U.S. Cattle Industry Supports New Trade Agreements with Central America

Washington, D.C. (December 17, 2003) – Trade officials have come to an agreement in the final round of trade negotiations between the U.S. and the Central American countries of El Salvador, Guatemala, Honduras and Nicaragua. Negotiations began on January 27, 2003. The agreement will offer immediate access for high-quality U.S. beef exports into these four countries, with all tariffs on U.S. beef eventually phasing out to zero.

“This is a great deal for the U.S. cattle industry,” says Idaho rancher and NCBA President Eric Davis. “We asked the U.S. government to fight for trade initiatives that reduce barriers to access for U.S. beef, and that’s exactly what we are getting with this new agreement.”

NCBA has followed the progression of these talks, working with Central American cattlemen associations and government officials. The new agreement, negotiated by the Office of the U.S. Trade Representative (USTR), offers new market opportunities for U.S. agriculture.

“The tourist and travel industry is thriving in Central America, and these hotels and restaurants are key to growing this market for U.S. beef,” explains Michelle Reinke, NCBA’s manager of Trade Policy. “Through this agreement, U.S. cattle producers will have an excellent opportunity to expand high quality U.S. beef exports to the region immediately, on a duty-free basis.  It also provides for a phase out of duties applied to other U.S. beef products over the course of the transition period.”

“Our negotiators in Washington D.C. have done their job representing the interests of our members, pushing for increased market access in a comprehensive, commercially-viable trade agreement,” says Davis. ”We look forward to Congress doing their job and making this deal official.”

The Central American Free Trade Agreement was scheduled to conclude following this final round of negotiations.  Costa Rica is not party to the agreement at this time, but their negotiators are said to be going home to consult with fellow leaders before making a final decision about joining. Over the next several months, USTR plans to bring the Dominican Republic into the agreement as well and is scheduled to present the entire package to Congress as one agreement some time next year.

“We will continue to support this agreement, as it stands now, on its journey through the approval process in the U.S. Congress,” says Davis. “U.S. cattlemen are proud to produce the best cattle, providing the best beef in the world. We are eager to expand opportunities to export our well-regarded, high-quality U.S. beef across the globe.” 

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