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Title | Trade liberalization under CAFTA |
Subtitle | an analysis of the agreement with special reference to agriculture and smallholders in Central America |
Author | Morley, Samuel |
ORCID | http://orcid.org/0000-0003-3047-8112 Morley, Samuel |
Year | 2006 |
Abstract | "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.." -- Authors' Abstract |
Series Name |
DSGD Discussion Paper MTID Discussion Paper |
Series Number | 33; 95 |
Publisher | International Food Policy Research Institute (IFPRI) |
Place of publication | Washington, D.C. |
Language | English |
Record Type | Discussion paper |
Peer Reviewed - PR or Non-PR | Non-PR |
Subject - country location |
EL SALVADOR COSTA RICA GUATEMALA HONDURAS NICARAGUA DOMINICAN REPUBLIC CENTRAL AMERICA CARIBBEAN NORTH AMERICA |
Subject - keywords |
trade liberalization Agriculture Smallholders Tariff on farm produce Prices Crops -- Economic aspects Central America Free Trade Agreement (CAFTA) Caribbean Basin Initiative (CBI) agricultural products Trade barriers rice Pork industry and trade Poultry textile and apparel industry Profitability |
IFPRI Descriptors |
IFPRI1 Theme 11 Subtheme 11.1 Theme 2 Subtheme 2.1 The future of smallholder farming Globalization, retail food industries, and trade Markets and Trade |
IFPRI Division |
DSGD MTID |
Physical description | 57 pages |
IFPRI Web link | http://www.ifpri.org/DIVS/DSGD/dp/dsgdp33.asp |
Requests | mailto:ifpri-library@cgiar.org |
CONTENTdm file name | 35732.cpd |
Date cataloged | 2018-01-13 |
Date modified | 2018-01-13 |
OCLC number | 778454593 |
CONTENTdm number | 35731 |
Description
Title | dsgdp33 1 |
Requests | mailto:ifpri-library@cgiar.org |
CONTENTdm file name | 35674.pdfpage |
Date cataloged | 2015-03-10 |
Date modified | 2015-03-10 |
CONTENTdm number | 35673 |
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