America-United States Free Trade Agreement (CAFTA-DR)
Wisconsin Farmers Will Benefit
Exports of farm products
help boost Wisconsinís farm prices and income. Such exports help support about
25,280 jobs both on and off the farm in food processing, storage, and
transportation. In 2003, Wisconsinís farm cash receipts were $5.9 billion, and
agricultural exports were estimated at $1.6 billion, putting its reliance on
agricultural exports at 27 percent. Implementation of the Dominican
Republic-Central America-United States Free Trade Agreement (CAFTA-DR) will increase Wisconsin’s exports of agricultural products.
Wisconsin 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 Wisconsinís 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.
Dairy. Providing the top source of
state farm cash receipts (over $2.8 billion) and the nation’s 2nd
largest exporter, Wisconsin 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 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.
Beef. Providing the 2nd
largest source of farm cash receipts and state agricultural exports, Wisconsin
cattle and calve operators 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.
Corn. Providing the 3rd
largest source of farm cash receipts and the state’s top agricultural export,
Wisconsin 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. Providing
over $230 million in farm cash receipts and the 5th largest source of
state agricultural exports, Wisconsin soybean producers and processors 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.
State Fact Sheets