Posted on 07/15/2005 8:36:53 AM PDT by 1rudeboy
President Bush's tour of a North Carolina textile mill takes him to the kind of business that critics say would be damaged by his free trade pact with Central America.
Ahead of that visit Friday, Bush was to meet at the White House with President Antonio Saca of El Salvador, one of the countries that is a party to the trade agreement.
The Central American Free Trade Agreement passed the Senate on a 54-45 vote two weeks ago. It could come up as early as next week in the House, where its fate is less certain. It faces near-solid Democratic opposition and only lukewarm GOP support.
Bush was scheduled to tour the Helms plant of R.L. Stowe Mills in Belmont, in the Piedmont region of central North Carolina, and then give a speech at nearby Gaston College. Both are in the district of Rep. Sue Myrick, R-N.C., the only one of North Carolina's 13-member House delegation to publicly endorse the measure.
The trade agreement, signed by the United States a year ago, would end or sharply lower trade barriers with the five Central American countries of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. It would also apply to the Dominican Republic, a Caribbean nation.
The measure "is important to supporting emerging democracies in Central America," said White House spokesman Scott McClellan.
It would also help stabilize trade between the United States and the region, McClellan said. "Right now, when 80 percent of the imports from Central America come in here duty-free, that creates an unlevel playing field. We want to make sure the markets are open and that there's a level playing field."
North Carolina is one of the hotbeds of opposition to the pact, which is modeled on the North American Free Trade Agreement passed 12 years ago that established free trade among the United States, Canada and Mexico.
Critics contend CAFTA will cost U.S. jobs by making it easier for U.S. companies to relocate operations in Central America, where labor costs are lower. The White House argues the opposite, asserting it will bring jobs to the United States.
Bush contends the pact would be "good for American workers, good for our farmers and good for small businesses" and "help increase sales abroad and job creation at home."
The textile industry is divided on CAFTA.
Some are opposed because of an inherent mistrust of any free trade deal. Others say it will help the U.S. industry because it will help Central American manufacturers, who buy material and yarn from the United States. Chinese textiles, by contrast, have little or no U.S. content.
CAFTA would further open a market of 44 million people by eliminating trade barriers to U.S. manufactured and farm goods, protecting trademarks and other intellectual property and establishing legal frameworks for U.S. investment. Last year the region purchased about $15 billion worth of U.S. goods.
Many Democrats argue that inadequate worker rights provisions in the agreement will lead to labor abuses. It is also opposed by lawmakers from sugar beet and sugar cane-growing areas, and others who link free trade to America's soaring trade deficits.
House Minority Leader Nancy Pelosi, D-Calif., said the fact that GOP House leaders haven't yet brought the bill up could be a sign that it lacks the votes.
"I can't really speak with authority on the number of Republican votes that are 'no' on CAFTA, but I hear that it is a significant number," she told reporters. "I know that there are only a small number of Democrats who would be supporting it, so I think they are in trouble on CAFTA."
"President Bush's tour of a North Carolina textile mill takes him to the kind of business that critics say would be damaged by his free trade pact with Central America."
What textile mills? I didn't think we had any still operating.
What is "CAFTA"? What do you think? Good/not well?thank you
"I can't really speak with authority on the number of Republican votes that are 'no' on CAFTA, but I hear that it is a significant number,"
She's right if the GOP is paying attention to their constituents.
U.S. fabric mills exported 2.6 billion dollars' worth of goods to the CAFTA-DR region in 2004.
No doubt. I'm sure some of those "constituents" are in contact with Ms. Pelosi on a daily basis.
Preach on Mr. President.. I'm with you 100%.
Don't mind the economic dimwits.. Keep on rolling sir!
I was talking about my GOP reps.
CAFTA's rotten, this is worse.
http://www.cfr.org/pub8138/robert_a_pastor_william_f_weld_john_p_manley_pedro_c_aspe/building_a_north_american_community_report_of_the_independent_task_force_on_the_future_of_north_america.php
One of the few areas left to domestic textile manufacturers is quick turnaround, due to the length of time to get container ships over from Asia and through customs. With CAFTA, we'll have to contend with another very low cost source of imported textiles, that is essentially on the same continent, or close to it. So, there goes one of the last remaining segments of the textile industry left to domestic producers.
Why the apparent antipathy toward the domestic textile industry? We'll end up having quite a dependent underclass, like we need another dependent underclass of any kind, but this time consisting of former manufacturing workers who lack the education to perform other jobs that have any hope of paying as well or better.
I'm not sold on any purported benefit of CAFTA, either. Bush has his work cut out for him in trying to get this one through, at this time. It's too fast on the heels of other trade agreements that have created what can only be termed an implosion in textiles, and increasingly furniture, in NC and other states. With the end of the domestic quota system, tobacco is next. Agriculture still holds tremendous political power here, and if we're deemed a "hotbed" of opposition now, wait until the farmers feel the heat, and you'll really see a hotbed.
I think we still have one, it is really close to the furniture plant.
That's really too bad if N.C. only has one textile mill, because it means close to 4.15 billion dollars' worth of textiles and apparel were made by the rest of the U.S. and exported to Central America.
The Vote on CAFTA, which will end our national independence in several ways listed below, will happen this week. We could not be at a more important crossroads in our history and now is the time to call or fax your U. S. Representative.
Ways CAFTA will end U. S. national independence:
1) CAFTA plays a role as steppingstone to hemispheric integration and the Free Trade Area of the Americas (FTAA).
From the preamble of the CAFTA agreement:
"[The governments of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States of America] resolved to: … CONTRIBUTE to hemispheric integration and provide an impetus toward establishing the Free Trade Area of the Americas."
2) CAFTA is subservient to the World Trade Organization (WTO).
From Preamble and Chapter 1 of CAFTA agreement:
"[The governments of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States of America] resolved to: … BUILD on their respective rights and obligations under the Marrakech Agreement Establishing the World Trade Organization….
The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 [WTO] and Article V of the General Agreement on Trade in Services [WTO], hereby establish a free trade area…. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement…."
3) U.S. independence is lost to the supranational CAFTA Free Trade Commission.
From chapter 19 of the CAFTA Agreement:
“The Parties hereby establish the Free Trade Commission, comprising cabinet-level representatives of the Parties….
The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee the further elaboration of this Agreement;
(c) seek to resolve disputes that may arise regarding the interpretation or application of this Agreement;
(d) supervise the work of all committees and working groups established under this Agreement; and
(e) consider any other matter that may affect the operation of this Agreement.”
4) U.S. independence is lost to the World Bank and United Nations tribunals under CAFTA.
From page 20 of the CAFTA Agreement:
"Provided that six months have elapsed since the events giving rise to the claim, a claimant may submit a claim …
(a) under the ICSID Convention [World Bank’s International Centre for Settlement of Investment Disputes (ICSID)] and the ICSID Rules of Procedures for Arbitration Proceedings, provided that both the respondent and the Party of the claimant are parties to the ICSID Convention;
(b) under the ICSID Additional Facility Rules, provided that either the respondent or the Party of the claimant is a party to the ICSID Convention; or
(c) under the UNCITRAL
Arbitration Rules [United Nations Commission on International Trade Law arbitration rules].” (CAFTA Agreement, Chapter 10) “A Party shall be deemed to be in compliance … if it is a party to and is in compliance with the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards…."
5) Independence of U.S. federal, state, and local governments to regulate service professions and businesses is lost to CAFTA’s "Cross-Border Trade in Services” provisions.
From Chapter 11 of the CAFTA agreement:
"Cross-Border Trade in Services … applies to measures adopted or maintained by a Party affecting cross-border trade in services by service suppliers of another Party. Such measures include measures affecting:
(a) the production, distribution, marketing, sale, and delivery of a service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and use of distribution, transport, or telecommunications networks and services in connection with the supply of a service;
(d) the presence in its territory of a service supplier of another Party; and
(e) the provision of a bond or other form of financial security as a condition for the supply of a service….
For purposes of this Chapter, “measures adopted or maintained by a Party” means measures adopted or maintained by:
(a) central, regional, or local governments and authorities; and
(b) non governmental bodies in the exercise of powers delegated by central, regional, or local governments or authorities….
National Treatment
1. Each Party shall accord to service suppliers of another Party treatment no less favorable than that it accords, in like circumstances, to its own service suppliers.
2. The treatment to be accorded by a Party under paragraph 1 means, with respect to a regional level of government, treatment no less favorable than the most favorable treatment accorded, in like circumstances, by that regional level of government to service suppliers of the Party of which it forms a part….
Most-Favored-Nation Treatment Each Party shall accord to service suppliers of another Party treatment no less favorable than that it accords, in like circumstances, to service suppliers of any other Party or a non-Party…. Local Presence No Party may require a service supplier of another Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the cross-border supply of a service."
Commissions are made up of unelected officials, btw.
"If CAFTA-DR passes, 90% of all apparel made in the region will be made of U.S. material."
It's nonsensical to think that fabric will continue to be produced in the US, shipped to Guatemala or where ever, and then shipped back to the US. That will go away as well, and not even in the long term.
So you are happy with merely 71%, as it stands now, and not 90%?
OK,I exagerated a little, but we do have a lot of empty ex-textile and furniture plants here. Ten years ago the little town I live in had a large yarn plant that used to employe several hundred jobs, a Hamilton Beach appliance factory and a Singer furniture plant but now all are gone except for a small portion of the yarn plant that only dyes the yarn. In a town of less than 15,000 it really hurts.
thank you
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