NCGA,
Corn Growers Continue Support for CAFTA-DR (6-3-05)
The
Senate Agriculture Committee next week will hold a hearing to discuss
the potential impacts on the agriculture and food sectors of the
Central America – Dominican Republic Free Trade Agreement
(CAFTA-DR). The National Corn Growers Association (NCGA) and other
members of an extensive CAFTA-DR agricultural coalition are hoping
statements at the hearing will accurately express the importance
of this trade agreement to U.S. agriculture.
In anticipation of the hearing, a letter sent today
to the committee by the agriculture coalition once again reiterates
support for the agreement and lists the numerous benefits the agreement
has for the agriculture industry. ”As representatives of virtually
every sector of the U.S. agricultural economy, we strongly support
CAFTA-DR and favor its prompt approval by Congress,” the letter
states. “The benefits of CAFTA-DR for U.S. agriculture are
clear. The main effect of the agreement will be to reduce and eliminate
duties on U.S. agricultural products in the six countries involved.”
According to the U.S. Department of Agriculture
and U.S. Trade Representatives Office, duties can average 11 percent
and range upwards of 150 percent on certain products. By contrast,
over 99 percent of U.S. agricultural imports from those countries
already enter the U.S. duty-free. To a large extent, U.S. agriculture
has already paid for this agreement due to the existing Caribbean
Basin Initiative (CBI) implemented in the early 1980’s and
the CBI eliminated or significantly reduced most of the tariffs
for agriculture products coming to the U.S. from the CAFTA-DR countries.
June Silverberg, NCGA director of public policy,
said this agreement is about having a balanced and level import
and export marketplace. The result, she said, of the agreement would
be seen in the economies of America’s rural communities. “But
even more important, this agreement will boost our national economic
standing, aid in our national security issues, and balance and open
new marketplaces, which is essential for all export entities –
not just agriculture,” said Silverberg.
NCGA and its coalition partners have been actively
pushing for support of CAFTA-DR for some time now in hopes that
the agreement will be sent to the president in the next month. Silverberg
said that for corn growers, this is one of the most pro-U.S. agriculture
trade agreements ever negotiated.
“The battle for the agreement has never really
stopped even with the Memorial Day recess,” said Silverberg.
“Our members have been heavily involved in talking with the
legislators in their districts throughout the week and I am optimistic
that the message is getting through that agriculture needs this
agreement to level the playing field and to remain competitive in
the marketplace throughout the world.”
Warren Kemper a corn grower from Iowa has been active
along with the Iowa Corn Growers Association these past few weeks
in reaching out to Iowa legislators. Growers are sending letters
and making phone calls emphasizing the importance of this trade
agreement to Iowans. “Iowans are directly affected by CAFTA-DR,”
said Kemper. “Our state alone will see job growth at the level
of nearly 57,000 jobs on and off the farm, in addition to the boost
in our local economy. With these types of agreements, Iowa and its
producers along with the agriculture industry as a whole certainly
benefit. Currently, Iowa depends on exports for 29 percent of its
agricultural products. By eliminating tariffs on major agricultural
exports, Iowa corn, soybeans, beef, pork, and dairy products will
enjoy expanded trade with these key markets.”
According to
the American Farm Bureau Federation’s economic analysis for
direct effects of CAFTA-DR on Iowa, feed grains will increase to
the six CAFTA-DR countries by $4 million per year by 2024. With
Senate action beginning again next week, it is expected that the
House will act soon on CAFTA-DR.
To
view the letter in its entirety, click here.