Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America

This paper is a description and an analysis of trade liberalization under CAFTA. It shows that in the short run the impact of the agreement is likely to be small... Since the U.S. already grants tariff-free access under the CBI, trade liberalization in the CAFTA treaty appears to be asymmetric, with...

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Autor principal: Morley, Samuel
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2006
Materias:
Acceso en línea:https://hdl.handle.net/10568/160377
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author Morley, Samuel
author_browse Morley, Samuel
author_facet Morley, Samuel
author_sort Morley, Samuel
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper is a description and an analysis of trade liberalization under CAFTA. It shows that in the short run the impact of the agreement is likely to be small... Since the U.S. already grants tariff-free access under the CBI, trade liberalization in the CAFTA treaty appears to be asymmetric, with most of the tariff reductions being granted by the Central American countries. That is misleading for two reasons. First there really were some significant tariff barriers in the United States for agricultural commodities under the CBI. Many of these are removed under CAFTA. Second, the current favorable special treatment of the five Central American countries under the CBTPA and the CBI will expire in 2008 if CAFTA is not implemented. CAFTA makes permanent the tariff concessions of the CBI and the liberalized rules of origin of the CBTPA... The fact that the tariff reductions and TRQs granted by the Central American countries under CAFTA will not cause significant price reductions does not mean that domestic producers will be unaffected by the agreement. In the long run the level of protection of many important commodities such as rice, pork and poultry will be significantly lower. But the tariff reductions in these sectors are gradual. That gives farmers time to adjust and to become more competitive. What will be critical from a policy perspective is that this time is used wisely to increase productivity, switch to more profitable crops and take advantage of the new opportunities opened up by CAFTA..
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spelling CGSpace1603772025-11-06T06:43:05Z Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America Morley, Samuel trade liberalization agriculture smallholders tariffs prices crops economic aspects agricultural products trade barriers rice pork poultry textile industry profitability caribbean This paper is a description and an analysis of trade liberalization under CAFTA. It shows that in the short run the impact of the agreement is likely to be small... Since the U.S. already grants tariff-free access under the CBI, trade liberalization in the CAFTA treaty appears to be asymmetric, with most of the tariff reductions being granted by the Central American countries. That is misleading for two reasons. First there really were some significant tariff barriers in the United States for agricultural commodities under the CBI. Many of these are removed under CAFTA. Second, the current favorable special treatment of the five Central American countries under the CBTPA and the CBI will expire in 2008 if CAFTA is not implemented. CAFTA makes permanent the tariff concessions of the CBI and the liberalized rules of origin of the CBTPA... The fact that the tariff reductions and TRQs granted by the Central American countries under CAFTA will not cause significant price reductions does not mean that domestic producers will be unaffected by the agreement. In the long run the level of protection of many important commodities such as rice, pork and poultry will be significantly lower. But the tariff reductions in these sectors are gradual. That gives farmers time to adjust and to become more competitive. What will be critical from a policy perspective is that this time is used wisely to increase productivity, switch to more profitable crops and take advantage of the new opportunities opened up by CAFTA.. 2006 2024-11-21T09:50:38Z 2024-11-21T09:50:38Z Working Paper https://hdl.handle.net/10568/160377 en Open Access application/pdf International Food Policy Research Institute Morley, Samuel. Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America. DSGD Discussion Paper 33; MTID Discussion Paper 95. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160377
spellingShingle trade liberalization
agriculture
smallholders
tariffs
prices
crops
economic aspects
agricultural products
trade barriers
rice
pork
poultry
textile industry
profitability
caribbean
Morley, Samuel
Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America
title Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America
title_full Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America
title_fullStr Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America
title_full_unstemmed Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America
title_short Trade liberalization under CAFTA: an analysis of the agreement with special reference to agriculture and smallholders in Central America
title_sort trade liberalization under cafta an analysis of the agreement with special reference to agriculture and smallholders in central america
topic trade liberalization
agriculture
smallholders
tariffs
prices
crops
economic aspects
agricultural products
trade barriers
rice
pork
poultry
textile industry
profitability
caribbean
url https://hdl.handle.net/10568/160377
work_keys_str_mv AT morleysamuel tradeliberalizationundercaftaananalysisoftheagreementwithspecialreferencetoagricultureandsmallholdersincentralamerica