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“DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT IMPLEMENTATION ACT” mentioning the U.S. Dept. of Commerce was published in the Extensions of Remarks section on pages E1680-E1681 on July 29, 2005.
The publication is reproduced in full below:
DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT
IMPLEMENTATION ACT
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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.
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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