CAFTA and U.S. sugar in perspective

The Central American Free Trade Agreement (CAFTA) is a trade agreement between the United States and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. CAFTA was put into law in 2005. The United States will establish additional tariff-rate quotas (TRQs) for the CAFTA countries, beginning with an additional 107,000 metric tons in the first year. The quota amount increases to 151,140 metric tons by the end of the 15-year period. The impact of CAFTA on the U.S. sugar market is small, especially when viewed within the context of weather-related factors that have had a dramatic effect on the U.S. sugar market. In response to hurricanes and other natural-occurring factors, the United States has allowed additional sugar imports from Mexico. These additional imports, exceeding 363,000 short tons, are greater than those debated under the U.S.-Mexico NAFTA side agreement.