USMEF letter directed to the Federal Maritime Commission (FMC) on the Westbou...
U.S. Signs Free Trade Agreement with Chile,
Sets Table For Other FTAs
While the newly-signed free trade agreement (FTA) between the United States and Chile is indeed beneficial to U.S. farmers, the ground-breaking trade accord's most important result may prove to be its influence toward the passage of a Central American Free Trade Agreement (CAFTA) and a comprehensive Free Trade Agreement of the Americas (FTAA).
The U.S. FTA with Chile was signed on June 6 in Miami by U.S. Trade Representative Robert Zoellick and Chilean Foreign Minister Soledad Alvear and the Bush Administration is expected to submit the agreement to Congress for ratification this week. The pact is historic as the first free trade agreement between the U.S. and a South American country. It also removes important trade barriers that previously restricted U.S. meat exports to Chile; pork tariffs will now be removed entirely, and beef products will be tariff-free within four years. All tariffs and quotas will be eliminated within 12 years.
USMEF Trade Development Vice President Richard Fritz and USMEF Western Hemisphere Vice President Homero Recio agree that U.S. meat exporters should see some benefit from the FTA with Chile - especially those selling U.S. pork.
“Value-added U.S. pork products are very competitive in the Chilean market, and the total elimination of pork tariffs will really help our exports,” said Recio. “USMEF plans to provide its members with an in-depth market snapshot of export opportunities in Chile by year's end. We'll help U.S. exporters target prime accounts and specific markets with sales potential.”
But Fritz and Recio both evaluate the Chilean FTA's expanded market opportunity for U.S. red meat as secondary to the greater significance of the agreement's implications for CAFTA and FTAA.
“The Chilean FTA is more significant to U.S. meat exporters as a potential precursor to the passage of CAFTA, which could provide an even greater market opportunity for U.S. beef, pork and lamb exports,” Fritz added. "The fact that Chile has accepted FSIS certification and removed virtually all tariffs is very encouraging for the other FTAs." Deputy U.S. Trade Representative Peter Allgeier commented on June 11 that the Bush Administration sees Chile's FTA as a “model” but not a “photocopy” for future trade agreements with the five Central American countries involved in CAFTA negotiations.
“Chile is a good short-term win for U.S. exporters, but those broader FTAs are the true long-term prizes on which to focus,” commented Recio.
You may see the full USMEF news release regarding the recent U.S.-Chile FTA at: /TradeLibrary/News03_0618a.asp
U.S. Signs Free Trade Agreement with Chile,
Sets Table For Other FTAs
While the newly-signed free trade agreement (FTA) between the United States and Chile is indeed beneficial to U.S. farmers, the ground-breaking trade accord’s most important result may prove to be its influence toward the passage of a Central American Free Trade Agreement (CAFTA) and a comprehensive Free Trade Agreement of the Americas (FTAA).
The U.S. FTA with Chile was signed on June 6 in Miami by U.S. Trade Representative Robert Zoellick and Chilean Foreign Minister Soledad Alvear and the Bush Administration is expected to submit the agreement to Congress for ratification this week. The pact is historic as the first free trade agreement between the U.S. and a South American country. It also removes important trade barriers that previously restricted U.S. meat exports to Chile; pork tariffs will now be removed entirely, and beef products will be tariff-free within four years. All tariffs and quotas will be eliminated within 12 years.
USMEF Trade Development Vice President Richard Fritz and USMEF Western Hemisphere Vice President Homero Recio agree that U.S. meat exporters should see some benefit from the FTA with Chile - especially those selling U.S. pork.
“Value-added U.S. pork products are very competitive in the Chilean market, and the total elimination of pork tariffs will really help our exports,” said Recio. “USMEF plans to provide its members with an in-depth market snapshot of export opportunities in Chile by year’s end. We’ll help U.S. exporters target prime accounts and specific markets with sales potential.”
But Fritz and Recio both evaluate the Chilean FTA’s expanded market opportunity for U.S. red meat as secondary to the greater significance of the agreement’s implications for CAFTA and FTAA.
“The Chilean FTA is more significant to U.S. meat exporters as a potential precursor to the passage of CAFTA, which could provide an even greater market opportunity for U.S. beef, pork and lamb exports,” Fritz added. "The fact that Chile has accepted FSIS certification and removed virtually all tariffs is very encouraging for the other FTAs." Deputy U.S. Trade Representative Peter Allgeier commented on June 11 that the Bush Administration sees Chile’s FTA as a “model” but not a “photocopy” for future trade agreements with the five Central American countries involved in CAFTA negotiations.
“Chile is a good short-term win for U.S. exporters, but those broader FTAs are the true long-term prizes on which to focus,” commented Recio.
You may see the full USMEF news release regarding the recent U.S.-Chile FTA at: /TradeLibrary/News03_0618a.asp