Trade

INTERNATIONAL TRADE

DR-CAFTA

Among the objectives in DR-CAFTA negotiations were: (1) to eliminate tariffs, quotas, and other barriers to trade, and (2) provide adequate transition periods and relief mechanisms for the U.S. agricultural sector to adjust to increased imports of sensitive products from the region. The U.S. position called for no product or sectoral exclusions from the final agreement.

The trade agreement opens access to 44 million new customers for American products. The opening of the Latin American markets, however, does not affect Congress’s sole authority to determine immigration policy. The agreement contains a legally binding letter that states in no uncertain terms that “no provision of the trade agreement shall be construed to impose any obligation” on America regarding our immigration measures.

The U.S. is not losing net jobs to other countries, and this trend is expected to continue under DR-CAFTA. The most compelling reason for outsourcing is not free trade, but the tax and regulatory burdens faced by companies operating within the United States. DR-CAFTA will reduce these burdens resulting in U.S. firms being more competitive and less likely to move their business elsewhere.

Implementing the agreement would likely make an important contribution to promoting stability, development and the consolidation of democracy throughout the region. A more stable Central America is vital to the long-term fight against terrorism and Anti-Americanism.

Most of our imports from the nations affected by DR-CAFTA already come into the U.S. duty-free, but our exports would be most affected. The tariffs on our exports will be eliminated under the agreement. U.S farm products, manufactured goods and the U.S. textile industry would benefit. Apparel produced in the region is allowed into the U.S duty- and quota-free under the DR-CAFTA as long as those making it use U.S.-produced yarn and fabric. This encourages apparel makers in the region to buy from the U.S.

Related links*:

The White House (International Trade)  

* I do not necessarily support all of the information and opinions expressed therein.