Vienna, Va. — The U.S. Apple Association (USApple) is again calling on Congress to approve the Free Trade Agreement with Central America and the Dominican Republic (CAFTA-DR). This trade agreement covers an important export market for American apples, and its passage would remove the price disadvantage that U.S. apples currently face. USApple Trustee and past chairman Phil Glaize joined USDA Secretary Mike Johanns and other agriculture leaders in a press briefing on the trade agreement April 11.

"CAFTA-DR is a home run for American agriculture. We are giving up very little to gain very much," explained a recent letter to every U.S. senator and representative signed by USApple and 55 other agricultural organizations. The groups "are simply requesting that Congress provide to American farmers what it has already provided to farmers in the CAFTA-DR countries — improved market access for their exports."

Under the current trade system, farmers in the Central American countries that are part of CAFTA-DR already have free access to U.S. consumers. However, the U.S. apple industry faces tariffs that make it difficult to cost-effectively bring its product to the estimated 35 million consumers in these six nations.

"CAFTA-DR offers a significant and immediate market growth opportunity for U.S. apple exports once implemented," noted USApple President and CEO Nancy Foster. "Since current apple import duties in Central America will be eliminated as soon as the treaty takes effect, U.S. apples will gain duty-free, quota-free access to the six countries included in the agreement — El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica and the Dominican Republic. This will give the U.S. apple industry fair opportunity to compete against foreign producers, such as Chile, who have enjoyed preferential market access into this nearby market."

The Central American region already represents a solid market for the U.S. apple industry. It is the number one export market for apples from Pennsylvania, Michigan and Virginia and a strong market for New York, California and Washington State. Almost 1 million boxes of apples exported to the six nations from the 2003-04 crop, and enactment of CAFTA-DR is expected to significantly boost export opportunities. Industry estimates put the market value of the 2003-04 crop trade at almost $10 million nationally.

"The U.S. industry has done its part in getting U.S. apples into the market," noted Foster. "They have laid the groundwork and built the relationships need to facilitate the sales. But since the market has traditionally been very price-driven, it is difficult for our apples to compete with duty-free access enjoyed by many of our competitors." Free trade agreements are one of several factors that have resulted in a market loss for U.S. apples in the region. In 2002, the U.S. and Chile both had a similar percentage of the Costa Rica apple market, about 41% of the volume imported. However, in 2003, after the implementation of a free trade agreement between Chili and Costa Rica, Chile's share of the market was more than 60% of the total volume imported.

Note: The text of this release can be downloaded from the News Releases section of USApple's Media Web site, at http://www.usapple.org/media/newsreleases/index.cfm.

The U.S. Apple Association (USApple) is the national trade association representing all segments of the apple industry. Members include 40 state and regional apple associations representing the 7,500 apple growers throughout the country, as well as more than 400 individual firms involved in the apple business. USApple's mission is to provide the means for all segments of the U.S. apple industry to join in appropriate collective efforts to profitably produce and market apples and apple products.