CAFTA Would Cost Taxpayers

[kerrygoddess]

CAFTA Would Cost Taxpayers
July 21st, 2005

The Congressional Budget Office is reporting that CAFTA would “cost taxpayers $50 million a year in loan forfeitures by sugar farmers.”

An administration official said Thursday that the analysis was unrealistic and that there would be virtually no cost under sugar provisions in the deal.

The CBO released its estimate as House leaders planned for a vote next week on the Central American Free Trade Agreement.

Overall, CAFTA would cost the U.S. about $4.4 billion over the next 10 years, primarily in lost tariffs, the CBO said.

Under CAFTA, those countries could ship more sugar to the United States. The CBO said the influx would push prices down and force farmers to forfeit government loans on their crops, costing taxpayers on average about $50 million annually through 2015.

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