USA - NPPC and State Pork Producer Associations Write Congress Encouraging Support of CAFTA-DR
Date of publication : 3/18/2005
Source : National Pork Producers Council (NPPC)
The National Pork Producers Council (NPPC), joined by 39 state pork producer associations, today sent a letter to every Member of Congress urging support of the Free Trade Agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua (CAFTA-DR).
CAFTA-DR was a major topic recently at the National Pork Industry Forum, NPPC’s annual meeting. The letter states, “…as a direct result of CAFTA-DR, U.S. pork exports to the region will grow by 20,000 tons on an annual basis. U.S. live hog prices will increase by thirty-six cents per hog, having a significant impact on the bottom line of U.S. producers.”
It concludes with an encouragement to Congress: “In short, the CAFTA-DR is a great deal for U.S. pork producers. Your support for CAFTA-DR will be most appreciated.” Many pork producers have already contacted their Members of Congress encouraging them to support CAFTA-DR. NPPC is now urging all pork producers nationwide to contact their Members of Congress on this vital issue. Actual text of the letter follows.
March 17, 2005
Dear Member of Congress:
As the national and state representatives of U.S. pork producers, we are writing to convey our strong support for prompt congressional consideration and passage of the Free Trade Agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua (CAFTA-DR).
The CAFTA-DR, if implemented, will establish large tariff rate quotas with zero in-quota duty rates on U.S. pork that will bring immediate benefits to our members. Once the agreement is fully phased-in, there will be no tariffs or quotas restricting U.S. pork exports to these six countries. A recent economic analysis conducted by Iowa State University economist Dermot Hayes shows that, as a direct result of CAFTA-DR, U.S. pork exports to the region will grow by 20,000 tons on an annual basis. U.S. live hog prices will increase by thirty-six cents per hog, having a significant impact on the bottom line of U.S. producers.
Trade agreements have been very good for our producers. U.S. exports of pork and pork products have increased by more than 337% in volume terms and more than 292% in value terms since the implementation of the NAFTA in 1994 and the Uruguay Round Agreement in 1995. Total exports increased every year in this period and exceeded 1,000,000 metric tons and $2.2 billion in 2004. In addition, recent trade deals with China, Taiwan, Russia, and Australia are generating significant new exports of U.S. pork. CAFTA-DR will create even more new opportunity for our producers.
In short, the CAFTA-DR is a great deal for U.S. pork producers. Your support for CAFTA-DR will be most appreciated.
Sincerely,
National Pork Producers Council