Agriculture IssuesAgriculture Issues

By:By:JenJenandand

JennaJenna

CAFTA-DRCAFTA-DR

The Central American-Dominican Republic The Central American-Dominican Republic Free Trade AgreementFree Trade Agreement

One of the most important trade issues facing One of the most important trade issues facing the industry this decade the industry this decade

Not only affects the way we trade in the world Not only affects the way we trade in the world marketplace, but the outcome of the legislation marketplace, but the outcome of the legislation will have significant impacts on U.S. will have significant impacts on U.S. agriculture agriculture

CAFTA-DR has been signed by the governments CAFTA-DR has been signed by the governments of the United States, Costa Rica, El Salvador, of the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Guatemala, Honduras, Nicaragua and the Dominican Republic. The next step is for the Dominican Republic. The next step is for the administration to send the agreement to Capitol administration to send the agreement to Capitol Hill for a vote Hill for a vote

Bob Stallman President, American Farm Bureau Bob Stallman President, American Farm Bureau says, “As I see it, a vote for CAFTA-DR is a vote says, “As I see it, a vote for CAFTA-DR is a vote for U.S. agriculture”for U.S. agriculture”

The agreement is expected to result in nearly The agreement is expected to result in nearly $1.5 billion in agricultural exports after full $1.5 billion in agricultural exports after full implementation implementation

Because tariffs on practically all U.S. products Because tariffs on practically all U.S. products entering CAFTA-DR nations will fall to zero entering CAFTA-DR nations will fall to zero percent after implementation, the agreement percent after implementation, the agreement provides balance and positions U.S. agriculture provides balance and positions U.S. agriculture to better compete in this market. to better compete in this market.

CAFTA-DR will give U.S. agriculture exports CAFTA-DR will give U.S. agriculture exports a competitive advantage over other nations a competitive advantage over other nations because trade barriers the United States has because trade barriers the United States has faced will be eliminated, allowing what will faced will be eliminated, allowing what will eventually be free entry of U.S. products -- eventually be free entry of U.S. products -- entry that will not be afforded to other entry that will not be afforded to other countries like the European Union, Canada countries like the European Union, Canada and Brazil.and Brazil.

The other sideThe other side Some skeptics of the CAFTA-DR argue Some skeptics of the CAFTA-DR argue

the agreement will kill the U.S. sugar the agreement will kill the U.S. sugar industry by bringing in foreign sugar. industry by bringing in foreign sugar.

The additional access to the U.S. market The additional access to the U.S. market for sugar producers in the region amounts for sugar producers in the region amounts to only one and a half teaspoons per week to only one and a half teaspoons per week for every American. That translates to for every American. That translates to about 1.5 percent of domestic U.S. sugar about 1.5 percent of domestic U.S. sugar production.production.

Increased sugar imports from the CAFTA-Increased sugar imports from the CAFTA-DR nations would amount to less than DR nations would amount to less than one-quarter of 1 percent of total trade with one-quarter of 1 percent of total trade with the region. In all, the U.S. sugar industry the region. In all, the U.S. sugar industry will experience approximately an $80.5 will experience approximately an $80.5 million negative impact on an approximate million negative impact on an approximate $2.1 billion domestic industry. Overall, $2.1 billion domestic industry. Overall, CAFTA-DR will provide a net $1.35 CAFTA-DR will provide a net $1.35 billion positive impact to the rest of billion positive impact to the rest of American agriculture.American agriculture.

Even with that minimal impact to the sugar Even with that minimal impact to the sugar industry, there are safeguards in place. The industry, there are safeguards in place. The agreement includes a provision allowing the agreement includes a provision allowing the U.S. government to shut off imports of U.S. government to shut off imports of CAFTA-DR sugar if it harms the U.S. sugar CAFTA-DR sugar if it harms the U.S. sugar industry. Further, the U.S. will continue to industry. Further, the U.S. will continue to apply tariffs on all CAFTA-DR sugar imports apply tariffs on all CAFTA-DR sugar imports exceeding quota amounts exceeding quota amounts

Yuma FB drives to keep ag Yuma FB drives to keep ag equipment on roadways equipment on roadways

Yuma FB, DPS, and ADOT Yuma FB, DPS, and ADOT are working toward a are working toward a solution to move farm solution to move farm equipment more safely on equipment more safely on the roadways. the roadways.

DPS is concerned that farm DPS is concerned that farm equipment cannot move at equipment cannot move at normal roadway speed with normal roadway speed with traffictraffic

DPS is trying to restrict DPS is trying to restrict farm machinery from using farm machinery from using I 8, which is the major route I 8, which is the major route through Yumathrough Yuma

Farmers are willing to use safer alternative roadway if Farmers are willing to use safer alternative roadway if one existedone existed

ADOT received grant $ to upgrade side roads with ADOT received grant $ to upgrade side roads with guardrails for regular motorists, which narrowed the guardrails for regular motorists, which narrowed the roads making them more dangerous for farm roads making them more dangerous for farm equipment equipment

It is easier and faster for farmers to move their It is easier and faster for farmers to move their equipment on roadways than to disassemble them and equipment on roadways than to disassemble them and move them on a truck (disassembly takes time and $) move them on a truck (disassembly takes time and $)

What farmers and ranchers are What farmers and ranchers are supposed to dosupposed to do

Use reflective tape on widest part of tractor Use reflective tape on widest part of tractor Have flashing lights and SMV sign Have flashing lights and SMV sign Avoid rush hr. Avoid rush hr. When moving several pieces of equipment, When moving several pieces of equipment,

spread them out so traffic can passspread them out so traffic can pass Remember 5 car ruleRemember 5 car rule Travel in right lane Travel in right lane

Questions? Questions?

Jen: Jen: joseland@azffa.orgjoseland@azffa.org Jenna: Jenna: jclark@azffa.orgjclark@azffa.org