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South Carolina produces agricultural products that are exported worldwide. In
2006, the State's cash receipts from farming totaled $1.8 billion, and exports
were estimated at $482 million. Agricultural exports help boost farm prices and
income, while supporting about 5,700 jobs both on the farm and off the farm in
food processing, storage, and transportation. Exports are important to South
Carolina's agricultural and statewide economy. Measured as exports divided by
farm cash receipts, the state's reliance on agricultural exports was 27 percent
in 2006.
South Carolina's top five agricultural exports in 2006 were:
• cotton -- $92 million
• poultry and products -- $83 million
• tobacco leaf -- $59 million
• wheat and products -- $46 million
• soybeans and products -- $29 million
World demand for these products is increasing,
but so is competition. If South Carolina's farmers, ranchers, and food
processors are to compete successfully for opportunities of the 21st century,
they need fair trade and more open access to growing global
markets.
How Trade Agreements Benefit South Carolina
Agriculture
As a poultry producer, South Carolina 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.
South Carolina benefits under NAFTA with new
rules of origin that increase demand for U.S. textiles in Canada and Mexico.
Mexico’s 10-percent tariff on cotton has 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.
Export Success Stories
Since its 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.