CAFTA-DR
Levels Playing Field for Agriculture, NCGA Notes (4-28-05)
The National
Corn Growers Association (NCGA) strongly supports the Central American-Dominican
Republic Free Trade Agreement (CAFTA-DR) and is encouraging members
to take advantage of their senators being in their home districts
next week and let them know the importance of passing this agreement.
The Senate is expected to bring up CAFTA-DR before its Memorial
Day recess.
According to NCGA, CAFTA-DR will benefit all of agriculture and
family farms by helping American farmers remain competitive in the
world marketplace.
No sector of the U.S. economy is more dependent on trade than agriculture
and corn growers are no exception to that rule. One out of
every five rows of U.S. corn is exported and exports of value-added
corn and co-products add to the importance of foreign markets for
U.S. corn producers. CAFTA-DR will stimulate U.S. exports of
corn co-products and value-added products such as corn gluten, dried
distillers grains, starches, oils and sweeteners as well as meat
and poultry products.
The U.S. market share for agriculture exports to the CAFTA-DR countries
has declined from 54 percent in 1995 to 41 percent in 2001. U.S.
agricultural exports to the region totaled more than $1 billion
in 2002. This is due in large part to preferential access conditions
afforded third world countries through bilateral trade agreements
with Central America. NCGA believes CAFTA-DR will help restore
U.S. share of the market.
American agriculture is strategically positioned to translate an
agreement with the five countries into export gains across a variety
of products estimated $945 million per year by 2024, NCGA President
Leon Corzine said.
“American farmers are the most competitive, most technologically
advanced, and the most productive farmers in the world,” Corzine
said. “We need access to markets and the American farmers
needs to be the supplier of choice – first choice for the
CAFTA-DR countries. CAFTA-DR does this for the U.S. producer.”
NCGA along with 57 other agriculture organizations is a member of
the Agriculture Coalition for CAFTA which supports negotiating trade
agreements that minimize the costs and maximize the benefits to
U.S. farmers.
“The coalition is pushing three main points of what CAFTA-DR
would mean to this country’s farmers,” Corzine said.
“It would expand our business opportunities, level the playing
field and increase our ability to compete with other countries.”
Tariffs on American agricultural products are on average 15-times
as high as those imposed on other U.S. exports. “Anything
that can be done to bring those international tariffs down helps
farmers,” Corzine said. “And what helps farmers
helps our communities. If the U.S. doesn’t stand for free
trade, no one will. We applaud the Ambassador Al Johnson and
Secretary Johanns in the drafting of the CAFTA agreement.”