64 



FLORIDA AGRICULTURE 

 and the 

 NORTH AMERICAN FREE TRADE AGREEMENT 

 Background 



Florida agriculture is a S6 billion induiary that providei wfaoleaome, affordable food for consumers in 

 the United States and around the world. More than 240 different crops are produced on Florida's 40,000 farms, 

 ranches and groves. During the winter tnrmth*^ Florida growers provide more than half of the nation's fruit, 

 vegetables, dtnu and cane sugar. The industry provides jobs for more than 250,000 people during peak 

 production periods, and contributes strongly to the state's economy. 



The negotiation of a North Amerioa Free Trade Agreement (NAFTA) has been of great concern to 

 Florida agriculture. The International Trade Commission in February, 1991, found that producers and 

 processors of wimer fruit, vegetables, and citrus were expeaed to experience losses in production and 

 employment as a result of the agreement. 



In April, 1991, Florida agriculture requested an exemption of import-sensitive, winter-produced fruit, 

 vegetables, dtrus and their producu from the NAFTA until such time as several concerns of the industry were 

 meamngfoliy intjsfiff^, The induitiy also asked that ^"ft'"fl pattens of trade in raw and refined sugar needed 

 to be precerved. 



Florida Agricaltiire^ Podtloo 



The North Aaioicas Free Trade Afl^eemeat, m written, £kili to satisfy many of Florida agricolmre's 

 concerns. The iodomy believes the docnniattiDiitt be modified to EBeaaiag&iIlyaddreatheteimpanauiBDea. 

 Florida agricohara'a viahffiqr u t pradneer of ov natko'i Cood, at «a cmfkja ot hnadreds of thousandt of 

 pe(q>le,aiidaaattr(mgoaaribntortoFIozida'iecaaaByitatttaks. Should the a greeme n t not be « a ti«fa<tnri ly 

 modified, Florida agricataire stnio^ nvmnmniirk dut the United Stttea Coafrea vole to disanvove the 



The agrrxmcait mtot be modifiwi is the following veac 



L T ffri ff BtaWWt tiltBraritli''^' "^"!**'™* rtifi im grtiifkini. ninfrr fmifi. iT([rfaMri rirmi r"* -^- — — 



recognoBd as being the most leacitive to tariff redBrtinna, However, only 4 percent of Florida's winter 

 freih frniii and vegBtabks are connimnd in die kngeat phase-out period. The a g rwnwt most be 

 modlflfld to provide acBittlve cooaMdUka with a tranaitioa period that wU afford prodocari the 

 mailimnn time for adlBftmcaC 



Z Safeguards; Florida agricaltBre had strpngtvieaaested a twice and volnme-based safeguard nech^to 



to protect the iadnstry during the transition period from downward price pressure caused by import 

 surges. Thu Bgri-^m^tit fn«t«m« ■ vnh«ms.h»«><<, tariff rate qunn (TRO^ mprhaiiism that Will artificially 

 a lTfr planting patterns during the quota periods. The end result wiD likely be depressed prices early 

 in each tariff window. Ihc agreemcat must be modified to Indnde a price-based special safeguard 

 mechaoiam for perishable commodlttcs. In addUioa, the tariff windows for the TRQ should be no 

 longer than 30 dsya. The general aaftgnard medianlaB In the agreesunt should also be strengthened 

 and have no restrictions on Its use. 



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