[Congressional Record Volume 145, Number 151 (Monday, November 1, 1999)]
[Extensions of Remarks]
[Pages E2233-E2234]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 ``THE IMPORTANCE OF CBI LEGISLATION''

                                 ______
                                 

                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                        Monday, November 1, 1999

  Mr. RANGEL. Mr. Speaker, as we approach consideration by the U.S. 
Senate of legislation to build a stronger trading and commercial 
relationship between the United States and the nations of the Caribbean 
Basin and Africa, it is good to be reminded by the leadership of the 
affected nations how critical this legislation is to their economic 
growth and development, while simultaneously aiding the United States 
by strengthening our export markets and creating new jobs.
  The new President of El Salvador, Francisco Flores, wrote a 
persuasive opinion editorial which was published in the Journal of 
Commerce on Tuesday, October 19, 1999. He rightfully concludes, after 
analyzing the beneficial impact of the Caribbean Basin Initiative upon 
the Caribbean Basin since its enactment

[[Page E2234]]

16 years ago, that the trade and commercial relationship between the 
region and the United States is critical, even essential, to economic 
development and growth in the nations of the region and is a 
prerequisite to political and social stability in the region. President 
Flores says ``The enactment of CBI is the single most important thing 
that the United States can do to assist in the long-term development of 
Central America and the Caribbean region.''
  I am pleased to submit President Flores' editorial for the Record.

                The Case for Caribbean Trade Enhancement

                         (by Francisco Flores)

       As early as this week, it is anticipated that the Senate 
     will vote on passage of trade enhancement for the Caribbean 
     Basin. This legislation has been pending before the U.S. 
     Congress for five years.
       Last month, the presidents of Central American countries, 
     along with the president of the Dominican Republic and the 
     prime minister of Trinidad and Tobago, visited Washington to 
     advocate the passage of Caribbean Basin Initiative 
     enhancement legislation.
       We decided to visit Washington to meet with the U.S. 
     government because enhanced trade with the United States has 
     become critical to the region's ability to promote economic 
     growth and maintain social and political stability.
       As a region, we are urging Congress to approve legislation 
     that enhances trade benefits to the CBI nations, so that 
     regional exports that are currently excluded under CBI are 
     able to enjoy quota-free and duty-free access to the U.S. 
     market.
       In simple terms, we are requesting that the trade playing 
     field be leveled so that we can help ourselves. We regard CBI 
     enhancement legislation as a stepping stone to the 
     negotiation of a free-trade agreement between Central America 
     and the United States.
       Enhanced trade will create an expansion of economic 
     opportunities that are urgently needed to preserve our 
     region's stability by creating employment and encouraging 
     international and domestic investment.
       Conversely, a lack of trade benefits will postpone the 
     prosperity of our region, and our democratic institutions 
     could be threatened if governments fail to meet the 
     expectations of the people.
       An expansion of economic opportunities between the United 
     States and Central America would provide an incentive to 
     prevent Central Americans from emigrating outside the region 
     to seek better jobs and living conditions. Hence, free trade 
     will also constitute the best prevention policy against 
     uncontrolled migration from the region that the United States 
     can implement.
       Enhanced trade between the United States and the region 
     will also strengthen the positive trend that we have seen in 
     trade between our two areas during the past decade.
       U.S. exports to the CBI countries--among which exports to 
     Central America are predominent--have more than doubled since 
     1989, going from $9 billion to $22.1 billion, creating almost 
     125,000 jobs in the United States.
       CBI enhancement legislation will increase the region's 
     purchasing power for all types of goods and services produced 
     in the United States.
       For each dollar exported to the rest of the world by the 
     CBI countries, approximately 75 cents is imported in products 
     from the United States. In marginal terms for each additional 
     dollar in the CBI region's gross domestic product, 44 cents 
     are imported from the United States.
       Finally, enhanced trade opportunities for the region will 
     bring a win-win situation for U.S. and Central American 
     businesses.
       Enhanced trade will benefit industries such as textiles and 
     maquilas that have contributed to our economic dynamism. In 
     addition, it will provide flexibility to U.S. industries, 
     permitting them to remain competitive in an increasingly 
     competitive marketplace.
       In the area of textiles and apparel, extending CBI benefits 
     to vertically integrated apparel production provides the 
     region the best vehicle for attracting investment and 
     creating jobs. We will not be able to compete with Asia and 
     Mexico if we are relegated to a ``cut and sew'' operation.
       In our view, therefore, meaningful CBI enhancement 
     legislation should include:
       Tariff treatment equivalent to the North American Free 
     Trade Agreement to products currently excluded from CBI. In 
     the case of sugar, CBI enhancement legislation should include 
     provisions to monitor the effect of NAFTA on CBI countries' 
     sugar access to the US preferential market, and if adverse, 
     to take actions to ameliorate such effects.
       Quota-free and duty-free treatment for originating textile 
     and apparel products that comply with the ``yarn-forward'' 
     rule of origin, including 807-A and 809 programs and those 
     made with regional fabrics formed with regional yarns.
       The enactment of CBI is the single most important thing the 
     United States can do to assist on the long-term development 
     of Central America and the Caribbean region.
       It is our hope that the Senate will move swiftly to pass 
     CBI enhancement legislation, and that the House and Senate 
     conferees will work to provide the most comprehensive and 
     meaningful trade package for the region.

     

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