The Competitive Enterprise Institute Daily Update

<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

Issues in the News

1. LEGAL

A federal judge dismisses a lawsuit against KFC for its former practice of cooking chicken in oil containing trans fats.

CEI Expert Available to Comment: Special Projects Counsel Hans Bader on why certain foods become scapegoats:<?XML:NAMESPACE PREFIX = U1 />

“…fried chicken, which contains valuable protein, is far from the most unhealthy food. Kentucky Fried Chicken has a better protein-to-fat ratio than many common dinner items or restaurant meals. It’s a lot healthier than foie gras. But since it’s fairly cheap and lacks snob appeal, its putative health risks get put under a microscope.”

2. TRADE

<?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />U.S. businesses express enthusiasm for a new free trade agreement with South Korea.

CEI Expert Available to Comment: Adjunct Fellow Fran Smith on the negotiations:

“[The U.S. Trade Representative] advisory committees completed their reviews of the agreement, and their comments have been sent on to Congress, which must ratify the FTA. The April 1 transmittal to Congress just made the deadline of 90 days before the president’s Trade Promotion Authority expires – June 30 — which means that the agreement would face an up-or-down vote with no amendments. Don’t expect an easy passage. With the mood of Congressional leaders toward greater protectionism, the Korea deal is likely to be hotly contested.”

3. ENERGY

U.S. farmers rush to convert their fields to corn to take advantage of high prices due to demand for ethanol.

CEI Expert Available to Comment: Adjunct Analyst Dennis Avery on the downside to growing more corn for ethanol production:

“There are significant trade-offs, however, involved in the massive expansion of the production of corn and other crops for fuel.  Chief among these would be a shift of major amounts of the world’s food supply to fuel use when significant elements of the human population remains ill-fed.”

Blog feature: For more news and analysis, updated throughout the day, visit CEI’s blog, Open Market.