The American Soybean Association (ASA) applauds the conclusion of the Central American Free Trade Agreement (CAFTA) negotiations. If approved by the U.S. Senate, CAFTA will improve and enhance trade opportunities between the United States and the Central American countries of El Salvador, Guatemala, Honduras and Nicaragua. These countries currently make up about a $100 million market for U.S. soybean meal and soybean oil.

“On behalf of U.S. soybean producers, I congratulate the Bush Administration for a job well done,” said ASA President Ron Heck. “This agreement will solidify our position as the preferred supplier of soybeans and soybean products to these Central American nations. For that we are grateful.”

CAFTA would immediately eliminate tariffs imposed on the exportation of U.S. 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. These actions are expected to improve and facilitate the exportation of U.S. soybeans and soybean products to CAFTA countries, which may assist in keeping out competitive soybean products.

Costa Rica was to have been a beneficiary of CAFTA. However, due to issues unrelated to agriculture, that country pulled out of the final negotiations. It is expected that efforts to bring Costa Rica and other Latin American countries into CAFTA will commence in the near future. The additional countries include Colombia, the Dominican Republic and Panama.

The Dominican Republic is a major customer of U.S. soybean products, purchasing large quantities of soybean meal and soybean oil. U.S. exports of these two soybean products to the Dominican Republic were valued at $88 million in 2002.

“Eliminating tariffs and trade barriers that limit U.S. soybean exports is a top priority of the ASA. CAFTA is good for U.S. soybean farmers, and will hopefully get even better in the weeks and months ahead. We look forward to working with the Administration to bring these other Latin American countries like the Dominican Republic into CAFTA,” concluded Heck.