Producers fear reduction in domestic demand once borders are opened

NAMPA, Idaho - Idaho beet growers are concerned the proposed Central America Free Trade Agreement would reduce domestic demand as borders are opened for foreign sugar import.

"This would reduce the amount of sugar beets we can sell," says grower Steve Martineau of Nampa, Idaho. "It would be detrimental to us if it passes. It could put us out of business."

According to the Office of the U.S. Trade Representative, the proposed agreement between America and five Central American countries would allow for more than over 80 percent of U.S. exports in consumer and industrial products to be immediately duty free. Another 5 percent of those products would be duty free within five years, and all remaining tariffs would be eliminated within 10 years.

The pact also permanently would remove tariffs from nearly all consumer and industrial products from El Salvador, Guatemala, Nicaragua, Honduras and Costa Rica.

Amalgamated Sugar Co., which operates plants in Nampa and Oregon, buys about 6 million tons of beets each year, from which 1.7 billion pounds of sugar are produced. It represents 20 percent of the beet sugar produced in the United States and 10 percent of all American sugar.

Officials say the company has annual sales of about $500 million. Its major brand is White Satin, but it supplies about 30 brands.

Of the 225,000 acres of beets Amalgamated processes, 210,000 are from eastern and southern Idaho, about 10,000 in eastern Oregon and 4,000 in Washington, officials said.

Farmers say imported competition could threaten how much they supply to processing plants.

A federal marketing allotment determines the amount of sugar that can be put on the market in times of excess crops. Farmers supplying the Nampa plant last year were asked to grow 5 percent fewer acres than the previous year because of an oversupply.

Martineau will travel with a delegation to lobby against congressional ratification of the agreement.

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