[Congressional Record Volume 151, Number 106 (Friday, July 29, 2005)]
[Extensions of Remarks]
[Pages E1740-E1741]
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. NORMAN D. DICKS

                             of washington

                    in the house of representatives

                        Wednesday, July 27, 2005

  Mr. DICKS. Mr. Speaker, as a general principle, removing trade 
barriers and creating new opportunities for the export of American 
manufactured goods and services in today's global economy should be one 
of the highest priorities for those of us involved in setting national 
policy.
  Economically, politically and strategically, our nation is better and 
stronger when there is a free flow of commerce, accompanied by the free 
exchange of ideas and information between the United States and the 
major economies of the world. Of course we benefit from the growth of 
potential markets for U.S. goods, but there is also an enormous mutual 
benefit when the people of other nations are exposed to the shining 
example of our democratic system of governance and the merits of a free 
market economy. Just look at the nations who trade freely and compare 
them--and the conditions their people endure--with the nations whose 
economies are essentially closed to external commerce such as North 
Korea. Just last week in this Chamber during the Joint Session of 
Congress we witnessed a major address by the Prime Minister of India, a 
nation whose relatively swift progression to an open economy has lifted 
millions of people in India out of poverty as they have become a major 
trading partner of the United States. Not only are we selling more and 
more U.S. goods to India today, but because of our enhanced economic 
influence in this area of South Asia, the strategic interests of the 
United States have been strengthened at a critical time in this region.
  We have before us in the House today an opportunity to take another 
major step forward in promoting free trade and democracy: the U.S.-
Dominican Republic-Central America

[[Page E1741]]

Free Trade Agreement (DR-CAFTA). It represents an opportunity to expand 
our trading relationships, to promote the spread of democracy and to 
reinforce the stability of the entire Central American region. In 
reviewing the specific provisions of this trade agreement, as well as 
the promise of expanding democratic influences in the region, my 
colleagues and I must consider what is best for our constituents, for 
American workers, and for workers and their families in the Central 
American nations affected by this agreement. I know there is opposition 
here in the House to this agreement, much of it from members of my own 
party. I respectfully disagree with them because I see the enormous 
positive mutual benefits of this agreement, and because I am convinced 
that rejecting DR-CAFTA would hurt our nation and our workers, as well 
as the people in these Central American nations. And I am convinced 
that rejecting DR-CAFTA will leave our hemisphere less secure.
  Certainly for my constituents and my home state of Washington, this 
agreement will mean more and better paying jobs. Washington continues 
to be the most trade-dependent State per capita in the country, with 
more than one in four jobs dependent on trade. And CAFTA markets are 
becoming more important to producers in my State. Since 2000, trade 
with these countries has grown more than 250 percent, with Washington 
State exports exceeding $110 million last year. Reducing tariff 
barriers in these countries will significantly boost the attractiveness 
of Washington State exports to these countries, which includes high 
tech products, machinery, agriculture, and paper products.
  But the benefits of DR-CAFTA do not accrue solely to the workers in 
my State. There will be positive benefits for working people all across 
America. While these six nations alone--Costa Rica, El Salvador, 
Nicaragua, Honduras, Guatemala and the Dominican Republic--may not be 
huge markets, the DR-CAFTA countries make up America's 12th-largest 
export market worldwide, importing about $15 billion in U.S. goods and 
services last year. Together, these countries represent a larger U.S. 
export market than Russia, India and Indonesia combined. Because of the 
Caribbean Basin Initiative, these nations already have preferential 
treatment in our markets; it is time for us to gain the same benefits 
in their markets. According to an analysis conducted by the Progressive 
Policy Institute, textile firms, high-tech companies, and many service 
industries stand to gain immediate benefits from the approval of the 
agreement.
  The benefits for workers from these Central American countries will 
be more pronounced. Competition from Chinese and Indian garment 
manufacturers is already intense and is growing. There are provinces in 
China and India that have greater populations than all six CAFTA 
nations combined. Currently, the temporary duty-free treatment CAFTA 
nations enjoy under CBI--nations that use U.S. textiles in their 
garment production--is keeping these Central American countries 
competitive. Without CAFTA, this treatment will expire, likely 
devastating the garment industry in Central America, potentially 
throwing half a million people out of work. With CAFTA, exports of 
garments from Central America, using American-made materials, is 
expected to increase, building jobs on both sides.
  The economic arguments for the agreement are strong. But in my 
opinion, CAFTA is more critical for promoting regional stability. Over 
the last 20 years, these nations have struggled out of chaos and civil 
war to establish fragile democracies, developing critical institutions 
designed to safeguard freedom and to promote the rule of law. But the 
ultimate success of these governments is predicated upon economic 
security. I believe that CAFTA will help to do just that, spurring U.S. 
investment and promoting the growth of a middle class in each of these 
nations.

  The failure of CAFTA would mean just the opposite, in my judgment. 
Competition--particularly from China and other Asian nations--is fierce 
and growing. Without CAFTA, the largest manufacturing sector in Central 
America may fail, leading to a significant rise in unemployment, 
economic stagnation, and potentially civil unrest. It is certainly in 
our nation's best strategic interests to assure that this does not 
happen. With greater economic stability promoted through increased 
trade and investment, I believe that the nascent institutions of 
democracy in these nations will thrive and flourish. I am not alone in 
believing that freer trade will help the workers in Central America. 
Former President Jimmy Carter and former Costa Rican President Oscar 
Arias--whose dedication to the people of Central America and to 
alleviating the plight of the poor is unquestioned--strongly support 
the agreement. In the words of President Arias, ``CAFTA would allow 
Central America to thrive by exporting goods through trade rather than 
exporting people through migration. Opportunities would open for 
consumers to acquire better and cheaper goods; for small and medium 
businesses to expand and diversify; for more private investment, access 
to new technologies and educational opportunities; for a qualitative 
and quantitative improvement in the job market; and for higher economic 
growth, government revenue and increased social spending.''
  I also understand the concerns of those of my colleagues here in the 
House who have joined together with our friends in organized labor in 
opposition to this agreement. I share their mistrust and disdain for 
the domestic labor policies implemented by the administration that 
negotiated this agreement. In the end, however, I believe that our 
shared cause will be furthered, not hindered, by the labor provisions 
of this agreement.
  The editorial board of The News Tribune in Tacoma, the largest 
newspaper in my congressional district, summarized the view I have held 
in a recent editorial in support of the agreement. The editorial said: 
``CAFTA is probably the single best thing this country could do for 
those workers (in Central America). If markets were to expand for 
Central American goods, Central American labor would be worth more, 
paid more and treated better. Workers would gain more leverage and find 
it easier to unionize. . . .''
  Mr. Speaker, I believe that this agreement is good for the country, 
good for the state of Washington, good for workers in all the 
participating countries, and good for the security of the Western 
Hemisphere. I intend to support the agreement. I would like to thank 
the gentleman again for yielding to me.

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