[Weekly Compilation of Presidential Documents Volume 41, Number 29 (Monday, July 25, 2005)]
[Pages 1200-1205]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on the Central American-Dominican Republic 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 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

[[Page 1201]]

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.
    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 
ideologs 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

[[Page 1202]]

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 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

[[Page 1203]]

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.
    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 to CAFTA, that's beneficial 
for a mom trying to buy food for her child. This

[[Page 1204]]

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 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

[[Page 1205]]

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.