Expanded Free Trade of the Americas Agreement (FTAA) Should Parallel Broader Negotiations

Washington (August 22, 2001) – An expanded Free Trade of the Americas Agreement (FTAA) should parallel multi-lateral WTO negotiations to keep South American beef producing countries aligned with US efforts to increase access in Asia and Europe, according to the National Cattlemen’s Beef Association (NCBA).

In a letter to the Office of the United States Trade Representative (USTR), NCBA president and Glasgow, Montana cattle rancher Lynn Cornwell said, “We have felt all along that problems with the North American Free Trade Agreement (NAFTA) should be resolved and markets should be allowed to come into equilibrium before additional countries were added to the mix.”

NCBA trade policy supports addressing trade issues in the context of comprehensive multi-lateral trade negotiations, not only as a part of a regional FTAA.

“The US beef industry has worked hard to promote beef exports, which now account for more than 12 percent of the value of wholesale beef sales,” said Cornwell. “On a tonnage basis, we export nearly 10 percent of what we produce.”

The market for exports of beef and beef variety meats has expanded, from approximately $500 million dollars 20 years ago to $3.6 billion today -- more than a seven-fold increase.

“Many FTAA countries are major beef exporters while many major beef importers are in Asia and Europe,” said Cornwell. “The United States is currently the least restricted and largest beef import market in the world. We will not unilaterally increase access to the US beef market without comparable increases in other markets for US beef. Comprehensive multi-lateral WTO negotiations are the most effective vehicle for achieving this balance."

The NCBA letter also addressed environmental regulations and with the need for science-based regulations to protect US herd health and how they relate to FTAA.

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Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.