CAFTA PASSES UNITED STATES CONGRESS
July 28, 2005
Washington, D.C. - The Dominican Republic-Central American Free Trade Agreement (CAFTA) passed the United States Congress early this morning by a vote of 217 to 215, removing barriers to markets across the region for local companies and agricultural interests. Rep. James T. Walsh joined a majority of his House colleagues in support of the legislation.
"This bill is vital to multiple agricultural interests across New York State," said Walsh. "But more importantly, this legislation will improve our own nation's security and create much needed wealth and stability in democracies across the region. Support of these fragile democratic governments and their weaker economies would be threatened by defeat of this bill."
Walsh, a past opponent of general international trade agreements, cited multiple aspects of the legislation that encouraged his support:
· Provides pro-American support for democratic systems in the region, combating a growing anti-American and anti-democratic movement pushed by Cuba's Castro and Venezuela's Chavez and effectively strengthening American security and immigration interests throughout the Western Hemisphere;
· Establishes duty-free status for 80% of U.S. exports of consumer and industrial products to the five Central American countries and the Dominican Republic;
· Eliminates various tariffs negatively impacting the agriculture industry - New York State's largest - including a 10% tariff on grain, 17% on fruit, and 13% on processed foods;
· Creates an American textile alliance to compete against dumped Chinese imports, whereby Central American garment makers will utilize raw materials supplied by United States producers;
· Protects against human right and labor abuses by providing $175 million over five years to enforce existing labor laws in all six countries deemed in synch with core labor standards of the International Labor Organization (ILO); and
· Includes an environmental cooperative agreement that advances international environmental obligations and increases capacity to enforce specific anti-pollution and species protection measures.
"Unlike previous measures, CAFTA provides the United States with a unique opportunity to enhance trade with Central American economies, combat Chinese dominance in certain industries, and spread wealth throughout the Americas," said Walsh. "Looking long term, a stronger, wealthier, and more stable Central America next door benefits the United States' own safety, security, and economy."
The measure, which previously passed the United States Senate, now proceeds to the President for signature into law.
http://www.house.gov/walsh/pr1_07.17.05.html