[Congressional Record Volume 150, Number 103 (Thursday, July 22, 2004)]
[Senate]
[Pages S8650-S8651]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               U.S.-CENTRAL AMERICA FREE TRADE AGREEMENT

  Mr. GRASSLEY. Mr. President, just yesterday the Senate passed the 
U.S.-Morocco Free-Trade Agreement Implementation Act by a vote of 85 to 
13. This followed on the heels of Senate approval of the U.S.-Australia 
agreement by a vote of 80 to 16. The Australia bill itself was preceded 
by renewal and extension of the Africa Growth and Opportunity Act, 
which passed the Senate by unanimous consent on June 24 of this year. 
Prior to that, the Senate was able to work out its differences and pass 
the JOBS Act by a vote of 92 to 5. I will note that each of these bills 
passed in an election

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year, a year in which many pundits argued that nothing on trade would 
get done.
  Well we proved them wrong. In fact, this has been one of the most 
active years on trade in the Senate in recent memory. I say, why stop 
now? We should continue our efforts to open foreign markets to U.S. 
exports. That is why I am calling on President Bush to send up the 
Central American Free Trade Agreement at the earliest opportunity.
  The CAFTA is an important part of our continuing efforts to open 
foreign markets to U.S. goods and services. This market access is 
critical if we are going to continue to grow our exports to the world. 
For my home State of Iowa, the CAFTA brings important new market access 
opportunities for our soybean, corn, pork and beef as well as Iowa's 
manufacturers and service providers.
  Under the current framework, many products from the CAFTA nations get 
access to our market but we do not get the same access to theirs. The 
CAFTA will change that. It will level the playing field for U.S. 
producers so they can compete in this growing market.
  The CAFTA also sends a strong message to our Latin American 
neighbors. It shows our strong desire to reach out and form deeper and 
lasting bonds with the international community, particularly in Latin 
America. The agreement will help to lock in economic reform and 
increase transparency in the region. There is no doubt about it. The 
CAFTA can serve as a cornerstone of economic growth and democracy for 
the region which will enhance the standard of living for millions of 
our southern neighbors.
  A free trade agreement with these nations represents a unique 
opportunity not only for U.S. farmers, ranchers, businesses and 
workers, but also for promoting development, security and prosperity in 
this region. It is a good agreement for the United States and for 
Central America. I will work closely with President Bush and my Senate 
colleagues to do all I can to lay the groundwork for a successful vote 
on CAFTA later this year.
  Mr. DODD. Mr. President, I rise to speak about the United States-
Morocco Free-Trade Agreement, which was passed in the Senate yesterday 
by a vote of 85 to 31. Nearly a year and a half of negotiations were 
devoted to crafting this agreement by U.S. and Moroccan officials. I 
voted in support of the implementing legislation to this agreement, and 
it is my hope that both of our countries will soon move to adopt the 
agreement.
  Every year, the United States exports roughly $475 million worth of 
goods to Morocco. While this amount is not high when we compare it with 
U.S. exports to Australia--approximately $13 billion in 2003--it is 
significant if we view it in the dual contexts of leveling the playing 
field for American exporters, and, second, development and economic 
growth. The United States-Morocco FTA will ease the burden on 
Americans, who, according to the United States Trade Representative, 
currently face an average tariff of over 20 percent on products they 
export to Morocco.
  Hopefully, this agreement will also spur domestic economic growth in 
Morocco and encourage that nation to raise its labor and environmental 
standards. Like all nations, Morocco seeks to develop and modernize its 
economy. If distributed equitably amongst a nation's citizens, economic 
modernization and prosperity are important tools in the fight against 
extremist ideologies that promote terrorism. I hope that will be the 
case in Morocco.
  Indeed, prospects of a United States-Morocco FTA have already in the 
last year prompted that nation to reform its labor laws. Now it is 
important that Morocco take all necessary steps to enforce these laws. 
The U.S. should also encourage Morocco to pursue further labor and 
environmental reform and strengthen its domestic enforcement of 
international standards.
  That is not to say that this agreement is perfect. No agreement will 
be perfect--although I still believe that the Jordan FTA, which passed 
the Senate just a few years ago by a vote of 100 to 0, should serve as 
a benchmark and guide for the crafting of free trade agreements. Few 
bills, especially free trade agreements, pass with such overwhelming 
support. I believe that support was a testament to the inherent quality 
of that agreement.
  Despite my overall support for the pending agreement, I do have a 
significant concern here. First, as my colleagues are aware, the United 
States-Morocco FTA, like the United States-Australia FTA, includes 
language that would allow prescription drug manufacturers to prevent 
the reimportation of their products.
  For a variety of reasons, we are unlikely to import drugs from 
Morocco in the near future. So as a practical matter, like the United 
States-Australia FTA, this provision will not affect drug prices in the 
U.S. And as the United States-Morocco FTA was negotiated around the 
same time as the United States-Australia FTA, it is not surprising that 
this provision appears in both agreements. But, in my view, this 
provision must not be viewed as a precedent by the Bush administration, 
and I would discourage its inclusion in any future trade agreements 
entered into by the U.S. Nor do I believe that it prevents us from 
adopting laws related to drug importation in the future.

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