Central American trade pact should benefit the Northwest

YAKIMA — The U.S. free trade agreement reached last week with four Central American countries is good news for Pacific Northwest apple, pear and cherry growers, industry officials said.

The agreement will phase out virtually all trade barriers over the next decade with Guatemala, El Salvador, Nicaragua and Honduras. A fifth nation, Costa Rica, abruptly left the talks on Tuesday after complaining about excessive demands by the United States.

The Bush administration plans to submit the Central American Free Trade Agreement, or CAFTA, to Congress early next year.

The agreement was especially good news for Northwest growers who have seen a decline in exports to Central America, said Mark Powers, vice president of the Northwest Horticultural Council.

"Chile, one of our major competitors, has duty-free access to these countries already, and Chile has been whittling away at our market share," he said. "Or better, Chile has been whacking away at our market share."

Washington state produces about 50 percent of the U.S. apple crop and supplies about 65 percent of the U.S. fresh apple market. Washington also produces 30 percent of the nation’s apple exports for about 65 different countries.

A tariff of between $2.25 and $4.50 per 42-pound box is added to U.S. shipments of apples in Central America. A box is valued at about $16 in the region.

The Pacific Northwest also produces 82 percent of the nation’s pears, one-third of which are exported.