Apple industry joins groups in urging CAFTA-DR vote
Apple industry joins groups in urging CAFTA-DR vote
WASHINGTON " More than 50 groups rallied on Capitol Hill, along with Agriculture Secretary Mike Johanns, to urge approval of the Free Trade Agreement with Central America and the Dominican Republic, known as CAFTA-DR, as Congress began hearings on the controversial trade pact.
?CAFTA-DR is a home run for American agriculture. We are giving up very little to gain very much," said a letter sent by 56 agricultural groups to every U.S. senator and representative. The groups "are simply requesting that Congress provide to American farmers what it has already provided to farmers in the CAFTA-DR countries: improved market access for their exports."
One of those groups, the U.S. Apple Association, said that the trade agreement covers an important export market for American apples, and its passage would remove the price disadvantage for U.S. apples.
The Bush administration is seeking to sign an agreement with the Central American countries, but first Congress must ratify the treaty. Two committees began hearings on the agreement April 13 that would lower tariffs in the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The Bush administration has already convinced Congress to approve four trade agreements, but the CAFTA-DR has opposition from textile manufacturers and sugar producers, which could spell doom for the agreement.
Under the current trade system, farmers in the Central American countries that are part of CAFTA-DR already have free access to U.S. consumers, while tariffs on U.S. products range from 14 to 25 percent. According to the Northwest Horticulture Council, these tariffs amount to $2 to $4 per carton of apples. Under the new accord, these countries agreed to reduce their tariffs on apples, pears and cherries to zero immediately upon enactment of the agreement.
These countries represent the sixth largest export market, said Mark Powers of the Northwest Horticulture Council, who noted that the agreement could return the U.S. market share lost to Chile when it got preferential treatment through a free trade agreement.
According to the U.S. Apple Association?s Nancy Foster, "The U.S. industry has done its part in getting U.S. apples into the market. They have laid the groundwork and built the relationships need to facilitate the sales. But since the market has traditionally been very price-driven, it is difficult for our apples to compete with duty-free access enjoyed by many of our competitors." U.S. apple industry estimates put the market value of the 2003-04 crop in trade at almost $10 million nationally.
The groups also released a new study bringing home the benefits of the six-nation treaty to 40 key congressional districts. The study quantifies the payoff to agricultural rich communities in additional sales of fruits and vegetables.
?CAFTA-DR is a home run for American agriculture. We are giving up very little to gain very much," said a letter sent by 56 agricultural groups to every U.S. senator and representative. The groups "are simply requesting that Congress provide to American farmers what it has already provided to farmers in the CAFTA-DR countries: improved market access for their exports."
One of those groups, the U.S. Apple Association, said that the trade agreement covers an important export market for American apples, and its passage would remove the price disadvantage for U.S. apples.
The Bush administration is seeking to sign an agreement with the Central American countries, but first Congress must ratify the treaty. Two committees began hearings on the agreement April 13 that would lower tariffs in the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The Bush administration has already convinced Congress to approve four trade agreements, but the CAFTA-DR has opposition from textile manufacturers and sugar producers, which could spell doom for the agreement.
Under the current trade system, farmers in the Central American countries that are part of CAFTA-DR already have free access to U.S. consumers, while tariffs on U.S. products range from 14 to 25 percent. According to the Northwest Horticulture Council, these tariffs amount to $2 to $4 per carton of apples. Under the new accord, these countries agreed to reduce their tariffs on apples, pears and cherries to zero immediately upon enactment of the agreement.
These countries represent the sixth largest export market, said Mark Powers of the Northwest Horticulture Council, who noted that the agreement could return the U.S. market share lost to Chile when it got preferential treatment through a free trade agreement.
According to the U.S. Apple Association?s Nancy Foster, "The U.S. industry has done its part in getting U.S. apples into the market. They have laid the groundwork and built the relationships need to facilitate the sales. But since the market has traditionally been very price-driven, it is difficult for our apples to compete with duty-free access enjoyed by many of our competitors." U.S. apple industry estimates put the market value of the 2003-04 crop in trade at almost $10 million nationally.
The groups also released a new study bringing home the benefits of the six-nation treaty to 40 key congressional districts. The study quantifies the payoff to agricultural rich communities in additional sales of fruits and vegetables.
