Shippers applaud signing of U.S.-Central America trade agreement
Industry groups praised the signing of the U.S.-Central America free trade agreement at the Organization of American States in Washington on May 28.
The trade agreement includes five Central American countries: Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.
“Today’s action in an important step toward expanded trade with Central America and gives U.S. businesses better access to a large and growing export market,” said U.S. Chamber of Commerce president Thomas Donohue in a statement Friday.
According the chamber, trade between the United States and the five Central American countries surpassed $23 billion in 2003. When the Dominican Republic is included, U.S. trade with the region will totals $32 billion. Combined, these five countries represent the second largest market for U.S. goods and services in Latin America, behind Mexico and ahead of Brazil, the chamber said.
“This agreement will solidify our position as the preferred supplier of soybeans and soybean products to these Central American nations, and open new opportunities for exports of U.S. livestock products,” said Ron Heck, president of the American Soybean Association.
The trade agreement, once approved by Congress, immediately eliminates tariffs imposed on U.S. exports of soybeans, soybean meal and soybean flour. Tariffs on U.S. exports of soybean oil bound for these countries will be reduced over a 12 to 15 year period. The association believes these actions will help to keep out competitive soybean products in this market.
U.S. trade negotiators are still working out the details on some free-trade agreement aspects for the Dominican Republic.
“We urge the Bush administration to sign an additional agreement with the Dominican Republic this summer and to send the combined agreement to Congress for approval as soon as possible,” Donohue said.