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AMERICAN
TRADE NEGOTIATIONS
WORRY SUGAR INDUSTRY
Publication:
Naples Daily News
Printed: Tuesday, December 9, 2003
Wrtitten by: Laura Layden |
As U.S. and Central American leaders sat down Monday
to continue
negotiations for a new free trade pact, a local sugar grower felt anxious
and afraid.
Key players fear the U.S. sugar industry may be sacrificed in the agreement,
which would tie the U.S. economy with smaller ones in five Central American
countries.
"You've got to remember the U.S. trade representative's job is to
negotiate
a trade deal and I just hope they don't trade away the American sugar
farmers just to get a trade deal," said Robert Coker, a vice president
with
U.S. Sugar Corp. in Clewiston.
Not everyone is sympathetic. There are groups working to make sure sugar
is
left on the table in this week's negotiations -- including Florida
environmentalists, who are concerned about the industry's impact on the
Everglades.
Producers of other U.S. agricultural commodities, such as pork, are also
lining up against the sugar industry in this battle. They fear if sugar
is
excluded from negotiations this week, they won't get more access to the
Central American markets. Sugar is a priority for many of the countries
involved in negotiating the regional agreement.
The negotiations for a Central American Free Trade Agreement come on
the
heels of a meeting on the Free Trade Area of the Americas agreement in
Miami
last month, which some viewed as a failure. The FTAA is a much broader
agreement that would unite 34 countries in the Western Hemisphere, creating
the largest trading bloc in the world.
While Coker has heard assurances from the Bush administration that the
U.S.
sugar industry will be protected in the smaller trade pact with Central
America, he's not convinced. He said the message out of the U.S. trade
representative's office is different. There are talks of lowering the
U.S.
tariffs on sugar from the five Central American countries, which would
enable them to flood this country with cheap imports, Coker said.
"They are going to be able to dump sugar from around the world," he
said.
Also, quotas could be lifted in the new agreement, allowing the Central
American countries to ship more than twice the amount of sugar they can
now
to the United States. That would be a major blow to the U.S. industry,
Coker
said.
The five Central American countries involved in the negotiations are
El
Salvador, Guatemala, Nicaragua, Honduras and Costa Rica. Together, these
countries have the ability to export 3 million tons of sugar to the United
States. That's enough to "wipe out Hawaii, Florida, Texas and Louisiana
sugar," Coker said.
There's already a surplus of sugar in the United States and new export
opportunities are limited for U.S. growers because of trade barriers
in
other countries, he said.
"It would be a shame if they provided additional access for those
Central
American countries at the expense of thousands of American jobs and jobs
right here in Florida," he said. In Florida, the sugar industry
provides
about 25,000 jobs. Nearly half of them are generated by United States
Sugar.
"Florida produces more sugar than any other state in the nation
-- and to
trade away the thousands of farm jobs and farm family jobs here in Florida
just to get a trade agreement, I wouldn't be very proud of that scalp
on the
wall," Coker said.
While U.S. sugar producers are pushing the Bush administration to take
them
out of this week's negotiations, other groups are lobbying hard to make
sure
that doesn't happen. Some are doing it in the name of "fair trade."
"Sugar has to be on the table if the U.S. is going to gain greater
access to
foreign markets for our agricultural commodities," said Jeff Nedelman,
a
spokesman for the Coalition for Sugar Reform in Washington, D.C. "That
has
been made abundantly clear. The U.S. sugar growers want a virtual monopoly
on supply. We want free trade and fair trade."
The coalition, which is fighting to include sugar in all free trade
agreements the United States is negotiating, represents Florida
environmentalists, watchdogs of government spending and others.
They have found an unlikely ally in other U.S. producers.
For more than a decade, producers of government-subsidized agricultural
commodities have hung together. But that is changing with the increasing
international demands for more access to the U.S. market, Nedelman said.
"There is a huge crack now because the pork producers and the soybean
producers and the wheat growers and corn producers now understand very,
very
clearly that should the U.S. sugar market remain closed they are going
to be
the international losers," he said. "They will pay the price."
Nedelman said he doesn't buy the sugar industry's arguments for why the
tariffs should remain. He said lifting quotas and tariffs on U.S. sugar
may
hurt some producers in this country, but he doesn't believe it will wipe
out
the industry here. He says it's a "case of crying wolf."
"People who are growing fence post to fence post on marginal land
would find
something else to do," Nedelman said.
U.S. sugar producers have another argument for why they should be excluded
from this week's negotiations. They say reductions in sugar tariffs should
be negotiated at the global level through the World Trade Organization
instead of by country or region. That's the only way to be fair to everyone,
they say.
"Sugar is produced in 120 nations around the world -- and that is
why we
have advocated for a decade that we reform sugar and reduce tariffs on
imports at the WTO," Coker said. "That's the only way you can
be on a level
playing field."
Nedelman characterizes U.S. sugar producers' argument that tariffs be
dealt
with at the WTO level as a "delay tactic." More global agreements
have
become harder to finalize, with WTO talks breaking down in Cancun in
September.
The agreement with the Central American countries has taken on greater
importance as talks of more global agreements have slowed.
The CAFTA agreement has been in the works for 11 months. It seemed to
gain
momentum after the WTO talks collapsed in Cancun. And it got another
boost
in Miami last month during negotiations for a hemispherewide FTAA. It
was
then that U.S. Trade Representative Robert Zoellick announced the CAFTA
agreement was moving forward and that he planned to meet the Dec. 31
deadline he set earlier this year.
While the Central American Free Trade Agreement seems to pose the biggest
threat to the sugar industry in Florida, there are other agricultural
producers in the state keeping a close eye on this week's talks. The
Central
American countries don't produce many oranges, but citrus growers are
still
concerned about what the agreement will look like. It could set a precedent
for future trade pacts, such as the FTAA, that have a greater potential
to
harm their industry.
Florida's citrus growers argue their industry will be wiped out if the
U.S.
tariff on Brazilian orange juice is lifted under the FTAA.
Brazil is already the world's No. 1 orange juice producer, and the state's
growers say doing away with the tariff will only put them out of business
and create a monopoly that won't benefit consumers.
"I think the citrus industry is watching CAFTA with a great deal
of
interest," said Coker, who is also a vice president for Southern
Gardens
Citrus, one of the state's top citrus growers. "But the primary
concern that
citrus growers have deals with tariffs on orange juice out of Brazil.
That
is where their big concern is."
The state's vegetable growers are also following the CAFTA negotiations,
though they say the worst damage has already been done by the North American
Free Trade Agreement, which ties the U.S. economy to those of Canada
and
Mexico.
"We are watchful that the administration takes Florida's import-sensitive
crops into account when negotiating these sweeping trade deals," said
Ray
Gilmer, a spokesman for the Florida Fruit & Vegetable Association,
one of
the largest agricultural trade groups representing growers in the state.
Before NAFTA, Florida growers were given assurances their crops would
be
protected, but Florida farms suffered almost immediately after it took
effect.
"We've learned our lesson from the NAFTA experience and want to
remain as
engaged as possible and keep reminding administration officials that
Florida
crops cannot be ignored or discounted when it comes to negotiating these
trade accords," Golmer said.
Unlike last month's free trade talks in Miami, where Florida producers
had
the opportunity to mingle and meet with trade ministers, the CAFTA
negotiations going on in Washington, D.C., are more private. That has
Coker,
who was in Miami for the FTAA negotiations and who attended WTO trade
talks
in Cancun earlier this year, even more nervous. He said he expects U.S.
congressional representatives in the 17 states that produce sugar to
watch
the negotiations closely.
"This is going to be backroom negotiations," Coker said. "So
the rest of us
will sit out in the hallway and keep our fingers crossed and pray."
Copyright 2003, Naples Daily News. All Rights Reserved. |
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