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CAFTA is the answer to China's growing power
The Seattle Times ^ | May 24, 2005 | Froma Harrop

Posted on 05/24/2005 7:08:18 AM PDT by 1rudeboy

It really matters where the jobs that Americans lose go. That's what CAFTA is about. It's not about destroying textile jobs in the Carolinas. They're history, anyway--if not this year, then in five years. CAFTA is about keeping work in our hemisphere that would otherwise go to China.

The Central American Free Trade Agreement would cut tariffs on commerce among the United States, Costa Rica, Nicaragua, El Salvador, Honduras and Guatemala. The Dominican Republic, which is in the Caribbean, also wants to join.

Though President Bush is battling hard for the accord, some observers declare it all but dead. The generally pro-trade New Democrat Coalition has just jumped ship. But new Democrats should think again and back CAFTA. So should old Democrats.

Organized labor doesn't want to hear this defeatist talk about managing losses. That's understandable. But while labor has been dealt a bad hand, it still must play the cards. That means choosing the least bad of bad options.

Some labor critics point to NAFTA as a reason to shoot down CAFTA. The 1993 North American Free Trade Agreement covered the United States, Canada and Mexico. Foes of these accords note, for example, that there were 127,000 textile and apparel jobs in South Carolina before NAFTA. Now there are 48,000.

The truth is, the United States was bleeding these kinds of factory jobs decades before NAFTA. And it's unclear how large a part NAFTA has played in the years since.

Many of these jobs were not sucked down to Mexico but over to China and other Asian countries. And of the lost jobs that can be traced to Mexico, how many would have simply gone to China instead, had it not been for NAFTA? Even Mexico has seen factories move to China.

Labor-intensive industries in America continue to fight a hopeless war against competitors paying pennies-an-hour wages. The futility of it all can be seen in the following numbers, provided by A.T. Kearney, a consulting firm:

It costs $135 to make 12 pairs of cotton trousers in the United States. It costs $57 to make the trousers in China and ship them here. It costs $69 to do so in other parts of the world.

In this business, the United States is clearly out of the running. But many low-wage countries are still contenders with China--especially if they can ship their products here tariff-free.

Americans would be better off if their imports came from Managua, rather than Guangdong. After all, our Latin neighbors are more likely to buy the things we have to sell. That's why farmers producing beef, pork and corn are all for these treaties. So are U.S. companies that make machinery, especially for construction.

Then there are foreign-policy considerations. CAFTA partners would include very poor countries with fragile democracies. More trade with the United States could stabilize them--and reduce the pressures on their people to come here illegally. And if the workers make more money, they'll be able to buy more American goods.

Some Democrats argue that these poor countries compete by exploiting their workers. Rep. Sander Levin, D-Mich., for example, opposes the accord because, he says, "the basic rights of working people in Central America are systematically repressed."

He has it backward. Economic desperation creates the conditions for oppression. Workers are strongest where jobs are plentiful. CAFTA could empower workers and lift them from grinding poverty.

Rather than protect jobs that will eventually leave America, labor and its Democratic allies should protect the people who lose them. Trade Adjustment Assistance is a federal program that offers financial help and training for Americans who lose jobs because of imports.

Democrats complain that the program is underfunded, and they are right. So why not make more money for Trade Adjustment Assistance a bargaining chip to win support for CAFTA?

There's no exit door out of this global economy. Parts of the American economy will do well in it; other parts will not. Free trade in the Americas is about joining with our neighbors in a common defense against China's growing power. Those are the true stakes, and fighting futile battles will only distract us from what matters.


TOPICS: Business/Economy; Editorial; Foreign Affairs; Government; News/Current Events
KEYWORDS: cafta; globalism; nwo; pellgrants; trade
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To: R.W.Ratikal
The principal U. S. export under CAFTA will be manufacturing jobs to the low-wage countries of South America.

What's preventing American manufacturers from moving there now?

101 posted on 05/24/2005 10:41:12 AM PDT by Mase
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To: Mase
As fat as we are, sugar should be kept high, either via tariffs or domestic subsidizing laws. Sheesh, have you tried to navigate a Safeway Store lately? (And yes, we do tax tobacco)
102 posted on 05/24/2005 10:47:25 AM PDT by investigateworld ( God bless Poland for giving the world JP II & a Protestant bump for his Sainthood!)
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To: investigateworld
As fat as we are, sugar should be kept high, either via tariffs or domestic subsidizing laws.

Why don't you give all your money to the Feds and let them tell you what you should eat, drink, read, think? Wouldn't want you to get fat or drunk or read the wrong book. Yup, the government should do something about that sugar, alcohol, free speech.

103 posted on 05/24/2005 10:52:26 AM PDT by Toddsterpatriot (If you agree with Karl Marx, the AFL-CIO and E.P.I. please stop calling yourself a conservative!!)
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To: Mase
OK confection manufacturing worker, we protectionists have decided that your job should go to the struggling peasants in central america Mexico so we can remain competitive.

Protectionist? Thats better than being a globalist, Mase. Confection manufacturing workers didn't have to worry about their jobs until the "free traders" took them away. Do you know how they did that? By lowering US food purity and safety standards through working groups set up via "free trade" agreements. You see the "harmonization" or lowering of our food safety standards with third world producers was one of the "barriers to trade" the "free traders" did away with.

By moving factories to Mexico, "we" do not remain competive. In fact "we" are harmed by not having a manufacturing base. But "free traders" don't mind because their loyalties are to the global elites, and not to their country or their countrymen.
104 posted on 05/24/2005 10:55:13 AM PDT by hedgetrimmer
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To: Toddsterpatriot
Why don't you give all your money to the Feds

You'd like that wouldn't you. Then the federal government would have even more money to subsidize multinational corporations, foreign governments and for "poverty reduction" in third world countries. And don't forget subsidizing the education of people at leftist unversities so they can learn like Hillary Clinton and you, to follow in the footsteps of Saul Alinsky.
105 posted on 05/24/2005 11:00:53 AM PDT by hedgetrimmer
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To: hedgetrimmer

Didn't something come up in a post once, where it was stated that the chicoms are building ports and making deals to the south of us to take advantage of this trade deal, themselves?


106 posted on 05/24/2005 11:03:20 AM PDT by monkeywrench (http://ciudadano.presidencia.gob.mx/peticion/peticion.htm -Tell Vicente)
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To: hedgetrimmer; Toddsterpatriot
Under "Free trade" huge government bureaucracies have been created to give money away to foreign countries and multinational corporations and of course the government is using our tax dollars for "transformational diplomacy"

The American Farm Bureau Federation estimates CAFTA could expand U.S. farm exports by $1.5 billion a year. American farmers do not currently have access to these markets. How many jobs will these additional sales create? How much tax revenue will that trade, and all the new jobs, generate for the U.S. govt.?

This is just one industry. How many jobs and tax revenue will be generated when you add in the opportunities CAFTA creates for American information technology products, agricultural and construction equipment, paper products, pharmaceuticals, and medical and scientific equipment etc.?

The amount of money you keep harping about is peanuts compared to what will be generated by the increased trade. I think about the prolific amount of government largesse that offers absolutely zero return and wonder why you don't crusade against government spending that is truly wasteful.

107 posted on 05/24/2005 11:04:30 AM PDT by Mase
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To: hedgetrimmer
You'd like that wouldn't you. Then the federal government would have even more money to subsidize multinational corporations, foreign governments and for "poverty reduction" in third world countries.

No, you see I think the government should have less money and influence.

And don't forget subsidizing the education of people at leftist unversities so they can learn like Hillary Clinton and you, to follow in the footsteps of Saul Alinsky.

Never went to college? Did you graduate high school? What do you do for a living, you never said.

108 posted on 05/24/2005 11:04:41 AM PDT by Toddsterpatriot (If you agree with Karl Marx, the AFL-CIO and E.P.I. please stop calling yourself a conservative!!)
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To: Toddsterpatriot
What do you do for a living, you never said.

I think he's still looking for that Pell Grant argument he misplaced.

109 posted on 05/24/2005 11:14:02 AM PDT by 1rudeboy
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To: 1rudeboy
Maybe he didn't make the IQ cutoff for his own Pell grant.
110 posted on 05/24/2005 11:14:59 AM PDT by Toddsterpatriot (If you agree with Karl Marx, the AFL-CIO and E.P.I. please stop calling yourself a conservative!!)
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To: hedgetrimmer
Confection manufacturing workers didn't have to worry about their jobs until the "free traders" took them away.

The two articles I posted make clear that protectionism made their jobs go away. Maybe you should read before replying. The fact that we have to pay two to three times more for sugar is all that needs to be said.

Should you ever decide to support your argument with some actual facts I will be happy to address them. I would be particularly interested in anything you have, from a legitimate source, explaining how our food supply is less pure or how food safety standards have been lowered by free trade agreements.

Maybe you could also explain to us why the increase in variety and the lower price of food is a bad thing for American consumers.

111 posted on 05/24/2005 11:17:28 AM PDT by Mase
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To: investigateworld
As fat as we are, sugar should be kept high, either via tariffs or domestic subsidizing laws.

Ahem. Having the government set prices in order to encourage an unrelated policy goal sounds kinda' Marxist, don't you think?

112 posted on 05/24/2005 11:17:47 AM PDT by 1rudeboy
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To: Mase
The amount of money you keep harping about is peanuts compared to what will be generated by the increased trade

Translation: Subsidies are ok if they are spent in foreign countries.
113 posted on 05/24/2005 11:18:48 AM PDT by hedgetrimmer
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To: Mase
The two articles I posted make clear that protectionism made their jobs go away

No it doesn't. Those manufacturers would have never relocated in a third world country until the "trade barrier" caused by our food safety standards was lowered.

May I remind you that American children got hepatitis from Mexican strawberries and that American citizens died from ingesting Mexican green onions?
114 posted on 05/24/2005 11:21:09 AM PDT by hedgetrimmer
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To: hedgetrimmer

What language is your translation? I translate "The amount of money you keep harping about is peanuts compared to what will be generated by the increased trade" to mean, "the benefit outweighs the cost."


115 posted on 05/24/2005 11:21:59 AM PDT by 1rudeboy
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To: 1rudeboy
sounds kinda' Marxist, don't you think?

Well if anyone should know, it would be you, wouldn't it.
116 posted on 05/24/2005 11:22:06 AM PDT by hedgetrimmer
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To: 1rudeboy

You say subsidies are bad. How can you then support subsidies to multinational corporations, no matter what the cost?


117 posted on 05/24/2005 11:23:11 AM PDT by hedgetrimmer
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To: hedgetrimmer
May I remind you that American children got hepatitis from Mexican strawberries and that American citizens died from ingesting Mexican green onions?

Hysteria! Run in circles, scream and shout! May I remind you that those American citizens did not get sick or die because our food safety standards were allegedly lowered, or that American citizens get hepataitis and other health problems form contaminated food on a regular basis, regardless of its source?

118 posted on 05/24/2005 11:25:12 AM PDT by 1rudeboy
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To: hedgetrimmer

Sorry, I'm still pondering the Pell Grant thing. What were you saying, again?


119 posted on 05/24/2005 11:25:59 AM PDT by 1rudeboy
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To: hedgetrimmer
Well if anyone should know, it would be you, wouldn't it.

Absolutely. Let me know when you finally get it.

"How do you tell a Communist?
Well, it's someone who reads Marx and Lenin.
And how do you tell an anti-Communist?
It's someone who understands Marx and Lenin."
--Ronald Reagan

120 posted on 05/24/2005 11:30:49 AM PDT by 1rudeboy
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