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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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FOIA Number: 2006-0467-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Speechwriting Series/Staff Member: Jeff Shesol Subseries: OA/ID Number: 21461 FolderID: Folder Title: China PNTR [Permanent Normal Trade Relations] - AG. Shakopee, MN & Akron, OH 5/12/00 China - Shakopee, MN 5/12/00 Stack: Row: Section: Shelf: 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 wysiwyg://8/http://nationaljournal.com/members/almanac/2000/states/mn/mm02.htm CongressDaily the fight alcohol Click Here For AFree Trial! PAWE MAKE A DIFFERENCE Almanac 0 a Click here for a print Minnesota: Second District Ad friendly version Rep. David Minge (DFL) Air Last Updated June 1, 1999 Make This Your Home Page West of the Mississippi and Minnesota Click here for step-by-step help in rivers, where the plains rise above the starting your day with NationalJournal.com gorges that the rivers have cut through them, is the great farming country of MN Job Hunting? southwestern Minnesota This is where National Journal Group Me is hiring. Click here for Laura Ingalls Wilder's family came on the latest job the way west from their little house in na opportunities throughout the the big woods in Wisconsin to the "Little company. House on the Prairie" in South Dakota, and stopped by the shores of Plum Minnesota at a Glance Go Se: Creek, near Walnut Grove, Minnesota, 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 Minnesota, please use the pull-down menu rebellion of 1862. The creeks and rivers above. (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. 1 of 4 5/8/2000 5:53 PM "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 2 of 4 5/8/2000 5:53 PM "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. 3 of 4 5/8/2000 5:53 PM Almanac of American Politics 2000 - Minnesota - Minnesota's Second District wysiwyg://8/http://nationaljournal.com/members/almanac/2000/states/mn/mn02.htm 1996 Presidential Vote 1992 Presidential Vote Clinton (D) 120,652 (45%) Clinton (D) 103,246 (37%) Dole (R) 105,205 (39%) Bush (R) 97,867 (35%) Perot (I) 38,117 (14%) Perot (I) 79,442 (28%) Click here for more on Rep. David Minge (DFL). We conceal aircraft for [ E-mail NationalJournal.com ] [ Site Index | Staff I Search ] [ Make NationalJournal.com Your Homepage ] [ Sign Up For E-Mail Alerts ] [ Privacy Policy I About National Journal Group Inc. ] Copyright 2000 by National Journal Group Inc. 1501 M St., NW #300 Washington, DC 20005 202-739-8400 fax 202-833-8069 4 of 4 5/8/2000 5:53 PM 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. 1 of 5 5/10/2000 5:32 PM 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 2 of 5 5/10/2000 5:32 PM 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 3 of 5 5/10/2000 5:32 PM 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. 4 of 5 5/10/2000 5:32 PM 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. Go to: Bibliography Commissioners Elected Officials Il Divisions II County Maps Frequently Asked ?s Il History Il Indexes Il Job Postings II Library II News & Events || Volunteering || Links Scott County 200 Fourth Ave. West Shakopee, MN 55379-1394 (952) 445-7750 5 of 5 5/10/2000 5:32 PM Yahoo! Maps and Driving Directions http://maps.yahoo.com/py/maps.py?Pyt=Tmap&addr=&csz=Shakope%2C+MN&Get%A0Map=Get+Map Yahoo! - Maps - Yellow Pages - Help YAHOO! MAPS Powered by Mapquest.com (tm) THE SPORTS Tee'd off with Winter? Great Deals AUTHORITY for the Golf Course Select One go Welcome, Guest User Create My Favorite Locations - Sign In Shakopee, MN New Location Tools Shakopee, MN Driving Directions Zoom Out Zoom In To this location From this location N Favorite Locations 0 1ml Customize your maps kmy) Flying Cloud DI Rice Lake Nearby Businesses Gas Stations Flying Cloud DI Hotels and Motels 101 Hennepin Memorial Park Scott Restaurants Carvet Ave W Shakopee 1st 101 Nearby Classifieds Scott Riverview ark S Eagle Printable Map OF Blvd Inside Yahoo! 169 Yahoo! Classifieds 169 W ms S Yahoo! Traffic Townline Ave Yahoo! Wallet 78 Marschall Thair RdS Marschall Rd E Yahoo! Travel 130th St W Canterbury Rd S Stonebrooke Camp Yahoo! Golf Club Old Brick Yard Rd town Rd 140th St Nw 42 odowd Lake Prior Lake Indian a Reservation 150th StW 14 1999 MapQuest.com, Inc.; O:1999 Navigation Technologies S Driving Directions Find Nearby Businesses Map a New Address Street Address, Intersection or Airport Code City, State Zip or a ZIP Shakopee MN 1 of 2 5/9/2000 9:22 PM 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. 1 of 2 5/10/2000 8:56 AM 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, 2 of 2 5/10/2000 8:56 AM 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