[Congressional Record Volume 151, Number 106 (Friday, July 29, 2005)]
[Extensions of Remarks]
[Pages E1680-E1681]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT 
                           IMPLEMENTATION ACT

                                 ______
                                 

                               speech of

                           HON. DENNIS MOORE

                               of kansas

                    in the house of representatives

                        Wednesday, July 27, 2005

  Mr. MOORE of Kansas. Mr. Speaker, DR-CAFTA is good for our country, 
and good for Kansas. The market access provisions of the agreement will 
remove remaining trade barriers in the region that raise the cost of 
Kansas exports, and will keep Kansas exporters competitive 
internationally. According to the Department of Commerce's 
International Trade Administration, exports of manufactured and non-
manufactured products from Kansas to the Central American region 
totaled $23 million in 2004. That figure will grow after the 
signatories to the agreement implement DR-CAFTA. For manufactured 
goods, duties on 80 percent of U.S. exports to the Central American 
region will be eliminated immediately, with the remaining duties phased 
out over a period of up to 10 years. Manufactured goods accounted for 
89 percent of Kansas' exports in goods to the DR-CAFTA countries last 
year, and Kansas will continue to benefit under the market access 
provisions of DR-CAFTA.
  Additionally, DR-CAFTA will open markets for American agricultural 
goods. For agricultural products, duties on over 50 percent of U.S. 
exports would be eliminated immediately upon implementation of DR-
CAFTA, with the rest phased out over a period of up to 20 years. 
Together, the DR-CAFTA countries are Kansas' 11th largest market for 
crop exports. This agreement will benefit Kansas farmers.
  As a transportation hub, the Kansas City metro area, which is ideally 
situated on the banks of the Missouri and Kansas Rivers and home to 
hundreds of miles of commercial rail lines and highways, will play a 
critical role in moving Kansas exports to market.
  Finally, trade liberalization benefits American consumers. Greater 
movements of goods and services between the United States and other 
nations increases competition and applies downward pressure on prices, 
which will help keep inflation at historically low levels. Though the 
importance of international trade on subduing inflation should not 
be overstated, neither should it be dismissed. Increased competition, 
together with a reduction in production costs, can reduce the prices 
for consumer goods and services in our country.

  The global integration of markets for goods and services, referred to 
as ``globalization,'' is a fact of modem life. As we enter the twenty-
first century, the pace of globalization is accelerating. The United 
States has been a global leader in international trade for decades. And 
our country is well positioned to shape the direction of globalization 
if we continue to engage with the rest of the world.
  In theory, international trade can raise standards of living and 
efficiently allocate resources between nations. In reality, the 
potential benefits and drawbacks of trade are usually addressed within 
the language of trade agreements. Each trade agreement that the United 
States considers entering into with our trading partners needs to be 
examined carefully on the merits of the agreement. While I have 
concerns with DR-CAFTA, I believe the potential benefits of the 
agreement outweigh its potential deficiencies. For that reason, I plan 
to vote in favor of DR-CAFTA.
  Mr. Speaker, twenty years ago several of the DR-CAFTA countries, each 
of which has its own unique history and culture, were mired in civil 
war and suffering from deplorable human rights abuses. The region has 
come a long way over the last two decades, but there is more work to be 
done. By passing DR-CAFTA, we have an opportunity to help the region in 
its progress toward greater freedom and economic prosperity. As former 
President Jimmy Carter wrote in expressing his strong support for DR-
CAFTA: ``For the first time ever, we have a chance to reinforce 
democracies in the region. This is the moment to move forward and to 
help those leaders that want to modernize and humanize their countries. 
Moreover, strong economies in the region are the best antidote to 
illegal immigration from the region.''
  DR-CAFTA has the potential to create jobs in the region, raise 
standards of living for the citizens in the DR-CAFTA countries, and 
further stabilize what has been an unstable region. Defeat of this 
trade agreement will have devastating consequences for the region, 
which will likely lose textile and apparel jobs to countries with lower 
wages and weaker worker protections. Turning our backs on the DR-CAFTA 
countries is counterproductive, both for the Central American region 
and for America, while engagement holds the promise of future benefits 
in our hemisphere.

[[Page E1681]]

  While DR-CAFTA will bring tangible benefits to both the United States 
and the Central American region, there are chapters in the agreement 
that could have been improved as this process unfolded. I am 
disappointed that there was not more consultation with Congress as the 
administration negotiated the agreement. Members of both parties have 
concerns regarding DR-CAFTA's labor provisions. Although the agreement 
subjects failure to enforce labor laws to binding dispute settlement, 
which could lead to fines or sanctions, greater protections of workers' 
rights should have been made subject to binding dispute settlement.
  In addition, while Congress will provide $20 million in funding for 
capacity building efforts in the DR-CAFTA countries to help those 
nations implement and enforce the provisions of the agreement, $20 
million is not enough. More funding will be needed in future years to 
help the DR-CAFTA countries enforce the laws that protect workers, 
including children, from potentially dangerous work conditions.
  I am also disappointed that the agreement does not confront the 
reality of globalization's negative consequences here at home. Trade 
agreements need to do more to help workers transition from jobs in 
distressed industries to new jobs in areas that stand to benefit from 
our modern economy. I would like to see greater efforts to retrain 
displaced workers. I look forward to working with the administration to 
help American workers remain competitive and employed well into the 
twenty-first century.
  Mr. Speaker, globalization is a fact of life in our country and the 
rest of the world in 2005. It is part of a broad, long trend toward 
global economic integration. The United States should embrace its 
historic role as a global leader in international trade and seek to 
shape the path of a trend that will continue to unfold ready or not. 
The United States has the strongest economy and the best workforce in 
the world. We are well positioned to succeed throughout the twenty-
first century. DR-CAFTA is not a perfect trade agreement. But it is a 
step in the right direction for the future of our country.

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