CAFTA clears another hurdle
CAFTA clears another hurdle
WASHINGTON -- The Senate Finance Committee has approved the controversial trade agreement that would eliminate tariffs on goods traded with Central American countries, clearing the way for a Senate floor vote in the next few weeks.
Backed by President Bush, the Central American Free Trade Agreement would phase out or eliminate tariffs on products from the United States that are sold in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. While the accord's future is far from wrapped up in the Senate, supporters are expected to face even stiffer opposition in the House. The House Ways & Means Committee was scheduled to consider CAFTA on June 30.
Even among commodity groups, there are varying views on the free-trade agreement's impact on U.S. agriculture.
"CAFTA offers important business opportunities for a number of key fresh produce commodities," said Robert Guenther of the United Fresh Fruit & Vegetable Association. "However, we must also recognize that the agreement could adversely affect the domestic and international competitiveness of several other U.S. commodities. We continue to work closely with United members that have a strong interest in CAFTA to ensure a fair and just resolution to the current debate in Congress.
The White House's top advocates' U.S. Trade Representative Rob Portman and Agriculture Secretary Mike Johanns' have been fiercely lobbying lawmakers and trying to reach an agreement with congressmen from sugar-producing states to sway key votes. U.S. sugar producers and processors fear that sharp increases of imports from Latin America could cripple the industry.
Experts predict the vote will be close. The White House submitted formal DR-CAFTA legislation last week, allowing lawmakers only 90 days to act. Under fast-track authority, Congress is limited to a straight up or down vote on the agreement and cannot offer amendments.
Backed by President Bush, the Central American Free Trade Agreement would phase out or eliminate tariffs on products from the United States that are sold in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. While the accord's future is far from wrapped up in the Senate, supporters are expected to face even stiffer opposition in the House. The House Ways & Means Committee was scheduled to consider CAFTA on June 30.
Even among commodity groups, there are varying views on the free-trade agreement's impact on U.S. agriculture.
"CAFTA offers important business opportunities for a number of key fresh produce commodities," said Robert Guenther of the United Fresh Fruit & Vegetable Association. "However, we must also recognize that the agreement could adversely affect the domestic and international competitiveness of several other U.S. commodities. We continue to work closely with United members that have a strong interest in CAFTA to ensure a fair and just resolution to the current debate in Congress.
The White House's top advocates' U.S. Trade Representative Rob Portman and Agriculture Secretary Mike Johanns' have been fiercely lobbying lawmakers and trying to reach an agreement with congressmen from sugar-producing states to sway key votes. U.S. sugar producers and processors fear that sharp increases of imports from Latin America could cripple the industry.
Experts predict the vote will be close. The White House submitted formal DR-CAFTA legislation last week, allowing lawmakers only 90 days to act. Under fast-track authority, Congress is limited to a straight up or down vote on the agreement and cannot offer amendments.
