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Troubling trade pact
Congress will be making a tragic mistake by approving the Central
American Free Trade Agreement.
During congressional hearings to discuss this so-called free trade
agreement, acting U.S. Trade Representative Peter Allgeier painted a
rosy economic picture for post-CAFTA America. Allgeier told members of
Congress that CAFTA would also help consolidate "democratic and
free-market gains" throughout Central America and the Dominican
Republic, thereby reinforcing the region's "progress toward economic,
political and social reform."
During the hearings, Allegeier focused on exports of U.S.-made goods,
which he said would be helped by the elimination of import duties by the
CAFTA nations.
"Add
up the six CAFTA economies and you get a market the size of New Haven,
Connecticut," points out trade analyst Alan Tonelson of the U.S.
Business and Industry Council. Tonelson concludes that CAFTA is a
"classic outsourcing agreement" -- an arrangement in which the only
significant U.S. export would be manufacturing jobs to poor, low-wage
nations.
If
CAFTA is intended to be a free trade agreement, why does it handicap
U.S. farmers and give an artificial advantage to Central American
farmers? And why do many of its supporters describe it as a foreign aid
program for Central American governments? Now is the time to let
Congress know that we are not about to let them trade away American jobs
and our nation's economic independence.
Bernard J. Kunkel
Walton |