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Robert Carlson Letter: Farmers Union Has Led The Fight Against CAFTA
April 26, 2005
The Forum

The Forum recently applauded North Dakota Farm Bureau for opposing the Central American Free Trade Agreement commonly known as CAFTA. I think it's great that the North Dakota Farm Bureau is taking a position that reflects the overall concerns of its members.

It isn't easy to openly disagree with your national organization. This independence is what we value above all else in a member-driven grassroots farm organization. It is good to see North Dakota Farm Bureau join North Dakota Farmers Union and National Farmers Union in standing up for our state's producers.

Farmers Union has led the national effort to determine how harmful CAFTA could be to U.S. agriculture. CAFTA is a serious issue. If it is adopted by Congress, it will impact the Red River Valley's economy. Beet sugar processing facilities, sugar beet farmers, and all the communities that depend on this economic activity will be hit hard should CAFTA become law.

Farmers Union members, at their national convention in February, adopted a special order of business urging Congress to reject CAFTA. Of particular concern is the potential impact of CAFTA on sugar producers. Its provisions will result in a one-third increase in sugar quotas the first year, increasing another 50 percent over 15 years.

This not only threatens the U.S. sugar production industry and its infrastructure, but will also result in increased production of alternative crops such as wheat, corn, soybeans and potatoes - additional production of these other crops will cause a reduction in prices.

Further, these provisions will likely set a precedent for other trade agreements, such as those proposed for Panama and the Free Trade Area of the Americas.

For now, the nations included in the CAFTA agreement - Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic - represent small populations with low purchasing power. These nations have much more to gain by entering U.S. markets. While the United States can expect more fruits, vegetables, sugar, and ethanol to flood into our country, I doubt farmers in North Dakota will see an appreciable increase in shipments of wheat or corn in return.

This year, U.S. exports and imports of agricultural goods will "balance" at $56 billion, meaning we are importing as much in ag products as we export. For comparison, in 1996, the U.S. exported $27 billion more in agricultural goods than it imported. The last time the U.S. imported more food items than it exported was in 1959. The trend shows imports of food products will increase while exports will remain flat. In time, we will import more food than we produce for our own use, just as we now do with oil.

The United States could be in a position in which it is no longer self sufficient in food production. We will import the cheapest food from wherever we source it. What happens then, if those sources of food suffer severe production problems due to natural disasters? We cannot "grow" a loaf of bread overnight. What happens if those nations become politically hostile to us? Or if a food cartel similar to OPEC puts us over a far different type of barrel?

The United States should and could do more to consider the unique nature of food production and food security in terms of domestic farm policy and negotiating international trade agreements. CAFTA has given all of us pause to reconsider the value of trade agreements. I firmly believe that trading with other nations is beneficial. I don't believe we should give away the farm in our fever to ink as many trade agreements as possible.

Working with our national organization, North Dakota Farmers Union will continue to lead the fight for fair trade agreements that don't sacrifice the viability of our nation's farmers.

Carlson, Glenburn, N.D., is president of the North Dakota Farmers Union.

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