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FLORIDA AGRICULTURE 

 and the 

 NORTH AMERICAN FREE TRADE AGREEMENT 

 Background 



Florida agriculture is a $6 billion industry that provides wholesome, affordable food for consumers in 

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

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

 vegetables, citrus 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 American 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 winter fruit, vegetables, and citrus were expected 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, citrus and their products from the NAFTA until such time as several concerns of the industry were 

 meaningfully satisfied. The industry also asked that existing patterns of trade in raw and refined sugar needed 

 to be preserved. 



Florida Agriculture's Position 



The North American Free Trade Agreement, as written, fails to satisfy many of Florida agriculture's 

 concerns. The industry believes the document must be modified to meaningfully address these important issues. 

 Florida agriculture's viability as a producer of our nation's food, as an employer of hundreds of thousands of 

 people, and as a strong contributor to Florida's economy is at stake. Should the agreement not be satisfactorily 

 modified, Florida agriculture strongly recommends that the United States Congress vote to disapprove the 

 agreement. 



The agreement must be modified in the following areas: 



1- TarifT phase-out categories: Throughout the negotiations, winter fruits, vegetables, citrus and sugar were 



recognized as being the most sensitive to tariff reductions. However, only 4 percent of Florida's winter 

 fresh fruits and vegetables are contained in the longest phase-out period. The agreement must be 

 modified to provide sensitive commodities with a transition period that will afford producers the 

 maximum time for adjustment (see attached commodity recommendations). 



2. Safeguards: Florida agriculture had strongly requested a price and volume-based safeguard mechanism 



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

 surges. The agreement contains a volume-based, tariff rate quota (TRQ) mechanism that will artificially 

 alter planting patterns during the quota periods. The end result will likely be depressed prices early 

 in each tariff window. The agreement must be modified to include a price-based special safeguard 

 mechanism for perishable commodities. In addition, the tariff windows for the TRQ should be no 

 longer than 30 days. The general safeguard mechanism in the agreement should also be strengthened 

 and have no restrictions on its use. 



