America-United States Free Trade Agreement (CAFTA-DR)
North Dakota Farmers Will Benefit
Exports of farm products
help boost North Dakota’s farm prices and income. Such exports help support
about 28,440 jobs both on and off the farm in food processing, storage, and
transportation. In 2003, North Dakota's farm cash receipts were $3.7 billion,
and agricultural exports were estimated at $1.8 billion, putting its reliance on
agricultural exports at 47 percent. Implementation of the Dominican
Republic-Central America-United States Free Trade Agreement (CAFTA-DR) will increase North Dakota’s exports of agricultural
North Dakota Benefits From
the U.S.- CAFTA-DR Free Trade
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 North Dakota’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.
Wheat and Barley. As the nation’s 2nd
largest wheat exporter, with wheat and barley ranked 1st and 3rd
in state farm cash receipts, North Dakota wheat and barley producers benefit
from the FTA.
U.S. grain suppliers will benefit from zero duties
immediately on wheat and barley in all six countries, as well as on some
processed grain products.
The WTO generally permits duties up to 60 percent, but
can exceed 100 percent.
The National Association of Wheat Growers,
the National Grain and Feed Association, the National Grain Trade Council,
the North American Export Grain Association, the U.S. Grains Council, the
U.S. Wheat Associates, the Wheat Export Trade Education Committee, the North
American Millers Association, and the National Barley Growers Association
have expressed support publicly for the CAFTA-DR FTA.
As the 2nd largest
source of farm cash receipts at nearly $700 million, North Dakota cattle and
calve operators benefit from the FTA.
Soybeans and Products.
As the state’s 3rd largest agricultural export and
source of farm cash receipts, North Dakota’s soybean producers benefit from the
CAFTA-DR countries will provide immediate
duty-free access for soybeans. Duties on soybean meal and flour will be
eliminated immediately in most CAFTA-DR countries.
Most CAFTA-DR countries will immediately eliminate duties
on crude soybean oil, and the current duties on refined soybean oil phased
out over 12 to 15 years.
The American Soybean
Association, the National Grain and Feed Association, and the National
Oilseed Processors Association have expressed support publicly for the CAFTA-DR FTA.
5th largest source of farm cash receipts, North Dakota corn producers
benefit from the FTA.
Costa Rica and the Dominican Republic will eliminate
their duty on yellow corn immediately. The other countries will provide
preferential access through individual duty-free TRQs totaling 1,151,259
metric tons initially, growing by 5 percent per year as the over-quota
duties are phased out over 15 years (10 years in the case of Guatemala).
All currently applied duties on corn products (including
corn flour, corn gluten feed, corn oil and high fructose corn syrup) will be
phased-out in 15 years.
The Corn Refiners
Association, the National Corn Growers Association, the National Grain and
Feed Association, the National Grains Trade Council, the North American
Export Grain Association, the U.S. Grains Council, the North American
Millers Association, and the Wheat Export Trade Education Committee have
expressed support publicly for the CAFTA-DR FTA.
The 2.3 percent of North
Dakota farms engaged in sugar production will face no cuts in the over 100
percent out-of-quota duty on U.S. sugar that currently protects domestic
The United States will establish TRQs for
countries, starting at 107,000 metric tons. In the first year of
implementation, increased market access in sugar will amount to about 1.2
percent of annual U.S. sugar consumption. This amount grows very slowly by 2
percent a year into perpetuity, so that by year 15 of FTA implementation the
increased access on sugar (about 151,000 metric tons) amounts to about 1.7
percent of consumption. The United States will also establish a quota for
specialty sugar goods of Costa Rica in the amount of 2,000 metric tons
Provisions will ensure only net surplus exporting
countries in the region have access to the new access, and provisions have
been agreed to allow alternative forms of compensation to be established to
facilitate sugar stock management by the United States.
The Sweetener Users
Association, the National Confectioners Association, the Grocery
Manufacturers of America, and the National Food Processors Association have
expressed support publicly for the CAFTA-DR FTA.
Sugar Production in
North Dakota - Map (.pdf)
State Fact Sheets