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STATE FACT
SHEETS:
Dominican
Republic-Central
America-United States Free Trade Agreement (CAFTA-DR)
Nevada Farmers Will Benefit
May 2005
Exports of farm products
help boost Nevada’s farm prices and income. Such exports help support jobs both
on and off the farm in food processing, storage, and transportation. In 2003,
Nevada’s farm cash receipts were $396 million, and agricultural exports were
estimated at $32 million, putting its reliance on agricultural exports at 8
percent. Implementation of the Dominican Republic-Central America-United States
Free Trade Agreement (CAFTA-DR) will
increase Nevada’s exports of agricultural products.
Nevada 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 Nevada’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.
Beef. Providing the
top source of farm cash receipts (nearly $200 million), Nevada cattle and calve
operators benefit from the FTA.
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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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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
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.
Dairy.
Providing the 2nd
largest source of farm cash receipts, Nevada dairy producers benefit from the
FTA.
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
earlier.
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.
Wheat. Providing the 4th
largest source of state agricultural exports, Nevada 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. Grains Council, 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.
Return to
CAFTA-DR
State Fact Sheets
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