Welcome to "Ask the White House" -- an online interactive forum where you can submit questions to Administration officials and friends of the White House. Visit the "Ask the White House" archives to read other discussions with White House officials.
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July 15, 2005
Rob Portman
Hello everyone, I'm Rob Portman, the United States Trade Representative. Since we last had the opportunity to chat in this forum the Senate passed the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) and the legislation is now being considered by the House of Representatives. With more than $32 billion in two-way trade, these six countries combined represent a substantial market for American products. This is a win-win trade agreement that is a great deal for American workers, farmers and service providers. CAFTA-DR contains stronger protections for fundamental worker rights than any free trade agreement ever negotiated, and it will strengthen young democracies that have stood with the United States in the push to expand freedom in our neighborhood. In fact I met with President Bolaños of Nicaragua yesterday and he stressed that very point. I'm happy to take any questions you may have on CAFTA-DR or any other trade issues. Sam, from Minneapolis writes: Rob Portman
Based on what the experts tell us, the problem in Central America isnt the labor laws on the books in fact the laws on the books are generally in line with international core labor standards. The International Labor Organization (ILO) has said as much. But enforcement has been a problem. To improve enforcement of labor laws, we need to make sure countries have enough resources, and the political will to use them. Were working to provide unprecedented resources to help Central American governments enforce their labor laws. Congress appropriated $20 million for this year, and were committed to even more in the years to come. To address the problem of political will, CAFTA-DR has real teeth in the form of tough and practical enforcement provisions. Should a country fail to enforce its labor laws, CAFTA-DR provides for heavy fines, up to $15 million per year, per occurrence. Most importantly, this money is redirected by us toward actually solving the labor problem. This means that a country cannot merely make an economic calculus to pay the fine and continue to abuse labor rights. If the fines are not paid, we would then be able to impose trade sanctions. There are practical and effective tools that will actually work to improve labor rights if CAFTA-DR passed.
Daniel, from Great Barrington, MA
writes: Rob Portman You can read my more specific answer to your question on protecting worker rights in Central America and the Dominican Republic above. But perhaps the most important thing we can do is make sure workers have good jobs. CAFTA-DR will create new economic opportunities for the workers in these countries, opportunities that would be lost without the agreement. This will help preserve thousands of good jobs that may otherwise go to lower-wage countries in Asia. And CAFTA-DR will create strong incentives for new investors to build factories and create good jobs. But here is the best part: good trade agreements are win-win. CAFTA-DR will also support jobs here in the United States. You have to remember: 80 percent of all goods and services and 99 percent of all farm products from Central America and the Dominican Republic already enter the U.S. duty-free. What this agreement does is level the playing field for U.S. workers and farmers.
Americans now face large tariffs when exporting goods to the region, and CAFTA-DR eliminates the vast majority of these tariffs immediately, and phases out the rest over a period of years. Eliminating these tariffs makes U.S. products more affordable, which means we can sell more, which means well need more people working to sell those additional products.
Brad, from Ogden, UT
writes: Rob Portman
But even though the overall economic benefits of NAFTA are clear, from a trade standpoint, CAFTA-DR is not NAFTA. CAFTA-DR is even better than NAFTA. Unlike the situation with Mexico prior to NAFTA, our market is already nearly completely open to Central American products. Remember, more than 80% of Central American imports to the U.S. are already duty-free. Additionally, CAFTA-DR contains stronger labor and environment provisions. CAFTA-DR has real teeth, including binding dispute settlement, monetary fines directed at solving problems, and potential trade sanctions. A first-ever citizen participation process will identify and find solutions for trade-related environmental problems. CAFTA-DR also surpasses any other trade agreement weve ever signed in terms of resources to improve labor law enforcement.
Brian, from College Station
writes: Rob Portman frank, from ontana writes: Rob Portman It is important to remember that Central America and the Dominican Republic are already good markets for U.S. agricultural products. U.S. agricultural exports to the region totaled $1.6 billion in 2003. The United States is the region's single largest source of agricultural imports, accounting for 41 percent of imports by value in 2001. However, U.S. share declined from 54 percent of total imports in 1995, due in large part to preferential access conditions afforded other countries by the Central Americans through bilateral trade agreements with those other countries. By lowering tariffs on U.S. exports to the region, CAFTA-DR makes American farmers more competitive and will expand what we already sell. Again, I would point you to the economic analyses that have been done showing growth in U.S. farm exports.
As for your concern regarding illegal immigration, people immigrate to the United States legally and illegally from all over the world in search of a better life. CAFTA-DR will provide more opportunities for workers and farmers in Central America and the Dominican Republic. The World Bank said this about CAFTA-DR, Greater trade opportunities are essential to improving living standards in developing countries. This agreement will help secure and expand the access of Central American nations to their largest trading partner and help provide the potential for increased trade and investment in the region --critical factors in boosting economic growth and reducing poverty."
Andrew, from Salem, Oregon
writes: Rob Portman Steve, from Arlington, VA
writes: Rob Portman
Rob Portman
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