House narrowly passes CAFTA, industry applauds
The U.S. House of Representatives passed the Central American Free Trade Agreement legislation during a vote that lasted after midnight.
The legislation, which includes the countries Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic, was widely opposed by Democrats over workers rights in the region. The final vote was 217 to 215.
The Bush administration lobbied hard in recent weeks for House approval of CAFTA. The Senate approved the legislation last month.
“This win sends a powerful signal to the region and the world that the United States will continue to lead in opening markets and leveling the playing field,” said U.S. Trade Representative Rob Portman in a statement early this morning.
With the exception of the U.S. sugar lobby, most American shipper groups supported President Bush’s efforts to secure passage of CAFTA.
The House vote “recognizes the enormous potential that DR-CAFTA represents and finally levels the playing field for U.S. workers, businesses and farmers,” said Thomas J. Donohue, president and chief executive officer of the Washington-based U.S. Chamber of Commerce, in a statement.
“DR-CAFTA is a key market-opening agreement in its own right, one that presents major new opportunities for exports of U.S. goods and services,” said Peter M. Robinson, president and CEO for the New York-based U.S. Council for International Business.
Robinson added that the industry is “hopeful” that passage of CAFTA will encourage movement on the World Trade Organization’s Doha Round.
“Finalizing a Doha Round agreement on commercially advantageous terms is our top priority,” Robinson said. “We encourage the U.S. and other major trading nations to make the important political decisions necessary to reach a broad, market-opening agreement in the WTO by the end of 2006.”