[Congressional Record (Bound Edition), Volume 151 (2005), Part 12]
[House]
[Pages 17083-17087]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      NATIONAL SECURITY CHALLENGES

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 4, 2005, the gentleman from California (Mr. Dreier) is 
recognized for 60 minutes as the designee of the majority leader.
  Mr. DREIER. Mr. Speaker, today we face a great national security 
challenge, many challenges in fact.
  As we wage a global war on terror, we face an enemy that kills 
indiscriminately in its campaign against freedom, democracy and 
political pluralism. The brutal attacks in London

[[Page 17084]]

just a couple of weeks ago and, of course, the other tragic news that 
we have gotten from London this week are a tragic reminder of the 
nature of the enemy that we face. But I believe that the true sign of 
our times is not the carnage of suicide bombers. It is the image of 
millions of Iraqis waiting in line to cast their first free votes, and 
millions more in Afghanistan, the Ukraine, Lebanon, Georgia, 
Kyrgyzstan, and on and on and on around the world.
  Democracy is sprouting in places that seemed unthinkable and that has 
been the case for quite a while. The worldwide terror campaign that is 
being perpetrated and the rise of democracy in formerly inhospitable 
places are not unrelated. Just the opposite, in fact. The war that is 
being waged against political and economic freedom and our unwavering 
resolve to defeat it is pushing oppressed people to a tipping point. 
They are demanding the right to determine their own futures. And as 
President Bush has so clearly articulated, the spread of freedom is not 
just a consequence of the global war on terror. It is our best defense. 
That is, the spread of freedom is the most important thing that we can 
do for our national security. Those who embrace the democratic 
principles of liberty, opportunity and tolerance do not resort to 
terrorism. Aiding the establishment of democratic and free societies is 
squarely within our national interest.
  To that end I have had the great privilege of working with our 
distinguished Speaker, the gentleman from Illinois (Mr. Hastert), in 
the establishment of the House Democracy Assistance Commission. I have 
joined my colleague, the gentleman from North Carolina (Mr. Price) who 
is the ranking member of this task force.
  The House Democracy Assistance Commission provides a forum for this 
body to play a significant and proactive role in establishing the 
strong, independent, transparent legislatures that are essential to a 
vibrant and healthy democracy. Our commission was established precisely 
because we realized that spreading freedom throughout the globe is as 
critical to preserving it right here at home because we realize that we 
cannot abandon anyone to tyranny.
  Just a short time ago most of us could not have imagined millions of 
Iraqis turning out to vote. But there they were on January 30, defying 
the terrorists and the world's expectations of what would happen there.
  Those of us who have been engaged with Central America over the past 
2\1/2\ decades have been amazed by the transformation that has taken 
place there as well. Like their Iraqi counterparts, the people of 
Central America have made the journey from violence and oppression to 
democracy and freedom. Many of my colleagues will remember just how 
difficult that process was.
  Two decades ago President Reagan and this body were deeply concerned 
about the threat posed to the United States by the communist expansion 
and civil war that existed in our own backyards. As the Cold War neared 
its fourth decade, violent conflict in El Salvador, Guatemala, 
Nicaragua and Honduras had the region in turmoil. Stability, let alone 
democracy, seemed absolutely unattainable.
  Today the region is just as important, Mr. Speaker, to our national 
interests. But rather than a threat, Central America is an ally and a 
partner in trade, counter terrorism, drug interdiction, and migration 
control. Our Central American friends play a vital role in the security 
and well-being of the United States of America.
  Again, for those who remember the struggle of the 1980s, this 
transformation is no less astounding than the one taking place at this 
very moment in Iraq. And our commitment to solidifying and 
strengthening the democratic institutions that are taking root there 
should be no less firm today than it was a decade and a half ago when 
this process began.
  The people of Central America have embraced democracy, but they now 
expect concrete results from their democratically elected leaders, and 
rightly so. They must find new opportunities for prosperity and a 
higher standard of living or they will question the democratic 
institutions that have only recently brought peace to that region. We 
cannot take the threat of faltering democracy lightly.
  Recent events in Venezuela and Bolivia are a testament to the 
potential for political instability in the absence of economic growth. 
Great economic gains have been made in the decade and a half since 
democracy took hold, but there is far more that needs to be done, Mr. 
Speaker.
  The average gross domestic product per capita for the five countries 
of DR-CAFTA, and those countries are the Dominican Republic, El 
Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, the GDP on a per 
capita basis is roughly about $2,660 or less than 7 percent of the U.S. 
GDP per capita. Even citizens in the post successful of those 5 
countries, Costa Rica, have one-fourth the purchasing power of the 
average American. Inflation, unemployment and under-employment are 
significant challenges.
  If these economic realities are not more effectively resolved, our 
neighbors could in fact turn to alternative leadership. Leadership far 
more hostile to the United States and democracy. All one needs to do is 
simply witness Venezuela and their President, Hugo Chavez.
  The countries of -CAFTA have 2 paths before them. One leads to trade 
liberalization and the rule of law. The other leads to protectionism 
and the rule of the well-connected. The United States should not slam 
the door in the face of those who are making the right and difficult 
decision to pursue open trade.
  The presidents of the DR-CAFTA countries have staked much political 
capital on their decisions to adopt this multilateral free trade 
agreement. The DR-CAFTA leaders have embarked on this path because they 
know it will mean for their citizens, they know it will mean a great 
deal for them, economic opportunities, less economic stratification, 
increased economic transparency, a strengthened rule of law and hope 
for the future.
  An American rejection of the Dominican Republic-Central American Free 
Trade Agreement, would be politically devastating to these 
democratically elected governments that have staked so much on the 
promise of this agreement. If they are unable to deliver on the 
economic improvements they have pledged, these visionary leaders will 
be pressured to pursue protectionism over liberalization, or worse, 
failure to enact the Dominican Republic-Central American Free Trade 
Agreement, could lead to the rise of the political elite, a political 
elite that is hostile to the United States, inclined to demagoguery, 
and uncooperative in regional security and economic affairs. Again, all 
one needs to witness is Venezuela's Hugo Chavez.
  Now, let us consider the case of Nicaragua. President Enrique 
Bolanos' government in Managua faces a litany of threats on a daily 
basis. An unholy alliance of the extreme left led by Daniel Ortega and 
of the extreme right led by jailed former President Aleman is 
challenging the authority and stability of the Bolanos government. 
These two old Nicaraguan political hands, Ortega and Aleman, would seem 
to have little in common but they do share a distaste for the free 
market. These men have staked their political futures in large part on 
their opposition to the Dominican Republic-Central American Free Trade 
Agreement.
  Defeating the agreement would give credence to their anti-economic 
liberalization rhetoric and momentum to their undemocratic plots.
  Aleman cares more for his own enrichment than for democracy and 
Ortega is a compadre of Fidel Castro's and routinely describes the 
United States of America as an ``enemy of humanity.''
  Ortega also keeps close company with Commandante Tomas Borge, someone 
who I got to know quite well during the 1980s. Tomas Borge is the only 
surviving member of the Sandinista Front in Nicaragua. He has said that 
the defeat of the Dominican Republic-Central American Free Trade 
Agreement which he has worked very

[[Page 17085]]

hard to bring down, the defeat of that would lead to the consolidation, 
he says, of the ``leftist triangle.'' That leftist triangle of course 
is Cuba, Venezuela, and as he says, now Nicaragua.
  Coming from a man who founded an organization, the Sandinista 
Liberation Front, that violated human rights, consorted and to this day 
continues to consort with terrorists, and targeted Americans is 
obviously a very troubling sign. A return of the Sandinista regime and 
the establishment of an anti-American coalition involving Castro and 
Chavez would be extremely dangerous for the United States and for our 
regional interests.
  We must do everything in our power, Mr. Speaker, to support the 
positive democratic governments we worked so hard to help create. A 
return to the violent past would be devastating for the United States, 
the region and, most tragically, the people of Central America for whom 
we fought and struggled so hard during the 1980s.
  Just as we are working to spread freedom and democracy around the 
world, we must not negligent it in our own back yard. We must help to 
increase the prosperity that undergirds peace. And we can accomplish 
this, Mr. Speaker, by passing the Dominican Republic-Central American 
Free Trade Agreement. But DR-CAFTA and the economic future of the 
region are not just critical to our security interests. They are vital 
to our economic interests as well.
  Over the past 20 years, we have unilaterally opened our market to 
Central American trade. Producers in the DR-CAFTA region send 80 
percent of their goods, including 99 percent of their agricultural 
products, to the United States of America duty free.

                              {time}  1315

  Now, that is good for U.S. consumers to have access to all of those 
things. These special preferences have enjoyed strong support from the 
Congress. Large bipartisan, and I stress bipartisan, majorities in both 
Houses of Congress have long recognized the importance of supporting 
economic growth in the region. Back in 1983, we passed the original 
Caribbean Basin Initiative in the House by a vote of 392 to 18. It does 
not get much stronger and more bipartisan than that.
  Since then, we have continued to acknowledge that opening our economy 
to the Central American people is critical to stabilizing the region 
and providing the tools that will lift them out of poverty. In 2000, 
the House reaffirmed our commitment to creating new opportunities in 
this hemisphere when 309 Members, which included 183 Republicans and 
126 Democrats, voted in support of the Trade and Development Act, 
further opening the U.S. market to Central American goods.
  With DR-CAFTA, our partners in the region are offering to make these 
benefits reciprocal. They have access to our markets. Everything that 
they have can come virtually duty-free into the United States. Now, 
U.S. producers under this agreement will enjoy the duty-free access 
that their Central American counterparts currently enjoy. Tariffs on 80 
percent of all manufactured goods will immediately drop to zero, Mr. 
Speaker, that is from 80 percent to zero, while the rest are phased in 
over a 10-year period of time.
  But lower tariffs are just the beginning. In the 21st century it is 
not just the product itself that is important; it is the idea behind 
the product, the innovations and the creative content, that make U.S. 
producers so valuable and our economy so strong. Our knowledge-based 
economy, based on our power to innovate, has secured our place as the 
world's economic superpower.
  But as intellectual property grows in significance to the United 
States economy, so does the importance of protecting intellectual 
property. We always talk about the importance of property rights. 
Intellectual property is equally important.
  DR-CAFTA fully accounts for the value of intellectual property and 
provides the state-of-the-art protection that our 21st-century economy 
demands. It will bring the region's intellectual property laws in line 
with U.S. laws. It will ensure that violators will be appropriately 
punished. And, most important, it will provide the tools to 
successfully enforce these comprehensive commitments. This agreement 
will create an environment where innovative American goods can compete 
fairly and openly. Without these protections, Mr. Speaker, the benefits 
of low tariffs could not be fully realized.
  The 21st-century economy is also a service-providing economy. 
Services, those that cater to consumers like you and me, those that 
cater to other businesses now make up 80 percent of private-sector GDP, 
as well as 80 percent of employment in this country. And it is in these 
sectors that our DR-CAFTA negotiators achieved some of our hardest 
fought and most significant gains.
  Service sectors in the DR-CAFTA countries are heavily protected, and 
in many cases they are closed entirely, closed entirely, to foreign 
investment and to competition as well. This agreement will open up 
these markets virtually across the board for the highly competitive 
service providers based here in the United States. From 
telecommunications to insurance to financial planning, DR-CAFTA will 
grant the United States new access in the sectors that make up the 
backbone of our economy and the future of our continued 
competitiveness.
  But to fully grasp the significance of this agreement for our 
economy, we have to look beyond individual sectors and tariff 
schedules. We have to look at the bigger picture. Mr. Speaker, we live 
in a global economy. We were reminded of that just this week when Prime 
Minister Singh delivered his address, the Indian Prime Minister, to a 
joint session of Congress. The impact of the worldwide market is 
growing, not shrinking. It would not be in our interest to run from 
globalization, even if it were possible for us to do so. Our response 
must be to become more competitive and continue to prosper from a 
growing global marketplace. After all, 94 percent of the world's 
consumers are outside of our borders.
  A key part of making this region more competitive is to work 
together. We already have economies that are complementary, and there 
is no better example of how the economic relationship between the 
United States and the Dominican Republic-Central American countries 
region can work for our mutual benefit than the textile and apparel 
industries.
  The DR-CAFTA countries are the second largest importers of U.S. 
textiles. Again, they are the second largest importers of U.S. 
textiles; and we are their largest export destination for finished 
product, for apparel. At a time when the United States textile industry 
looks for new ways to remain competitive in the global economy, this 
region is our strongest trading partner in textiles and apparel.
  Just look at the content of clothes that our families wear. Central 
American apparel is made mostly from U.S. products, 80 percent on 
average. Apparel coming from the Pacific Rim, by contrast, is made up 
of less than 2 percent, 2 percent, U.S. content. Again, 80 percent of 
that from Central America is U.S. content. Only 2 percent from Asia is 
made up of U.S. content.
  With the lifting of worldwide textile quotas earlier this year, we 
all face the challenge of growing Chinese imports. This includes 
Central American apparel manufacturers, who have been forced to close 
up shop as a result of increased Sino competition. The Dominican 
Republic-Central American Free Trade Agreement provides the opportunity 
to strengthen the regional supply chain and boost an apparel industry 
that is heavily dependent on U.S. products.
  Upon enactment of this agreement, Mr. Speaker, more than 90 percent 
of all apparel made in the DR-CAFTA region will be sewn from fabric and 
yarn made right here in the United States of America. All American 
textile goods will receive immediate duty-free access to the DR-CAFTA 
market, and these benefits will be retroactive to January 1 of 2004. 
That is a year and a half back.
  By dismantling the trade barriers that have hindered job creation 
here at home, we will create new opportunities for America's workers. 
And by strengthening regionally based industries, job creation here in 
the United

[[Page 17086]]

States will support job creation in the DR-CAFTA countries. Far from a 
zero sum game, a zero sum scenario, we have the chance to prosper and 
grow together.
  The opportunities for greater economic opportunity do not end with 
textiles and apparel. As the DR-CAFTA economies grow and diversify, the 
strengths of our economies will continue to reinforce each other. This 
further integration of the regional economy will build upon the 
tremendous success of another FTA, an FTA that we are frequently told 
rhymes with CAFTA.
  Many DR-CAFTA opponents paint the agreement as a repeat of the North 
American Free Trade Agreement, NAFTA. Then they bemoan NAFTA as a 
catalyst for economic failure and job loss in the United States. Mr. 
Speaker, one simply has to look at the economic facts to declare their 
rhetoric as the distortionist tactics of protectionists.
  So what are these facts? First, since NAFTA's implementation, we have 
added 20 million jobs to our labor market here in the United States. 
Our economy has grown by 38 percent since implementation of the NAFTA. 
U.S. exports to our NAFTA partners have more than doubled, growing by 
112 percent. Let me say that again. Many people believe that we only 
buy everything from Mexico and Canada. But our exports since passage of 
the North American Free Trade Agreement have increased by 112 percent.
  Some of the biggest economic gains have been, believe it or not, Mr. 
Speaker, in the manufacturing sector. Manufacturing output has risen by 
a third, while real manufacturing wages have increased by 27 percent. 
And NAFTA has yielded 43 percent of U.S. manufacturing export growth as 
well as 28 percent of import growth. So we have seen that this has 
clearly been a win-win all the way around.
  The U.S. certainly has not monopolized the benefits of NAFTA. The 
agreement also led to 30 percent growth in the Mexican economy. While 
economic liberalization has moved more slowly and less uniformly than 
we would hope, it is clear that increased trade has been a very 
positive force there as well. Wages in Mexico in trade-related 
industries are 37 percent higher than in other industries. Again, in 
trade-related areas we have a 37 percent higher wage rate in Mexico 
than in other areas. Mexican wages and employment are higher in states 
with higher foreign investment and trade; and migration from those 
states, Mr. Speaker, is lower. Wages are also higher in sectors with 
more exposure to either imports or exports.
  First through NAFTA and now through DR-CAFTA, we are cooperating, 
growing, and becoming more competitive with our friends and neighbors 
in this region. We can continue to use our respective strengths and 
resources to our mutual benefit and compete in the worldwide market.
  Many of my colleagues, Mr. Speaker, claim that mutually beneficial 
cooperation is not possible because the DR-CAFTA countries are too poor 
and their labor protections are far from perfect. It is certainly true 
that far too many Dominicans and Central Americans live in poverty. No 
one is ignoring that fact. But how can we look at rampant poverty in 
our own back yard and then condemn our neighbors to remain in these 
conditions?
  The World Bank recently conducted a study of DR-CAFTA and the impact 
it would have on the region. Their findings were very clear. This 
agreement will reduce poverty and raise the standards of living for 
Dominicans and Central Americans, they found. As the report notes, 
parties to free trade agreements experience higher growth in GDP, 
averaging a 3 percent increase over 5 years. For the DR-CAFTA 
countries, this extra 3 percent growth will mean that nearly half a 
million people, nearly half a million people will be lifted out of 
poverty by the end of this decade.
  The World Bank confirms the DR-CAFTA will increase investment in the 
region, combat corruption, and improve the quality of public 
institutions. It will raise the standard of living, particularly for 
those who are living in poverty. It will spur innovation, and it will 
solidify the broad economic gains made in the region in recent years.
  The report's analysis further notes that FTAs like DR-CAFTA lead to 
higher wages and improved working conditions. All of these factors lead 
the World Bank to conclude: ``A central factor in determining the 
future of Central America will be the ratification and implementation 
of a Dominican Republic-Central American Free Trade Agreement.''
  Mr. Speaker, rejecting CAFTA, on the other hand, would simply 
sanction the status quo. Let us look at all the challenges we have. No 
one has offered an alternative to the DR-CAFTA. If we were to reject 
it, it would deny the DR-CAFTA countries the tools to create jobs and 
develop the resources to implement strong labor protections. Congress 
recognized this principle when we passed free trade agreements with 
Jordan and Morocco. Both Jordan and Morocco have struggled with high 
poverty levels and a lack of adequate resources to fully enforce labor 
protections.
  Yet bipartisan majorities in the House and Senate demonstrated that 
economic liberalization was key to improving these conditions and sent 
these FTAs to the President's desk.

                              {time}  1330

  That was a decision that both Houses of Congress made with bipartisan 
votes. Once again, we have the opportunity to combat poverty and 
improve labor conditions with the passage of the Dominican Republic-
Central American Free Trade Agreement.
  Once again, Mr. Speaker, these positive economic benefits have 
broader security implications for the United States. Rising standards 
of living in the region will assist in resolving an issue that affects 
all of us, that issue is illegal immigration. Specifically, we can 
deter illegal immigration by addressing one of its root causes, that 
being poverty.
  Mr. Speaker, illegal immigration is a national problem that saps the 
resources of local law enforcement, overwhelms our medical system, and 
puts great strains on our schools. With over 10 million illegal 
immigrants in the United States, the cost to the Federal Government and 
State governments, as we all know, is enormous.
  Nearly all illegal immigrants to the United States come in search of 
work, economic opportunity, a chance to feed their families because 
they have found limited opportunity at home. In fact, T.J. Bonner, the 
President of the National Border Patrol Council, estimates that 98 
percent of illegal immigrants come to this country for one reason and 
one reason only, seeking economic opportunity. To stem the tide of 
illegal immigrants, it stands to reason that we should encourage 
economic prosperity in the countries that are frequently the source of 
those illegal immigrants.
  DR-CAFTA gives the Dominican Republic and the Central American 
countries the much-needed push towards prosperity that they so strongly 
desire. It will open markets and opportunity in the region, allow their 
citizens to purchase more goods for less money, give small businesses 
reason to expand, help create jobs, and raise the standards of living.
  And most important, the people of Central America will have an 
incentive to build their future in their own countries rather than to 
make the dangerous, illegal attempts to enter our country. This is in 
our best interest as a country. It is our duty as a steadfast ally to 
our friends and neighbors in Central America.
  As the former President of Costa Rica, the Nobel Peace Prize winner 
Oscar Arias wrote in the Washington Post, ``The Central American Free 
Trade Agreement would allow Central America to thrive by exporting 
goods through trade rather than exporting people through migration. 
Access to the U.S. market is the most important tool to speed our 
economic and social development and to keep our people at home.''
  Mr. Speaker, I urge this body not to, in the words of Oscar Arias, 
punish Central America for achieving peace.
  Tom Friedman of the New York Times recently wrote, ``In the 1980s we

[[Page 17087]]

were worried that Central America was going communist. Now it seems 
today that people are worried that Central America is going 
capitalist.''
  Our neighbors want to embrace that economic liberalization and what 
it can bring. Through the Dominican Republic-Central American Free 
Trade Agreement, we will help them continue to make progress against 
poverty in our hemisphere and reduce the flow of illegal immigrants 
into the United States.
  Unfortunately, it is on this very issue of immigration that the DR-
CAFTA debate has become clouded. There has been some confusion as to 
the impact of the agreement, and the impact it will have on U.S. 
immigration law. I would like to set the record straight. There is 
absolutely nothing in the agreement that affects our immigration laws. 
To ensure against any ambiguity in that matter, all seven parties to 
the agreement signed a legally binding document unequivocally saying 
``No provision of the agreement shall be construed to impose any 
obligation on a party regarding its immigration measures.'' That is 
actually part of the agreement.
  To make it very clear, nothing in the Central American Free Trade 
Agreement will in any way modify U.S. immigration law. DR-CAFTA fully 
preserves both existing U.S. immigration law and the power of this 
Congress to legislate at its discretion on immigration matters. In 
fact, DR-CAFTA fully preserves the power of this Congress to legislate 
at its discretion on any matter whatsoever.
  This agreement will not cede our sovereignty or create loopholes in 
our immigration law, as some have argued. What it will do is lower the 
tariff and nontariff barriers our producers and service providers 
currently face. It will strengthen the regional supply chain that helps 
us compete globally, particularly with regards to China. It will build 
upon the economic gains we have already achieved in this region through 
the North American Free Trade Agreement, and it will pave the way for 
even stronger gains throughout the hemisphere.
  DR-CAFTA will provide the Dominican Republic and the Central American 
people with the tools to reach the first rung of the economic ladder, 
and it will help them as they seek to climb that economic ladder. It 
will provide hope for opportunities at home; and, therefore, an 
incentive to stay and build a future in their home country. It will 
reinforce their faith in the power of economic freedom and strengthen 
their commitment to the rule of law and the free market. And it will 
solidify these six countries as free and democratic allies right at our 
doorstep.
  Mr. Speaker, we have learned just how critical the spread of 
democracy is to our national security. Our troops are currently in 
harm's way in Iraq and Afghanistan, fighting to ensure their fledgling 
democracies are sustained.
  The Central American people have already done the most difficult 
work. With our help, they have rejected dictatorship, totalitarian, 
authoritarianism, and they have chosen to embrace democracy. They have 
laid the foundations of the rule of law, political pluralism and a 
commitment to free markets.
  But these tremendous gains are still very fragile and they are 
reversible. After all, these are democracies that are only 15 years 
old. We cannot leave before the job is done. We need the Dominican 
Republic-Central American Free Trade Agreement to fully achieve what 
Ronald Reagan set out to do more than 20 years ago, and that is bring 
permanent peace and prosperity to our back door.
  When Ronald Reagan announced his candidacy for President on November 
6, 1979, he envisioned a free trade accord for this entire hemisphere. 
The Dominican Republic-Central American Free Trade Agreement is a very 
important step on that road towards implementing the vision of Ronald 
Reagan.
  I urge my colleagues to join with us in a bipartisan way, which is 
the way that we have traditionally dealt with the very important issue 
of international trade, and come together when we next week cast this 
critical vote on the Dominican Republic-Central American Free Trade 
Agreement.

                          ____________________