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  Release No. 0124.05
Contact:
Ed Loyd (202) 720-4623

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  Transcript of remarks by Agriculture Secretary Mike Johanns regarding The Central American-Dominican Republic Free Trade Agreement - Washington D.C.- April 11, 2005
 

SEC. MIKE JOHANNS: "Mr. Ambassador [Allen Johnson], thank you very much for those comments. I think in all of the times that I've talked about CAFTA I have failed each time to thank you for your efforts. As I was governing the state of Nebraska, one of the things that I heard over and over, and I've heard it now as Secretary, Mike, do everything you can to level the playing field for agriculture in trade agreements. Well, Mr. Ambassador, you have done this. And may I lead a round of applause for your efforts?

[Applause.]

"What a remarkable coalition that is here with us today. This is a very clear sign of their commitment, and it is a sign of the effort that they are going to put in to bring CAFTA to the finish line. The fact that you have come together to form this coalition of more than 50 ag, commodity and livestock groups, speaks volumes about how badly you want CAFTA to be approved.

"Today you are making a very clear statement. The statement is, CAFTA is good for America's farmers, it is good for America's ranchers, and it's good for the entire American economy -- and we are going to fight to get it approved.

"I want you to know that you have a strong leader in our President Bush. Many members of this Administration have been working tirelessly to promote the benefits of CAFTA. Again I say thank you to the Ambassador, but I also want to say thank you to the Under Secretary J. B. Penn who has also worked so diligently on getting CAFTA put together.

"They also have many friends at the State Department and Commerce Department who are helping us in this effort.

"This President is committed to CAFTA because he knows the same thing that you know, and that is that CAFTA is good for American agriculture. So you know it, the President knows it, and I know it. What this coalition can do now is make sure that the world understands this message.

"This coalition has the power to spread the word about how exactly agriculture will benefit from the approval of CAFTA. You have the power to let the world know that your memberships are made up of real men and women across this country who favor CAFTA. You have the power; so let's not let this opportunity go by.

"Our farm economy, ladies and gentlemen -- it's experiencing some historic times. Records in farm income, farmer's equity, ag exports and production of key commodities. There is no doubt that trade is a major reason for this success, and there is even less doubt that for our success to continue into the future we must do everything we can to market and sell our products to the rest of the world.

"Export sales last year represented 27 percent of the total gross receipts. As has been mentioned, 96 percent of the world's consumers live outside of the United States. So it is clear that continued trade opportunities for our farmers and ranchers isn't a luxury; it's an absolute necessity.

"That is why it is so important that you make your voices loud and clear, and you understand the important opportunities that are here. CAFTA nations already have access to the U.S. market. It is a point. CAFTA nations, 99 percent of their products can now enter the United States duty free under other agreements. But you, the men and women that you represent don't have the same access to the CAFTA markets.

"Currently, Central American countries and the Dominican Republic are allowed to charge very high tariffs limited only by WTO commitments, which will allow the tariffs to go even higher. Think of these figures-- 22 percent in Costa Rica, 41 percent in El Salvador, 40 percent in the Dominican Republic, 49 percent in Guatemala, 35 percent in the Honduras, and 60 percent in Nicaragua.

"Now to anyone, does that sound fair? It sure doesn't to me.

"What is remarkable is that even with those unfair tariffs, American ag products have been going into these countries. U.S. ag exports to the CAFTA nations totaled $1.8 billion in 2004. Imagine how much better we could do if the price of American products weren't inflated artificially.

"If we pass CAFTA, you won't have to imagine that any more. It will be reality. Under CAFTA with those markets opened on a fair and an equitable basis, we could well double U.S. export sales to these countries. CAFTA-DR nations have a total population of 44 million. It is a great market for our products.

"The consequences of letting this opportunity go by are serious, they are significant. Our credibility would be harmed, and it is our ability to negotiate other trade agreements that would not only benefit American agriculture, but it also includes significant impact relative to the Doha Round.

"Increased trade offers Central America more opportunity for economic growth, which in turn translates into political stability.

"So we want to do everything we can in the weeks ahead to bring CAFTA to the finish line. We've got the right coalitions, and we've got people that are willing to go to bat and work hard to make this happen.

"Let me wrap up my comments by saying a very special thank you to this coalition. We appreciate your partnership. Thank you very much."

[Applause.]

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