China & CAFTA

This is going to be my repository for relevatn information and articles on China & CAFTA

Washington's Knucklehead Economics by Steve Forbes June 20, 2005


CAFTA Comments

Historic Opportunity
Our domestic debate over Cafta is about much more than trade. The people of Central America fought and struggled, and many died, because they believed that democracy would bring not only peace but also a better life. Now the people of the region are asking the U.S. to help secure the work of democracy through a closer economic relationship that could provide a new foundation for building opportunity. Yet never has the gap between Central America and the U.S. loomed larger. Central Americans are talking about freedom, democracy and hope. Meanwhile, our domestic debate has been dominated by topics such as sugar and whether Cafta will codify international labor conventions that the U.S. has not even ratified itself.

Our domestic debate pays slight attention to the historic opportunity to stabilize and support Central America while promoting America's strategic interests and values. In short, we must decide whether to promote America's strategic interests--or its special interests. If we retreat to isolationism, Daniel Ortega, Hugo Chavez, and others like them--autocrats of left or right--will push ahead.
--Robert B. Zoellick, Deputy Secretary of State,
remarks at the Heritage Foundation


CAFTA: A Win-Win Case by Glenn Hubbard in July 4, 2005 Business Week.

"The economic case for CAFTA is compelling. First, the level playing field created by the pact would benefit U.S. consumers and businesses. Currently about 80% of Central American products enter the U.S. duty-free. CAFTA would provide some balance with reciprocal treatment for U.S. goods and agricultural exports, and all tariffs on U.S. goods would be eliminated over time. CAFTA would also require increased transparency in corporate governance, legal systems, and due process in the region, strengthening the local economies. For U.S. business, the newly expanded access to the region would benefit companies in financial services, telecommunications, entertainment, and computer services. CAFTA, moreover, would create jobs in Central America and make the region's economies more competitive with Asian nations...

...There are foreign policy reasons to favor the CAFTA accord. Since the 1970s, CAFTA nations have moved toward market economies and democracy, becoming commercial and political allies of the U.S. CAFTA's boost to economic growth and incomes in Central America would further bolster support for free markets and democratic institutions. Such logic has shaped U.S. policy for more than two decades, starting with President Ronald Reagan's 1983 Caribbean Basin Initiative, which was expanded in 2000 under President Bill Clinton. This commitment's credibility would be bolstered by the success of CAFTA. Conversely, failure to ratify CAFTA will undermine U.S. influence in the region."