The American Soybean Association (ASA) is pleased that last night the U.S. House of Representatives approved an historic trade agreement between the United States, the Dominican Republic, and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua (CAFTA-DR). It was a close 217-215 vote, and ASA thanks the Representatives that supported CAFTA-DR, which economists estimate could boost U.S. agricultural exports by $1.5 billion when fully implemented.

“We congratulate the House for joining the Senate in passage of CAFTA-DR,” said ASA President Bob Metz, a soybean producer from West Browns Valley, S.D. “This is great news for U.S. soybean farmers because CAFTA-DR will solidify our position as the preferred supplier of soybeans and soybean products to these Central American nations.”

CAFTA-DR would immediately eliminate tariffs on all soybeans and soybean products with the exception of refined soybean oil, where the tariff will be phased out over 15 years in equal annual cuts.

“CAFTA-DR will also benefit U.S. livestock and poultry producers,” Metz said. “The agreement provides the U.S. with sizeable quotas for exporting pork duty-free. These quotas will increase each year until they are eliminated in year 15.”

The six CAFTA-DR countries represent a growing region of 45 million people that imported $264 million in U.S. soy product during 2004.