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Trade Capacity Building in Latin America

RATIONALE
Strengthening the capacities of developing countries to trade and compete in domestic and international markets is crucial, both for the countries themselves and for their trade partners. Economic growth is positively associated with increased trade, which allows countries to access improved technologies and inputs. Evidence demonstrates that reduced trade barriers improve economic efficiency and spur economic growth, increasing employment and incomes.

OBJECTIVES
Increased rural prosperity and promoted trade-led economic growth in the core countries of Nicaragua, Guatemala, Honduras and El Salvador by enhancing the capacity of farm producers and rural industry to benefit from domestic and international trade opportunities that will result from entrance into the Central America Free Trade Agreement. Fielded 21 volunteers to Bolivia and Peru at the request of USAID and local partners. The FTF Program achieved its goal through three objectives:
1.    Help farm producers to increase competitiveness, upgrade production capacity and quality and prepare for liberalized trade opportunities and risks.
2.    Enhance the competitiveness of agribusiness firms and producer organizations to serve domestic markets and exploit trade opportunities.
3.    Expand market linkages and domestic and international public and private sector alliances for trade capacity building and leveraging resources.

ACTIVITIES
Winrock and our partner, Florida International University, placed a total of 326 volunteers over the five-year period. Average assignment length was 15.3days per assignment for total of 4,996 volunteer days. The following table summarizes the allocation of volunteer assignments:

Country    LOP Volunteer Trips
Bolivia                16
El Salvador         69
Guatemala          76
Honduras           95
Nicaragua          65
Peru                    5
TOTAL    326

ACCOMPLISHMENTS
As of September 30, 2008, FTF implemented 326 volunteer trips and strengthened 150 host organizations in 11 focus areas. Hosts reported 158 new contracts, orders, and joint ventures and US$75 million in increased gross sales over the life of project.  More than 18,700 women and men participated in LA FTF activities, increasing their capacity operate in a liberalized trade environment and adopting more sustainable farming and processing practices.

Increased producer and agribusiness competitiveness and upgrading:
•    In El Salvador volunteers designed and built two greenhouse prototypes that were inexpensive and easy to assemble.  Farmers have since constructed 17 more using locally available materials. New technology was introduced in hydroponic tomato growing and greenhouse hygiene.  Buena Vista Farm reported an increase US$81,200 in annual gross sales and US$24,360 in net income which allowed them to grow from one small pilot structure to five larger greenhouses constructed on former coffee mill patios.  Farmers made improvements in crop and nutrient management and environmental control.   They built taller structures to enhance passive cooling, installed plastic groundcovers to prevent disease transmission from the soil, applied white paint and plastics to reflect more light into the greenhouse, and used retractable shades for cooling during the day.

Strengthened producer organizations and other agribusiness support institutions:
•    A FTF volunteer to El Salvador designed and built a hydroponic forage production system as alternative to replace high-cost commercial feed and improve water management.  In this system, hydroponic forage used 90% less water and cost US$0.09 - $1.13 per pound to produce, compared with US$0.30 for commercial fodder.  The USDA and Technoserve installed three more hydroponic forage modules and obtained funding to construct 20 more.

Expanded linkages to higher value markets:
•    The Cuencas Altas Association in Guatemala improved coffee packaging and presentation and conducted market research with an emphasis on the southern coast of the United States.  FTF assignments contributed to a new brand identity and marketing strategy which led to a new contract of 25,000 pounds of coffee generating $60,000 in new sales. This Association is comprised of two organizations, the Association of Cooperation to the Integral Development of Huehuetenango and the regional coffee growers association Corporative Company of Organic Coffee Producers Associations of Sololà, which represents 2750 indigenous farmers from three different ethnic groups in the Atitlan Lake Basin Region.