In this Issue

National Food, Feed Labeling Bill Passes House


Von Eschenbach Likely to Be Named FDA Chief

Congress Negotiating Dietary Supplement Changes


Spending Rhetoric Heats Up; Bipartisan Pledges to Stop Ag Cuts


Farm Bill Hearings Highlight Differences

Goodlatte, Peterson Spar Over Farm Bill Rewrite Timing


Johanns, Portman Head For More WTO Talks


U.S. In Talks For Free Trade Deals With Malaysia, South Korea

BSE UPDATE:

New Bills

National Food, Feed Labeling Bill Passes House

A bill to allow FDA’s food and feed safety and warning labeling rules to preempt state regulations passed the House this week, overcoming significant and often emotional opposition. On a 238-139 vote, the National Uniformity Act for Food would prohibit states from imposing food safety and warning labels unless they followed federal labeling rules. The bill’s chances in the Senate are unclear given the level of opposition generated this week in the House.

The bill says the federal labeling regs are the law of the land unless a state petitions FDA to accept a local regulation or there is an absence of a federal rule. Opponents said the cost alone of petitioning FDA would approach $400,000. Opposition – consumer groups and state attorneys general and food and feed regulators – said the bill would override 200 state laws that provide consumers with important food safety information. However proponents, including food processors, livestock and poultry producer groups and agribusiness, said that assertion is exaggerated and the bill will bring consistency to warning label regulation, allowing states and the federal government to collaborate on labeling.

Two amendments were accepted during the floor debate, one to require FDA to give expedited consideration to state petitions asking for warnings related to ingredients which might cause cancer or reproductive defects, and another to allow states to continue issuing methylmercury in fish warnings.

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Von Eschenbach Likely to Be Named FDA Chief

Andrew von Eschenbach, acting commissioner of the Food & Drug Administration (FDA), is likely to be named permanent chief of the agency, according to recent reports. Under law, an acting commissioner can serve no more than 210 days before the president must designate a permanent commissioner. President Bush may nominate von Eschenbach in the next few weeks.

Health and Human Services Secretary Mike Leavitt said last week in an interview the White House probably will nominate a candidate “in the very near future.” Deputy White House Press Secretary Erin Healey said in an interview yesterday, “We have a policy of not commenting on personnel matters.”

Von Eschenbach currently serves as both the acting commissioner of FDA and the chief of the National Cancer Institute (NCI). It is unclear whether he would be required to give up the NCI position upon being nominated for FDA commissioner.

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Congress Negotiating Dietary Supplement Changes

A bipartisan group of senators have begun negotiating with House Energy & Commerce Committee members on a bill requiring dietary supplement companies to report serious adverse events to FDA. Senate staffers have begun talking to staff for committee chair Joe Barton (R-TX) and Ranking Member John Dingell (D-MI), according to reports. Senators planning to cosponsor the bill, which may also cover over-the-counter drug makers, include Richard Durbin (D-IL), Orrin Hatch (R-UT), Tom Harkin (D-IA), Michael Enzi (R-WY) and Edward Kennedy (D-MA).

At a Thursday House Government Reform Committee hearing to discuss dietary supplement regulation, Chair Tom Davis (R-VA) said many consumers think supplements are approved by FDA and all claims are based on solid scientific evidence. This is not true, Davis said, noting that supplement makers are not required to report adverse events to FDA.

Reps. Dingell (D-MI), Henry Waxman (D-CA) and Susan Davis (D-CA) also have introduced legislation (H.R. 3156). Their bill would require registration of all dietary supplements and give FDA the authority to require that a company demonstrate the safety of its product if adverse event reports signal a safety problem.

According to reports, Senate and House staffers have begun negotiations but it is unclear how much of the House bill the senators are willing to include in their version.

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Spending Rhetoric Heats Up; Bipartisan Pledges to Stop Ag Cuts

In what’s definitely election year politics, Senators are lining up on both sides of the aisle to denounce the Bush Administration’s FY2007 budget proposal to cut ag spending, with the rhetoric aimed at the White House cuts generally as well as specific program cuts.

At a Senate ag appropriations subcommittee appearance by Secretary of Agriculture Mike Johanns, Sen. Robert Bennett (R-UT), chair of the Senate Appropriations Committee’s subcommittee, called the White House proposal to cut programs by about 7% on average “a fairly significant hole that this subcommittee is going to have to climb out of.”

This week, Sens. Hillary Rodham Clinton (D-NY) and Mark Dayton (D-MN) issued statements announcing a vow to fight Administration recommended cuts in dairy programs. Dayton joined 10 Democrat and Republican colleagues from Vermont, Wisconsin, Pennsylvania, Minnesota, Maryland and Rhode Island on a letter to Sen. Judd Gregg (R-NH), chair of the Senate Budget Committee, that said ag overall is targeted for cuts much deeper than other parts of the federal budget, and dairy is taking a disproportionate share of those cuts. The President proposes cutting dairy price supports, the Milk Income Loss Contract (MILC) program, by taxing dairy farmers on all production.

Meanwhile a separate bipartisan letter from 26 Senators led by Sen. Jim Talent (R-MO) also told Gregg and his ranking member Sen. Kent Conrad (D-ND) that ag cuts were not needed this year, pointing to the fact the commodity title of the 2002 Farm Bill has cost $12.9 billion less than projected, and conservation, research, rural development, trade and other programs have already been cut.

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Farm Bill Hearings Highlight Differences

House Agriculture Committee Chair Rep. Bob Goodlatte (R-VA) and ranking member Rep. Collin Peterson (D-MN) led 10 to 12 members on a series of western state field hearings over the last 10 days. Goodlatte reminded farmers the last farm bill was written during a period of budget surplus; that money is tighter now, but acknowledged the committee doesn’t know how much funding will be available.

California farmers highlighted the need for specialty crop consideration during the House ag panel’s field hearing in Stockton, CA, this week. They also referenced more conservation program funding, with special attention to the Environmental Quality Incentives Program (EQIP). One producer said conservation payments are more important to him than direct payments, since EQIP and the Conservation Security Program (CSP) “level the playing field” in producing for export markets. Also mentioned were dairy programs, food safety and biosecurity.

In Nebraska City, NE, farmer comments, which included Kansas and Iowa producers, centered on World Trade Organization (WTO) negotiations, rural development and renewable fuels, with one producer talking about farm program payments converting into higher land values. Rep. Steve King (R-IA), said he appreciated the “honest and candid” feedback, referencing the fact “no one testified that they couldn’t make a living under the current farm bill.”

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Goodlatte, Peterson Spar Over Farm Bill Rewrite Timing

While the goal may be a bipartisan 2007 Farm Bill, the chair and ranking member of the House Agriculture Committee – and several of their committee colleagues – sparred this week over the timing of their committee’s farm program rewrite.

Speaking to the National Farmers Union (NFU) annual meeting in Colorado, Committee Chair Rep. Bob Goodlatte (R-VA) restated his opposition to extending the 2002 Farm Bill – unless it’s a “short one” – until WTO negotiations are completed. Ranking member Rep. Collin Peterson (D-MN) reminded NFU he has already introduced legislation to extend the current farm package until the Administration presents Congress with a new WTO agreement. Rep. Jerry Moran (R-KS), chair of the panel’s subcommittee on farm commodities, said extension is premature, saying Congress should write a new farm bill and tell the Administration to go fight for its provisions at the WTO.

Acknowledging the direct and major impact of a WTO trade agreement on U.S. policies, Goodlatte said the 2007 Farm Bill will be “written in the U.S., not Geneva, Switzerland.” He also said the European Union (EU) will continue to exclude most major U.S. exports, no matter how the trade deal comes out.

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Johanns, Portman Head For More WTO Talks

Secretary of Agriculture Mike Johanns and U.S. Special Trade Representative Rob Portman headed for London late this week for two more days of WTO ag negotiations. While Portman holds hope WTO member nations can reach an ag framework agreement by April 30, senior members of the House Agriculture Committee, following a closed-door meeting with Portman and Johanns, indicated the talks are in trouble.

Ag panel Chair Rep. Bob Goodlatte (R-VA) was quoted by one media outlet as saying, “Frankly, I’m not convinced that a WTO agreement will ever be achieved.” Goodlatte criticized the European Union (EU) for its refusal to cut subsidies and tariffs more than already offered. Goodlatte said the EU’s market access policy has contributed to its surplus problems, and even if tariffs were cut, the EU’s ongoing “unscientific” use of sanitary and phytosanitary would continue to exclude U.S. corn, beef, poultry, soybeans and pork.

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U.S. In Talks For Free Trade Deals With Malaysia, South Korea

The U.S. Special Trade Representative this week announced the U.S. has begun free trade agreement talks with Malaysia, the largest U.S. trading partner in Southeast Asia, over a market that last year represented $44 billion. At the same time, informal talks continue with South Korea, with media reports indicating U.S. negotiators are striving for a deal by the end of 2006 that will pass muster with Congress. Formal negotiations with Korea are set to begin June 5.

The U.S. is already in negotiations on the WTO trade agreement, but has entered into talks on bilateral free trade deals with Peru, Panama, Ecuador, the United Arab Emirates, Thailand, and the Southern African Customs Union.

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BSE UPDATE

UK Beef Exports Resume

For the first time in 10 years, live animals, beef and beef products will be allowed for global export from the United Kingdom under a European Union (EU) action this week. The EU Veterinarians Committee made the recommendation in the wake of “UK actions taken necessary to prevent spread of the disease.” The recommendation goes to the European Commission which is expected to lift the ban in about six weeks. Under the rule, live animals born after Aug. 1, 1995, and beef and beef products from cattle slaughtered after June 15, 2005, can be exported.

Malaysia Reopens U.S. Beef Imports

The government of Malaysia this week announced it will become the sixth in a string of Asian nations to resume U.S. beef imports. Malaysia will accept beef from animals less than 30 months of age. The market represents about $1.9 million per year.

Johanns Announces Terpstra and Yost For New Jobs

USDA Foreign Agriculture Service (FAS) Administrator Ellen Terpstra has been appointed deputy undersecretary of agriculture for farm and foreign agriculture services, Secretary of Agriculture Mike Johanns announced this week. At the same time Michael W. Yost has been named FAS administrator. Yost is former associate administrator for programs in the Farm Service Agency (FSA).

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

S.2393
Sen. Norm Coleman (R-MN) introduced the “Conquer Childhood Cancer Act of 2006.”

S.2395
Sen. Chuck Grassley (R-IA) offered legislation to require air carriers accept mail shipments of day-old baby chicks.

H.R.4927
Rep. Deborah Pryce (R-OH) also introduced the “Conquer Childhood Cancer Act of 2006.”

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Inside Track is produced as a service to clients of Policy Directions, Inc., a Washington, DC-based government relations/strategic government communications firm founded in 1995, specializing in customized advocacy on health care; food; biomedical research; biotechnology, human drug, and medical device regulation; federal nutrition policy and programs; and environmental policies and programs. For more information about PDI, please e-mail mailto:info@poldir.com.

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