GOP Sources Say CAFTA Unlikely To Pass In This Session

-- by Keith Koffler and Martin Vaughan
616 words
19 February 2004
CongressDaily
English
(c) 2004 by National Journal Group Inc. All rights reserved.

The Central American Free Trade Agreement could be virtually impossible to pass in the House this year, because it lacks sufficient Republican support to counteract overwhelming opposition from Democrats, according to top Republican leadership aides. The Bush administration has negotiated terms with five Central American countries and is hoping to add the Dominican Republic before potentially submitting the deal to Congress this year. Supporters hope that Congress will consider the agreement during the summer. But GOP congressional sources say the deal, already unpopular in portions of the caucus because of provisions believed to threaten textile and sugar interests, has been run aground by continuing industrial job losses and the intense focus on "outsourcing" of jobs overseas.

"Today, in this environment, it would be nearly impossible to pass it this year," said one senior leadership aide. "The members are going to tell us to take a hike -- to wait until after the election." Recent comments by White House Council of Economic Advisers Chairman Gregory Mankiw attributing economic benefits to outsourcing probably made matter worse for CAFTA, sources indicated. "It will be a very heavy lift," said another top leadership aide. "I don't know if it's going to happen." Republican aides indicated that, at least at the staff level, the White House has been told the agreement in all likelihood cannot be passed this year.

Lawmakers from bedrock Midwestern industrial state Republican districts are fearful about casting a vote for a trade deal with low-wage countries that could be portrayed as a deal to usurp U.S. jobs. Labor leaders, who will vigorously oppose CAFTA, appear ready to tap into just this kind of anxiety. "This is one of a series of votes this year in which you're either for the Bush plan of outsourcing jobs or you're for a doing things a different way," said one AFL-CIO official. "The lines on CAFTA are clearly drawn," the official added. "Either you're with us or you're against us." Such statements sow concern among Republican lawmakers with sizable union constituencies, and GOP leaders believe very, very few Democrats will be willing to cross labor on a vote held -- at the earliest -- just months before Election Day.

Calman Cohen, president of the Emergency Committee for American Trade -- a group that is the "secretariat" of the business coalition backing the agreement -- said business still plans to ratchet up a full lobbying campaign for CAFTA when it goes to Capitol Hill. Cohen asserted that the deal has the support of manufacturers, and it provides U.S. companies with access to the Central American market that the Central American nations already have in the United States. The Office of the U.S. Trade Representative did not comment by presstime.

Meanwhile, 10 environmental groups called on members of Congress Wednesday to oppose the Central America Free Trade Agreement, charging that it does not include provisions that would lead to improved environmental standards in the region. The League of Conservation Voters was among the signers of the letter. The group's vote ratings are closely watched, and environmentalists said its opposition to the trade pact might give pause to pro-environment lawmakers who have supported trade agreements in the past -- particularly Northwest Democrats. The groups faulted CAFTA, the text of which was released publicly last week, for its investor-state dispute provisions. Those allow private companies to challenge in a special tribunal government regulatory and resource decisions such as oil and gas leases. Also, the letter says that the agreement would not require the countries bring up their existing environmental standards.

Governor Bush Finalizes Successful Central American Trade Mission; Bolsters Miami's Bid To Become FTAA Headquarters

765 words
19 February 2004
09:13 pm GMT
PR Newswire (U.S.)
English
Copyright © 2004 PR Newswire Association LLC. All Rights Reserved.

MIAMI, Feb. 19 /PRNewswire/ -- Florida's Governor Jeb Bush finalized a highly successful 5-day trip through Central America, bolstering Miami's bid to win the Permanent Secretariat seat for the Free Trade Area of the Americas (FTAA).

With both Florida and Panama vying for the Secretariat Seat, there has been much speculation over which city Central Americans will endorse. Earlier this week, Nicaraguan President Enrique Bolanos committed his support to the "Gateway of the Americas," saying that Nicaragua would be "delighted" if Miami were to be picked as the FTAA's headquarters site. For his part, Costa Rican President, Abel Pacheco, also expressed his preference for Miami if Trinidad and Tobago drops out of the race.

The Governor's last stop in El Salvador's capital city yesterday was the perfect closing to an extremely productive week. Salvadoran President Francisco Flores said that Miami would be the natural FTAA headquarters site, "should Latin America and the Caribbean decide that the Permanent Secretariat be located in the U.S." However, Flores also recognized that the actual decision is out of his hands. "I am at the end of my presidential term. Therefore, the Secretariat decision will be made by our next president," said Flores.

For his part, Tony Saca, El Salvador's front-running presidential candidate for the ruling conservative ARENA party, following a meeting with Governor Bush, advocated for important steps to take place. "We will await [El Salvador's] election results and will work to ensure that the Central American Free Trade Agreement (CAFTA) is concluded. We will work to see FTAA finalized and, evidently, believe that Miami is an excellent city for the location of the Permanent Secretariat."

Governor Bush seemed confident that CAFTA would be ratified as soon as possible and reiterated his support for the agreement. "I believe that notification on CAFTA will go to Congress real soon," said Governor Bush at a joint press conference with President Francisco Flores at the Salvadoran Presidential Palace. "I would like for it to be today, in order to give President Flores the credit he deserves, but this action will be taken quickly."

The Governor's trade mission -- a joint effort of Enterprise Florida and Florida FTAA, Inc. -- could be the definitive step to assure Miami becomes the permanent Secretariat, a decision expected in 2005.

"This is clearly the most significant momentum-builder to date in our efforts to become the consensus candidate for the FTAA Permanent Secretariat," said Jorge Arrizurieta, executive director and COO of Florida FTAA, Inc. "This follows a very successful Ministerial meeting that allowed all 34 governments to experience first hand the infrastructure, professional environment and logistical capabilities that make Miami the indisputable gateway of the Americas."

Miami's bid was not only supported by public officials but also by the region's burgeoning private sector. El Salvador's prestigious National Association of Private Companies (ANEP) strongly voiced its support for Miami

as the site for the Permanent Secretariat yesterday, an action that was also echoed by Costa Rica's and Nicaragua's private sector organizations.

Now Miami may have the strongest chance of capturing the coveted designation as Permanent Secretariat for the borderless trade area, which would encompass 800 million customers and a combined gross domestic product of $14 trillion, making it the largest trading bloc in the world.

Governor Bush and his delegation were expected to meet with Honduran President Ricardo Maduro today, but dense fog, which forced Tegucigalpa's International Airport to close, prevented them from reaching their last scheduled site. However, Governor Bush will visit Tegucigalpa very soon.

Florida FTAA, Inc. is the private-public entity led by Governor Jeb Bush and officials throughout the State of Florida with the mission that Miami, FL become the site of the Permanent Secretariat of the Free Trade Area of the Americas. Florida FTAA is chaired by Ambassador Charles E. Cobb, Jr. and managed by Executive Director/COO Jorge L. Arrizurieta. The administrative offices are located at the Biltmore Hotel Center of the Americas, 1200 Anastasia Avenue, Coral Gables, 305-476-5451.

Rachel Sherman
Legislative Assistant
Congressman Mike Michaud
(202) 225-6306

 

Reply via email to