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Isakson Praises Senate Passage of Central American Free Trade Agreement

Date: July 1, 2005
Location: Washington, DC
Issues: Trade


Isakson Praises Senate Passage of Central American Free Trade Agreement

CAFTA Will Increase Economic Opportunities for Georgia

Citing the economic benefits to the state of Georgia, U.S. Senator Johnny Isakson (R-Ga.) today praised the Senate's passage of an agreement that promotes U.S. trade with Central America and the Dominican Republic.

The Central American Free Trade Agreement (CAFTA) will strengthen economic ties between the U.S. and the countries of Costa Rica , El Salvador, Guatemala, Honduras, Nicaragua and the Caribbean's Dominican Republic by tearing down tariff barriers. It will also promote economic development and democratic governance among the trading partners.

"This agreement will benefit our state and this nation tremendously," Isakson said. "CAFTA will significantly increase economic opportunities for Georgia businesses and provide additional market access for our state's products."

The state of Georgia's exports to the CAFTA region totaled $667 million in 2004 and from 2000 to 2004 have increased by $113 million. Collectively, the countries included in the agreement are Georgia's ninth-largest export destination.

When implemented, CAFTA will open new markets for Georgia products, improve the competitiveness of Georgia's textile manufacturers in the region and level the playing field for Georgia farmers. Since the North American Free Trade Agreement (NAFTA) was signed in 1993, Georgia's combined exports to Canada and Mexico have increased by more than 200 percent.

Upon enactment of CAFTA, 80 percent of U.S. consumer and industrial goods exports become duty-free, with the remaining 20 percent becoming duty-free over 10 years. The agreement will also commit the countries to greater openness and transparency in government and promote efforts to strengthen environmental protection and improve working conditions.

"Not only will CAFTA bring unparalleled economic benefits to the trading partners, it will also help improve labor conditions and promote political stability in the region," Isakson said. "This is a win-win situation."

The House of Representatives is expected to consider the agreement in July.

http://isakson.senate.gov/press/2005/070105cafta.htm

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