Bush Sends CAFTA Bill to Congress

DONNA BORAK / UPI 23jun2005

WASHINGTON — After days of speculation, the Bush administration announced Thursday it would send be sending the Central American Free Trade Agreement implementing bill to the U.S. Congress for a vote.

"CAFTA-DR is critical to the economic and political stability of these young democracies and will level the playing field for U.S. workers and farmers by opening up new markets in countries that already enjoy mostly duty-free access to our market," said U.S. Trade Representative Rob Portman, in a statement released Thursday.

Portman, the Bush administration's point man on the trade bill, encouraged leaders to take up the agreement at the "earliest time possible."

After the submission of the implementing bill to Congress, members will have 90 days to pass the legislation.

The administration and congressional leaders have hoped to garner further support to pass the trade pact between the United States and six Latin American countries: Nicaragua, Costa Rica, El Salvador, Guatemala, Honduras and the Dominican Republic before the August recess.

While opponents have argued a trade pact with Central America will do little to help stimulate U.S. economic growth because jobs will be sent to cheaper labor markets, the administration has signaled CAFTA will help increase market access and reduce high tariffs by creating a two-way trading system.

The administration has repeatedly said a trade deal with Central America would help create a level playing field with a market that already exports 80 percent of its goods to the U.S. market duty free. Without CAFTA, U.S. products face high tariffs south of the border.

While both sides have launched public campaigns to get their message out, skeptics of the agreement have argued that in the end there will not be enough votes to get CAFTA-DR through Congress.

Rep. Sherrod Brown, D-Ohio, who has been an outspoken opponent of the trade deal, has repeatedly said there will not be enough congressional support.

"They do not have enough votes right now — not even close," said Brown. "What they do have are very sweet dangling carrots to wave in front of members."

Earlier this week, Brown told journalists thus far 190 votes were secured in the House to vote down the legislation. In order for the trade agreement to pass, it will need at least 218 votes.

The administration disagrees with the assessment.

Both Portman and U.S. Secretary of Commerce Carlos Gutierrez have said there is real momentum behind the bill on Capitol Hill, after the bill passed in the House Ways and Means Committee and the Senate Finance Committee last week.

"We still have a lot of work to do, but we cleared a major hurdle last week. Momentum is building and I look forward to working with Congress on passing this essential compact between the United States and our friends in Central America and the Caribbean," said Portman.

Congressional leaders who have criticized the trade deal have called on the administration to renegotiate the legislation to protect interests of business and labor groups, as well as farmer and ranchers.

"The way the Bush administration has negotiated CAFTA makes it far more likely that the president will be wrong on all counts: it will be bad for their workers; it will be bad for our businesses and workers; and does not impact immigration to the U.S.," said Rep. Sander Levin, D-Mich.

In a news conference earlier Thursday, President Bush joined Republican and Democratic leaders to urge other members of Congress to pass the trade pact, citing political and economic incentives.

"All of us urge Congress to pass the agreement, because America has an interest in strengthening democracy and advancing prosperity in our hemisphere," said Bush. "That's why they're standing up here, and saying with a common voice to the United States Congress, let's get this bill passed."

source: http://www.terradaily.com/upi/2005/WWN-UPI-20050623-19433500-bc-us-cafta.html 24jun2005

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