Latest update April 19th, 2024 12:59 AM
May 12, 2014 News
The Inter-American Institute for Cooperation on Agriculture (IICA) said Latin America and the Caribbean will need to implement policies that guarantee the region’s agricultural sector stability and greater legal security following the enactment of the United States Farm Bill.
In a technical note sent to Caribbean Agriculture Ministers, IICA Director General Víctor M Villalobos, said the Southern Cone countries will feel the impact of the new regulations especially hard, while other nations will be affected to a lesser degree.
The new act implements an agricultural safety and risk coverage network for US farmers that will offer them guaranteed profit margins and larger production volumes, and at the same time allow them to compete in international markets under advantageous conditions.
IICA said this development will undermine the ability of major Latin America and Caribbean countries commodity producers and exporters to compete with their US counterparts, while tropical countries will enjoy the benefit of cheaper agricultural imports.
Rafael Trejos, a specialist with IICA’s Centre for Strategic Analysis for Agriculture (CAESPA), explained that the Southern Cone countries would be hardest hit, while the Central American and Andean nations would benefit from lower prices of the products they import.
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