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A reciprocal trade agreement with five Central American
countries and the Dominican Republic, Central American Free
Trade Agreement-Dominican Republic, is scheduled for debate
today after being stalled for over a month when unexpectedly
virulent opposition arose earlier this year. Labor unions,
the sugar industry, the textiles industry and a few other
players launched a surprisingly effective assault on the
treaty, which proponents had expected to pass by early May.
The National Pork Producers Council is one of CAFTA's most
vocal proponents, since most pork products face a high tariff
in most CAFTA countries. Under the agreement, tariffs would
slowly disappear over a 15-year period, and those countries
would comprise a promising new market. The beef industry
foresees a market in premium high-end products for the growing
resort and tourist industries in the region.
Opponents, like Ranchers-Cattlemen Action Legal Fund, United
Stockgrowers of America, see a threat in that there are
no triggers in the deal that would reimpose tariffs if exports
to the United States rise too quickly. Bill Bullard, chief
executive, worries that these countries would be in a position
to in effect "launder" inexpensive cattle from Brazil and
Argentina by developing a slaughter industry, then transshipping
the resultant beef to the U.S.
Both sides, though, admit CAFTA-DR is relatively unimportant.
Both sides are looking past CAFTA to the wide-sweeping Free
Trade Area of the Americas agreement that has been under
discussion for several years. That would involve several
surging economies, most notably Brazil, and CAFTA would
most likely be looked upon as a precedent. |
