    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book II)]
    [July 21, 2005]
    [Pages 1256-1262]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on the Dominican Republic-Central America-United States Free
    Trade Agreement
    July 21, 2005

        Thank you all. Sientese. Thank you very much for the warm welcome.
    Thank you to the Hispanic Alliance for Free Trade for inviting me here
    today. And thanks to the Organization for American States for providing
    this fantastic forum.
        What a beautiful building. What makes it even more beautiful is that
    the Organization of American States promotes democracy and freedom.
    There's nothing more beautiful than freedom. And I appreciate

    [[Page 1257]]

    your commitment to democracy and freedom. And I appreciate the chance to
    come to talk about a treaty, CAFTA, that will not only provide more
    prosperity in our hemisphere; it's not only a good deal for American
    workers and businessowners and farmers, this treaty will help spread
    democracy and peace.
        Thanks for letting me come by. Raul, thank
    you. Muchas gracias. It's good to see you again. Raul is such a strong
    leader in the Latino community in my State of Texas that he had the high
    honor of having a school named for him. I can't thank you enough for
    being the leader you have been. And thank you and Alonzo for inviting me here today and for helping us get the
    bill passed.
        For those of you who are members of the Hispanic Alliance for Free
    Trade, I want to remind you, it's one thing to come and listen to a
    President speak; it's another thing to work the Halls of Congress, so
    people speak by their votes, people that listen to you in a concrete
    way. So thanks for coming. Thanks for being a part of passing CAFTA.
        I want to thank the Secretary General, General Insulza. Thank you, sir, for you. I want to thank the Vice
    President, Samuel Lewis, of the
    Republic of Panama. I appreciate the members of the diplomatic corps who
    are here. I particularly want to thank the diplomats from Central
    America and the Dominican Republic. I urge you to work the bill. I urge
    you to let people know the consequence of passage and the consequences
    of failure. It's important for people to understand the stakes.
        I want to thank the permanent representatives to the Organization of
    American States. I want to thank my friend Ambassador Juan Maisto--Embajador. Thank you, Juan, for being here.
        I appreciate the members of my Cabinet who are working hard on this
    piece of legislation. We got the Secretary of Agriculture, Mike
    Johanns, who is with us. Secretary Carlos
    Gutierrez is with us here. Ambassador
    Rob Portman, who is the point person
    from my administration on this important piece of legislation. They're
    working hard; I'm working hard.
        I want to thank the people from the United States Congress who've
    joined us. Ileana Ros-Lehtinen from Florida, I'm glad you're here.
    Thanks for coming. Randy Neugebauer from
    west Texas; thank you for coming, Randy. Henry
    Cuellar, de south Texas, del sur de Tejas; and finally, Charlie
    Dent, thanks for coming. I'm proud you all
    are here. Thanks for lending your support to this important occasion.
    I've made my decision to support this bill because I think it's in the
    best interest of the country.
        As a matter of fact, I make a lot of decisions as your President. I
    made one the other night, when I announced my nomination of Judge John
    Roberts to the Supreme Court. I
    appreciate so very much the reception he's receiving in the United
    States Senate. I want to thank the Senators from both political parties
    who are giving Judge Roberts a chance to talk about his heart, to talk
    about his philosophy.
        He is a person that will make all
    Americans proud to be a member of the Supreme Court. He is a--he's got
    the experience, wisdom, fairness, and civility to be a really good
    judge. He has a profound respect for the rule of law. He respects the
    liberties guaranteed in our Constitution to all Americans, from--people
    from all walks of life. He'll strictly apply the Constitution. He's not
    going to legislate from the bench.
        The United States Senate can show our country that it's able to have
    a civil debate on this very important nomination, not only a civil
    debate but a timely debate. It's important for Judge Roberts to be confirmed by the time the Court reconvenes
    in October. I thank the Senate for their action today. I urge the Senate
    to do its duty to have a fair, timely hearing and get this good man
    confirmed in time for the October reconvening of the Court.

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        We'll be talking about our economy and liberty in our neighborhood
    here in a minute, but I want to remind you all, want to remind leaders
    from our country and of course the leaders from other countries that are
    here, that we're living in historic times. And one of the reasons I say
    that is we're still at war, see. And it's important for all of us who
    love freedom to understand that this is a war being fought against
    ideologues that use terror to advance an agenda. This is a war against
    killers, coldblooded killers who embrace an ideology of hatred. Their
    vision of the world is the opposite of our vision of the world. We
    believe in human rights, human dignity, minority rights, and religious
    rights. We believe in universal freedoms.
        They have a different view of the world. They don't believe in
    women's rights. They have usurped a great religion and defined it in
    their terms. And if you happen to live in a society in which they're
    dominant, like the Taliban was in Afghanistan, and if you don't adhere
    to their view of religion, you're punished. They have territorial
    designs. They have the desire to use their terrorist techniques to
    frighten us. In other words, they understand when they kill in cold
    blood, it ends up on our TV screens. And they're trying to shake our
    will. And they're trying to create vacuums into which their ideology can
    move.
        They don't understand our country, though. They don't understand
    that when it comes to the defense of universal freedoms, this country
    won't be frightened. We will defend ourselves by staying on the offense
    against these killers. We will find them overseas so we don't have to
    face them here at home. And at the same time, we understand that to
    defeat an ideology of hate, you work to spread an ideology of hope. And
    there's nothing more hopeful than a system which recognizes the rights
    of people, in which government is accountable to the people. And that
    system is democracy, based upon universal freedom.
        We are laying the foundation for peace for generations to come. As
    we fight the terrorists and defend this homeland, we're also working to
    make sure this economy is strong and vibrant, and we've got reason for
    optimism. The tax relief we delivered is working. This economy of ours
    has overcome a lot, and now it's the fastest-growing economy of any
    major industrialized nation in the world. Inflation is low. We're well
    ahead of reaching our goal to cut our deficit in half by 2009. We've had
    25 consecutive months of job gains. The unemployment rate is down to 5
    percent. More people are working today in America than ever before in
    our Nation's history.
        And one of the reasons why is because this administration recognizes
    that the way you grow an economy is you stimulate the entrepreneurial
    sector. Government doesn't create wealth. Government creates an
    environment in which the entrepreneur is willing to take risk. And I'm
    pleased to report the entrepreneurial spirit in our Latino communities
    across the country is strong, vibrant, and doing well.
        We believe in encouraging ownership. The more people own something,
    the better off this country will be. We want more people owning their
    own business. Because of the vibrancy of our economy, the Hispanic
    unemployment rate has dropped to 5.8 percent, down from 8.4 percent 2
    years ago. More people are working. More Hispanics own their home than
    ever before in our Nation's history, and that's great news for the
    American society. SBA loans to Hispanic-owned businesses are up by--
    doubled since I took office. In other words, there is a role for
    Government to help. But the Hispanic community is an entrepreneurial
    community to begin with, and it's responding, and it's really good news
    for the country.
        Therefore, it doesn't surprise me to learn that many Hispanic
    entrepreneurs and businessowners and leaders understand the importance
    of expanding trade within our hemisphere. And that is why you have

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    come to lend your support to the Central American-Dominican Republic
    Free Trade Agreement, and I'm grateful. By eliminating barriers to
    exports from our country, CAFTA will help keep the U.S. economy growing.
    In other words, this is a jobs program. This will help jobs.
        By opening up Central America and the Dominican Republic to U.S.
    trade and investment, CAFTA will help those countries develop a better
    life for their citizens. That seems to make sense to me. I mean, if
    you're living in a neighborhood, you want your neighbors doing well. If
    you're a good neighbor, you say, ``Gosh, I hope everybody in the
    neighborhood is succeeding.'' And by helping those economies improve,
    CAFTA will help the nations strengthen their democracies. And that's in
    our national security interest. That's makes us all more secure.
        So this bill is more than a trade bill. This bill is a commitment of
    freedom-loving nations to advance peace and prosperity throughout the
    Western Hemisphere. And that's important for Members of Congress to
    understand.
        CAFTA begins by ensuring that free trade is fair trade. I mean--you
    know, I traveled the country quite extensively in the recent past and
    said, ``I'm a free trader.'' But I reminded people in our country, I'm
    also for fair trade. It's one thing to advocate free trade. I believe
    the Government has a role to make sure that trade is fair for all of us.
    In other words, we want people treating us the way we treat them.
        It turns out that exports from Central America into the United
    States face almost no tariffs. Now, I don't see how a Member of Congress
    can go back to his or her district and say this is a good deal for
    America, when our exports to Central America face hefty tariffs. In
    other words, if you're for free trade you ought to be insisting that the
    trade be fair. And the only thing that makes the trade fair to me, seems
    like, is to say to our friends in Central America, ``Just treat us the
    way we treat you.''
        And that's what CAFTA does. It eliminates tariffs on our goods and
    services going into Central America. In other words, they treat us the
    way we treat them. It levels the playing field, which makes this a good
    deal for America's farmers and small-business owners and manufacturers.
        Last year, United States businesses exported more than $15 billion
    of goods to Central America. Now, when I say ``export goods,'' people
    have got to understand that means somebody is more likely to have a job.
    It means somebody is producing something that somebody wants in Central
    America, which is part of the employment picture in our country. Our
    business leaders say that CAFTA would significantly increase exports to
    the region. That's why I say this is a job program. As exports go up,
    somebody is either more likely to find a job or somebody is more likely
    to retain a job.
        Take this example--California's Haas Automation Company. It is the
    largest machine tool manufacturer in the United States. They strongly
    support this piece of legislation. It says that with CAFTA, it expects
    to increase sales to Central America tenfold. In other words, they see
    business opportunity, which means job opportunity for somebody who's
    helping Haas Automation manufacture equipment that somebody in Central
    America wants to purchase.
        Again, another company example here. It's called Bush Hog. I don't
    know why they would have put this example in this speech. [Laughter] I
    hope it wasn't named after me. [Laughter] But it is an Alabama company
    that makes farm equipment like backhoes and tillers and rotary cutters.
    And the folks at Bush Hog say that farmers in Central America would find
    their high-quality, made-in-the-United States machinery attractive if
    the tariffs on that equipment would be eliminated. So when you hear me
    say ``tariff,'' that really means it's pricing our equipment out of the
    reach of the market. That's what a tariff does. It's like a tax.

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        So the good folks at Bush Hog manufacture something somebody wants
    to buy, but it's too pricey, not because of the cost of the product they
    produce but because of Government action. And so the purpose of NAFTA
    [CAFTA]* is to remove the trade barriers. Now, we've had people look at
    this piece of legislation, and the National Association of
    Manufacturers, people that represent people who manufacture something
    here in America, say that CAFTA would increase our manufacture exports
    to the region by a billion dollars, a 7-percent increase. That's good
    news for the manufacturing sector of the American economy.
    ---------------------------------------------------------------------------
        *White House correction.
    ---------------------------------------------------------------------------
        The American Farm Bureau--they represent farmers, needless to say--
    estimate that by the time CAFTA is fully implemented, it would increase
    U.S. farm exports by as much as $1.5 billion. Let me talk about farming
    real quick. We produce more than we consume in the United States. And
    therefore, it makes sense for Government policy and for our Secretary of
    Agriculture to work to find markets for that which we produce. And if
    the products we produce are taxed via tariff, it makes those products
    more expensive than need be. And therefore, by reducing tariffs on
    agricultural exports from the United States, it opened up markets for
    our ranchers and farmers.
        The U.S. International Trade Commission says that by passing CAFTA,
    we will reduce trade deficit by more than $750 million. So, in other
    words, this bill is good for the overall financial picture of the United
    States. That's why the United States House of Representatives, next
    week, ought to understand the economic wisdom of this bill and open up
    the market of 44 million consumers to U.S. businesses, U.S. farms, and
    U.S. manufacturers.
        CAFTA includes strong enforcement provisions that go further than
    previous trade agreements. To protect our textile workers from unfair
    competition, CAFTA gives our Customs agents the ability to conduct
    surprise visits on Central American factories. It's one way you make
    sure trade is fair, you're being treated fairly.
        To promote a cleaner environment, CAFTA includes provisions that
    will monitor and enforce environmental progress. To ensure that Central
    American factories abide by acceptable labor standards, CAFTA insists on
    stiff fines for violations. And the United States Government has
    committed about $180 million over 5 years to ensure that labor laws are
    enforced. CAFTA is a trade agreement that will be enforced, and we've
    got the money in the budget to do so.
        CAFTA will help the nations of Central America deliver prosperity
    and opportunity for their citizens. Let me repeat that. CAFTA is not
    only good for us; it's good for their partners. That's a fair deal.
    That's what you want. You want an agreement to be balanced and fair. We
    want the agreement to be good for us, but we also want the agreement to
    be good for our friends. It's a lousy deal if it's a zero-sum deal. This
    is a good deal for CAFTA nations.
        CAFTA will help nations attract investment they need for their
    economies to grow. In other words, with a stable trading agreement with
    the United States, it will make it much easier for investment to flow to
    our CAFTA friends. And investment means growth and opportunity. That's
    what that means.
        By reducing tariffs on our products, CAFTA will allow consumers in
    their countries to enjoy goods and services at better prices. If a
    country doesn't produce a lot of a particular product and they need it
    and it's got a tariff on it, it means the consumers pay an additional
    price. By reducing tariffs, it means that consumers in the CAFTA nations
    will be able to more likely purchase that which they want at a better
    price. It seems like to make sense to me that if you lower the cost of
    food products coming from the United States

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    to CAFTA, that's beneficial for a mom trying to buy food for her child.
    This is consumer-friendly in the CAFTA countries.
        By lowering tariffs, CAFTA will give Central American businesses
    less costly access to high-quality machinery. In other words, it's going
    to be beneficial for the small-business owner or the large-business
    owner, the person who employs people in the CAFTA country to be able to
    buy machinery necessary to stay competitive.
        By bringing economic growth--in other words, these are all elements
    of creating growth, increasing consumer demand by lowering prices,
    increasing investment, make it more likely people will be able to
    purchase the equipment they need to stay competitive. All this leads to
    more growth, which will help contribute to a vibrant middle class. And
    that's what we want in our neighborhood. We want there to be prosperity.
    We want people to have a better chance at a better life. It's in our
    Nation's advantage that prosperity grow throughout the neighborhood.
        Elected leaders of Central America know that by opening up their
    nations' markets to competition, they're helping to raise standards for
    their own businesses and farmers. In other words, if you protect
    industries, it tends to become noncompetitive. It's very important for
    our societies to remain productive, and productivity increases happen
    because of competition.
        By giving their garmentmakers an incentive to use U.S. fabrics and
    materials, our partners are creating really a regional partnership that
    will help both of us, both the CAFTA nations and the Dominican Republic
    and the United States, compete with Asian producers that are using Asian
    materials. And that's important for Members of Congress to understand,
    that if we want to--this agreement will help us remain competitive with
    Asian producers on certain products.
        People of Central America have made their choice. They know their
    economic future lies in free and fair trade with the United States.
    They've said, ``We want to join with the United States.'' And that's
    important. When this bill is passed, this country will be sending a
    strong message: We want to join with you as well. You want to join with
    us in free and fair trade; we want to join with you. And it's that
    alliance of interest that will make this neighborhood better. And it's
    important for Members of Congress to understand that.
        We cannot and should not reject these young democracies. We must
    support democracy in our neighborhood. And CAFTA will strengthen
    democracies. CAFTA nations a while ago were struggling with dictatorship
    and tyranny and civil strife. It wasn't all that long ago that a lot of
    our foreign policy was occupied by actions that had been taken by
    governments in Central America. Today, I'm more than proud to welcome
    democracies to the Oval Office. These are peaceful countries. These are
    freedom-loving countries.
        The leaders of these nations have made impressive gains toward
    establishing--firmly establishing democracy. But these gains cannot be
    taken for granted. And that's important for Members of the United States
    House of Representatives to understand clearly. Democracy cannot be
    taken for granted. We must provide the foundation for democracy through
    smart policy. CAFTA's smart policy. It's good trade policy. It makes it
    more likely somebody is going to be able to work in America when we pass
    CAFTA, but it also helps the neighborhood.
        You see, there's no democracy--those new democracies in Central
    America still face forces that oppose democratic government. Make no
    mistake about it: There are people in our own neighborhood that oppose
    democracy; they're trying to separate our friends from the United States
    by sewing resentment and anger. People of this region need to see that
    democracy produces more than just free elections, that democracy
    produces measurable progress in their lives. As the oldest democracy in
    this

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    hemisphere, we have a moral obligation and a vital interest in helping
    the Central American economies and societies succeed. And therefore,
    CAFTA needs to be passed.
        By strengthening democracy in the region, CAFTA will lead to greater
    security and stability. I appreciate so very much the hard work of the
    Central American leadership. I've had a chance to visit with these good
    folks. As a matter of fact, they've been coming to America quite often,
    and I've been going there sometimes. And that's important. That's what
    friends do. They strategize. They talk. The American people have got to
    understand, we've got friends in the leadership in Central America. And
    they're working hard to punish corruption and keep the streets safe.
    They're working hard to make sure they have a society that respects
    human rights and the rule of law. We're working together to nail the
    drug traffickers and terrorists and criminal gangs who feed on
    lawlessness and instability.
        CAFTA will strengthen those who are taking on the forces of
    radicalism and violence in this hemisphere, and it will make our country
    more secure. As former Governor of a State that shares a long border
    with Mexico, I know first hand the importance of improving ties with our
    neighbors. It's really important that we've got strong ties in a
    neighborhood in which you live. I understand the importance of removing
    trade barriers that make it difficult for our businesses and farmers to
    compete.
        This bill that the House of Representatives will be voting on next
    week is pro-jobs, pro-growth, and pro-democracy. It is important that we
    pass this piece of legislation. And I want to thank you all for giving
    me a chance to come and talk about its importance. And I encourage you
    to keep doing what you're doing, is talking to Members of the United
    States Congress and remind them, set aside partisan politics for the
    good of the United States of America. It's in our economic interests,
    it's in our national security interests that the House of
    Representatives join the United States Senate and pass that CAFTA bill,
    which I'll proudly sign on behalf of America's workers and small
    businesses and those of us who love and cherish democracy.
        May God bless you.

    Note: The President spoke at 10:12 a.m. at the Organization of American
    States. In his remarks, he referred to Raul Yzaguirre, former president
    and chief executive officer, National Council of LaRaza; Anne Alonzo,
    co-founder, Hispanic Alliance for Free Trade; and Secretary General Jose
    Miguel Insulza of the Organization of American States. The Office of the
    Press Secretary also released a Spanish language transcript of these
    remarks.