Major Trade Agreement to Give Cattle Producers New Export Market

Washington, D.C. (December 11, 2002) – The National Cattlemen’s Beef Association (NCBA) applauds the announcement that U.S. and Chilean officials have come to resolution on a comprehensive free trade agreement between the two countries. This decision comes after two years of complex negotiations with more than 200 trade negotiators.

“This FTA with Chile will do away with longstanding trade barriers on our exports. It cuts tariffs and opens markets for U.S. beef and beef products,” says Wythe Willey, president of NCBA. “For cattle producers, Chile is a prime candidate for increased export market opportunities. We are very pleased with the efforts by Ambassador Robert Zoellick and commend the hardworking negotiating teams from both countries.”

According to the office of the U.S. Trade Representative (USTR), about three-quarters of both U.S. and Chilean farm goods will be tariff-free within four years, with all tariffs and quotas phased out within 12 years. Both the European Union and Canada already have FTAs with Chile, but with this agreement U.S. farmers' access to Chilean markets will be as good or better. Beef and beef products are scheduled to gain duty-free treatment within four years.

“With this agreement, we will soon have preferential access to one of the world's fastest growing economies, open trade with no tariffs and streamlined customs procedures,” says Michelle Reinke, manager of trade policy at NCBA. “Chile is not a large cattle-producing nation, and they import a majority of their beef and beef products—a prime candidate for marketing top quality U.S. products.”

Zoellick and Chilean Foreign Minister Soledad Alvear are expected to sign the agreement and submit it to their Congresses for approval next year. The U.S. - Chile FTA will be the first comprehensive trade agreement between the United States and a South American country.  It also contains provisions new to any FTA, including customs procedures that will increase transparency and timeliness of customs procedures, while maintaining strong border security.  In addition, both sides are committed to continue working on resolving sanitary and phytosanitary issues, such as meat inspection and meat grading, said the USTR.

“This is just another example of why our members spent years fighting for the passage of trade promotion authority (TPA),” says Willey, a cattle producer from Cedar Rapids, Iowa. ”With TPA, U.S. cattlemen can stop watching everyone else around the world make trade deals, and have the power to start making our own.  Right now, we hardly export beef or beef products to Chile, and that’s because we have a disadvantage since competitors such as Canada, Mexico and the European Union all have free-trade agreements. The U.S.-Chile FTA will remedy this.”

###