Thread: Alfa's board backs CAFTA with prospect for lower tariffs

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Alfa's board backs CAFTA with prospect for lower tariffs
Tuesday, June 28, 2005
SHERRI C. GOODMAN
News staff writer

The Alabama Farm Federation's board of directors on Monday passed a resolution supporting the Central American Free Trade Agreement, saying it would level the playing field for the state's farmers and agricultural businesses.

"In terms of advantages of CAFTA for Alabama, it is clear that the lowering of high tariffs in the Central American region would benefit several Alabama products," Alfa President Jerry Newby said.

He said Alabama exports $381 million in agricultural products a year, representing about 11 percent of the state's farm cash receipts.


The agreement, which is backed by President Bush, would phase out or eliminate tariffs on products from the United States that are sold in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. Those countries' exports to the United States already are duty-free.

CAFTA would be particularly beneficial to the state's poultry, beef, pork, peanut and cotton farmers, according to the group. Alabama poultry exports now face duties as high as 164 percent in Central American countries, Alfa said.

Earlier this year a lobbyist for Alfa said the group was still evaluting its position but at that time did not support the measure because it could have adverse effects on some commodities, such as fruits and vegetables.

Alabama's commissioner of agriculture, Ron Sparks, has said he opposes CAFTA because of the risk of job losses. Sparks has said NAFTA, a similar deal that opened trade in North America and resulted in the elimination of hundreds of jobs in Alabama, left him wary of such agreements.

Members of Alabama's congressional delegation have also expressed reservations because of the potential for job losses.

E-mail: sgoodman@bhamnews.com

Honestly, how do they think that they are going to get so much trade from CAFTA? Their GDP is about the same as the state of Connecticut. The only benefits come to Big Agribusiness, not to the small farmers or business owners and not enough to give away our borders.