Press Releases

Secretary Johanns Highlights Cafta-DR Successes in Guatemala

Guatemala, September 6, 2007

Agriculture Secretary Mike Johanns spent two days in Guatemala, the second stop on a trip to highlight early successes in the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).

“The benefits of CAFTA-DR extend beyond reduced tariffs to important trade capacity building projects that strengthen communities – as I’ve witnessed today in Guatemala,” said Johanns.  “For the first year that CAFTA-DR has been in effect, two-way agricultural trade between the United States and Guatemala is up by more than 16 percent, and we expect that growth to continue.”

Secretary Johanns announced that USDA will lead an Agribusiness Trade and Investment Mission to the CAFTA-DR region in 2008.  “This mission will provide an excellent opportunity for agribusinesses in the United States and Central America to further develop commercial ties by expanding two-way trade,” said Johanns.

CAFTA-DR has delivered remarkable growth in several Guatemalan agricultural sectors.  For the first half of 2007, U.S. coffee imports from Guatemala are up 14 percent to $195 million; banana imports are up 37 percent to $148 million; and fresh vegetable imports are up 35 percent to $18 million.  The United States has also benefited.  For the first six months of 2007, U.S. corn exports to Guatemala are up 54 percent to $62 million; soybean meal exports are up 37 percent to $31.8 million; and broiler meat exports are up 88 percent to $22.2 million.

CAFTA-DR is expanding trade, improving competitiveness, and accelerating economic growth.  To attract investment and to sustain economic growth, CAFTA-DR partners need clear laws, transparency, and full compliance with the provisions of the agreement.  The U.S. Department of Agriculture, and the U.S. government more broadly, is committed to achieving sustainable economic prosperity by investing in people—through education, technical assistance  and trade capacity building.

Since 2003, the United States has provided more than $650 million in trade-related assistance programs to the CAFTA-DR countries.  These programs provide training in improving customs procedures, protecting intellectual property rights, and standardizing sanitary and phytosanitary (SPS) requirements.

USDA SPS technical assistance projects conducted in Guatemala include ongoing work with animal health, plant health, and food safety laboratories; inspection of beef plants; training to prepare fresh fruits and vegetables for export; and training in dairy sanitation.  Guatemalan officials and agribusiness leaders have participated in USDA exchange programs and regional SPS workshops held in cooperation with USDA and funded by the U.S. Agency for International Development.

With James M. Derham, the U.S. Ambassador to Guatemala, and Gustavo Mendizábal, the Guatemalan Vice-Minister of Livestock of the Ministry of Agriculture, Livestock and Food, Secretary Johanns visited the MOSCAMED Program facility for the mass production of sterile Mediterranean fruit flies (Medflies) in El Pino.  The MOSCAMED Program is a cooperative regional endeavor, jointly managed by Guatemala, Mexico, and the United States, with the goal of preventing the spread of the pest into Medfly-free agricultural production areas in the three countries.  The main control technology used in this program is the environmentally safe release of the sterilized Medflies.  The facility employees over 450 Guatemalans and has the capacity to produce up to 4 billion sterile flies per week.  Secretary Johanns recognized the facility for its excellent business quality management, which has earned it the ISO9000 certification.

Secretary Johanns and Ambassador Derham also visited Agropecuaria Popoyan, a greenhouse business that grows tomatoes and peppers for export to the United States.  Agropecuaria Popoyan combines business efficiency with up-to-date production technology.  It is a CAFTA-DR success story:  a business that has capitalized on access to the U.S. market for its products.

In addition, Secretary Johanns visited the Foundation for International Community Assistance (FINCA), a non-governmental organization that manages a rural micro-credit project funded by USDA’s Food for Progress program, and met administrators and project participants.  USDA signed an agreement with FINCA in 2006 that allows sales proceeds to be used to develop a lending program tailored to the specific needs of Guatemala’s rural entrepreneurs.  FINCA’s clients report improved earnings and family nutrition, high loan repayment rates, and increased empowerment.

Secretary Johanns also went to Escuela Villa de las Niñas, a school that participates in the McGovern-Dole International Food for Education and Child Nutrition Program, in cooperation with Food for the Poor.  Food for the Poor’s Guatemala school feeding program is supported by a USDA donation.  The children participating in this important program receive a Food for Education-supported lunch.  Food for the Poor currently implements a direct feeding program in Guatemala for 260,000 children, mothers, teachers, caregivers, and volunteers who help with the program, supported by an agreement with USDA.  The overall goal is to improve child health, child literacy, school attendance, and early education in Guatemala to prepare children for primary school.

Secretary Johanns had meetings with Guatemala’s President Oscar Berger to discuss issues of mutual interest and concern.

Secretary Johanns also met with other Guatemalan government officials, agribusiness representatives, and former participants in the Cochran Fellowship Program, which provides U.S.-based training for specialists and administrators in the public and private sectors, and the Norman E. Borlaug International Agricultural Science and Technology Fellows Program, which gives short-term scientific training to research scientists and policymakers.