http://www.cattlenetwork.com/content.asp?contentid=6636

7/26/2005 3:56:00 PM

R-CALF Cattle Update: Statement on Proposed CAFTA-DR


(Billings, Mont.) – The following statement regarding the proposed U.S.-Central American-Dominican Republic Free Trade Agreement (CAFTA) should be attributed to R-CALF USA Director of Government Relations Jess Peterson:

“This week will be pivotal for U.S. cattle producers. R-CALF USA is encouraged by Congress’ growing awareness of the inadequacies of CAFTA. A vote in opposition to CAFTA is a vote in support of domestic cattle producers, and a step in the right direction toward redefining U.S. trade policy.

“R-CALF USA opposes CAFTA because it undermines the ability of U.S. cattle producers to compete, and it sets a poor precedent for future trade agreements like the Free Trade Area of the Americas (FTAA) Agreement, which is planned with South American nations. Also, CAFTA does not address the global trade distortions the U.S. cattle industry continues to face.

“Under the Trade Promotion Act of 2002 (TPA), cattle and beef are required to be classified as perishable and cyclical products. Because of this provision, a special safeguard is put into place to ensure that rising imports and collapsing exports do not impede upon U.S. cattle producers’ ability to compete globally. CAFTA does not permit the United States to have any special safeguards against beef and live cattle import surges, but it does allow Costa Rica and Nicaragua to impose special safeguards against U.S. beef exports. Denying U.S. cattle producers special safeguards is a move away from the U.S.-Australian Free Trade Agreement prototype and undermines U.S. cattle producers’ ability to compete in a global marketplace.

“CAFTA nations have a combined cattle herd size nearly as large as the Canadian cattle herd. Currently, these countries do not have strong cattle industries. However, R-CALF USA’s fact-finding team sent to Central America to research the impact of CAFTA concluded that with an increased export market, these countries would upgrade their herds and increase their slaughter capacity. Those improvements would enable CAFTA countries to meet their own domestic demands for beef, as well as increase beef exports to the United States.

“This particular agreement also allows beef produced in nations like Brazil and Argentina to be shipped north to be slaughtered in CAFTA countries. Trade agreements need to have a “born-and-raised� standard for country of origin. Instead, CAFTA-DR gives preferential treatment for beef based only on where an animal is slaughtered.

“R-CALF USA will continue to work for trade agreements that are good for independent U.S. cattle producers. R-CALF USA also pledges to work with the Administration to develop approaches to trade agreements that will be a win for both U.S. cattle producers and our trading partners. We cannot support agreements that create bad precedents for future free trade agreements.

“R-CALF USA is proud to support the bipartisan efforts of U.S. Rep. Sherrod Brown, D-Ohio, and U.S. Rep. Walter Jones, R-N.C., who brought together the strong coalition of groups opposed to CAFTA, represented at today’s news conference in Washington, D.C.�