DR-CAFTA – ASA strongly supports ratification of the Dominican Republic – Central America Free Trade Agreement (CAFTA). CAFTA immediately eliminates tariffs on all soy products, and expands access for pork and poultry products to these six countries. The Dominican Republic is the fifth largest export market for U.S. soybean meal, valued at $73 million annually.

ASA opposes exempting import sensitive commodities from FTA negotiations because exemptions invite similar actions by U.S. trading partners, including excluding soy and livestock products from tariff reductions.

WTO – ASA supports a big outcome on market access in the WTO trade negotiations. Increased market access and economic growth worldwide are critical, not only for U.S. soybean producers, but for the U.S. poultry, pork, beef and dairy industries, which are our largest customers. It is critical that both developed and developing countries provide greater market access in the negotiations. ASA insists that any final agreement must subject net agricultural exporting developing countries like Brazil and Argentina to the same disciplines on domestic support, export subsidies, and market access as developed countries.

96% of the world’s consumers live outside U.S. borders. As a result, U.S. soybean farmers are heavily dependent on expanding demand for protein, vegetable oil, and livestock products in global markets. Fully 50% of annual U.S. soybean production is exported. Expanding demand and reducing tariffs and non-tariff barriers are key to preserving our opportunity for profitability.

DR-CAFTA: The U.S. concluded CAFTA with five countries (Costa Rica, Honduras, El Salvador, Guatemala, and Nicaragua) in 2003. The Dominican Republic joined in 2004. Ratification of CAFTA-DR is of critical importance to the entire U.S. agriculture sector. This agreement does not exclude any sector – a testimony to the U.S. commitment to trade liberalization and to the Doha Round of WTO trade negotiations. Members of the WTO are anxiously watching the CAFTA ratification process. There is no question that ratification of DR-CAFTA will strengthen the U.S. agenda in all other trade agreements, especially the WTO, while a failure would signal that the U.S. is not committed to the world trade agenda.

WTO: Soybean farmers are prepared to support reductions in trade-distorting domestic support provided they are accompanied by meaningful improvement in market access. Recent analysis indicates that U.S. soybean production and profitability would not be negatively impacted by further decoupling of U.S. farm program support.

The Doha round must address "Special and Differential" (S&D) treatment, which allows advanced developing countries, including major agricultural exporters such as Brazil, to exempt themselves from disciplines on domestic support that apply to developed countries. Effective criteria must be established for disciplining the policies of these "self-designated" developing countries in sectors where they are global competitors.