NFU: CAFTA will hurt farmers
The Central American Free Trade Agreement (CAFTA), the first major US trade pact in 11 years, was discussed for the first time during a Senate hearing on Wednesday April 13.The discussion, which had been delayed for months, is expected to continue throughout spring.
Despite its support by Agriculture Secretary Mike Johanns, according to
"We've heard these promises of prosperity of trade agreements in the past," said Frederickson. "For a variety of reasons they never seem to come true. I do not see what makes this one any different. CAFTA resembles failed trade policies of the past that further encourage a 'race to the bottom' for producer prices.
"CAFTA proponents overestimate the agreement's potential benefits, often ignoring the fact that nations included in CAFTA represent small populations with low purchasing power."
CAFTA countries have a combined population of approximately 31 million people with limited incomes with which to purchase agricultural products.
In fact, many key
"This agreement also fails to address major issues that distort fair trade such as labor, environmental regulations and currency," Frederickson added. “NFU supports trade that benefits agricultural producers in all countries and cannot support agreements like CAFTA that trade away our agricultural markets for no visible returns to American farmers and ranchers.”
The
