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U.S. Horticultural Trade with Members of the Proposed U.S./Central America Free Trade Agreement

Trade in horticultural products has become increasingly important between the United States and the Central American region.  In FY 2001, horticultural products accounted for about 13 percent of total U.S. agricultural exports to the region.  This figure compares with 10 percent in FY 1995.  On the other hand, about 30 percent of all U.S. agricultural imports from the region were horticultural products in FY 2001.  On January 16, 2002, President Bush announced that the United States would explore a free trade agreement with the countries of Central America, to enhance our economic relations in the region and advance free trade around the world.

Bar chart comparing U.S. horticultural trade balance with Central America, fiscal years 1997-2001

Graphic with text title for graph: Horticultural Products Play Key Role in U.S./Central America Agricultural Trade

 
Bar chart comparing share of total value of U.S. imports among livestock and meat, horticultral products, forest products, fishery products, tobacco, and other agricultural products for fiscal years 1997 - 2001

 
Graphic with text title for graph: Horticultural Products Play Key Role in U.S./Central America Agricultural Trade

 
Bar chart comparing share of total value of U.S. exports among livestock and meat, horticultral products, forest products, poultry, cotton, oilseeds products, grains and feeds, and other agricultural products for fiscal years 1997 - 2001

 
In FY 2001, horticultural products accounted for about 13 percent of total U.S. agricultural exports to the Central American region.  On the other hand about 30 percent of all U.S. agricultural imports from the region were horticultural products. 

Combined, U.S. imports of horticultural products from Costa Rica, Guatemala, El Salvador, Honduras, and Nicaragua have almost doubled in the last 7 fiscal years, excluding bananas.  Likewise, U.S. exports have increased.  In FY 2001, U.S. shipments of fresh and processed fruits and vegetables to these countries were valued at $175 million. 

U.S. imports of horticultural products from the proposed members were valued at $597 million, excluding banana trade.  It is clear that the United States runs a horticultural trade deficit with the 5 proposed members of a U.S./Central America Free Trade Agreement.  This deficit reached a record $421 million in FY 2001.

Guatemala is the major export market among the proposed members.  In FY 2001, total U.S. exports of horticultural products to Guatemala were valued at $45 million.  On the other hand, Costa Rica is the main supplier of horticultural products to the United States, supplying $340 million in FY 2001, excluding bananas.

Table showing overall U.S. exports (value in $1,000) of agricultural products to members of the proprosed U.S. Central America Free Trade Agreement for fiscal years 1997 - 2001

On average, processed horticultural products account for about one third of total U.S. exports to Central America (excluding Panama and Belize). The value of processed fruits and vegetables exported to the region reached nearly $80 million in FY 2001.  Frozen potato fries are the main processed vegetable exported.  Orange juice is the major processed fruit product shipped to Central America.  Apples are the main fresh fruit exported.

The bulk of U.S. imports of horticultural products from Central America are composed of fresh fruits and vegetables, excluding bananas.  The total value of U.S. imports of fresh horticultural products from the region reached $360 million in FY 2001.  Some major fresh horticultural products imported included fresh melons ($135 million) and fresh pineapples ($131 million).  Costa Rica is the major supplier of fresh fruits and vegetables from the region.

Table showing overall U.S. imports (value in $1,000) of agricultural products to members of the proprosed U.S. Central America Free Trade Agreement for fiscal years 1997 - 2001

 
Bar chart comparing share of total value of horticultural exports (processed vegetables and fruits vs. fresh fruits and vegetables) to Central America, fiscal years 1997 - 2001

 
Bar chart comparing share of total value of horticultural imports (processed vegetables and fruits vs. fresh fruits and vegetables) to Central America, fiscal years 1997 - 2001

 
Table showing U.S. trade balance (value in $1,000) with members of the proposed U.S./Central America Free Trade Agreement for fiscal years 1997 - 2001

 
Table showing U.S. exports of selected horticultural products (value in $1,000) to members of the proposed U.S./Central America Free Trade Agreement for fiscal years 1997 - 2001 (part 1)

 
Table showing U.S. exports of selected horticultural products (value in $1,000) to members of the proposed U.S./Central America Free Trade Agreement for fiscal years 1997 - 2001 (part 2)

 
Table showing U.S. imports of selected horticultural products (value in $1,000) to members of the proposed U.S./Central America Free Trade Agreement for fiscal years 1997 - 2001

 


Last modified: Sunday, March 17, 2013