Wednesday, July 27, 2005

House Republicans Predict CAFTA's Passage Tonight

Found this off the Washington Post:

WASHINGTON -- In a rare piece of lobbying on Capitol Hill, President Bush appealed personally to fellow Republicans Wednesday to close ranks behind a free trade agreement with Central America that faces a very close floor vote.

The House was beginning debate on the Central American Free Trade Agreement later in the day, with a vote coming as early as Wednesday night. With Democrats strongly against it, passage depends on keeping Republican defections to a minimum.

The president reminded Republicans that while some might oppose CAFTA for parochial interests "we are here not only to represent our districts but to represent the nation," House Majority Leader Tom DeLay, R-Texas, said after the meeting that lasted more than an hour.

DeLay predicted a tough vote, but "we will pass CAFTA tonight."


I will admit, I do not care much for Bush's policies in Iraq, the economy, energy, health care or Social Security. But the president is right about CAFTA. Free trade is important to the U.S. It certainly provides the American consumer a vast array of goods from many countries at an inexpensive price. It also allows the U.S. economy to focus its resources from producing low-valued goods requiring low-skilled workers, such as textiles, to producing high-valued goods requiring higher skilled workers, such as drugs. The nation, as a whole, is better off with free trade.

I do have some concerns with CAFTA. Yes, the old, inefficient industries which hire low-skilled, low-educated American workers will be displaced as companies will find it more efficient to move their manufacturing operations to Central America. A prime example of one such industry is textiles. And yes, some American workers will lose their jobs because of this. But I don't believe this is a reason for scrapping CAFTA. I would like to see government programs developed which provide education and job-skills training to these American workers, allowing them to move up the economic ladder. I've been thinking about education programs, will talk more about this later. I'm also not sure I like whatever side deals the Bush administration made with the sugar industry--probably one of the most corrupt, politically connected industries in the country. I certainly don't want to see subsidies given to the sugar producers (And I imagine that's what the Bush deals are). But CAFTA is just one part of improving the U.S. economy. It is not the magical cure-all that Bush or House Speaker Dennis Hastert is touting this to be.

It is a start towards improving the U.S. economy.

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