Description
Book SynopsisMost of the U.S. agricultural export gains under FTAs have occurred with Canada and Mexico, the top two U.S. agricultural trading partners. Though U.S. sales to overseas markets were expected to increase anyway because of population growth and income gains, analyses suggest that the FTAs recently put into effect or concluded since 2004 could boost U.S. agricultural exports by an additional 2.0% to 2.7%. Large gains are also projected under the potential FTA with South Korea. Because of the reciprocity introduced into the agricultural trading relationship in those FTAs concluded with several developing countries that protect their farm sectors with high tariffs and restrictive quotas, U.S. exporters will benefit from increased sales. Net U.S. agricultural imports under these FTAs could be 1.4% higher than forecast. The share of two-way U.S. agricultural trade (exports and imports) covered by FTAs has increased from 1% in 1985 (when the first FTA took effect) to 41% in 2006 (reflecting FTAs with 13 countries). Ranked in order, they are Canada, Mexico, Australia, Chile, Guatemala, Honduras, Israel, El Salvador, Singapore, Morocco, Nicaragua, Jordan, and Bahrain. If trade is included with nine other countries with which FTAs have been: approved but are not yet in effect (Costa Rica and Oman); concluded and awaiting consideration in the 110th Congress (Colombia, Panama, Peru and South Korea); recently took effect (Dominican Republic); and may be concluded (Thailand and Malaysia), another 9% of U.S. agricultural trade would be covered.
