CAFTA-DR, imports of basic grains and the destruction of Salvadoran agriculture

Abstract

This paper presents arguments against our country’s implementation of the provision in the CAFTA-DR treaty regarding the duty-free importation of corn and cornmeal. It emphasizes that the domestic agricultural sector, like the manufacturing sector, has suffered severe contractions since the 1990s, and a measure of this nature could deal a fatal blow to the sector, with consequences in terms of rising unemployment, violence, food insecurity, and emigration. This paper presents data illustrating the contraction of productive sectors due to the excessive growth of imports resulting from reduced import tariffs, a situation that would worsen if the clause in question were to take effect. The recommendation is to negotiate with the United States to have that clause rendered null and void. The annexes present proposals related to investments in the agricultural sector, support for the national coffee industry through the issuance of an electronic currency, and the design of an electronic portal for the sale of coffee in the domestic and international markets.