WASHINGTON (AFP) - A free trade pact with Central America and the Dominican Republic cleared the US Congress, after it was approved by a narrow 217-215 vote in the House of Representatives.
Pushed by the administration of President George W. Bush, CAFTA-DR passed the House thanks to 15 Democrats who voted against their party line. Twenty-seven Republican lawmakers and one independent voted against the pact.
The trade agreement was hotly debated among both parties and represents a key victory for Bush, who risked considerable political capital in pressing for its approval.
Signed more than a year ago, CAFTA-DR was approved by a 54-45 vote in the Senate on June 30 and its passage in the House was uncertain until the last minute.
Bush and his cabinet fought an uphill battle to have it approved.
While CAFTA-DR is expected to have little impact on the US economy, which exports 15 billion dollars worth of goods to Central America, it became the most controversial free trade agremeent Congress debated in years.
In a rare meeting behind closed doors, Bush, Vice President Dick Cheney and US Trade Representative Rob Portman (news, bio, voting record) spent more than one hour in Congress on Wednesday to press Republican lawmakers to fully support the trade pact.
Backers of the trade agreement argue it is a way to fend off the threat of Chinese textile exports by spurring further integration of US yarn and textile producers with low-cost garment makers in with the Dominican Republic, Nicaragua, El Salvador, Honduras, Costa Rica and Guatemala.
Additionally, some have been arguing the measure is needed for economic stability and security in the region and to reduce illegal immigration into the United States.
Failure to pass CAFTA-DR would have made Bush politically vulnerable for the remainder of his second term in office and seriously weakened his hand in negotiating a wider Free Trade Area of the Americas and bringing about a freer global trading system under the Doha Round of talks under the World Trade Organization.
Democrats strongly opposed the deal because they claim it fails to impose fair labor standards in a region unsupportive of workers' rights and represents unfair competition to US workers.
The White House insists CAFTA-DR's labor standards are the most rigorous of all free trade pacts the United States has negotiated so far.
Lawmakers from sugar-producing and textile-manufacturing states also rejected the trade deal fearing it could increase unemployment in their regions.
"We must not neglect the anti-democracy, anti-American forces that are at work in Latin America," said Republican representative for California David Dreier said in support of CAFTA-DR during the two-hour debate before the vote.
"Certainly, CAFTA does not fix all the problems facing Central America. But increased economic integration can only add jobs and help alleviate poverty, reduce the flow of migration northward, and make our region more competitive in world markets," said Jim Kolbe, Republican for Arizona.
Maryland Democrat Whip Steny Hoyer said he could not support the measure "for its failure to guarantee basic workplace protections for Central Americans and a level playing field for American workers."
CAFTA-DR "is about institutionalizing cheap labor," said Ohio Democrat Dennis Kucinich, while Democratic Minority leader Nancy Pelosi, noting the negative impact on employment, said CAFGA "only digs the hole deeper."
Despite its protectionist rhetoric, the US Congress has rejected no trade agreement in the past 40 years.
The United States entered a free trade agreement with Mexico and Canada in 1994 and with Chile in 2003.
Before CAFTA can go into effect, it must be approved by the legislatures of Nicaragua, Costa Rica and the Dominican Republic.
Pushed by the administration of President George W. Bush, CAFTA-DR passed the House thanks to 15 Democrats who voted against their party line. Twenty-seven Republican lawmakers and one independent voted against the pact.
The trade agreement was hotly debated among both parties and represents a key victory for Bush, who risked considerable political capital in pressing for its approval.
Signed more than a year ago, CAFTA-DR was approved by a 54-45 vote in the Senate on June 30 and its passage in the House was uncertain until the last minute.
Bush and his cabinet fought an uphill battle to have it approved.
While CAFTA-DR is expected to have little impact on the US economy, which exports 15 billion dollars worth of goods to Central America, it became the most controversial free trade agremeent Congress debated in years.
In a rare meeting behind closed doors, Bush, Vice President Dick Cheney and US Trade Representative Rob Portman (news, bio, voting record) spent more than one hour in Congress on Wednesday to press Republican lawmakers to fully support the trade pact.
Backers of the trade agreement argue it is a way to fend off the threat of Chinese textile exports by spurring further integration of US yarn and textile producers with low-cost garment makers in with the Dominican Republic, Nicaragua, El Salvador, Honduras, Costa Rica and Guatemala.
Additionally, some have been arguing the measure is needed for economic stability and security in the region and to reduce illegal immigration into the United States.
Failure to pass CAFTA-DR would have made Bush politically vulnerable for the remainder of his second term in office and seriously weakened his hand in negotiating a wider Free Trade Area of the Americas and bringing about a freer global trading system under the Doha Round of talks under the World Trade Organization.
Democrats strongly opposed the deal because they claim it fails to impose fair labor standards in a region unsupportive of workers' rights and represents unfair competition to US workers.
The White House insists CAFTA-DR's labor standards are the most rigorous of all free trade pacts the United States has negotiated so far.
Lawmakers from sugar-producing and textile-manufacturing states also rejected the trade deal fearing it could increase unemployment in their regions.
"We must not neglect the anti-democracy, anti-American forces that are at work in Latin America," said Republican representative for California David Dreier said in support of CAFTA-DR during the two-hour debate before the vote.
"Certainly, CAFTA does not fix all the problems facing Central America. But increased economic integration can only add jobs and help alleviate poverty, reduce the flow of migration northward, and make our region more competitive in world markets," said Jim Kolbe, Republican for Arizona.
Maryland Democrat Whip Steny Hoyer said he could not support the measure "for its failure to guarantee basic workplace protections for Central Americans and a level playing field for American workers."
CAFTA-DR "is about institutionalizing cheap labor," said Ohio Democrat Dennis Kucinich, while Democratic Minority leader Nancy Pelosi, noting the negative impact on employment, said CAFGA "only digs the hole deeper."
Despite its protectionist rhetoric, the US Congress has rejected no trade agreement in the past 40 years.
The United States entered a free trade agreement with Mexico and Canada in 1994 and with Chile in 2003.
Before CAFTA can go into effect, it must be approved by the legislatures of Nicaragua, Costa Rica and the Dominican Republic.
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