03 March 2005

U.S., Central American Officials Voice Support for Free-Trade Accord

CAFTA-DR expected to bring broad benefits for all involved

Washington -- The nations of Central America and the Dominican Republic collectively make up the United States' second-largest trading partner in Latin America, and the proposed free-trade agreement between the United States and these proven trading partners deserves U.S. congressional support, according to U.S. Congressmen Kevin Brady.

Brady, a Republican from Texas, has been designated by the White House as its point person to secure congressional passage of the U.S. free-trade agreement with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic (CAFTA-DR).  In March 3 remarks to the Center for Strategic and International Studies, Brady joined officials from Central America, the U.S. Congress and the Office of the U.S. Trade Representative (USTR) to share his thoughts on CAFTA-DR and its prospects for approval.

Brady noted that CAFTA-DR is the largest trade accord that the United States has considered since the passage of the North American Free Trade Agreement (NAFTA), and he declared CAFTA-DR a "truly win-win agreement."

Assistant USTR Christopher Padilla concurred with this assessment: "The case for CAFTA-DR is a compelling one."

Padilla indicated that passage of the proposed trade accord would serve to reinforce progress in the region and bolster economic, democratic and social reforms.

Costa Rican Ambassador to the United States Tomas Duenas said he also viewed CAFTA-DR as an opportunity to lock in economic reforms, improve democratic institutions, and bolster regional security.  He described the accord as a "good, comprehensive and balanced deal" and added that expanded trade ties with the United States would also afford Central American nations the opportunity to raise living standards and bring greater certainty to their trade relationships with the United States.

In addition to citing these broad benefits, both Padilla and Brady argued that the accord would particularly benefit the textile and apparel industries in the United States, Central America and the Dominican Republic in their efforts to compete strategically against Chinese competition.

Guatemalan Ambassador to the United States Jose Guillermo Castillo cautioned that failure to secure passage of the accord could have dire consequences for workers who depend on trade more broadly.

"If you say no to this agreement, you are saying no to the workers in the United States and Central America who have their jobs thanks to trade," he said.

U.S. Congressmen Xavier Becerra, a Democrat from California, also emphasized the importance of forging a free-trade agreement between the United States, Central America and the Dominican Republic, but he said that the current CAFTA-DR falls short in terms of ensuring respect for international labor standards.

Duenas defended CAFTA-DR and pointed out that all five Central American countries as well as the Dominican Republic have passed legislation that recognizes and ratifies International Labor Organization (ILO) standards.  He noted that CAFTA-DR also fully meets all the labor objectives of the U.S. Trade Act of 2002 and is the first U.S. trade agreement to include provisions to build the capacity of nations to bolster labor conditions.

Padilla pointed out that an ILO study found that the constitutions and labor laws on the books in Central America and the Dominican Republic are similar to those in Morocco, and are in some areas stronger than those in Jordan.  Trade agreements with both these nations, he observed, were approved with bipartisan support in the United States.

Nonetheless, Padilla conceded that labor standards in Central America need to improve -- and that enforcement of labor laws in CAFTA-DR countries needs more work, attention and resources.

To this end, he called attention to $20 million in U.S. funding specifically allocated to enhance the capacity of Central American nations to enforce their labor laws and address abuses.

Beyond the benefits of CAFTA-DR, Padilla concluded that perhaps the most compelling case for the accord is the message its approval would send.

"We will show that the United States stands with those in our hemisphere who stand for economic freedom," he said.

Brady said that the U.S. congressional vote on CAFTA-DR will be a close one, but predicted that, in the end, there will be sufficient votes to secure its approval in the coming months.

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)