America-United States Free Trade Agreement (CAFTA-DR)
New Mexico Farmers Will Benefit
Exports of farm products
help boost New Mexico’s farm prices and income. Such exports help support jobs
both on and off the farm in food processing, storage, and transportation. In
2003, New Mexico’s farm cash receipts were $2.1 billion, and agricultural
exports were estimated at $225 million, putting its reliance on agricultural
exports at 11 percent. Implementation of the Dominican Republic-Central
America-United States Free Trade Agreement (CAFTA-DR) will increase New Mexico’s exports of agricultural
New Mexico 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 New Mexico’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.
the state’s top source of farm cash receipts, New Mexico 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
All Central American and Dominican duties
will be eliminated within 20 years, with duties on some dairy products
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
Providing the 2nd leading source of farm cash receipts, New
Mexico 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
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
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
the state’s 2nd largest agricultural export and 4th
largest source of farm cash receipts, New Mexico’s pecan producers will benefit
from the FTA.
Current duties applied in U.S. pecan exports are 15 to 20 percent, and
the WTO permits duties as high as 60 percent.
Duties currently applied to pecans will be phased-out immediately in the
Dominican Republic, El Salvador Honduras and Nicaragua. Costa Rica and
Guatemala will eliminate duties in 10 years.
the state’s 3rd largest agricultural export, New Mexico wheat
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
The WTO generally permits duties up to 60 percent, but can exceed 100
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.
State Fact Sheets