In fact, real agricultural-sector growth rates in the LAC members of CAFTA-DR (excluding Costa Rica) rose from an (unweighted) average of 3.0% in 2005 to 6.0% in 2006 and 4.0% in 2007. In El Salvador, real value added from basic-grains production increased by 11.2% in 2006 and 11.2% in 2007, and in Honduras it rose by 12.5% in 2007 (7). These figures, of course, do not really tell us how CAFTA-DR has affected agriculture in Central America and the Dominican Republic. Agricultural production is subject to sharp annual fluctuations mainly because of variable weather conditions. The point being made here is simply that real value added in agriculture did not decline or grow at a slower pace after CAFTA-DR came into effect, as some critics imply. As for the notion that small farmers should concentrate on producing basic grains, these are low-value crops whose prices on world markets have fallen in real terms over the long run. The process of economic development with rising living standards basically involves the movement of people over time out of basic-grains production and into higher-productivity jobs in industry and services, as well as jobs generated by higher-value agricultural products such as fruits, vegetables, and cut flowers along the supply chains between producers and consumers. In the News...(article on CAFTA-DR continued) Interestingly, the sharp rise in basic-grains prices from 2006 through mid 2008 has facilitated the CAFTA-DR adjustment process for small farmers in Central America and the Dominican Republic by making local production temporarily more competitive with local imports. Although basic-grains prices in world markets have fallen significantly over the last few months, they are expected to remain relatively high into the next decade. Furthermore, as the U.S. economy has entered a rough patch that may last several years and will limit new job creation in its CAFTA-DR partners, basic-grains production can continue, in the medium term, to provide income and food security to many thousands of poor rural households. During this breathing period, the governments of the region should be devising strategies for facilitating and cushioning the transition of small farmers out of basic grains and into more remunerative pursuits.
These figures, of course, do not really tell us how CAFTA-DR has affected agriculture in Central America and the Dominican Republic. Agricultural production is subject to sharp annual fluctuations mainly because of variable weather conditions. The point being made here is simply that real value added in agriculture did not decline or grow at a slower pace after CAFTA-DR came into effect, as some critics imply.
As for the notion that small farmers should concentrate on producing basic grains, these are low-value crops whose prices on world markets have fallen in real terms over the long run. The process of economic development with rising living standards basically involves the movement of people over time out of basic-grains production and into higher-productivity jobs in industry and services, as well as jobs generated by higher-value agricultural products such as fruits, vegetables, and cut flowers along the supply chains between producers and consumers. In the News...(article on CAFTA-DR continued)
Interestingly, the sharp rise in basic-grains prices from 2006 through mid 2008 has facilitated the CAFTA-DR adjustment process for small farmers in Central America and the Dominican Republic by making local production temporarily more competitive with local imports. Although basic-grains prices in world markets have fallen significantly over the last few months, they are expected to remain relatively high into the next decade. Furthermore, as the U.S. economy has entered a rough patch that may last several years and will limit new job creation in its CAFTA-DR partners, basic-grains production can continue, in the medium term, to provide income and food security to many thousands of poor rural households. During this breathing period, the governments of the region should be devising strategies for facilitating and cushioning the transition of small farmers out of basic grains and into more remunerative pursuits.
This was taken from:
USAID LAC TRADE MATTERS ISSUE # 60, DEC 15, 2008 editor-in-chief Kerry Byrnes (kbyrnes@usaid.gov) LAC Trade Matters is not a vehicle for articulating or vetting USG trade policy as these functions have their existing and appropriate channels within the USG inter-agency Trade Policy Staff Committee process. On trade policy issues, USG officials receiving this newsletter should review cleared information provided through official channels (e.g., cables). The newsletter is produced entirely within and under the editorial control of the Office of Regional Sustainable Development in USAID's Bureau for Latin America and the Caribbean, and is not subject to intra-agency or inter-agency review. Readers interested in sharing information about trade-related issues and events may send written submissions directly to the newsletter's editor-in-chief Kerry Byrnes (kbyrnes@usaid.gov)
LAC Trade Matters is not a vehicle for articulating or vetting USG trade policy as these functions have their existing and appropriate channels within the USG inter-agency Trade Policy Staff Committee process. On trade policy issues, USG officials receiving this newsletter should review cleared information provided through official channels (e.g., cables). The newsletter is produced entirely within and under the editorial control of the Office of Regional Sustainable Development in USAID's Bureau for Latin America and the Caribbean, and is not subject to intra-agency or inter-agency review. Readers interested in sharing information about trade-related issues and events may send written submissions directly to the newsletter's editor-in-chief Kerry Byrnes (kbyrnes@usaid.gov)
From your first comment:
...basic-grains prices in world markets have fallen significantly over the last few months, they are expected to remain relatively high into the next decade. Furthermore, as the U.S. economy has entered a rough patch that may last several years and will limit new job creation in its CAFTA-DR partners, basic-grains production can continue, in the medium term, to provide income and food security to many thousands of poor rural households. During this breathing period, the governments of the region should be devising strategies for facilitating and cushioning the transition of small farmers out of basic grains and into more remunerative pursuits.
Gives supporting evidence to the contention the LAC importation of grains (corn and wheat) from the US at a price lower than the LAC farmers can produce is a significant factor in rural poverty and the social and economic problems faced by the LAC countries: rural land consolidation into latifunda, movement of rural population to urban areas (and all the problems that causes,) and so on.
The article "Green Havoc" is even more interesting. Still in the process of digesting but up to section 44 what strikes me is the United Fruit's insistence on "rational" (sic) production with the goal of maximizing and maintaining short term profit through vertical integration and mono-culture of a mono-cultivar. Even in light of agricultural knowledge of 1898 (or 1698 for that matter,) this established the necessary condition(s) for the Green Havoc.
Further, I note:
LA UNITED FRUIT CO. Cuando sonó la trompeta, estuvo todo preparado en la tierra, y Jehova repartió el mundo a Coca-Cola Inc., Anaconda, Ford Motors, y otras entidades: la Compañía Frutera Inc. se reservó lo más jugoso, la costa central de mi tierra, la dulce cintura de América. Bautizó de nuevo sus tierras como "Repúblicas Bananas," y sobre los muertos dormidos, sobre los héroes inquietos que conquistaron la grandeza, la libertad y las banderas, estableció la ópera bufa: enajenó los albedríos regaló coronas de César, desenvainó la envidia, atrajo la dictadora de las moscas, moscas Trujillos, moscas Tachos, moscas Carías, moscas Martínez, moscas Ubico, moscas húmedas de sangre humilde y mermelada, moscas borrachas que zumban sobre las tumbas populares, moscas de circo, sabias moscas entendidas en tiranía. Entre las moscas sanguinarias la Frutera desembarca, arrasando el café y las frutas, en sus barcos que deslizaron como bandejas el tesoro de nuestras tierras sumergidas. Mientras tanto, por los abismos azucarados de los puertos, caían indios sepultados en el vapor de la mañana: un cuerpo rueda, una cosa sin nombre, un número caído, un racimo de fruta muerta derramada en el pudridero. Pablo Neruda, Canto general, 1950
Cuando sonó la trompeta, estuvo todo preparado en la tierra, y Jehova repartió el mundo a Coca-Cola Inc., Anaconda, Ford Motors, y otras entidades: la Compañía Frutera Inc. se reservó lo más jugoso, la costa central de mi tierra, la dulce cintura de América.
Bautizó de nuevo sus tierras como "Repúblicas Bananas," y sobre los muertos dormidos, sobre los héroes inquietos que conquistaron la grandeza, la libertad y las banderas, estableció la ópera bufa: enajenó los albedríos regaló coronas de César, desenvainó la envidia, atrajo la dictadora de las moscas, moscas Trujillos, moscas Tachos, moscas Carías, moscas Martínez, moscas Ubico, moscas húmedas de sangre humilde y mermelada, moscas borrachas que zumban sobre las tumbas populares, moscas de circo, sabias moscas entendidas en tiranía.
Entre las moscas sanguinarias la Frutera desembarca, arrasando el café y las frutas, en sus barcos que deslizaron como bandejas el tesoro de nuestras tierras sumergidas.
Mientras tanto, por los abismos azucarados de los puertos, caían indios sepultados en el vapor de la mañana: un cuerpo rueda, una cosa sin nombre, un número caído, un racimo de fruta muerta derramada en el pudridero.
Pablo Neruda, Canto general, 1950
ENGLISH TRANSLATION
When the trumpet sounded everything was prepared on earth, and Jehovah gave the world to Coca-Cola Inc., Anaconda, Ford Motors, and other corporations. The United Fruit Company reserved for itself the most juicy piece, the central coast of my world, the delicate waist of America. It rebaptized these countries Banana Republics, and over the sleeping dead, over the unquiet heroes who won greatness, liberty, and banners, it established an opera buffa: it abolished free will, gave out imperial crowns, encouraged envy, attracted the dictatorship of flies: Trujillo flies, Tachos flies Carias flies, Martinez flies, Ubico flies, flies sticky with submissive blood and marmalade, drunken flies that buzz over the tombs of the people, circus flies, wise flies expert at tyranny. With the bloodthirsty flies came the Fruit Company, amassed coffee and fruit in ships which put to sea like overloaded trays with the treasures from our sunken lands. Meanwhile the Indians fall into the sugared depths of the harbors and are buried in the morning mists; a corpse rolls, a thing without name, a discarded number, a bunch of rotten fruit thrown on the garbage heap.
It rebaptized these countries Banana Republics, and over the sleeping dead, over the unquiet heroes who won greatness, liberty, and banners, it established an opera buffa: it abolished free will, gave out imperial crowns, encouraged envy, attracted the dictatorship of flies: Trujillo flies, Tachos flies Carias flies, Martinez flies, Ubico flies, flies sticky with submissive blood and marmalade, drunken flies that buzz over the tombs of the people, circus flies, wise flies expert at tyranny.
With the bloodthirsty flies came the Fruit Company, amassed coffee and fruit in ships which put to sea like overloaded trays with the treasures from our sunken lands.
Meanwhile the Indians fall into the sugared depths of the harbors and are buried in the morning mists; a corpse rolls, a thing without name, a discarded number, a bunch of rotten fruit thrown on the garbage heap.
