Dominican Republic-Central America-United States Free Trade Agreement Implementation Act

DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT IMPLEMENTATION ACT -- (Extensions of Remarks - July 29, 2005)

SPEECH OF
HON. J. DENNIS HASTERT
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
WEDNESDAY, JULY 27, 2005

Mr. HASTERT. Mr. Speaker, the agreement we have before us is critical to America's economic future. You see, America's economic stability is directly linked to our ability to maintain a robust trading relationship with the rest of the world.

Right now, the CAFTA region is the second largest U.S. export market in Latin America. Eighty percent of goods from that region already enter the U.S. duty-free.

But currently, U.S. products don't enjoy the same benefits. American exporters of everything from cars, vegetables, fruits, grain and wood products all face average tariffs of 10 to 30 percent.

In my home state of Illinois, some farmers are paying tariffs on farm goods that are as high as 16 percent. These high tariffs prevent farmers from competing in the growing markets of Central America and the Dominican Republic.

Last year, export shipments from Illinois to the CAFTA region totaled $211 million dollars. That's the 16th largest in the U.S.

Passing CAFTA will allow exporters in Illinois and the rest of the country to enjoy the same benefits that our Central American partners already have. And that means more U.S. products can enter and be sold in Central America.

This agreement is a win-win situation for American farmers, businesses and consumers. No matter how you look at it, business activity will increase. And we all know, when businesses do well, jobs are created. In fact, it is estimated that one out of every five factory jobs in the U.S. depends on trade.

There is another component to CAFTA that is also important to address.

This agreement will help solidify democracy and economic reform in Central America. Here is what we know. Trade creates jobs and lifts people out of poverty. And when that happens, societies stabilize and grow. And there is nothing like a stable society to fight terrorism and strengthen democracy, freedom and rule of law.

Finally, Hispanics are now the largest minority group in the United States. For the millions of Hispanic Americans with families still living in Central America, this agreement creates a mutually beneficial economic relationship that strengthens our ties and our friendship.

Put simply, this trade agreement is about fairness. Fairness for American workers and fairness for American exporters. Our businesses and workers deserve a competitive trading environment on a level playing field.

This is important legislation. It will expand economic opportunity in the United States, and it will promote freedom and democracy in Central America. I urge the House to do the right thing and pass this legislation.

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