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Peru FTA impacts U.S. producers, economy
Kansas Cattlemen's Association, working on behalf of U.S. producers, is concerned about the passing of the Peru Free Trade Agreement in the United States House of Representatives. In all free trade agreements, it is important to reflect the perishable nature of cattle and beef. It is also critical to have price and quantity safeguards in place here in the United States to protect against import surges. These two imperative aspects are not included in the Peru FTA agreement; however, Peru does have those safeguards in place to protect their domestic markets and Peruvian producers. Also, the rules of origin in the Peru FTA do not specify that beef must be derived from cattle born, raised, and slaughtered in Peru. Therefore, other South American countries, such as Brazil, which has a history of hoof and mouth disease, could potentially export live cattle into Peru for slaughter. Those animals could then be processed for exportation into the United States giving preferential access to countries that do not have a free trade agreement with the U.S. Once again, not only would this be a tremendous disadvantage for U.S. producers but also a potential food safety issue. "This free trade agreement will likely set precedence for other trade agreements. Kansas Cattlemen's Association understands the importance of trade, and U.S. producers appreciate the opportunity to export their wholesome, safe product. However, with legislation like the Peru FTA, KCA wants to ensure that fair trade is also taking place. Unfair advantages given to foreign countries at the expense of U.S producers and their agricultural products not only hurt independent producers but also the communities that rely on them for viability. It also negatively impacts state economies like Kansas that relay heavily on agriculture. Even more importantly, it is essential to ensure that all free trade agreements make food safety its highest priority. Unfortunately, this free trade agreement does not make fair trade or food safety a priority," said KCA Executive Director, Brandy Carter. The Peru FTA will now be considered in the U.S. Senate. The KCA will be visiting with Kansas Senators to work on the loopholes in the current bill so that U.S. producer and consumer concerns can be addressed. Date: 11/21/07
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