Dr-cafta

Chris · Apr 6, 2005

Anone on the board who really understands this DR-Cafta thing plus side-agreements? I've been scratching through the paperwork and provisions but there is too much to read...

http://www.sice.oas.org/Trade/CAFTA/CAFTADR_e/CAFTADRin_e.asp

chuckuindy · Apr 6, 2005

Me either

Chris said:
Anone on the board who really understands this DR-Cafta thing plus side-agreements? I've been scratching through the paperwork and provisions but there is too much to read...

http://www.sice.oas.org/Trade/CAFTA/CAFTADR_e/CAFTADRin_e.asp

I have the entire document and have read it. I am still in the dark on many subjects. Number 1 is, when will it be totally Implemented ?

On the surface it looks like a lot of barriers will fall and it will promote trade, however at this time I do not see either side cooperating.

Chuckuindy

Chris · Apr 6, 2005

Seems to me we should read this thing chucky... a perfect consulting opportunity in the making

More seriously, I do need to find someone that could give me advice regarding our own products. Just maybe we're onto some cost savings here in terms of duties no longer payable, and I would not even know about it.

Chris · Jun 9, 2005

resurrecting my own thread...

Here is a link with excerpts of what some of the US farming community has to say about DR-Cafta

http://www.ofbf.org/ofbweb/ofbwebengine.nsf/$LookupPageID/STER-6D7JAN/?OpenDocument

Obviously, according to these folks, the DR and other Cafta signatories are being 'hungrily eyed' for great market expansion.

I am really wondering how DR 'big business' is viewing this whole thing. We had a meeting with our Free Zone management a few days ago. Specifically to find out what the free zone means to us, under DR-Cafta. They are telling us that we would not be able to export any product under the rules of DR-Cafta, if we are not situated in a Free Zone. The folks are telling us that in the DR, the duty free exports to the US will only be allowed 'duty-free' if they come from Free Zones. Well, I think seriously that someone is trying to justify their on-going reasons for existing, under a future DR-Cafta.

Any comments?

Mirador · Jun 9, 2005

"el peje muere por la boca"

my own apprehension is related to the acceptance of intellectual property rights over natural processes and new life forms, the consequent introduction of genetically-modified species into the country, and how this will affect the DR's control over the production of its own food.

Chris · Jun 9, 2005

Mirador said:
my own apprehension is related to the acceptance of intellectual property rights over natural processes and new life forms, the consequent introduction of genetically-modified species into the country, and how this will affect the DR's control over the production of its own food.

I think we're eating 'new life forms' daily. Whether they're created by genetic manipulation or by cultivating out the weak and cultivating in the strong. I think the horse has bolted out of this stable already, both in terms of genetic modification and the DR's control over its own food production. But DR-Cafta is not only about food production and importation and exportation... it is truly about globalization yet again. And now we're getting quite close to hijacking this thread

Jerry K · Jun 9, 2005

When the hammer drops

I can speak about what I saw happen in Jamaica several years ago after the hearlded "free trade" agreement took effect. The local agriculture segment of the country just about collapsed. Diarymen sold off their herds as they couldn't compete with the milk imports from the US. It has pretty well effected the marketability of all localed produced ag products except ganja.
Bottomline it just opened up another export market to US products. The sugar boys here put up a little fight to keep corn sweetners out but that's only the start. Milk is coming as is citrus and we'll be just like Jamaica.

Texas Bill · Jun 9, 2005

I think everyone is---

Making a mountain out of a 'mole-hill' over genetically modified products and animals. People have been doing just that for several thousand years, so what's the BIG DEAL over introduction of growth and enhanced genes into the food chain???

Where have livestock, veggie, grain and fruit improvements stemmed from but from selective cross pollenation and breeding? Genetic engineering is the same thing except on a different tack.
I just think people are so uninformed as to object to genetically enhanced foodstuffs. It only makes sense to use whatever methods are available and/or discovered to increase the productivity and nutritional yeild of our everyday 'bread'.

Texas Bill

Mirador · Jun 9, 2005

The issue is intellectual property rights over new life forms. If the current CAFTA definition stands, then DR farmers are in danger of loosing their rights to plant crops with their own seeds, once cross-pollination occurs, since Monsanto (or Avanti, or others) can claim proprietary rights over all seeds that show their registered genetic strands. Another issue... once genetically-modified crops are introduced, we can say goodby to organic certified crops, such as coffee which is now thriving in Bahoruco (Polo) and commanding twice the price of regular crops...

Chris · Jun 9, 2005

Texas Bill said:
Making a mountain out of a 'mole-hill' over genetically modified products and animals.... People have been doing just that for several thousand years, so what's the BIG DEAL over introduction of growth and enhanced genes into the food chain???

The big deal is little stuff like Mad Cow Disease...

Chris · Jun 9, 2005

Mirador said:
....we can say goodby to organic certified crops...

Whilst I agree with the rest of your statement, I do believe that it is a done deal... you'll never stop the trend.

BUT, you may be unaware of the level of genetic 'research' or some may call it 'genetic meddling' that is happening in the organic world.

Mirador · Jun 9, 2005

Whilst I agree with the rest of your statement, I do believe that it is a done deal... you'll never stop the trend.

Better tell that to Hugo Chavez, or Evo Morales, or even Lula Da Silva...

you may be unaware of the level of genetic 'research' or some may call it 'genetic meddling' that is happening in the organic world.

Organic crops are by definition "GM free" and once they test positive for genetic modification they loose their organic certification.

Cacle85 · Jun 9, 2005

CAFTA Dam if you Do Dam if you don't

The problem The DR faces with CAFTA are real. Free trade agreement works better for those who have lots to trade and can afford to dump prices to gain customers. I am forever amazed as why the dominican authorities do not realize that there is a world out there in which they can conduct business. We are far too dependant on the US, as is the rest of the Caribbean and Central America. The US is the rich uncle and it cannot continue to provide to so many nephews. Let the Dominican goverment open embassies in African and Asian countries where the country could sell boundless products and services.
Any thoughts?

thanks

From one of those countless Dominican Economic refugees overseas.

Chris · Jun 10, 2005

Mirador said:
Organic crops are by definition "GM free" and once they test positive for genetic modification they loose their organic certification.

I don't want to argue this point on this board. You just need to check which certifying body you're talking about. There are many. And their standards are sometimes very loose. Even the European Union (the main 'voice' in this area) allow I think a measure of genetic or 'biomodification'. Not sure if it is .9 or .09... The definitions here are wide and the old adage 'who is certifying the certifyer' is certainly apt here.

This is an interesting area and I would enjoy further discussion, but let's get back to DR-Cafta - in the business sense, in the business forum (I know even this statement is debatable - it is business... not?). Perhaps you'd like to go to the environmental forum and start a thread about the specific topic there.

eldorada · Jun 10, 2005

Since the agreement is signed already, perhaps the DR should undertake a fact finding mission to see why countries who had signed such agreements had failed.
One thing is for sure they all seemed to have "boomed" for a short period.

Mirador · Jun 10, 2005

Perhaps you'd like to go to the environmental forum and start a thread about the specific topic there.

proprietary rights over natural processes and new life forms is not an environmental issue, it's definitely a business concern. If a local farmer looses his proprietary rights over his own crops through cross-pollination with a genetically-modified species registered to Monsanto or Avanti (ownership of which is recognized by CAFTA to these US companies), we are talking business here, not environment. Again, If local farmers' hens become fertilized by an 'escaped' genetically-modified rooster whos genetic-code is registered to Genhens (a US company, ownership of which is recognized by CAFTA), then these farmers would loose their rights to their own poultry production, unless they pay royalties or proprietary rights to Genhens. The potential here for mayhem and havoc is endless, and all of course against local business interests.

millard · Jun 13, 2005

Below are 2 articles from the Washington Post on DR-CAFTA that are short and fairly easy to understand. You may have to register with the Post to read them.

http://www.washingtonpost.com/wp-dyn/content/article/2005/05/31/AR2005053100772.html
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/11/AR2005061100575.html

Bottom line is that the concern that Dominican farmers will lose much of their market share to much bigger and more sophisticated agribusinesses from the U.S. is justified. Almost all of the Dominican products covered by DR-CAFTA already enter the U.S. duty free under the Caribbean Basin Initiative. DR-CAFTA makes the free-trade provisions of the Caribbean Basin Initiative permanent.

U.S. companies stand to benefit the most from DR-CAFTA; they get duty free access to the Dominican market for the first time. If it passes, watch for a flood of low-priced American goods as U.S. companies try to grab market share with loss leaders.

suarezn · Jun 13, 2005

millard said:
Bottom line is that the concern that Dominican farmers will lose much of their market share to much bigger and more sophisticated agribusinesses from the U.S. is justified. Almost all of the Dominican products covered by DR-CAFTA already enter the U.S. duty free under the Caribbean Basin Initiative. DR-CAFTA makes the free-trade provisions of the Caribbean Basin Initiative permanent.

U.S. companies stand to benefit the most from DR-CAFTA; they get duty free access to the Dominican market for the first time. If it passes, watch for a flood of low-priced American goods as U.S. companies try to grab market share with loss leaders.

Totally agree with you here. The DR does not stand to gain much from this agreement...but unfortunately we just going to have to play ball otherwise we will be left out of the game completely.

You can take the automotive industry as an example of how American products will benefit. Right now their market share in The DR is very small, because of quality issues and other concerns. When buying a car most dominicans think that if an american made car cost about the same as a japanese made car why not buy the highest quality one (in this case the japanese made one). With this agreement American cars will cost a lot less that Japanese cars (because import duties will be much lower) so you'll see them taking back a lot of market share, since a lot of people will sacrifice a little bit of quality for savings.

In addition all the revenues that the government will lose due to the elimination of tariffs will have to be replace somehow and guess how that's going to happen? The poor/middle class will be taxed even higher than they already are.

Jerry K · Jun 29, 2005

NAFTA now DR-CAFTA

Like Yogi said, It ain't over till it's over. They're circling the wagons in the US.
Consensus is the US has lost about a million jobs at home directly or indirectly because of NAFTA. The unions don't want to see this continue:
http://stopcafta.org/

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