[Congressional Record Volume 149, Number 128 (Wednesday, September 17, 2003)]
[Senate]
[Pages S11634-S11635]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NEGOTIATION OF A U.S.-CENTRAL AMERICAN FREE TRADE AGREEMENT
Mr. BAUCUS. Mr. President, I rise today to address the ongoing
negotiations for a United States-Central America Free Trade Agreement--
also known as the ``CAFTA.''
These negotiations present a couple of unique challenges.
First, most of the CAFTA countries are less developed, both
economically and politically, than Mexico, Chile, or any of our other
FTA partners. This presents challenges to the abilities of the Central
American countries--both to negotiate a comprehensive set of
commitments and to implement them effectively.
Second, these negotiations are on an accelerated schedule. They
started in January 2003 and are set to conclude by the end of this
year. The limited trade negotiating capacities of the CAFTA countries
makes this an ambitious goal.
Third, several of the CAFTA countries played a less than constructive
role at the WTO Cancun Ministerial. Their participation in the G-21 and
the role of that group in precipitating the meeting's collapse raises
serious questions about their commitment to trade liberalization.
I support comprehensive free trade agreements that create sound
market access rules and meaningful commercial opportunities for
American farmers, workers, and businesses. And I support, in principle,
the goal of reaching such an agreement with the five CAFTA countries.
But we need to be realistic. A CAFTA agreement will be politically
difficult here--much more so than the recently passed free trade
agreements with Singapore and Chile. The issues it raises will be
challenging on both sides of the aisle.
[[Page S11635]]
Next year's vote on CAFTA will also set the stage for the many free
trade agreements that are lining up to pass through Congress: Morocco,
Australia, the Dominican Republic, South Africa, Bahrain. The list just
keeps growing.
To keep our trade agenda moving forward, we need a CAFTA that can
pass with a large majority. If CAFTA sours the Congress on FTAs we are
in for real trouble.
With only 4 months left in the negotiations, time is running short.
But there is still time enough to push the CAFTA negotiations in the
right direction. We can do that by addressing three principal concerns:
First, there needs to be a clear acknowledgment by our negotiators
that CAFTA presents different challenges than other agreements. These
countries have different political, legal, and social structures, and
different economies, than any of our existing FTA partners.
We cannot simply table the Singapore and Chile texts and say we are
done. Not for market access or agriculture. Not for services and
intellectual property. Not for environment or labor. One size does not
fit all.
Second, we need to make sure that this agreement is comprehensive.
Taken together, the CAFTA countries are about our 18th largest trading
partner. They account for one percent of U.S. trade. So the commercial
benefits from this agreement will be modest at best.
Absent significant commercial gains, the only way to ``sell'' the
CAFTA to our farmers, workers, and businesses, is as a strong model for
future agreements.
We hear from Costa Rica that they don't want a telecom chapter in the
agreement. This is a bad precedent.
Similarly, we can't allow ourselves to go too far down the path of
``non-reciprocal'' market access provisions for developing countries,
just to get an agreement done.
Given their reluctance to tackle hard issues in the FTA negotiations
and the recent actions of some of the CAFTA countries in Cancun, I am
frankly skeptical about where the CAFTA negotiations are headed. If we,
and the CAFTA countries, are not prepared to conclude a comprehensive
agreement, we need to ask ourselves if this agreement is worth
negotiating at all.
Third, we need to do more to address legitimate concerns about
environment and labor.
Any number of objective sources have pointed out deficiencies in the
environmental and labor laws of the various CAFTA countries.
And there is widespread agreement including among the CAFTA
governments themselves--that these countries lack the capacity to
effectively enforce their own environmental and labor laws.
Yet that is just what the text tabled by USTR would require them to
do. Even as the evidence mounts, our negotiators stick stubbornly to
their determination not to go beyond the Chile and Singapore texts.
That won't work. For CAFTA, we need a different approach.
To date, our domestic politics on environment and labor have been
polarized. The CAFTA countries see that and they use it as an excuse
not to engage constructively.
I want to help break this deadlock. I want to get us all talking
about constructive ways to address environment and labor.
A workable approach to environment and labor in the CAFTA will do two
things. It will help the CAFTA countries overcome their capacity
limitations. And it will give assurance that meaningful improvements in
environmental and labor standards and enforcement in those countries
are occurring.
In the next weeks, I plan to release a detailed proposal for
addressing environmental issues in the CAFTA. I will give just a short
preview today.
My proposal combines improvements to the Chile and Singapore
environment chapter text with enhancements to the trade capacity
building and environmental cooperation programs.
In the text, I propose changes that will help build an open and
responsive system of environmental regulation in the CAFTA countries.
For example, the citizen petition process used in the NAFTA side
agreement has helped empower environmental NGOs in Mexico, with
positive effects. I think that should be a model for the CAFTA.
On trade capacity building, I think we can make this process work
better to achieve long-term environmental and sustainable development
goals. On the U.S. side, that means creating a mechanism that assures
funding for capacity building over the long term.
For the CAFTA countries, it means completing the ongoing regional
process of setting environmental priorities, and establishing a
monitoring system to assure that capacity building is leading to
progress toward those goals.
I look forward to sharing my detailed proposal in the near future.
It does not serve America's trade interests to negotiate imperfect
trade agreements simply to put another notch on our belt.
I hear people say all the time that America has fallen behind other
countries in negotiating FTAs and needs to ``catch up.'' But this is
not a numbers game. We must always remember that it is the quality, not
the quantity, of our free trade agreements that matters.
I hope that I will be able to work with the administration to pass a
good agreement with Central America. It is an important region, and
this could be a significant agreement.
But the Trade Act--and specifically the provisions on labor and
environment--must be adhered to. Submitting the same labor and
environment text for all agreements--regardless of the situation in
that country--is not, in my view, consistent with the Trade Act.
If we end up with an agreement that ignores Members' concerns on
labor and the environment, I will work hard against it.
I hope it does not come to that. I hope that we can work together on
an agreement that makes sense and moves the ball forward. And I stand
ready to do that.
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