The Free Trade Agreement between the United States and the Central American countries together with the Dominican Republic (DR-CAFTA) threatens the livelihoods of thousands of rice farmers in Central America. It opens the door to massive subsidized US rice exports at prices below the cost of production. If the Agreement is ratified and implemented, a flood of subsidized rice will displace thousands of Central American producers from the market. Only a few export and import companies will reap benefits. The dependence on food imports that DR-CAFTA will provoke may also worsen current levels of food insecurity for Central American countries. Oxfam fears that the implementation of DR-CAFTA will have a negative impact on poverty reduction in the Central American region.
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