agricultural transition policiesin c a f t a- d r countries（农业过渡policiesin c f t - d r的国家）（31页）.docVIP

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agricultural transition policiesin c a f t a- d r countries（农业过渡policiesin c f t - d r的国家）（31页）.doc

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Transition policies for the agricultural sector in CAFTA-DR Amy Angel On August 5, 2004, the United States of America signed a free trade agreement with five Central American countries and the Dominican Republic. Known as CAFTA-DR, the agreement has come into effect between all the signatory countries, except Costa Rica. In addition to the strengthening of political relations between the participating countries, CAFTA-DR generated many expectations to improve access to export markets. But it also created fear that reduced protection would result in more imports, lowering prices in domestic markets and harming the profitability of agricultural products. The objective of this paper is to describe the context of the agricultural sectors in CAFTA-DR, to describe transition policies that are being implemented in each country, and to draw conclusions and implications for future policies and for their coordination. This report begins with a description of the agricultural sectors in the region; it then details the treatment of sensitive CAFTA-DR agricultural products, followed by an analysis of the feasibility of implementing effective transition policies, and the measures adopted to date in each country. It only considers the five Central American countries and the Dominican Republic. U.S. policies are not included because there are no explicit transition policies for sectors adversely affected by CAFTA-DR in that country. The Experience of Mexico The difficulty in applying successful policies and programs to facilitate the productive transition of small producers has been evident in the case of Mexico under the North American Free Trade Agreement, NAFTA. Different from strong growth in non-traditional farming exports and direct foreign investment for agro-industry, the benefit for the Mexican small farmer sector has been less apparent. In 1993, the Mexican government initiated PROCAMPO, a program of delinked payments to support the income of basic