News Update

News Update
Jan. 3, 2006

CAFTA Delayed

Although several Latin American countries had hoped the Central American Free Trade Agreement (CAFTA) would take effect on the first of the year, delayed legal and regulatory reform has slowed the process, The Associated Press reported.

The agreement was to eliminate trade barriers between the United States, Central America and the Dominican Republic, but all six of the associated countries have failed to meet U.S. technical changes and customs procedures required for import.

According to AP, Honduras, El Salvador and Guatemala hope to meet entry requirements by Feb. 1. Nicaragua probably won’t join until March, and the Dominican Republic won’t be ready until July 1, the article noted. Costa Rica has yet to ratify the pact.

Proponents of CAFTA are fearing business and trade losses due to the delay, while some farm groups, which feared effects on small producers and local businesses, are enjoying the temporary victory.

U.S., South Korea Schedule Talks

The United States and South Korea will meet early next week to discuss ending a two-year ban on American beef, according to AP.

Officials are expected to meet Jan. 9-10 in Seoul to negotiate import conditions and processes, including age limit factors.

A South Korean farming expert told The Korea Times there is a possibility that the U.S. will ask the country to allow beef from cows younger than 30 month of age. The action could cause strong resistance from local ranchers and consumer groups, the article noted.

South Korea was the third-largest importer of U.S. beef — at 213,000 tons — prior to its ban in December 2003 following the discovery of Washington state’s bovine spongiform encephalopathy (BSE) case.

— compiled by Crystal Albers, Angus Productions Inc.