Peter Brookes, Heritage Foundation
05/27/2005
Americans might be so focused on expanding freedom and
democracy in the Muslim world that we’ll blow an historic
opportunity to promote those causes in our own backyard. That’s
what will happen if Central American Free Trade Agreement(CAFTA)
in the coming weeks CAFTA is a U.S.-initiated trade agreement with
five Central American nations (Costa Rica, El Salvador, Guatemala,
Honduras and Nicaragua) and the Caribbean’s Dominican Republic.
The pact has far-reaching ramifications for U.S. interests, including
free markets, democracy and national security.
Of course, CAFTA is predominantly about trade: the U.S. Trade Representative
(USTR) office says CAFTA countries constitute the second-largest
U.S. export market in Latin America (behind Mexico and ahead of
Brazil.)
These six nations (of 44 million people) form a larger export market
for the U.S. than do (the 1.5 billion people of) Russia, India and
Indonesia combined — and the CAFTA market could be even bigger.
Under existing trade practices, 80 percent of CAFTA country goods
come duty-free into the U.S. market, while American exports face
stiff tariffs; CAFTA will level the playing field by eliminating
those barriers.
CAFTA will also help the U.S. and its neighbors compete with China’s
economic rise. Right now,there’s lots of hand-wringing over
America’s trade deficit with China, especially in textiles,
and about Beijing’s undervalued, non-floating currency, the
Renminbi. Implementing CAFTA will strengthen ties with regional
garment makers ensuring that they use American fabrics and yarn
instead of Chinese textiles. That will help support U.S. exports,
jobs and influence.
American national security interests are also at stake. Central
America has made great strides toward democracy since the turbulent
1980s, when authoritarian governments, bloody civil wars and communist
insurgencies prevailed. CAFTA provides a unique chance to support
these young democracies. As Deputy Secretary of State Bob Zoellick
said in a recent speech: “CAFTA matters most to them [CAFTA
heads of state] because it will strengthen the foundations of democracy
by promoting growth and cutting poverty, creating equality of opportunity
and reducing corruption.”
In sharp contrast, Cuba’s Fidel Castro and his “Mini-Me”
— Venezuelan strongman Hugo Chavez — both oppose CAFTA
because it undermines their efforts to spread socialist revolution
in Latin America. Killing off CAFTA would play into the hands of
these two false prophets, increase anti-Americanism and boost China’s
influence in the region.
CAFTA would have a salutary effect on illegal immigration, drug
trafficking, criminal gangs like MS-13 and also on the vile international
trafficking of people — a practice akin to a modern slave
trade.
Today, far too many Central Americans and Dominicans are informally
employed, underemployed — or unemployed. Nearly half live
in poverty. CAFTA would generate economic opportunity at home, providing
alternatives to a life of crime, reducing the need — and incentives
— to illegally enter the U.S and strengthening regional democracies.
Passing CAFTA may seem like a “no-brainer,” but not
everyone agrees — especially sugar growers, labor unions and
the environmental lobby.
U.S. sugar producers hate CAFTA because it would marginally increase
sugar imports from CAFTA countries. But that “increase”
may be as little as as one spoonful per American per week.
Labor unions and environmentalists attack the pact because it doesn’t
mandate CAFTA countries adopt international labor and U.S. environmental
standards. In fact, over the long run, the economic benefits arising
from CAFTA would vastly increase wealth in these nations —
wealth that will enable them to enforce existing, and institute
new, labor and environmental protections.
It’s unconscionable that Congress would gamble with our political,
economic and security interests based on misunderstandings of these
issues.
Our domestic debate should focus on the importance of the region’s
proximity and its stability — what happens south of our border
affects us significantly. A failure to pass CAFTA would increase
the region’s risk of tumbling back into troubled times.
The United States has rightly been promoting freedom and democracy
as an antidote to many of the world’s troubles. And the world
will be watching our deliberations over CAFTA — to see whether
our deeds match our words. |