America-United States Free Trade Agreement (CAFTA-DR)
Wyoming Farmers Will Benefit
Exports of farm products
help boost Wyoming’s farm prices and income. Such exports help support about 632
jobs both on and off the farm in food processing, storage, and transportation.
In 2003, Wyoming's farm cash receipts were $874 million, and agricultural
exports were estimated at $44 million, putting its reliance on agricultural
exports at 5 percent. Implementation of the Dominican Republic-Central
America-United States Free Trade Agreement (CAFTA-DR) will increase Wyoming’s exports of agricultural products.
Wyoming Benefits From the
U.S.- CAFTA-DR Free Trade Agreement
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 Wyoming’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.
With cattle and calve
operations the top source of farm cash receipts at over $630 million, Wyoming
cattle and calf operators 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 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 and Barley. With farm cash
receipts from wheat and barley exceeding $34 million, Wyoming wheat and barley
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.
As the 5th largest source of state farm cash
receipts, Wyoming pork producers benefit from the duty-free access on pork cuts
for each CAFTA-DR country.
With over $11 million
in farm cash receipts, Wyoming dried bean producers benefit from the FTA.
All duties will be eliminated within 15 years, with
immediate duty-free access for some dried beans, and phase out of other
duties in 5 to 15 years. The Dominican Republic will provide a duty-free TRQ
for mung, red, and kidney beans, of 8,560 metric tons, growing at a rate of
7 percent. All duties will be eliminated in 15 years. Currently, import
duties in CAFTA-DR countries are as high as 89 percent, and the WTO permits
duties as high as 110 percent.
The United States Dry
Bean Council has expressed support publicly for the CAFTA-DR FTA.
The 1.9 percent of Wyoming
farms engaged in sugar production will face no cuts in the over 100 percent
out-of-quota duty on U.S. sugar that currently protects domestic producers.
The United States will establish TRQs for
countries, starting at 107,000 metric tons. In the first year of
implementation, increased market access in sugar will amount to about 1.2
percent of annual U.S. sugar consumption. This amount grows very slowly by 2
percent a year into perpetuity, so that by year 15 of FTA implementation the
increased access on sugar (about 151,000 metric tons) amounts to about 1.7
percent of consumption. The United States will also establish a quota for
specialty sugar goods of Costa Rica in the amount of 2,000 metric tons
Provisions will ensure only net surplus exporting
countries in the region have access to the new access, and provisions have
been agreed to allow alternative forms of compensation to be established to
facilitate sugar stock management by the United States.
The Sweetener Users
Association, the National Confectioners Association, the Grocery
Manufacturers of America, and the National Food Processors Association have
expressed support publicly for the CAFTA-DR FTA.
Sugar Production in
Wyoming - Map (.pdf)
State Fact Sheets