George Bush's stance on CAFTA
CAFTA/Free Trade: United States Trade Representative Robert Zoellick signed the Central American Free Trade Agreement (CAFTA) in May. This agreement will eliminate tariffs on 80 percent of US exports to Central American nations who join. However, CAFTA must be approved by Congress before it becomes law. Some legislators have objected because they want more labor standards and protection for industries like textiles and sugar. Zoellick, on the other hand, has argued that CAFTA will strengthen both the US and Central American economies.
George W. Bush:
Description of Candidate's Position: President Bush rejects economic isolationism because he believes that free trade will bring "more jobs, higher wages, and greater prosperity" for the United States. In February, Bush informed Congress that he intended to join CAFTA, thus showing his support for the legislation. Furthermore, Bush hopes to use CAFTA as a stepping stone to future trade agreements with South American nations, with the hope of completing negotiations for the Free Trade Area of the Americas (FTAA). However, Bush also maintains that he will protect American workers by instituting tariffs to protect industries which need to be restructured to fit the global economy.
Quotation from the Candidate: "We must affirm our commitment to complete negotiations on the free trade area of the Americas by January, 2005…Open trade fuels the engines of economic growth that creates new jobs and new income. It applies the power of markets to the needs of the poor. It spurs the process of economic and legal reform…And open trade reinforces the habits of liberty that sustain democracy over the long term."
Assessment of the Proposal:
Positive: The Heritage Foundation, a conservative think tank, supports President Bush's stance on trade because they believe he is "committed to pursuing free trade by any means." They believe that he used a commonsense approach to reach free trade agreements as quickly as possible.
Negative: The Cato Institute, a libertarian think tank, believes that Bush has a flawed trade record because he has used "vote-buying strategies" like his 2002 support of steel tariffs to gain Congressional support for trade agreements. This strategy could make other nations lose confidence in American support for free trade.
Comparison: Although John Kerry has consistently supported free trade agreements in the past, he opposed the signing of CAFTA because he believes that strong labor and environmental rules must be at the core of this agreement. He instead supports re-negotiating CAFTA and all other trade agreements that are currently in place.
Link to Kerry Issue Brief.