Congressman John T. Salazar
Defending Rural Values
Third District of Colorado

CONGRESSMAN SALAZAR: "CAFTA IS ALL HAT, NO CATTLE"

CAFTA Offers Little Benefit to Beef Industry, Agriculture

WASHINGTON, DC - Today, Congressman John Salazar (CO-3) discussed how the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) will provide little benefit to local farmers and ranchers.

"CAFTA is all hat, no cattle," said Salazar. "The publicity that CAFTA will open up new markets to U.S. exports doesn't hold up against the reality that local farmers and ranchers won't see the benefit. Our producers already own most of the agricultural markets in these countries."

Salazar referenced a United States International Trade Commission study which states that U.S. production of corn and rice are not likely to increase significantly under CAFTA. The report further states that CAFTA will promote job loss in key agricultural sectors, most notably in the sugar industry, which prompted the Colorado Farm Bureau's opposition to the trade agreement.

Advocates have purported that CAFTA will bring a substantial benefit to the U.S. beef industry, an argument that is not substantiated by the details of the agreement. The agreement only allows duty free access for prime and choice cuts of meat. With 40% of the general population of CAFTA nations earning less than $2 per day, few people will be looking to buy T-bones.

"The agreement offers little benefit to Colorado agriculture, while risking job loss throughout the nation," said Salazar. "When farmers are already struggling, we don't need a trade deal that will give rural communities the short end of the stick. Now is the time to strengthen U.S. jobs, not eliminate them."

The following is the link to the United States International Trade Commission study:

http://hotdocs.usitc.gov/docs/pubs/2104f/pub3717.pdf