The potential impact of the Free Trade Agreement between the United States and Central America (CAFTA) on the agriculture sector of the region is an issue that will receive priority attention from the RUTA Project and its partner agencies.

A regional study is being conducted under the leadership of IFPRI, with the participation of Honduras, El Salvador, Guatemala, Nicaragua and Costa Rica. As part of the process, it was decided to conduct five country studies on value chains that are important to the rural sector. These will be ready in early 2006.

In the case of Honduras, the value chains being studies are those pertaining to beans, swine, cantaloupe/watermelon, beef and palm oil. In El Salvador, the study focuses on sorghum, swine, beans, panela sugar and processed fruits.

In Guatemala, the production chains of white maize, yellow maize, potatoes, mangoes and flowers are being studied. In Nicaragua, the study refers to white maize, red beans, swine, beef and cheese.

Finally, in Costa Rica, the value chains being studied are those relating to chicken, swine, powdered milk, palm oil and ornamental plants. These studies are aimed at identifying weaknesses or strengths of these production chains vis à vis CAFTA, with a view to taking such measures as may be necessary, either to take advantage of opportunities opened up by the treaty or by mitigating its potentially negative effects on any of these production sectors.

STUDIES OF VALUE CHAINS BY COUNTRY