265,000 rice farmers in Central America will be bankrupt if tariff is eliminated

Published Jun 9, 2021

Tridge summary

Central American rice producers are expressing concern over the potential elimination of the rice import tariff under the Free Trade Agreement with the United States (DR-CAFTA) in 2023, which they believe could lead to bankruptcy and increased poverty. The tariff's elimination could allow for the import of rice without tariffs, putting local farmers at a disadvantage against US farmers who have subsidy programs. Rice farmers are urgently calling for government action to maintain a tariff that protects local producers and are seeking to use clause 3.18 in the DR-CAFTA to evaluate the impact of agriculture under the agreement.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Rice producers in Central America are concerned that in 2023 the rice import tariff established in the Free Trade Agreement with the United States (DR-CAFTA) would be eliminated, exposing them to “imminent bankruptcy,” according to the Federation. Central American Rice (Fecarroz). “At the regional level, 265,000 farmers living from rice cultivation and 990,000 indirect jobs in this production chain will be affected, which will translate into more poverty and more migration; That is why it is necessary for the United States to see the sector again and everything that is coming our way. Right now we are in a technical bankruptcy, ”said José Tudo, secretary of Fecarroz. Taking advantage of the visit of the Vice President of the United States, Kamala Harris to Guatemala, the Federation issued a statement in the media calling on her to intervene in the case and to analyze alternatives for the sector. “Fecarroz requests the Honorable Vice President and authorities of the United States ...
Source: Elsalvador

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