Mr. President, I will respond. I may ask for an additional 5. I thank my friend from Montana. The Senator from North Dakota just stated, Who pays? I wonder, who pays when my wife goes to the supermarket and pays 13 cents more for a pound…
Mr. President, I will respond.
I may ask for an additional 5.
I thank my friend from Montana.
The Senator from North Dakota just stated, Who pays? I wonder, who pays when my wife goes to the supermarket and pays 13 cents more for a pound of sugar than she does and would if we had sugar from these countries able to come into this country?
I am not in the business of producing or selling sugar, nor are many American families. But there are a whole lot of American families who are in the business of buying products that have sugar in them. They pay an exorbitantly higher price because of the protectionism that is practiced for the sugar industry. Since when can't the United States compete on a level playing field?
The opposition to this is clearly one that is protectionist in nature--for an industry that, in my view, should be able to compete with foreign producers. That is not what this debate really should be all about.
The stakes could hardly be higher--whether we import or export sugar, whether the Central American Free Trade Agreement passes has implications, whether the American farm exports will enter the Dominican Republic duty free, or whether Guatemala will be able to increase its textile protection.
By the way, I say to the Presiding Officer, if Guatemala is unable to export its textiles into the United States, I don't believe it will be the United States that would be producing textiles; I believe it will be the Chinese and others.
I don't want to be hyperbolic, but I believe the vote we will soon take on CAFTA is one of the most important that will be cast in the Senate this year. It is important because at stake is the future of Central America in its economic and political dimensions and, hence, its security dimensions. It is important because it will determine whether the free-trade agenda as laid out by President Bush proceeds toward a successful Doha round of global trade talks or whether the effort will be stopped in its tracks. It is important because it will help determine whether the invigorating effects of free trade are experienced in our country anew or whether the protectionists are able to erect their walls around us. It is important because it will show whether a trade policy in America is determined by sugar growers, unions, and other special interests or whether it is determined by leaders who place at the forefront the interests of our Nation as a whole.
A few years ago, we concluded a free-trade agreement with Chile. There are certain facts that are available already. There were the usual arguments against it from the protectionists. In 2004, the first year the agreement was effective, two-way trade increased by 33 percent. In the first 4 months of this year, it grew even faster--45 percent. Exports from the United States to Chile have risen at still higher rates--nearly 35 percent in 2004 and almost 63 percent in the first quarter of this year. Preliminary numbers suggest that in 2005, U.S. exports to Chile may nearly double those recorded in 2003. That is what free trade is all about. That is based on the firm conviction that most of us have that American products can compete with any in the world.
Now, some can't. And that is terrible, and that is why we have trade adjustment assistance. When industries in the United States are directly affected by importation of products from other countries as a result of trade agreements, we have trade adjustment assistance to provide workers retraining to upgrade their ability to find other employment. We need to do more in that area. But to somehow reject the benefits of free trade because of the damage it may do--and I emphasize ``may''--to certain industries is very shortsighted.
We see in Latin America today a growing skepticism about democracy-- equated in the minds of many with austerity programs and lack of improvement in the standard of living. Disturbing polls suggest that discontent with democracy is on the rise and that large percentages would prefer a strong man who could improve living standards to a democratically elected leader who could not. CAFTA has the potential to illustrate the tangible benefits that come from democracy--free market economics and partnership with the United States.
Let me give one concrete example. The apparel industry is critical in the regional economy, accounting for $9 billion in exports each year. CAFTA will lift duty on most apparel and nonapparel goods, immediately bolstering an economic sector that represents tens of thousands of jobs in the region. The overall effect of this and other benefits would be to help lock in Central America's political and economic gains.
Let's consider what happens if CAFTA fails. Rejecting the pact would be seen by our Central American partners as American disengagement from a region important to our security. Thousands of apparel production jobs would likely be lost as they move production facilities from Central America to China, further exacerbating illegal immigration to the United States. It would signal to the people of Central America that the support of the United States for their freedom and prosperity is more rhetorical than real--even in a win-win situation for both sides. It would have a devastating effect on our effort to lower trade barriers with other partners around the world and to push forward the Doha round of multilateral talks and put another notch in the post of the special interests as they despoil the public good for their private gain.
We need CAFTA. It is important to our economy. But it is also vital to our political security and humanitarian interests in Central America.
The former President of Costa Rica, a Nobel Peace Prize winner, Oscar Arias, speaking of CAFTA, said it represents ``an unparalleled opportunity to transform Central America into a dynamic economy, deeply integrated with worldwide flows of trade and technology. We ask not for charity, but enlightened self-interest from our northern neighbor.''
I am concerned about the state of democracy in Central America. I am disturbed that in Nicaragua there is every likelihood we may see Daniel Ortega as the next President of that country. I am disturbed about the failing economy and corruption that exists in El Salvador. I am concerned about the continuing stagnation of the economies of Guatemala and Honduras.
Mr. President, if the countries of Central America continue to fail economically, it will give rise to a situation that I do not want to revisit. When I first came to the Senate, one of the overriding and compelling challenges we faced was the rise of communism in Central America, the influence of Castro in countries such as Nicaragua, the Sandinistas in power, the effect it had on neighboring countries such as Honduras and El Salvador where there was an ongoing revolution. Billions of dollars of American taxpayers' dollars were poured into the region in aiding El Salvador in combating others in the region.
One of the most emotional and unpleasant debates I have ever engaged in on the floor of this Senate had to do with aid to the Contras. I do not want to revisit those days of the 1980s. I do not want to go back to a region that may be beset by corruption, anarchy, and possible insurgencies.
We have another individual on the rise in our hemisphere, and his name is Chavez from Venezuela. He espouses policies and programs that I believe are not in the best interests of the people of Venezuela. And he also, I believe, is having an influence in the region. If there is anything we need today, it is strong, viable economies in Central America, so they can progress, so they can be strong, and they can again be allies of the United States of America, not in a military fashion but in their advocacy for free and open societies, democracies, and places where people can raise their families in a situation of security and peace.
I would like to mention again, if there is one lesson we have learned in the challenge of illegal immigration in this country, it is that if people cannot feed themselves and their families where they are, they will go to places where they think they can. If that means risking their lives crossing the Arizona-Sonora border, they will do so.
Mr. President, I strongly urge--I strongly urge--my colleagues to not only understand the trade implications of this agreement but the political, social, as well as economic reasons for us to consider favorably this agreement. The stakes are very high. I believe, with the leadership of this President and the bipartisan support of this body, we will prevail.
I thank my colleague from Montana for allowing me this time. I yield back the remaining time.