South Dakota Senators Thune and Johnson and Representative Herseth-Sandlin are to be commended for voting in favor of passing the Peru Free Trade Agreement, according to SD Farm Bureau President Scott VanderWal. 

"This agreement will help put an end to current trade imbalances and barriers that have made it extremely difficult for U.S. agricultural products to compete in that country," said VanderWal.  He noted that U.S exports to Peru face an average tariff of 19 percent, while 99 percent of Peruvian agricultural products enter the U.S. with absolutely no tariffs.

"Peru must import food to meet the needs of its citizens.  That food is coming from countries such as Argentina, Brazil, Chile, Columbia, Cuba, the European Union and Mexico," he pointed out.  "When the Peru free trade agreement is implemented, it will finally provide U.S. farmers and ranchers with a level playing field to compete in that marketplace with beef and pork, wheat, feed grains, oilseeds and dairy products."  He added that economists estimate an increase in U.S. agricultural trade of $705 million per year after it is fully implemented.

VanderWal said that the Peru trade agreement is just the first step.  He encourages South Dakota's congressional delegation to also support pending trade agreements with Colombia and Panama.  According to American Farm Bureau economic analysis, the Latin America Trade Promotion Acts will mean nearly $38 million in increased exports for South Dakota beef and pork, soybeans, corn, wheat, and dairy products.  In 2005, according to AFBF, 25 percent of South Dakota's farm economy relied on agricultural exports.