04/04/05 C.A.F.T.A. concerns?, Part one

As Congress returns to work after Easter recess, one of the items scheduled for their consideration is ratification of the Central American Free Trade Agreement. Now under rules for fast track provisions, Congress will not be allowed to modify it, just authoring an up or down vote for ratification. And as the time to vote approaches, U.S.D.A. and other supporters of C.A.F.T.A. and a similar trade agreement with the Dominican Republic are throwing their best pitches to Congress and the American public. Recently, U.S.D.A. Secretary Mike Johanns approached the benefits of C.A.F.T.A from two standpoints. First, there would be the establishment of a level playing field between the C.A.F.T.A. nations, something Johanns says currently doesn't exist. He uses the example of how ninety-nine per cent of products from C.A.F.T.A. nations & goods from bananas to coffee& already enter into the U.S. duty free, while U.S. goods are still subject to high tariffs. JOHANNS: The current W.T.O. levels are on average forty two per cent in Costa Rica, forty one per cent in El Salvador, forty per cent in the Dominican Republic, forty nine per cent in Guatamala, thirty five per cent in Honduras, and sixty per cent in Nicaragua. Then there are the economic benefits U.S. growers and ranchers would receive through entering into new or existing markets duty free or at reduced tariffs. JOHANNS: But when C.A.F.T.A. is passed, and those markets are open on a fair and equitable basis, we could well double U.S. exports to those countries. American farmers and ranchers know this. Virtually, all the major ag industry and trade groups, more than fifty of them, support C.A.F.T.A. And that support is broad because nearly every U.S. ag sector will benefit. Now it is true several ag groups and trade organizations are in support of C.A.F.T.A&some heavy hitters like the American Farm Bureau Federation, National Cattlemen's Beef Association, National Corn Growers Association, and National Pork Producers Council. Some members of Congress also support C.A.F.T.A. But on the other side, there are other groups in ag, other members of Congress, who have come out in vocal opposition of the trade deal. Chief among them, from a Northwest standpoint, is the sugar industry. The why's for their concerns, and the concerns of others will be discussed in our next program.