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STATE FACT
SHEETS:
Dominican
Republic-Central
America-United States Free Trade Agreement (CAFTA-DR)
Nebraska Farmers Will Benefit
May 2005
Exports of farm products help boost Nebraska’s farm prices and
income. Such exports help support about 47,400 jobs both on and off the farm in
food processing, storage, and transportation. In 2003, Nebraska's farm cash
receipts were $10.6 billion, and agricultural exports were estimated at $3
billion, putting its reliance on agricultural exports at 29 percent.
Implementation of the Dominican Republic-Central America-United States Free
Trade Agreement (CAFTA-DR) will increase Nebraska’s exports of agricultural products.
Nebraska 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 Nebraska’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.
Meats.
As the nation’s leading exporter of meats, Nebraska beef and
pork producers benefit from the FTA.
Beef. As the top source of nearly $6 billion in cash receipts
and Nebraska cattle and calve operators benefit from immediate elimination of
duties on the products most important to the U.S. beef industry – Prime and
Choice cuts – 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.
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Current import duties on U.S. beef exports are as high as
30 percent, and the WTO permits duties as high as 79 percent.
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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
U.S. exports.
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.
Pork.
Providing the state’s 4th leading
source of farm cash receipts, Nebraska pork producers benefit from the duty-free
access on pork cuts for each CAFTA-DR country. The opportunity for trade created through the
TRQs total 13,613 tons, expanding by 5 to 15 percent per year until duties are
eliminated.
Central American countries will immediately eliminate
duties on bacon and some offal products, while the Dominican Republic will
establish TRQs for bacon and fat that expand annually.
All CAFTA-DR duties will be eliminated within 15 years
and certain products will be subject to safeguards in some countries.
CAFTA-DR countries are working toward the recognition of
the U.S. meat inspection and certification systems in order to facilitate
U.S. exports.
The National Pork Producers Council, the American Meat
Institute, the U.S. Meat Export Federation, and the National Renderers
Association have expressed support publicly for the CAFTA-DR FTA.
Corn.
As the 2nd largest source of farm cash receipts at
over $2 billion, Nebraska 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, and the North American
Millers Association have expressed support publicly for the CAFTA-DR FTA.
Soybeans and Products.
As the 3rd largest source of state farm cash
receipts and the nation’s 5th largest exporter, Nebraska soybean
producers benefit from the FTA.
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.
Wheat.
As the 5th largest source of state farm cash
receipts, Nebraska wheat producers benefit from the FTA.
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.
Wheat Associates, the Wheat Export Trade Education Committee, and the North
American Millers Association have expressed support publicly for the CAFTA-DR FTA.
Sugar Production in
Nebraska - Map (.pdf)
Return to
CAFTA-DR
State Fact Sheets
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