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Press Release Source: Food Trade Alliance

Food Trade Alliance Endorses CAFTA-DR: Agreement Will Open Markets for U.S. Food Exports
Tuesday May 17, 5:03 pm ET

WASHINGTON, May 17 /PRNewswire/ -- The Food Trade Alliance, composed of U.S. companies and trade associations from all major industries that purchase food and food products, today urged Congress to approve the Central American and Dominican Republic Free Trade Agreement (CAFTA-DR), calling the agreement a "win-win" for U.S. consumers, consuming industries, producers and exporters, and an important step in lowering food trade barriers around the world.

"CAFTA-DR will remove trade barriers in Central America for U.S. food exports -- these barriers inhibit U.S. companies trying to increase sales in these countries," said Clayton Yeutter, former U.S. Secretary of Agriculture and U.S. Trade Representative and Senior Advisor to the Food Trade Alliance. "CAFTA-DR represents an important step in lowering food and agricultural barriers worldwide and will set the stage for negotiating the lowering of food trade barriers at the World Trade Organization (WTO) during the Doha round."

CAFTA-DR would eliminate trade barriers between the U.S. and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. The agreement enjoys broad support among U.S. consuming industries, but well- financed single-interest groups, such as the sugar industry, are spending millions of dollars to defeat it.

"Domestic sugar interests appear to oppose the agreement just as a matter of rigid protectionism," continued Yeutter. "According to the U.S. Farm Bureau, increased sugar imports resulting from CAFTA-DR will amount to only 1.5 percent of domestic U.S. sugar production, or approximately an $80.5 million negative impact on a $2.1 billion domestic industry -- hardly the threat to domestic sugar production the industry is claiming."

"How can we urge countries around the world to take bold steps toward bringing down global trade barriers if Congress won't approve an agreement that will bring substantial benefits to the U.S.?" asked Yeutter. "Lawmakers need to remember that, according to the U.S. Department of Agriculture, each U.S. farm export dollar earned stimulates another $1.61 in business activity. We need to set the stage for reform to make reciprocal changes possible by our trading partners to open their markets to America's leading farm and processed food products."

"Our actions speak louder than our words. If the United States hopes to open markets around the world, reduce the cost of food worldwide, and help developing countries better the lives of their people, U.S. leadership in the Doha round of WTO talks is absolutely necessary. Approving CAFTA-DR is a crucial step in this process and the Food Trade Alliance will do its best to convince Congress that the agreement is in the best interests of the U.S. economy and the American people," concluded Yeutter.

The Food Trade Alliance was created to raise awareness among policymakers and the public of the importance of worldwide food and agricultural trade reform. Its members include Consumers for World Trade, National Retail Federation, National Restaurant Association, Food Marketing Institute, National Council of Chain Restaurants, National Fisheries Institute, Consuming Industries Trade Action Coalition and other trade associations and companies representing the food processing, restaurant, retail and other sectors.


Source: Food Trade Alliance