Agricultural News
R-Calf Urges Congress to Defeat Free Trade Deals- Saying US Cattle Industry Does Not Need Them
Mon, 10 Oct 2011 20:53:51 CDT
In a brief letter sent to every member of Congress today, R-CALF USA appealed to Senators and Representatives to do what is right for all of America by flatly rejecting the free trade agreements (FTAs) with Colombia, Panama and South Korea. Click here to read the full letter that was sent by the organization to Congress- penned by their CEO Bill Bullard..
President Obama formally submitted his three FTAs for Congress' approval on October 3, 2011.
The group's letter stated, "Admittedly, R-CALF USA is looking out for its members' self-interests when asking you to flatly reject all three of President Obama's FTAs.
"The self-interests of our members include preserving a strong and viable U.S. cattle industry that will continue for generations to provide safe and affordable beef to U.S. consumers and economic opportunities for small businesses in rural communities all across America."
R-CALF USA informed its membership over the weekend that the three FTA's are certain to put downward price pressure on U.S. cattle prices for years and decades to come.
The group's letter laid out a strong argument supported by numerous charts and graphs electronically linked within the letter that show the United States has accumulated a tremendous deficit in the trade of cattle and beef under the FTAs the United States already has implemented with 17 countries.
Those existing FTAs include agreements with multiple countries, such as the North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA), which R-CALF USA claims have harmed U.S. cattle producers.
The group also voiced concerns recently made by domestic manufacturing groups regarding the United States' haphazard approach to international trade:
"The U.S. is operating without a national trade policy and the U.S. cattle industry is suffering as a result, with billions of dollars being drained each year," the group stated adding, "Consequently, rural communities across America are being hollowed out and President Obama's three new FTAs will only accelerate Rural America's demise.
The letter explains the new FTAs ignore the fundamental truth that domestic industries must receive prices that offset environmental, social and safety costs integral to the United States' social and political economy, costs R-CALF USA states are not included in prices established in developing countries."
To exemplify this point, the letter states the March price of fat cattle in Colombia was $0.79 per pound while the United States price for fat cattle that month was $1.15 per pound.
"Another FTA with an exceptionally low-cost global beef and cattle exporter like Colombia would cause the price of cattle and beef to equalize between our two countries. Colombia's cattle price is nearly one-third less than the U.S. price and equalization would necessarily lower U.S. prices, which would further decimate the infrastructure of the U.S. cattle industry and lead the United States to become dependent on foreign sources for beef.
"Indeed, Colombia is poised to become a major global exporter of beef. Colombia's cattle herd of more than 27 million head already is the 7th largest in the world larger than Australia's, Canada's or Mexico's and Colombia's production in excess of consumption already ranks 7th among the United States' largest beef importing countries.
The group acknowledges that South Korea is characteristically different than the less-developed countries of Colombia and Panama but claims all three FTAs contain fatal flaws. In addition, R-CALF USA points out that U.S. beef exports have increased significantly to South Korea without a free trade agreement.
"Obviously, the United States' ability to increase beef exports is not at all dependent on agreements that effectively limit U.S. sovereignty, as do President Obama's three FTAs," the letter continued.
In its letter, R-CALF USA identified the fatal flaws contained in the FTAs:
None of the three FTAs contain special rules to address the perishable and cyclical nature of the U.S. cattle industry as Congress had promised in the Trade Act of 2002.
None of the three FTAs contain rules of origin that require beef to be derived from cattle actually produced in the exporting country, which means Chinese cattle could be exported to South Korea and the resulting beef exported duty-free to the United States.
None of the three FTAs contain adequate safeguards based on price and quantity for both live cattle and beef to protect U.S. farmers and ranchers against import surges.
None of the three FTAs provide an upward harmonization of import health and safety standards and, instead, they each threaten to expose U.S. consumers to unsafe food not produced under health and safety standards identical to U.S. standards.
Congress is expected to act on President Obama's three FTAs on Wednesday, October 12 and R-CALF USA urges all citizens to call their members of Congress to express their concerns for the three FTAs.
"If citizens don't voice their concerns loud and clear to their elected representatives, these FTAs will certainly pass despite their likelihood of worsening our nation's already untenable trade debt," said R-CALF USA CEO Bill Bullard.
Citizens can call their members of Congress by calling the Capitol Switchboard at 202-224-3121 and asking for their Senators or Representative by name.
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