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From Connecticut to Maine, New England
produces agricultural products that are exported worldwide. In 2006, the
region's total cash receipts from farming reached $2.3 billion. The region's
agricultural exports were estimated at $434 million in 2006, accounting for
almost 19 percent of New England’s farm economy. Agricultural exports help boost
farm prices and income, while supporting about 4,900 jobs both on the farm and
off the farm in food processing, transportation, and manufacturing.
The region's top exports in 2006 were
wheat, tobacco leaf, vegetables, fruits and planting seeds.
World demand for agricultural products is
increasing, but so is competition among suppliers. If New England industries are
to compete successfully for export opportunities in the 21st century, they need
fair trade and more open access to growing global markets.
How Trade Agreements Benefit New England
Agriculture
New England is one of the nation's larger
commercial apple-growing regions. Under the U.S. – Chile FTA, U.S. deciduous
fruits gain preferential access, as the 6-percent import tariff is immediately
eliminated. If Congress ratifies the US – Dominican and Central American FTA in
its current form, U.S. fresh apples which are subject to 15 percent import
tariffs in all five Central American countries (and a 20 percent tariff in the
Dominican Republic), will gain immediate duty-free access. U.S. exporters
annually shipped on average $13 million worth of fresh apples to all six
countries combined from 2001 through 2003.
Australia generally applies lower tariffs of
around 5 percent on most processed foods. If Congress ratifies the U.S. –
Australian FTA in its current form, U.S. processed foods and beverages will
immediately receive duty-free tariff treatment. From 2001 through 2003, U.S.
suppliers annually shipped to Australia on average: breads, cakes, and pastries
valued at $4.6 million; soups and broths valued at $80,000; wines valued at $1.1
million; distilled spirits valued at $56 million; and chocolate bars valued at
$1.3 million.
Under the U.S.-Central America-Dominican
Republic Free Trade Agreement (CAFTA-DR), a two-track approach will be
established for dairy products with the objective of achieving free trade within
20 years. The first step is the establishment of reciprocal duty-free tariff
rate quotas (TRQs). The second and concurrent step involves the immediate
elimination of in-quota tariffs on dairy products. U.S. dairy products shipped
to Central America face a range of different TRQs and import tariffs as high as
65 percent. From 2001 through 2003, U.S. suppliers annually shipped on average
17,880 metric tons of dairy products valued at $44.1 million to all six
countries combined.
Export Success Stories
New England seafood industries benefited from
recent big international trade show sales. U.S. companies, exhibiting in the US
Pavilion at the 2004 European Seafood Exposition in Brussels, Belgium, reported
on-site sales of more than $55 million. About 30 U.S. suppliers participated in
the show, offering a wide range of fish and seafood products, including
mackerel, live lobsters and lobster meat, shrimp, scallops, oysters, squid and
octopus.
The U.S. Apple Export Council (USAEC) passed a
major milestone by shipping its first loads of fresh apples to Mexico in the
2002/2003-season. This capped the industry’s three-year effort to gain access to
this potentially large market for "USA Apples." In the 2003/2004-season,
exporters shipped about 17,000 cartons of apples to Mexico. The USAEC is a
committee of the U.S. Apple Association that manages the export promotion
program for the apple industry in 10 states, including the New England states of
Connecticut, Maine, Massachusetts, New Hampshire, and Vermont.