The Dominican Republic–Central America Free Trade Agreement (CAFTA-DR) set out to expand trade among the United States (US), Central America, and the Dominican Republic. According to a US Meat Export Federation analyst, passing CAFTA-DR was critical to a recent increase of US pork exports to Central America. In 2017, the US pork export value to Central America was $448 million, a 33.73 percent year-over-year increase from 2016. Rising pork demand in Central America has been fueled by the region’s increased gross domestic product, which leads to higher incomes and more meat consumption. In comparison Mexico imported $1.5 billion worth of US pork in 2017, but a proposed 20 percent import tax will likely cripple US market share.
As the prospect of Mexico raising import tariffs on US pork products looms, trade success experienced over the past 13 years of CAFTA-DR helps to mitigate a potential US market share loss in Mexico. Gro Intelligence provides subscribers with the data and analytics necessary to stay ahead of global trade and agricultural markets.