Kuhl Votes for CAFTA

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


KUHL VOTES FOR CAFTA

Trade agreement is a win for the district: will create jobs, expand markets for exports

WASHINGTON, D.C., Jul 28 - U.S. Representative John R. "Randy" Kuhl, Jr. (R-Hammondsport) voted for the Central American Free Trade Agreement (CAFTA), H.R. 3045, which will expand markets for American products in Central America and help create jobs in the 29th District and across the United States. The bill passed early this morning by a vote of 217 to 215.

"After very lengthy and careful consideration, I decided that this trade agreement is a 'win-win' situation for American workers and agriculture," said Rep. Kuhl. "By removing barriers currently in place in the Central American markets, we can increase exports and create jobs right here at home. Many farmers and businesspeople in our district told me that they will directly benefit from the reduction of tariffs and harmonizing of trade laws between the United States and Central America. This agreement can only help, not hurt, our economy."

"The vote for the Dominican Republic-Central America Free Trade Agreement is good for this country, good for Central America, and good for Kodak because it will make it easier for us to sell our products in those countries," said Dan Carp, Chairman of the Eastman Kodak Company. "The agreement opens these markets by eliminating tariffs on photographic products that Kodak makes in the United States and making other changes that will make it easier for U.S. companies to do business in the region. We applaud Representative Kuhl's courageous vote to help U.S. companies compete better in the world marketplace."

"We certainly appreciate what Congressman Kuhl has done for New York State agriculture with his vote in support of CAFTA," said John Lincoln of Bloomfield, Ontario County, President of the New York Farm Bureau (NYFB). "The Central Americans have been able to send us their products without a problem while putting huge tariffs on ours. Now it's a two-way street and our farmers will benefit from it."

CAFTA will boost U.S. agricultural exports by an estimated $1.5 billion per year and will benefit small and medium-sized businesses, which were responsible for an estimated 37 percent of U.S. exports to the Dominican Republic and Central America in 2002.

According to NYFB, New York would increase dairy exports to the six countries participating in the agreement by an estimated $3 million per year by 2024. Fruit exporters would see the elimination of extremely stiff tariffs, which go as high as 25 percent on apples. As a result, New York would ultimately increase fruit exports to the six countries by $1 million per year by 2024. New York wine producers would benefit from the immediate duty elimination on standard-size bottled wine by all CAFTA countries. Duties on other wines will be eliminated within 15 years, and earlier in many cases. Current duties on wines can reach 20 percent in CAFTA countries.

CAFTA will also make more than 80 percent of U.S. exports of consumer and industrial products to Central America and the Dominican Republic duty free and solidify the United States as the leading supplier of goods and services to the Western Hemisphere at a time when China is making serious inroads as an investor and exporter in the region.

"Millions of jobs are created by and depend on exports, and this agreement will greatly increase our exports to the growing Central American market," Rep. Kuhl continued. "It's estimated that ten percent of all U.S. jobs depend on exports, and one in five factory jobs depend directly on international trade. Without CAFTA, many of those jobs would go to China."

According to the U.S. Department of State, CAFTA will also help continue the transformation of the Americas into a more peaceful, democratic, and prosperous hemisphere. By bringing economic growth to Central America and the Dominican Republic, CAFTA will boost demand for U.S. goods, reduce poverty, discourage illegal immigration, raise working standards, and deliver hope and opportunity to people who have made the choice for freedom.

http://kuhl.house.gov/News/DocumentSingle.aspx?DocumentID=31566

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