The U.S. and the four Central American countries of El Salvador, Guatemala, Honduras and Nicaragua have signed a Central America Free Trade Agreement (CAFTA), announces the National Pork Producers Council (NPPC).
“The Central America nations wanted to exclude pork from the CAFTA, but our trade ambassadors, supported completely by President Bush and members of Congress on both sides of the aisle, did not let us down,” remarks Jon Caspers, NPPC president.
|Country||Initial Quota (tons)||Yearly Quota Growth Rate|
|El Salvador||1650||10% (165 tons)|
|Guatemala||4345||5% (217 tons)|
|Honduras||2200||7.5% (165 tons)|
|Nicaragua||1100||10% (110 tons)|
Under CAFTA, there will be tariff rate quotas (TRQs) for U.S. pork products to be exported to each of the four countries (Table 1). The TRQs will increase yearly until the 15th year of the agreement, when all pork trade with these countries will be duty-free.