Dominican Republic-Central America-United States Free Trade Agreement Implementation Act
Mr. Speaker, over the past several weeks, I have closely studied the proposed free trade pact between the United States and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic, commonly referred to as CAFTA.…
Mr. Speaker, over the past several weeks, I have closely studied the proposed free trade pact between the United States and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic, commonly referred to as CAFTA.
After careful consideration, research, and meetings with national security experts and representatives of Missouri agriculture, labor, and business, I have decided to vote in favor of CAFTA. While this legislation is far from perfect--no trade pact ever is--my support comes down to two issues.
First, CAFTA is a national security issue. As the ranking Democrat on the House Armed Services Committee, I have the opportunity to consider not only the military component of national security, but other elements as well. Our security depends upon the success and the competitiveness of the U.S. economy. We must exert leadership, especially in our own hemisphere.
Just 20 years ago, civil wars, communist insurgencies, and military dictatorships oppressed and destabilized much of Central America. Because conditions in Central America are critical to our national security, the
United States has actively supported these nations during the transition from insurgency and military rule to democracy. However, these new democratic governments cannot be taken for granted. Threats to their existence remain, notably from countries in South America that are suffering the effects of civil war, narcotics trafficking, and communist inspired agitation. Turning our backs on a region only recently freed from the grasp of dictatorship would diminish our international credibility and would send the wrong message to the world at a time when our troops are fighting in Afghanistan and Iraq to build stable, democratically-elected governments.
As former President Jimmy Carter said, ``For the first time ever, we have a chance to reinforce democracies in the region. This is the moment to move forward and to help those leaders who want to modernize and humanize their countries.''
Second, the market access provided by CAFTA will benefit American agriculture, which is of primary importance to those of us who care about the future of rural America and want to promote a strong rural economy. Currently, 99 percent of, agricultural products from CAFTA countries enter the United States duty free, while U.S. farm exports face significant barriers in these markets. Many of these commodities are produced in Missouri, where agricultural exports totaled $1.24 billion in 2003 and account for one-fourth of farm cash receipts.
Under CAFTA, U.S. farm products--like pork, poultry, soybeans, corn, and beef--will receive preferential access to Central American markets, giving Missouri's agricultural exports a significant economic advantage over agricultural exports from our competitors in South America, Europe, and Canada. It is projected the CAFTA could increase agricultural exports in the Show-Me State by $33 million annually once the agreement is fully implemented in 2024.
Again, no trade deal is perfect. Clearly, some improvements could be made in the bill, especially on the labor protection side. But, as I studied CAFTA and heard from national security, agriculture, labor, and business leaders, I became convinced that this trade agreement is critical to U.S. national security and to rural America.
June 8, 2005.
Hon. Bill Thomas,
Rayburn House Office Building,
Washington, DC.
To Representative Bill Thomas: As you prepare for your
initial consideration of the Central American Free Trade
Agreement (CAFTA) with the nations of Central America and the
Dominican Republic, I want to express my strong support for
this progressive move. From a trade perspective. this will
help both the United States and Central America.
Some 80 percent of Central America's exports to the U.S.
are already duty free, so they will be opening their markets
to U.S. exports more than we will for their remaining
products. Independent studies indicate that U.S. incomes will
rise by over $15 billion and those in Central America by some
$5 billion. New jobs will be created in Central America, and
labor standards are likely to improve as a result of CAFTA.
Some improvements could be made in the trade bill,
particularly on the labor protection side, but, more
importantly, our own national security and hemispheric
influence will be enhanced with improved stability,
democracy, and development in our poor, fragile neighbors in
Central America and the Caribbean. During my presidency and
now at The Carter Center, I have been dedicated to the
promotion of democracy and stability in the region. From the
negotiation of the Panama Canal Treaties and the championing
of human rights at a time when the region suffered under
military dictatorships to the monitoring of a number of free
elections in the region, Central America has been a major
focus of my attention.
There now are democratically elected governments in each of
the countries covered by CAFTA. In negotiating this
agreement, the presidents of each of the six nations had to
contend with their own companies that fear competition with
U.S. firms. They have put their credibility on the line, not
only with this trade agreement but more broadly by promoting
market reforms that have been urged for decades by U.S.
presidents of both parties. If the U.S. Congress were to turn
its back on CAFTA it would undercut these fragile
democracies, compel them to retreat to protectionism, and
make it harder for them to cooperate with the U.S.
For the first time ever, we have a clause to reinforce
democracies in the region. This is the moment to move forward
and to help those leaders that want to modernize and humanize
their countries. Moreover, strong economics in the region are
the best antidote to illegal immigration from the region.
I appreciate your consideration of my views and hope they
will be helpful in your important deliberations.
Sincerely,
Jimmy Carter.