R-CALF United Stockgrowers of America

For Immediate Release                                                                Contact: Shae Dodson, Communications Coordinator

June 22, 2005                                                                           Phone:  406-672-8969; e-mail: sdodson@r-calfusa.com

McDonnell Talks CAFTA-DR Opposition

with Producers in Colorado, Mississippi

(Billings, Mont.) - During a whirlwind tour of speaking engagements in Colorado and Mississippi, R-CALF USA President and Co-Founder Leo McDonnell has addressed hundreds of independent U.S. cattle producers to explain why they should take a stand to make certain their legislators in Congress vote against the proposed U.S.-Central American-Dominican Republic (CAFTA-DR) Free Trade Agreement.

McDonnell said that some cattle groups in the U.S. are prepared to support CAFTA-DR, the most liberalized free trade agreement (FTA) in history.

"That's based on beef industry projections that within 10 to15 years of implementation, U.S. beef exports to CAFTA countries would increase $40 million per year, but these studies fail to include any analysis of increased beef exports from CAFTA countries to the United States," said McDonnell. "At most, these projections offer U.S. ranchers an increase in value of only 10-cents per head on your calves."

Joel Gill, R-CALF USA membership chair for Mississippi and president of the Mississippi Livestock Market Association, said it is especially important to remember that the purpose of FTAs is to guarantee unrestricted access to U.S. markets.

"That kind of access to U.S. markets encourages foreign investment in these underdeveloped countries, which leads to increased agriculture production, so those same countries then become able to take advantage of those new export markets they didn't have before," said Gill.

McDonnell said CAFTA-DR fails to honor two Congressional mandates:

1) Under Trade Promotion Authority (TPA) passed in 2002, CAFTA-DR fails to identify cattle and beef as perishable and cyclical products and fails to provide the appropriate safeguards;

2) USDA is ignoring the country-of-origin guidelines as passed by Congress and signed into law with passage of the 2002 Farm Bill.

"Under the current proposal, cattle and beef can come into CAFTA countries from other South American nations that are not part of the agreement and be changed somewhat so the end product could then qualify as a product of CAFTA," McDonnell explained. "In other words, CAFTA could well become an export platform for Argentina and other countries, much like we've seen happen with soybean meal."

McDonnell outlined several other flaws with CAFTA-DR. He said the agreement ignores the tremendous trade distortions U.S. cattle producers face in the global beef market; CAFTA-DR ignores the United States' failing agricultural trade policy, which has moved the U.S. into a trade deficit; CAFTA-DR fails to provide safeguards to ensure trade is enhancing instead of disruptive to U.S. ranchers.

"But most of all, CAFTA-DR sets a dangerous precedence and blueprint for future trade agreements with South American countries," he emphasized.

"It's not that trade in itself is bad," McDonnell explained. "It's just that the U.S. cattle industry has not engaged itself as well as the beef industry, and it's time we develop a trade model for U.S. cattle producers that ensures we stay profitable.

"CAFTA-DR offers no realistic market, so it's foolish to set such a destructive precedence, especially when the very best it has to offer U.S. cattle producers is one thin dime per head," said McDonnell. "I can't understand why anyone claiming to represent U.S. cattle producers would support such extreme liberalizations."

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) represents thousands of U.S. cattle producers on domestic and international trade and marketing issues. R-CALF USA, a national, non-profit organization, is dedicated to ensuring the continued profitability and viability of the U.S. cattle industry.       R-CALF USA's membership consists primarily of cow-calf operators, cattle backgrounders, and feedlot owners. Its members - over 18,000 strong - are located in 47 states, and the organization has over 60 local and state association affiliates, from both cattle and farm organizations. Various main street businesses are associate members of R-CALF USA. For more information, visit www.r-calfusa.com or, call 406-252-2516.

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