[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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