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Simpson Opposes CAFTA in House

Date: July 28, 2005
Location: Washington DC
Issues: Trade


Press Release
July 28, 2005

SIMPSON OPPOSES CAFTA IN HOUSE

Washington, D.C. - Idaho Congressman Mike Simpson last night was one of only 27 Republicans to vote against the Central America Free Trade Agreement - otherwise known as CAFTA. Simpson opposed the trade agreement primarily out of concern for sugar producers and the Idaho communities that rely upon the economic activity generated by Idaho's sugar industry. The agreement passed the House by a vote of 217-215.

"I made it clear to our trade negotiators over two years ago that if they included sugar in CAFTA, I would vote against it," said Simpson. "They ignored my warnings and I stuck by my threat."

Simpson said the inclusion of sugar in CAFTA puts hundreds of Idaho farms at risk right now and leaves them in even greater danger in future trade agreements. "I fear not only will this agreement increase sugar imports from Central America, but it will set a very dangerous precedent for a Thailand Free Trade Agreement and a Free Trade Area of the Americas that will devastate Idaho's sugar industry and leave us reliant on foreign producers for this most basic commodity. If so, trade advocates better get used to me voting against these agreements," said the Idaho Congressman.

According to the non-partisan Congressional Budget Office (CBO), the low sugar prices and oversupply caused by CAFTA would force U.S. sugar farmers to forfeit on sugar loans made by the government. These forfeitures, CBO said, would cost the federal government about $50 million a year. The CBO also found that revenues to the U.S. treasury would fall by $4.4 billion over a 10 year period, or about $440 million a year.

While acknowledging the Idaho sugar industry was among his primary concerns, Simpson said that he had others problems with CAFTA as well. "In general, I have become frustrated not only with the way in which our nation negotiates its trade agreements, but how those agreements are enforced. I think we need to take a whole new look at our trade policies and determine whether or not they are in the best interests of our nation's farmers, businesses, citizens, and sovereignty," said Simpson.

http://www.house.gov/apps/list/press/id02_simpson/cafta_vote.html

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