As all free-trade measures seem to do, the Central American Free Trade Agreement (CAFTA) has met it’s fair share of resistance and opposition in congress. Protectionists argue that the pact will result in more losses in certain agricultural industries here in America, specifically sugar, and greater exploitation of labor in Central American countries. They also argue that CAFTA will bring about a greater trade deficit here at home, and most importantly, will result in more American jobs being outsourced to other countries. All this borders on hysteria, for as history and our current prosperity have shown, free trade is the surest way to grow the economy.
The passage of CAFTA will immediately open up newer markets for American goods, and that infusion will help grow the Central American economies, which will in turn create even greater demand for American products. Furthermore, any jobs that might be lost as a result of freer trade with Central America have already been lost, for 80% of goods from that region arrive here duty free anyway. CAFTA will simply add some reciprocity to the trade situation.
CAFTA’s benefits won’t be simply economic either, for it will provide an invaluable boost to the political situation in that region of the world as well. Increased economic growth in Central America is the most effective means available in strengthening democracy’s hand in that region. To quote Deputy Secretary of State Robert Zoellick, "[n]othing is a more secure anchor for democracy than citizens who are employed and building better lives for their families."
CAFTA enhances our economy as well as our geopolitical interests. It will open up new markets for American business and commerce and it will help improve the neighborhood in which we live. The Senate has already approved the pact, it is now time for the House to step up and do the right thing and approve it as well.
Hat Tip: Daniella Markheim, Robert B. Zoellick
UPDATE ( 10:30 P.M. 7/27/05): CAFTA has passed the House 217-215.
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