USA Rice Continues Dialog with Fecarroz

MIAMI, FLORIDA -- Last week, USA Rice met with the Central America Rice Federation (Fecarroz) for the third time to discuss the Central America-Dominican Republic-USA free trade agreement (CAFTA-DR).  The mechanisms for how quotas are currently allocated under CAFTA-DR and the process for reallocating unused quotas were at the top of the meeting’s agenda.  

Last year, the quotas allowed 556,850 MT of U.S. rice to enter duty free; the U.S. exported 480,000 MT.  This year, the quotas allow nearly 570,000 MT of U.S. rice to enter duty-free.  

Because CAFTA-DR is the second largest export destination for U.S. rice and the U.S. is the only country to benefit from a free trade agreement that includes rice with Central American countries, these discussions are very important for both sides.  Fecarroz members are pressing for a change in the rice terms of the agreement as the United States and the Central American countries that are parties to CAFTA-DR conduct a review later this year.   

“As the trade agreement currently stands, the U.S. rice industry would enjoy tariff-free trade with the CAFTA-DR countries in either 2023 or 2025, depending on the country,” said Bob Cummings, USA Rice COO, who attended the meeting.  “We want to make sure our trading partnership remains strong and that the U.S. rice industry is poised to expand export markets.”

USA Rice conducts promotional activities in Guatemala, Honduras, and El Salvador, and is looking to expand activities to additional CAFTA-DR countries, working in conjunction with local rice importers in those countries.