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Georgia is an important producer of agricultural and wood products exported
worldwide. In 2006, the State’s cash farm receipts totaled $5.7 billion. Georgia
ranked 17th among all 50 States in 2006 in the value of its agricultural
exports, estimated at $1.3 million. Agricultural exports help boost farm prices
and income, while supporting 16,100 jobs both on the farm and off the farm in
food processing, storage, and transportation. Exports remain vital to Georgia’s
agricultural and statewide economy. The State’s reliance on agricultural exports
was 22 percent in 2006.
Georgia's top five agricultural exports in 2006 were:
• cotton and linters -- $496 million
• poultry and products -- $319 million
• peanuts and products -- $102 million
• vegetables and preparations -- $67 million
• wheat and products -- $43 million
World demand for these products is increasing,
but so is competition among suppliers. If Georgia's farmers and food processors
are to compete successfully for the export opportunities of the 21st century,
they need fair trade and more open access to growing global
markets.
How Trade Agreements Benefit Georgia Agriculture
As one of the leading states in poultry
production, Georgia benefited under the Uruguay Round agreement when Korea
eliminated its import quotas on frozen chicken in 1997, and reduced its tariffs
to between 18 to 20 percent by 2004. These steps supported a rise in U.S.
poultry to 120,000 tons valued at $79 million by 2002. The Philippines opened a
tariff-rate quota for poultry meat of 16,701 tons in 1998, which rose to 23,500
tons by 2004.
Under the U.S.-Central America-Dominican
Republic Free Trade Agreement (CAFTA-DR), all applied import tariffs on U.S.
poultry meats that currently range between 30 and 164 percent will be eliminated
over 10 to 18 years depending on the product and country. Each country also
commits to adopting a "systems approach" to the recognition of the U.S. poultry
inspection system, thereby eliminating plant-by-plant inspections and
facilitating trade. From 2001 through 2003, U.S. poultry meat suppliers annually
shipped on average 65,550 metric tons valued at $61 million to all six countries
combined.
As a major cotton producer, Georgia benefits
under NAFTA with new rules of origin that increase demand for U.S. textiles in
Canada and Mexico. Mexico=s 10-percent tariffs on cotton have been eliminated.
This tariff reduction supports U.S. cotton exports to Mexico, which rose from
558,000 bales to 2.2 million bales from marketing year 1995 to 2002. U.S.
industry estimates that the Caribbean Basin Initiative and Africa Growth and
Opportunity Act will increase annual cotton sales by 100,000 bales.
Under the Uruguay Round, Georgia benefits as
Japan lowered its tariff on blueberries from 10 to 6 percent, U.S. exports of
fresh wild and cultivated blueberries rose from $2 million in 1998 to $7 million
in 2002.
Export Success Stories
Since launch in 2000, Cotton Council
International (CCI) and Cotton Incorporated’s COTTON USA Sourcing Program,
funded by FMD and checkoff resources, has dramatically enhanced the level of U.S-made
cotton textile exports to the Caribbean Basin. Cotton yarn exports to the region
increased from $30 million in 1999 to $205 million in 2003. Meanwhile, knit
fabric exports skyrocketed from $21 million to $618 million. CCI and Cotton
Incorporated achieved these results by partnering the two organizations and
their respective marketing and technical strengths, and by market development
outreach to the supply chain and retail industries in the United States and
supplying countries. The resulting business contacts have now become established
trading relationships that compete favorably with products from anywhere in the
world.
European Union (EU) and national port health
authorities in the United Kingdom and the Netherlands agreed to continue to
recognize U.S. origin certification for U.S. peanuts. The American Peanut
Council, working with USDA, suppliers, farmers and other industry members
targeted the port health authorities and EU officials and convinced them of the
efficacy of U.S. inspection procedures. The decision means that U.S. peanuts
need not wait for aflatoxin inspection at EU ports, while the competition does,
which makes U.S. peanuts more valuable and dependable to EU buyers. The EU
annually purchases over $100 million worth of U.S. peanuts in the face of stiff
competition from other less expensive origins.