Confirmations

Date: July 28, 2005
Location: Washington, DC
Issues: Trade


CONFIRMATIONS

BREAK IN TRANSCRIPT

Mr. GRASSLEY. Mr. President, over the past two decades, Congress has voted again and again to open markets to exports from Central America. In 1983, 392 Members of the House and 90 Members of the Senate voted unilaterally to reduce tariffs on exports from Central America and the Caribbean. In 2000, 309 Members of the House and 77 Senators voted in favor of the Trade and Development Act which further unilaterally opened our markets to products from Central America and the Caribbean.

Today most imports from the region enter our market duty-free. In contrast--and the purpose of this legislation--our exports have faced and continue to face a myriad of tariffs and nontariff trade barriers into that region. Our products going that way, having tariffs and nontariff trade barriers, products coming this way to our country, no barriers. That is the status quo.

In 2005, with the Central American Free Trade Agreement, Congress has the opportunity to reduce tariff barriers to our exports going to these countries. You can see it is a very unfair situation. If we maintain the status quo, it is unfair to American workers, American manufacturers, the economy of America, because their imports come into our country duty-free. Meanwhile, our exports that go to those countries face tariff barriers of from 3 to 16 percent, some tariffs ranging as high as even 150 percent.

This agreement, finally, after about 20 years of our doing favors in that direction, levels the playing field for American workers, American farmers, and American manufacturers so we can sell our products in these countries.

This agreement takes a one-way street of trade and makes it a two-way street. It tears down unfair barriers to our agricultural exports and gives our farmers a chance to compete in a growing and vibrant market of over 40 million consumers.

A vote against CAFTA is a vote for the status quo. It is a vote to keep import duties duty free, but it also keeps tariff barriers to our export products high. If you vote that way, you are not voting for the American worker, you are not voting for the American farmer, you are not voting for the American manufacturer. You are voting for the status quo.

Well, that status quo is that the United States has been giving and giving for 20 years. This is our opportunity to get, to benefit our workers, to have a level playing field for trade--a two-way street for trade.

I don't see how anybody can justify not leveling the playing field for American exporters. That would end up creating jobs here in America.

http://thomas.loc.gov/

arrow_upward