America-United States Free Trade Agreement (CAFTA-DR)
Alaska Farmers Will Benefit
Exports of farm products
help boost Alaska’s farm prices and income. Such exports help support jobs both
on and off the farm in food processing, storage, and transportation. In 2003,
Alaska’s farm cash receipts were $51 million, and agricultural exports were
nearly $1 million. Implementation of the Dominican Republic-Central
America-United States Free Trade Agreement (CAFTA-DR) will increase Alaska’s exports of agricultural products.
Alaska Benefits From the
U.S.- CAFTA-DR Free Trade Agreement (FTA)
Despite over $1.6 billion in
U.S. farm exports in 2003, CAFTA-DR countries continue to impose high tariffs
and other barriers on most agricultural products, including Alaska’s key
exports. A primary U.S. objective was to change the "one-way-street" of
duty-free access currently enjoyed by most CAFTA-DR exports into a "two-way-street" that provides U.S. suppliers with
access to these markets and levels the playing field with other competitors.
This objective was achieved. Over 50 agricultural industry and farm groups,
including the American Farm Bureau support the FTA.
As the state’s 3rd
largest source of state farm cash receipts ($3.2 million), Alaska dairy
producers benefit from the FTA.
U.S. dairy exporters currently face duties as high as 60
percent, and the WTO permits duties as high as 100 percent.
Each country will establish duty-free TRQs for certain
dairy products totaling over 10,000 metric tons across the six countries –
and each will receive the same level of TRQ access for dairy products
entering the United States.
TRQs will grow by 5 percent per year for the Central
American countries and 10 percent per year for the Dominican Republic, with
certain dairy products subject to safeguards during the phase-out period.
All Central American and Dominican duties will be
eliminated within 20 years, with duties on some dairy products eliminated
The National Milk
Producers Federation, the U.S. Dairy Export Council, the Grocery
Manufacturers of America, and the National Food Processors Association have
expressed support publicly for the CAFTA-DR FTA.
Potatoes and Products.
farm cash receipts of $2.4 million, Alaska potato producers benefit from the FTA.
U.S. exporters currently face duties around 15 percent
(duties on sensitive products may be higher), and the WTO permits duties as
high as 60 percent.
All duties on potatoes will be eliminated over 15 years,
except for fresh potatoes in Costa Rica, where liberalization will occur
through expanded TRQ access with an initial quantity of 300 metric tons.
Four Central American countries will provide immediate
duty-free access for frozen french fries, while the Dominican Republic will
phase-out duties over 5 years.
Access for frozen french fries into Costa Rica will
entail a 6 year tariff phase-out with a 2,631 metric ton TRQ growing at a 5
percent compounded rate.
The National Potato
Council, the American Potato Trade Alliance, Washington State Potato
Commission, the American Frozen Food Institute, the Grocery Manufacturers of
America, and the National Food Processors Association have expressed support
publicly for the CAFTA-DR FTA.
$1.4 million in state farm cash receipts, Alaska cattle and calve producers
benefit from the FTA.
Current import duties on U.S. beef exports are as high as
30 percent, and the WTO permits duties as high as 79 percent.
Duties on the products most important to the U.S. beef
industry – Prime and Choice cuts – will be eliminated immediately in Central
American countries, while the Dominican Republic will establish a zero duty
TRQ of 1,100 metric tons which expands annually as duties are eliminated.
Some immediate duty-free access will be provided by
certain countries on other beef cuts through an initial TRQ totaling 1,165
metric tons, expanding annually until duties are fully phased-out.
Duties currently applied to other beef products and beef
offals will be phased-out in 5 to 10 years.
CAFTA-DR countries are working toward the recognition of
the U.S. meat inspection and certification systems in order to facilitate
The American Meat Institute, the National Cattlemen’s
Beef Association, the National Renderers Association, and the U.S. Meat
Export Federation have expressed support publicly for the CAFTA-DR FTA.
State Fact Sheets