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July 29, 2005
UPDATE - Southwest California Legislative
Council Supports the Creation of More Jobs; Votes
to Support CAFTA; CAFTA passes the House of
Representatives
Earlier
this week the United States House of Representatives passes
CAFTA by Narrow Margin. Last month, the U.S. Senate approved
the Central American Free Trade Agreement (CAFTA) by a vote
of 54-45.
The
passage of CAFTA was not as easy. CAFTA passed the House by
a two-vote margin, 217-215. The passage of this agreement is
a major victory for the Bush administration, which had to
fend off claims by critics that the pact would harm American
workers.
"CAFTA
helps ensure that free trade is fair trade," the president
said in a statement following the vote. "By lowering trade
barriers to American goods in Central American markets to a
level now enjoyed by their goods in the U.S., this agreement
will level the playing field and help American workers,
farmers and small businesses." The president and numerous
administration officials believe the agreement as a tool to
give fragile Latin American democracies the opportunity for
stability and prosperity.
This free trade agreement eventually eliminates tariffs and
other trade barriers between the United States and Costa
Rica, El Salvador, Guatemala, Honduras, Nicaragua and the
Dominican Republican. The countries signed the trade deal a
year ago.
The
Representatives who backed the agreement said goods like the
apples, pears and cherries grown in Washington state and the
corn, soybeans and tractors produced in Illinois will be
sold free of duties in a market of 44 million people.
Further, this newly opened market region bought about $15
billion worth of U.S. goods last year. They also claim it
levels the playing field with the Latin American nations
party to the deal that already escape duties on 80 percent
of their exports to the United States.
July 22, 2005
Southwest California Legislative
Council Supports the Creation of More Jobs - Votes
to Support CAFTA
The Central American Free Trade Agreement (CAFTA)
will
ensure that the United
States may continue to gain access to world markets,
which will result in an improved economy and
additional employment of Americans.
The following letter was issued to our
regional congressional delegation in support of CAFTA
July 20, 2005
The Honorable Mary Bono
Member of U.S. House of Representatives
405 Cannon House Office Building
Washington, D.C. 20515
The Honorable Darrell Issa
Member of U.S. House of Representatives
211 Cannon House Office Building
Washington, D.C. 20515
Re: U.S. – D.R. / Central American Free Trade Agreement -
SUPPORT
Dear Representatives Bono and Issa:
The Southwest California Legislative Council (SWCLC) urges
you to APPROVE the U.S.-D.R./Central American Free Trade
Agreement (US-DR-CAFTA) currently pending before Congress.
Agreements like the proposed US-DR-CAFTA ensure that the
United States may continue to gain access to world markets,
which will result in an improved economy and additional
employment of Americans.
As you may know, the SWCLC is a broad-based nonprofit
membership organization through which business, industry and
agriculture join forces to work toward positive action on
key issues affect Lake Elsinore, Murrieta, and the Temecula
Valley’s economic climate.
The SWCLC supports expansion of international trade and
investment, fair and equitable market access for Lake
Elsinore, Murrieta, the Temecula Valley, and California
products abroad, and elimination of disincentives that
impede the international competitiveness of Lake Elsinore,
Murrieta, the Temecula Valley, and California business.
California is one of the ten largest economies in the world
with a gross state product of approximately $1.4 trillion.
International related commerce accounts for approximately
one-quarter of the state’s economy. Export-supported jobs
account for more than 10 percent of California’s total
private sector employment - about one in 10 jobs.
The US-DR-CAFTA is expected to contribute to stronger
economies, the rule of law, sustainable development, and
more accountable institutions of governance, complementing
ongoing domestic, bilateral, and multilateral efforts in the
region. A study by the US International Trade Commission has
indicated that the DR-CAFTA will increase U.S. exports
worldwide by $1.9 billion upon implementation, more than any
other recent FTA.
Collectively, DR-CAFTA is the second largest U.S. export
market in Latin America, and the United States’ 13th largest
export market worldwide. Leading U.S. exports to Central
America include textiles, machinery, plastics, electrical
machinery and equipment. California exports to the DR-CAFTA
market totaled nearly $660 million in 2004, making it our
state’s 25th largest export market. California leads the
nation in exports of computers and electronic products. They
are the state’s number one export, accounting for nearly 40
percent of all California’s exports and 20 percent of total
U.S. exports. Forty percent of total goods imports by
Central America come from the United States.
Currently, U.S. products face a competitive disadvantage in
the region, because Central American countries have been
very active in negotiating free trade agreements that do not
include the United States. More than 20 trade agreements
grant preferences in Central America to products from
Mexico, Canada, Chile, and several South American nations.
The nations included in the DR-CAFTA are important trading
partners with the United States and specifically, Lake
Elsinore, Murrieta, Temecula, and California. Recently,
Ambassadors representing the nations included in the
DR-CAFTA spoke to the California Chamber of Commerce Board
of Directors and its membership at large. They made an
excellent case for the Agreement and were very well received
in our state.
The US-DR-CAFTA will benefit those of us in Lake Elsinore,
Murrieta, the Temecula Valley, California, and the United
States as a whole, and we thank you for your SUPPORT of this
important piece of legislation.
Sincerely,
Gene Wunderlich
Chairman
Southwest California Legislative Council
Alice Sullivan
President and CEO
Temecula Valley Chamber of Commerce
Rex Oliver
President and CEO
Murrieta Chamber of Commerce
Kim Cousins
President and CEO
Lake Elsinore Valley Chamber of Commerce
CC: United States Senator Dianne Feinstein
United States Senator Barbara Boxer
United States Chamber of Commerce
California Chamber of Commerce
May 2005
Southwest
California Legislative Council to Decide Position on
the U.S.-Dominican
Republic-Central America Free Trade Agreement (DR-CAFTA)
Background
Congress will vote soon on the
U.S.-Dominican Republic-Central America Free Trade Agreement
(DR-CAFTA), the largest free trade agreement in over a
decade. Here are just some of the reasons why DR-CAFTA is
in the economic, foreign policy, and national interests of
the United States.
DR-CAFTA supports American jobs.
American workers already export
$15.7 billion in U.S. products to Central America and the
Dominican Republic — more than we sell to India, Indonesia,
and Russia combined. Two-way trade surpassed $33 billion in
2004. A U.S. Chamber study of DR-CAFTA’s impact on a dozen
states projects it will create over 25,000 new jobs in its
first year — and over 130,000 new jobs in a decade.
The agreement levels the playing
field for U.S. workers.
Today, 80% of Central American and
Dominican products enter the U.S. market duty free, while
our merchandise exports to the six countries face tariffs
that average between 30% and 100% higher. In other words,
these countries are enjoying nearly free access to our
marketplace while our access to theirs remains limited. DR-CAFTA
will fix this imbalance by immediately eliminating all
tariffs on 80% of U.S. manufactured goods, with the
remainder phased out over a few years.
Farmers will get a big boost from
DR-CAFTA.
The American Farm Bureau
Federation projects that DR-CAFTA will boost U.S.
agricultural exports by $1.5 billion annually. American
farmers can expect an upsurge in exports of corn ($55
million in increased exports), wheat ($55 million), rice
($69 million), soybeans ($18 million), poultry ($144
million), pork ($35 million) and beef ($36 million).
Beyond tariff cuts, DR-CAFTA will
give U.S. companies and workers new opportunities in the
region. DR-CAFTA
will open services markets such as telecoms, insurance, and
express shipments; provide new legal protections for
copyrights, patents, and trademarks; and foster transparency
in government procurement.
DR-CAFTA is a helping hand for our
friends, allies, and neighbors. The
agreement will lock in democratic reforms, improve labor law
enforcement, and boost economic growth throughout the
region. A stronger economy will provide governments with
additional resources for education, health care, and
infrastructure projects.
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