America-United States Free Trade Agreement (CAFTA-DR)
Washington Farmers Will Benefit
Exports of farm products
help boost Washington’s farm prices and income. Such exports help support about
30,020 jobs both on and off the farm in food processing, storage, and
transportation. In 2003, Washington’s farm cash receipts were $5.3 billion, and
agricultural exports were estimated at $1.9 billion, putting its reliance on
agricultural exports at 36 percent. Implementation of the Dominican
Republic-Central America-United States Free Trade Agreement (CAFTA-DR) will increase Washington’s exports of agricultural
Washington 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 Washington’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 nation’s 3rd
largest exporter of fruits and preparations, and with exports of $553 million,
Washington fruit producers benefit from the FTA.
With over $1.1 billion in cash receipts,
Washington apple and pear producers, who currently face duties as high as 25
percent, benefit from immediate duty elimination by all CAFTA-DR countries on fresh apples
Providing over $131 million in cash receipts,
Washington grape producers benefit from the immediate elimination of duties
on grapes by all CAFTA-DR countries. Current duties on grapes can reach 20
percent in CAFTA-DR countries, and under WTO rules, could rise to as high as 135
Washington raspberry producers benefit from immediate
duty elimination on fresh raspberries in Honduras and on frozen raspberries
in El Salvador, Guatemala and Honduras. Duties on fresh raspberries will be
phased-out over 5 years in El Salvador and Guatemala, over 10 years in Costa
Rica and Nicaragua, and over 15 years in the Dominican Republic. Duties on
frozen raspberries will be phased out over 10 years in Costa Rica and
Nicaragua and over 15 years in the Dominican Republic.
Horticultural Council has expressed support publicly for the CAFTA-DR FTA.
Providing the 2nd
largest source of farm cash receipts at over $670 million, Washington’s 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
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.
Providing the state’s 3rd
largest source of farm cash receipts at over $560 million, Washington cattle and
calve producers benefit from the FTA.
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.
Wheat. With over $350 million in
export sales and total farm cash receipts of nearly $470 million, Washington’s
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, the North
American Millers Association, and the National Barley Growers Association
have expressed support publicly for the CAFTA-DR FTA.
With over $450 million in
farm cash receipts, Washington’s potato producers benefit from immediate duty
elimination on certain potato products, including frozen french fries, which
will be duty-free immediately in most CAFTA-DR countries.
All duties will be eliminated in 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. Current
duties in the CAFTA-DR countries are generally 15 percent, and the WTO
permits duties as high as 60 percent.
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.
Sugar Production in
Washington - Map (.pdf)
State Fact Sheets