CAFTA clears first hurdle in Congress
CAFTA clears first hurdle in Congress
WASHINGTON The Senate Finance Committee has approved the Central American Free Trade Agreement, but the future of the accord is far from clear.
By an 11-9 vote, the Senate committee recommended that the White House send to Congress the treaty that would lower tariffs in the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The United States signed the agreement in August, but Congress has yet to ratify it.
The agreement is "shaping up to be the biggest battle to come before Congress in a decade," Sen. Max Baucus (D-MT) said at the June 14 committee meeting.
The Bush administration has been struggling to win support for the agreement, but has faced stiff opposition from labor organizations and the powerful sugar lobby, which relies on special tariffs to protect its crop from foreign competition.
According to the U.S. trade representative's office, U.S. suppliers of fresh and canned tomatoes and tomato pastes would benefit the most in the vegetable category from the immediate elimination of tariffs by all Central American countries. U.S. suppliers also would gain immediate duty-free access for apples, peaches, pears, grapes, cherries, almonds, walnuts, pistachios, raisins, canned peaches, canned pears and frozen concentrated grapefruit juice in all six countries, and on frozen concentrate orange juice in all Central American countries.
The Central American nations do not pose an import threat since they grow few deciduous tree fruits, according to the Northwest Horticulture Council, which supports the treaty. All seven countries agreed to reduce their tariffs on apples, pears and cherries to zero immediately upon enactment of the agreement. We think its great, said Mark Powers of the Northwest Horticulture Council. Weve working hard in the Northwest to convince others of the value of CAFTA.
Its important, Mr. Powers said, because there will be a tangible increase in the ability to sell products into those countries. Now Chile has preferential treatment and ships products duty-free under its own free trade agreement, he said.
U.S. fruits have a huge price differential with Chilean products and have continued to lose market share, he said. But another reason not to sink CAFTA is that it could jeopardize other important trade agreements in the works.
The House Ways & Means Committee was expected to vote on the agreement June 15, and the White House is urging a final vote on the agreement before the July 4 congressional recess.
By an 11-9 vote, the Senate committee recommended that the White House send to Congress the treaty that would lower tariffs in the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The United States signed the agreement in August, but Congress has yet to ratify it.
The agreement is "shaping up to be the biggest battle to come before Congress in a decade," Sen. Max Baucus (D-MT) said at the June 14 committee meeting.
The Bush administration has been struggling to win support for the agreement, but has faced stiff opposition from labor organizations and the powerful sugar lobby, which relies on special tariffs to protect its crop from foreign competition.
According to the U.S. trade representative's office, U.S. suppliers of fresh and canned tomatoes and tomato pastes would benefit the most in the vegetable category from the immediate elimination of tariffs by all Central American countries. U.S. suppliers also would gain immediate duty-free access for apples, peaches, pears, grapes, cherries, almonds, walnuts, pistachios, raisins, canned peaches, canned pears and frozen concentrated grapefruit juice in all six countries, and on frozen concentrate orange juice in all Central American countries.
The Central American nations do not pose an import threat since they grow few deciduous tree fruits, according to the Northwest Horticulture Council, which supports the treaty. All seven countries agreed to reduce their tariffs on apples, pears and cherries to zero immediately upon enactment of the agreement. We think its great, said Mark Powers of the Northwest Horticulture Council. Weve working hard in the Northwest to convince others of the value of CAFTA.
Its important, Mr. Powers said, because there will be a tangible increase in the ability to sell products into those countries. Now Chile has preferential treatment and ships products duty-free under its own free trade agreement, he said.
U.S. fruits have a huge price differential with Chilean products and have continued to lose market share, he said. But another reason not to sink CAFTA is that it could jeopardize other important trade agreements in the works.
The House Ways & Means Committee was expected to vote on the agreement June 15, and the White House is urging a final vote on the agreement before the July 4 congressional recess.
