John Kerry'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.

CAFTA Link

Zoellick Link

Congress Link

John Kerry:

Description of Candidate's Position: John Kerry has consistently voted for the expansion of free trade, including NAFTA. However, Kerry believes that all free trade agreements must place labor and environmental standards as the top priorities. Kerry insists that these tenets are in the best interest of both the US and global economies. Kerry has stated that he will not support CAFTA in its current form because it does not enforce these tenets. Instead, he will bring Central American nations back to the bargaining table and create a new agreement. Furthermore, Kerry will order an immediate review of all US trade agreements that are already in place.

Quotation from the Candidate: "Despite the economic and social progress made by our Central American neighbors in recent years, the record of very weak protections for core labor rights and inadequate enforcement records makes it especially essential that CAFTA include strong and enforceable labor and environmental protection in the core of the agreement. As now constructed, CAFTA would actually make the current situation worse because it would take away a strong tool to help address violations of core labor standards that is now included in our current system of trade preferences for Central America." Link

Assessment of the Proposal:

Positive: The National Family Farm Coalition, an organization working to preserve family farms in the US, supports Kerry's stance on CAFTA because they believe CAFTA's current form will prevent fair commodity prices and protect multinational agricultural companies. Link

Negative: The Cato Institute, a libertarian think tank which supports free trade, believes that if Kerry is elected, CAFTA will not come into fruition during his administration. Furthermore, they believe that the current pace of bilateral trade agreements will slow, damaging the economic progress of developing countries. Link

Comparison: George W. Bush has supported CAFTA and aims for the passage of the FTAA in the next year. Bush believes that free trade will ultimately increase the prosperity of the United States. However, he has reserved the right to impose tariffs to allow US corporations time to restructure for the global economy.

Link to Bush Issue Brief.