EN 中文 DE FR عربى

U.S. Dairies Challenge Federal Push for Central America Free-Trade Agreement

USA 17.12.2024
Source: DairyNews.today
471 EN 中文 DE FR عربى
A delegation of U.S. farmers, including dairy producers, is heading to Washington this week to oppose the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA), arguing it disproportionately benefits large corporations while leaving American agriculture vulnerable.
U.S. Dairies Challenge Federal Push for Central America Free-Trade Agreement
freepik.com
“We’re not against trade,” said Joaquin Contente, president of the California Farmers Union. “But this agreement will only benefit big businesses at the expense of small and mid-sized producers.”

Concerns Over CAFTA’s Impact on U.S. Agriculture
CAFTA aims to reduce tariffs and promote trade between the U.S. and six Central American countries — Honduras, Costa Rica, El Salvador, Nicaragua, Guatemala, and the Dominican Republic. Proponents claim it will spur economic growth across the region, similar to the North American Free Trade Agreement (NAFTA) implemented in 1993.

However, critics like Contente and Kevin Abernathy, executive director of the California Dairy Campaign, warn the agreement could undermine U.S. agriculture by opening the domestic market to a flood of foreign products while offering limited benefits in return.

“This deal puts U.S. agriculture at risk,” Abernathy said. “It opens the world’s best market without ensuring protections or reciprocal advantages for American farmers.”

Opponents are particularly concerned about weaker food safety regulations in Central American countries, which they argue could expose U.S. consumers to risk.

“As a consumer, I’m deeply worried about food safety,” Abernathy said.

Potential for Exploitation
Delegates also caution that large multinational corporations could exploit CAFTA to bypass trade rules. Contente raised concerns about companies using Central America as a base to export products to the U.S. undetected.

“For example, a dairy company from New Zealand could ship milk to the U.S. via Central America without proper oversight,” Contente said.

Lobbying Efforts on Capitol Hill
The 12-member delegation plans to meet with lawmakers, including U.S. Representative Richard Pombo (R-Tracy), to express their opposition. Pombo’s office did not respond to requests for comment.

The delegation also includes George Davis, vice president of the Community Alliance with Family Farmers. Davis, a Sonoma County winemaker, echoed concerns that the agreement would undercut U.S. businesses.

“They’ll put us out of business,” Davis said, predicting an influx of lower-cost products from Central America.

Supporters Highlight Economic Benefits
Despite the pushback, CAFTA has garnered support from groups like the Hispanic Alliance for Free Trade, which this week called on Congress to approve the deal, citing potential economic benefits for both the U.S. and Central America.

As the debate continues, the fate of CAFTA remains uncertain, with American farmers making their case for more equitable trade policies that protect domestic agriculture.

Key News of the Week
January 2025
  • Mo
  • Tu
  • We
  • Th
  • Fr
  • Sa
  • Su
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
Calendar