Nebraska

Farmers

Union

 

1305 Plum Street • Lincoln, NE 68502

www.nebraskafarmersunion.org

 

Contact John Hansen   Office:  402-476-8815,

Fax:  402-476-8859, Cell:  402-580-8815

john@nebraskafarmersunion.org

 

FOR IMMEDIATE RELEASE

July 14, 2005                                                                           Lincoln, Nebraska                   

Nebraska Farmers Union Urges Congress to Vote NO on CAFTA

 

Lincoln, NE. Nebraska Farmers Union President John K. Hansen will travel to Washington, D.C., July 18-20 to urge members of the House of Representatives to vote against the Central American Free Trade Agreement (CAFTA).  He will participate in a targeted National Farmers Union Fly-In on CAFTA, which will likely be up for a vote next week.

Hansen will ask Congressman to honestly look at the stark contrast between the promises made before trade agreements have been approved for the past thirteen years, with the actual performance of those trade agreements after they have been implemented.  “CAFTA will work just as badly as NAFTA because the same basic trade negotiating formula was used for both agreements.  No improvements have been made to the trade negotiating formula in the last twelve years despite the poor performance of past trade agreements because our Congress continues to rubberstamp trade agreements brought before them regardless of how badly previous agreements performed.  Congress needs to put their foot down, and tell our trade negotiators they must do better, and that changes in trade policy must be made.  That means Congress must reject CAFTA in order to force new and better ideas into the mix,” Hansen said.

Hansen said, “The collapse of the balance of ag trade from a positive $24.7 billion in 1996 to a projected zero by the end of 2005 should cause alarms to go off everywhere in the ag community.  Not only has our balance of ag collapsed, but so has the value of our top six ag commodities.  Our nation’s farmers have received $13.94 billion per year less on average since 1996 for their corn, wheat, soybeans, grain sorghum, cotton, and rice crops.  Our trade policy has directly caused the collapse of our domestic prices, making farmers more, not less dependent on the government for the necessary financial support to stay in business.  At a time when farmers depend on decoupled income transfers for nearly half of their farm family net incomes, President Bush promises to give away our domestic income supports to our ag producers at the recent G8 conference in England without doing or saying anything to improve domestic crop prices and reduce the need for the subsidies in the first place.  That would amount to an economic blood bath for family farmers and rural communities,” Hansen said.   

The U.S. Senate recently approved CAFTA by a 54-45 vote, the slimmest margin of victory for a trade agreement in recent history. The Senate’s narrow approval of CAFTA reflects the lack of support this policy has in the countryside. The amendment will likely come to a final vote on the House floor by the end of the month and passage may be dependent on just a few votes.

Farmers Union maintains that CAFTA is a continuation of failed trade policies of the past. Its benefits to ag producers have been dramatically oversold. CAFTA not only encourages a race to the bottom for producer prices, it ignores major issues that distort fair trade such as labor, environmental regulations and currency.  Hansen encouraged everyone to call their House of Representatives to ask them to vote against CAFTA.  “ We are particularly alarmed about the damage CAFTA may cause our Nebraska sugar and ethanol industries.  Both will become vulnerable because of the ability of foreign competitors to use agreements with CAFTA countries to unfairly access and dump into US markets,” Hansen concluded.

-30-