dole (R)
105,205
(39%)
Bush (R)
97,867
(35%)
Perot (I)
38,117
(14%)
Perot (I)
79,442
(28%)
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Scott County History
http://www.co.scott.mn.us/history/index.html
History of Scott County
SCOTT
SHERIFF'S RESIDENCE JAIL. AND COURT HOUSE OF SCOTT COUNTY
The territory of Minnesota was organized by an Act of Congress passed on March 3, 1849. By this Act, the
inhabitants of the new territory were accorded the same rights and privileges that had previously been given
to the residents of the Territory of Wisconsin. The State Constitution was adopted on October 13, 1857, but
Minnesota was not admitted to the Union as a State until May 11, 1858.
Scott County was established and organized by an Act passed in the legislature on March 5, 1853.
Scott County, with an area of 375 square miles, is located southeast of the central part of Minnesota,
bordering on the southeast bank of the Minnesota River. It was named for General Winfield Scott, (see
below) officer of the War of 1812, Commander of the United States Army during the Mexican War, an
unsuccessful Whig candidate for the presidency in 1852. General Scott never visited the area, which was to
be named for him, but in 1824 he was only a few miles away when he made an official inspection of Fort
Snelling.
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Scott County History
http://www.co.scott.mn.us/history/index.html
(The chief communities of the county are: Shakopee (platted in 1854, incorporated as a city in 1857,
reincorporated as a city in 1870); New Prague, (partly in Le Sueur County, founded in 1856, incorporated
as a village in 1877, as a city in 1891); Belle Plaine (the only borough in the state) founded in 1854,
incorporated as a borough in 1873, incorporated as a city in 1974; and Jordan (platted in 1854, incorporated
as a village in 1872, and as a city in 1891); New Market (organized as Jackson township May 1858,
renamed New Market October 12, 1858); Savage, (platted in 1857, incorporated as a City in 1858; Prior
Lake (platted in 1875, incorporated as a city in 1891).
Other railroad points or neighborhood centers were: Barden, Blakeley, Eidswold, Elko, Lydia, Marystown,
Merriam Junction, and St. Patrick. Grainwood was a summer resort, and Mudbaden a health resort. Savage
was formerly a horse training and racing center.
For many generations, the present site of Shakopee, (the county seat), was the site of a Sioux village which
was ruled by a hereditary line of chiefs, bearing the name of Shakpay or Shakopee (six). The first of these
chiefs which we have mentioned, was Le Demi Douzen (the half dozen), who attended the conference with
Zebulon M. Pike at the mouth of the Minnesota in 1805. At the time of the arrival of the first settlers, the
Shakopee village, Tintonwan, Tintaton, or Teen-tah-o-ton (the village on the prairie), numbered about eight
hundred people.
Several early Minnesota Explorers followed the Minnesota River westward, thus passing along the
northwest boundary of what is now Scott County.
The first was probably Pierre Charles Le Sueur, a Canadian-born Frenchman. Le Sueur was at Fort St.
Antoine, on the east shore of Lake Pepin, with Perrot in 1689, and was one of the witnesses to the
proclamation claiming the entire upper Mississippi valley in the name of the King of France.
Traders and missionaries located at or near the village of Chief Shakopee at early dates Oliver Faribault-is
said to have located on the site as a trader, in 1844 His father, Jean, Baptiste Faribault, for whom a
Minnesota is had a post at Little Rapids above Carver as early-as-1803 Hazen Mooers was
engaged as a trader in the Shakopee vicinity in the late forties. His son John was appointed government
farmer to the Indians here. The Reverend Samuel W. Pond, who with his brother Gideon II, came to
Minnesota as a missionary in 1834, settled at Shakopee in 1847. His home was the first frame building in
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Scott County History
http://www.co.scott.mn.us/history/index.html
the valley. Thomas A. Holmes, a well known townsite promoter, opened a trading store on the site of
Shakopee in 1851 and he is credited with being the actual founder of the city. With him came John
McKenzie and Emerson Shumway to help build the cabin. Assistance was also given by Daniel Apgar who
arrived before it was completed. These men were soon joined by John C. Sommerville, Arnold Graffenstatt,
and R. Lewis.
Not long after Holmes arrived, David Faribault attempted to start a rival settlement about a mile and a half
further east. A few French and mixed blood families gathered about him and built a few cabins, but the
effort was short lived.
Beginning in 1854, the influx of settlement increased rapidly. Many of the early settlers, as may be seen by
their characteristic Yankee names, were typical Americans from the older states. Later the Germans, Irish,
Bóhemians, and Scandinavian immigration was to be an important factor in the progress of the county.
An excursion party from Fort Snelling went up the Minnesota by steamboat to Shakopee's village in June
1842, and in 1850 three boats carried excursions upstream and "demonstrated the navigability of the
Minnesota River". By 1854, the number of steamboat arrivals and departures at St. Paul from the
Minnesota River, reached the hundred mark. Almost four times that number were recorded in 1858. The
greater part of southern Minnesota was opened to settlement by treaties with the Sioux Indian signed at
Mendota and at Traverse des Sioux (near St. Peter), in 1851 and proclaimed by President Millard Fillmore
in 1853. The Indians were moved to a reservation on the upper river. Many of them continued to return to
their old hunting grounds during the summer months. About 150 members of Shakopee's band were
camped near the village that bears his name in May 1858 when they were attacked by hostile Chippewa. A
bloody battle followed, and the Chippewa finally retreated, leaving for their homes to the north. This was
the last of a long series of conflicts between the two great Indian tribes of Minnesota.
The area of Scott County was not involved in the Great Sioux Outbreak of 1862. One of the leaders of the
Indians was Little Six, who had become chief of the band in 1860. This chief and Medicine Bottle, were
captured by John McKenzie, and hanged at Fort Snelling in 1863 for the murder of Philander Prescott
during the outbreak.
Scott County was established by an act of the legislature on March 5, 1853. The boundaries coincided
roughly with the present boundaries, but included a considerable area to the south. On February 20, 1855,
the area was greatly reduced. Until 1871, there was a dispute between the boundary line of Scott and
Dakota counties.
The first officers appointed by Governor Alexander Ramsey in 1853 were: commissioners - Thomas S.
Turner (Chairman), Franklin Wasson, and Comfort Barnes; sheriff - Ai G. Apgar; justice of the peace
Daniel Apgar. At the first meeting, (held on April 29, 1853, in a stone building), the county board named
Daniel Apgar the judge of probate, and William H. Nobles as the county surveyor. It also made Scott
County one election precinct and ordered that an election be held at the home of Franklin Wasson in
Shakopee. This election was held on the second Tuesday of October 1853.
The system of county government in Minnesota was reorganized by the township act passed by the
legislature in 1858. The Scott County commissioners met on April 5 to establish twelve townships. The
twelve chairmen of these townships were to constitute a board of county supervisors, whose first meeting
was July 5, 1858. The supervisor system proved cumbersome and the commissioner system was resumed in
1860.
The county seat was established in Shakopee in 1854, and block 56 was dónated by D.L. Fuller and
Thomas Holmes to be used for public buildings. The county seat has since remained at Shakopee, although
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Scott County History
http://www.co.scott.mn.us/history/index.html
several attempts have been made to remove it to Jordan or Lydia.
A stage line was established between St. Paul and Shakopee in 1853, and a ferry across the river at
Shakopee opened the same year. H. A. Holmes was appointed postmaster at Shakopee on December 10,
1854, but the office was not opened until a month later. The Shakopee Independent was established in
1854. The first petition for a school district was granted by the county commissioners on July 2, 1855; the
first sale of tax delinquent real estate was in April 1858; and the first license for an auctioneer was issued
by the board on May 12, 1862. The first churches in the county were in Shakopee: the Methodist Episcopal,
organized in 1853; St. Peter's Episcopal and St. Mark's Catholic, organized in 1854; the Presbyterian by the
Rev. Samuel W. Pond in 1855; and St. John's Evangelical Lutheran in 1859.
In August 1862, the county commissioners of Scott County appropriated $10,000 as a fund to encourage
enlistment in the United States Volunteer Army.
The river and the trails (which gradually emerged as highways), were the only routes of transportation for
nearly two decades after the real settlement of the county began. A railroad through the county was
projected as early as March 2, 1855, when a charter was granted to the Root River Valley and Southern
Minnesota Railroad Company. One of its routes was from the Twin Cities to Shakopee, up the valley,
crossing the Minnesota River at St. Peter, on to Mankato and then to the Iowa line. The name was changed
to the Southern Minnesota Railroad in 1857. Nearly forty miles had been graded up the valley from
Mendota when the financial panic of 1857 put an end to further construction. The Minnesota Valley
Railroad on March 4, 1864, succeeded the Southern Minnesota, and started work on the old road bed. The
construction train, drawn by old number 1 engine (the "Mankato"), reached Shakopee on November 11,
1865. Regular traffic was opened between that town and Mendota five days later. In 1869 the name was
changed to the St. Paul and Sioux City Railroad Company. That year a bridge was built across the
Mississippi near Mendota. Le Mars, Iowa was reached in 1871, where connection was made with the Iowa
Falls and Sioux City railroad at Sioux City. The line is now a part of the Chicago, St. Paul, Minneapolis,
and Omaha system.
The first railroad shops for the Minnesota Valley Company were opened at Shakopee in 1867. They were
destroyed by fire in 1872, entailing a loss of $100,000.00, but were at once rebuilt. The machine shops
were removed to St. Paul in 1882. A new car shop was erected that year, but was discontinued in 1883. The
machinery and some of the men were transferred to Hudson, Wisconsin.
In 1871, the Hastings and Dakota, (now a part of the Chicago, Milwaukee, St. Paul, and Pacific Railroad),
was put through the county forming a junction with the Omaha at Shakopee. With a change at the eastern
terminus, this road followed a route not differing greatly from that surveyed for the Mininger, St. Peter, and
Western Railroad in 1857. The population of Scott County increased from 4,595 in 1860, to 14,116 in 1930.
The people were predominately native born. The foreign born population in 1930 numbered 1,230 and
included 579 Germans, 286 Czechoslovakians, 95 Norwegians, 44 Swedes, 34 Irishmen, 32 Canadians, 26
Danes, 22 Russians, 21 Austrians, 12 Hollanders, 12 British, 12 Swiss, 10 Poles, and 44 of other
ag:
nationalities.
history
Scott County was almost exclusively agricultural The early settlers first raised food for their own families
[and fodder for their stock with a little surplus to sell or barter for such food, staples, clothing, and supplies
as they could not produce Soon wheat was the principal crop, although the acreage of corn and potatoes
increased and there was a growing interest in dairy cattle, oxen, and swine. In 1879, Scott County led the
state in the production of flax. About that time, coincident with a diminishing yield per acre of wheat,
attention was turned more and more to diversified farming, a trend which was particularly marked after the
introduction of cooperative creameries in the nineties.
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Scott County History
http://www.co.scott.mn.us/history/index.htm
In 1934, the principal field crops were corn and oats, but enough winter wheat was raised to give the county
third place in the state in acreage of that cereal. Major attention is paid to cattle and swine raising, and
dairying. For a period the sugar beet crop was important but the acreage has gradually declined.
The principal industrial establishments in the county in 1930, were flour mills, breweries, creameries, print
shops, a wagon shop, a bottling works, a foundry and range factory, a lime kiln, and a brickyard.
The U.S. Bureau of Census, Population Bulletin, dated 1970, indicated that 11,981 people were employed
in the following areas: professional and technical services; sales workers; manager and administration;
clerical and kindred workers; craftsmen and kindred workers; operatives, except transportation; laborers,
except farm; farm laborers and foremen; service workers; and private household workers.
As of the April 1, 1994 Census, Scott County contains a population of 61,960 within 365 square miles. It is
located 25 miles southwest of Minneapolis and is part of the seven-county metropolitan area.
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Shakopee History
http://www.cityofshakopee.com/history.htm
City of Shakopee
Home
History
Shakopee ~ Pre 1900
The first records of this area are geological, and written not in books, but in rock layers. A
succession of immense seas, live volcanoes and mountain ranges left evidence of their passing
before the glacial period. During the glacial period four great glaciers moved over this area.
During the melting of the fourth and final glacier, the Minnesota River and Glacial Lake Agassiz
came into being. As the vast lake, larger than all the Great Lakes together, retracted, it carved
the Minnesota River as its turbulent outlet, digging a path toward the Mississippi River basin.
Almost certainly human beings were here near the end of the glacial period and their
descendants dominated the area until the 18th Century.
History records indicate that two large Indian nations were located in the Minnesota state region.
The Dakota, or Sioux, Indian nation had three large divisions, and the Santee Indians resided in
this area as early as the 1600?s. The Dakota were challenged in the 1700?s by the westward
migration of the Chippewa, and were eventually pushed toward the south and west. Records
indicate skirmishes between the Chippewa and members of Chief Shakopee?s village from the
Minnesota River during 1768 and 1775. By 1839, the village was located east of the present site
of the City of Shakopee. Commonly called Teenatahotonwa ("village of the prairie"), it was a
village of summer bark lodges, winter tipis, and corn fields with the river serving as natural
protection from the Chippewa to the north.
As incoming white explorers moved into the area, they made use of the natural route provided by
the Minnesota River. Pierre Charles le Sueur traveled on the Minnesota River in 1700. As le
Sueur, Jonathan Carver, Peter Pond, Major Stephen Long, George Catlin and George Featherstonhaugh surveyed,
studied and traveled down the Minnesota, they would have passed through the area of modern Shakopee.
In 1844, für traders Oliver and Harriet Faribault built alcabin of tamarack logs, the first structure in the area.
The Faribault cabin is now located at a historical site, Murphy?s Landing, east of Shakopee. The Reverend Samuel
Pond built a cabin just west of Faribault Springs in 1847. He had been invited by Chief Shakopee to mission at his
village.
With the signing of the treaties at Mendota and Traverse des Sioux in 1851, the Minnesota Valley was opened to
pioneer settlement. The Federal Government acquired roughly 24 million acres of Indian land in exchange for
temporary gifts, a trust fund, cash payments and reservations for Sioux tribes. Chief Shakopee?s villagers moved to
reservations in the upper Minnesota River Valley in the fall of 1853. The Indians held their last festivals at their village
and, joined by other bands, moved up the river in a unit of 2,000 on October 12, 1853. Canoes lined the riverbank
from today?s Lewis Street eastward to Pond?s Creek. The younger Chief Shakopee went with his people, but the
elder for whom the city is named remained until his death a few years later.
Thomas A. Holmes bears historical title as the "father of the townsite of Shakopee". A wandering town-siter, he
chose the location in 1851 and built a log trading house that year, and a wooden-frame store the following year.
Several names familiar to Shakopee residents as present-day street names include Shumway, Apgar, Sommerville,
Lewis, Fuller, and Atwood. These individuals were pioneers who arrived with Holmes in the fall of 1851 and the
spring of 1852.
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Shakopee History
http://www.cityofshakopee.com/history.htm
Scott County was_organized_i in 1853 by an
act of the Territorial Legislature, and the first
Board of County Commissioners designated
Shakopeetas the county seat in September.
By May 1857, Shakopee had experienced a
"boom" and was incorporated as a city.
By the close of the century, Shakopee had
survived economic slumps associated with
grasshopper plagues and droughts as well
as boom years, and had sent volunteers to
fight in the Sioux Uprising, the Civil War and
the Spanish American War. These years
saw the building of the first railroad from
Mendota to Shakopee, and the
establishment of Presbyterian, Catholic,
Lutheran and Episcopal congregations. A
Lewis Street Bridge
newspaper was started, retail establishments
Photo Courtesy of Michael C. Huber, Shakopee Scrapbook, Copyright 1992
began to appear, and the first bridge was
built across the Minnesota River in 1890.
Fraternal organizations were popular, as were the literary society, bicycle club and singing school. By 1900, the
population of Shakopee had reached 2,047.
Main Street Shakopee 1800 (Looking East from Holmes
Phone Comminy of Michael C. Muber,
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Do
war Room 65082
China Grp
lane -DOC
THE WHITE HOUSE 482-4246
445
WASHINGTON
china
[email protected]
235
trank sawyer for inviting
Sawner introduces crowd,
Potus
[pool comes in]
Coco
Wistorical landmark
MN been co. - exports