Basically, producers of grains, sugar, livestock and oil products are opposed to a free trade arrangement unless special considerations could be negotiated for them. Fresh fruit and vegetable producers seem lukewarm to the idea since there is little trade advantage to them. Their strong support might be enticed if U.S. market order restrictions were eliminated and if protection for some products was still available for the domestic market. Processors are strongly in favor of a free trade agreement since they have the most to gain in terms of market growth. Just as in the U.S., agricultural producers accept that there might be an overall benefit to Chile, but they are primarily concerned about its impacts within individual commodity sectors.
Economic analysis supports the contention of industry leaders.
Even though the United States is an important market for horticultural exports, it is also an existing or potential supplier of cereals, sugar, vegetable oil, beef and milk products. Competitors such as Greece and South Africa would be expected to lower their prices in the U.S. market, thereby increasing U.S. imports by more than that projected for Chilean exports. Total employment in Chilean agriculture is projected to increase as the result of a trade agreement because export commodities tend to be more labor intensive than the traditional crops facing import competition. Job losses in the latter sector are projected to be 7,709 persons while gains in agricultural and processed exportables are projected to be 10,499. However the new jobs are primarily located in different regions from those in which the losses will occur and they will demand different skills.