Monday 4 April 2005

CAFTA hearings and all other info. regarding CAFTA


Farmpolicy.com has excellent CAFTA coverage. I know I will definitely be tuned in to this site as the CAFTA debate heats up. Among the items he writes today....

-CAFTA hearings will start April 13, rather than April 6, announced Sen. Grassley (R-IA). "The key trade agreement faces stiff opposition in some quarters in Congress and from the powerful U.S. sugar lobby. It's ratification is expected to be a major fight that will signal the U.S. commitment to a free trade agenda."

-The textile industry is starting to become supportive of the deal as competition heats up with China. "These producers, which have closed dozens of factories and shed tens of thousands of jobs in recent years, have concluded that the proposed Dominican Republic-Central American Free Trade Agreement, commonly known as CAFTA, is key to their survival."

-The pork industry is giving CAFTA a second look. Mr. Pore also indicated that, "Research conducted by the Economic Research Service (ERS) of the United States Department of Agriculture indicated that for each dollar of non-bulk agricultural exports, such as pork, $1.66 in additional U.S. economic activity is generated.
"ERS also calculated that every billion dollars in value-added U.S. exports creates an additional 14,500 new jobs in the U.S. economy."
In a final point on Mr. Pore's article, he noted that, "A recent economic analysis, conducted by Iowa State University economist Dermot Hayes, shows that as a direct result of CAFTA, U.S. pork exports to the region will grow by 20,000 tons on an annual basis, increasing U.S. live hog prices by thirty-six cents per head. The six CAFTA countries have a total population of almost 46 million, and pork is the top meat consumed."

-Meanwhile, some cattle producers are supporting C.A.F.T.A. According to an article published last week on the CattleNetwork.com webpage, "The National Cattlemen’s Beef Association (NCBA) strongly supports the U.S. – Central America – Dominican Republic Free Trade Agreement (CAFTA-DR) because of the agreement’s benefits for U.S. beef producers. NCBA explained these specific benefits in a letter sent today to members of the U.S. Congress."
A copy of the N.C.B.A. letter is available here, while a complete economic analysis of C.A.F.T.A. conducted by N.C.B.A.'s Chief Economist, Gregg Doud, is available by clicking here, (five page pdf). In addition, an easy to read one page press statement summarizing much of this information from the N.C.B.A. can be viewed by clicking here.

-Not all farm groups are supporting C.A.F.T.A. An Associated Press item posted at the KXMC Channel 13(Minot, ND) webpage last week noted that, "American Farm Bureau Federation President Bob Stallman says his group and sugar industry officials 'agree to disagree' over [C.A.F.T.A.].
"The American Farm Bureau supports the agreement, known as 'CAFTA.' Stallman says it would lead to more farm exports.
"The sugar beet industry says it would lose out to sugar imports from other countries.
"Red River Valley Sugarbeet Growers director Nick Sinner says CAFTA and other trade agreements threaten to destroy an industry worth about three billion-dollars in North Dakota and Minnesota each year."
This A.P. item also pointed out that "The North Dakota Farm Bureau has broken ranks from its parent organization to oppose CAFTA," while "The Minnesota Farm Bureau supports it."

-Sugar industry opponents to CAFTA apparently have scored an interim victory because Bush administration and congressional CAFTA supporters reportedly are reviewing ways to make the agreement more 'sugar friendly.

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