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For democracy, the economy, and our allies, we need CAFTA now
(Fredericksburg, VA) Free-lance Star ^ | 7-27-05 | John Tkacik

Posted on 07/27/2005 4:35:45 PM PDT by CDB

We must pass the Central America Free Trade Agreement--for our economy, for democracy, and to thwart China.

WASHINGTON--Any day now, the House of Representatives will vote on the Central American Free Trade Agreement. The outcome is considered too close to call. But the stakes are huge.

The upcoming vote will affect far more than trade deficits, job creation or other economic factors. It will determine the course of American leadership in Central America and could decide the very fate of the infant democracies there.

That's because a third party lurks silently in the shadows as the CAFTA debate swirls. That third party is China, a fast-rising global power with ambitions to exert even greater influence in the Western Hemisphere--especially the southern flank.

China has a keen economic interest in seeing CAFTA rebuffed in Congress. The Asian nation now enjoys a near-monopoly on world textile production. CAFTA would lower tariffs on U.S. cotton exports to Central American textile factories (factories that, by the way, pay better wages than the Chinese). This would make Central American textiles competitive against Chinese in the U.S. market.

But if CAFTA fails, U.S. cotton exports to Central American mills will dry up, while U.S. imports of Chinese textile products--with no U.S. content--will soar, as they have--from 500 percent to 1,200 percent in the past six months since the expiration of American textile quota laws.

But the geopolitical ramifications of the CAFTA vote may be even more important than the economic effects.

For decades, the United States has encouraged and supported forces of freedom and democracy in Central America--with considerable success. Meanwhile, China has reassured the world's despots and tyrants that "each country has the right to choose its own path to development," whether democratic, totalitarian (as in the case of Iran, North Korea, Uzbekistan, or Zimbabwe) or, as in Cambodia in the 1970s and Sudan today, genocidal.

But in recent years, Washington's single-minded focus on Afghanistan and Iraq has left many Central Americans with the impression that the U.S. has little time to attend the challenges facing our southern neighbors. At the same time, China has been parlaying its economic growth--and its search for resources to fuel its economic growth--into greater influence in Latin America and the Caribbean.

Both the State Department and the Pentagon agree on this. Assistant Secretary of State for Western Hemisphere Affairs Roger F. Noriega and Deputy Assistant Secretary of Defense Roger Pardo-Mauer said exactly this last March.

The perceived U.S. disengagement from Central America leaves a very real political and economic vacuum. One that China is more than happy to fill.

China has already elbowed its way into an observer's chair at the Organization of American States --despite the OAS's stated goal of advancing democracy. Moreover, China successfully lobbied to keep Taiwan out of an OAS observer position, despite the fact that Taiwan is one of the world's most dynamic democracies.

Chinese diplomatic advances in the Caribbean rim include massive trade agreements and military cooperation with Venezuela. As one retired Venezuelan admiral recently put it, "You have to see this from a geopolitical point of view. We're no longer a country allied to the Western Hemisphere. We're going to be allied to China or Russia."

China also has 140 Chinese security police in the U.N. peacekeeping force in Haiti. As usual with the Chinese, there are strings attached. Beijing is now pressuring Haiti to break ties with Taiwan in return for maintaining the U.N. presence.

The debate over CAFTA has sparked high-flown rhetoric from both sides. But simple facts speak more tellingly--namely, that all the countries involved in CAFTA maintain diplomatic ties with Taiwan and not with China. This plain truth, lost amid the hubbub in Washington, is remarkably important to China. Indeed, it goes far toward explaining China's determination to make economic and diplomatic inroads in Central America.

China has launched a major diplomatic offensive to stamp out and supplant Taiwan's legitimacy among the young democracies in Central America and the Caribbean.

Thus China would score a double victory with CAFTA's defeat. Central America would be left with the message that the United States is simply not interested in its fledgling democracies. And Congress would do China the favor of taking out one of its few remaining competitors in the U.S. textile market.

JOHN TKACIK JR. is a senior research fellow in China policy in the Asian Studies Center at The Heritage Foundation.


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: cafta; china; heritagefoundation; taiwan
The Taiwan and China angle
1 posted on 07/27/2005 4:35:45 PM PDT by CDB
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To: CDB
hello globalism!

BOHICA

2 posted on 07/27/2005 4:40:25 PM PDT by blackeagle
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To: CDB

Ooooh... China bad, CAFTA good. I guess we'll stop trading with China, and revoke their most favored nation status, upon the passage of CAFTA-DR? (sarcasm)


3 posted on 07/27/2005 4:40:34 PM PDT by RegulatorCountry (Esse Quam Videre)
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To: CDB
CAFTA: Can Plutocracy at Home Produce Democracy Abroad?
Why CAFTA Will Not Improve Central American Security and Stability
Desperate Deception: CAFTA as Antidote to the China Trade Juggernaut
Bush's CAFTA and China Policies: Linked Only in Ineffectiveness
4 posted on 07/27/2005 4:42:46 PM PDT by Willie Green (Some people march to a different drummer - and some people polka)
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To: CDB

Instead of CAFTA, we should just scrap our tariffs and grant visas based on those who reciprocate.

We don't need a socialist legal wrapper around our trade.

Hoppy


5 posted on 07/27/2005 4:43:38 PM PDT by Hop A Long Cassidy
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To: Hop A Long Cassidy

"We don't need a socialist legal wrapper around our trade."

Why, of course we do... what would all the Global Ministry Of (fill in the blank) poo-bahs find to occupy their time without it?


6 posted on 07/27/2005 4:48:54 PM PDT by RegulatorCountry (Esse Quam Videre)
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To: blackeagle

CAFTA: Conscience free trade.


7 posted on 07/27/2005 4:52:02 PM PDT by cripplecreek (If you must obey your party, may your chains rest lightly upon your shoulders.)
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To: CDB

BS
CAFTA will be BAD.
As NAFTA, by the way.


8 posted on 07/27/2005 4:56:15 PM PDT by dbostan
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To: dbostan

CAFTA MUST BE STOPPED. NAFTA should be rescinded - along with any treaty we've signed with the UN. WTO, IMF, World Bank, all of it.

IT's time that "We the People" had some say in where our money goes.


9 posted on 07/27/2005 5:03:09 PM PDT by datura (Molon Labe)
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To: blackeagle

My BS detector is in the red zone.
"Hello, Joseph Goebbels. One of your trainees is doing propaganda work here and he sounds a lot like you."


10 posted on 07/27/2005 5:10:59 PM PDT by henderson field
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To: CDB
Excellent article, but the Birchers are in full whine mode tonight.

Be careful out there.

11 posted on 07/27/2005 5:24:22 PM PDT by Dog Gone
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To: CDB
Why should US Tax dollars be used to fund Corporate expansion in 3rd world nations? I read a piece on CAFTA today in the second paragraph they used the " save the children" angle. This whole CAFTA socialist extortion of American Tax dollars is insane
12 posted on 07/27/2005 5:30:04 PM PDT by Afronaut (America is for Americans, but not anymore)
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To: CDB

You can send a free FAX opposing CAFTA here:

http://capwiz.com/fair/dbq/officials/


13 posted on 07/27/2005 5:38:45 PM PDT by lonewacko_dot_com (http://lonewacko.com/blog)
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To: CDB
It pays not to trust anything coming out of Washington.

Tkacik is preoccupied with China. It's his main interest. Apparently he was sold on CAFTA as a way of taking on China. Maybe it is, maybe not.

The Chinese already have a presence in Panama, and this may be a boon to them if they want to get into the Central American textile industry, and devote some of their wealth and experience to it.

In any case, Tkacik doesn't have much to say about how CAFTA will affect the US -- or Central America -- domestically and economically.

14 posted on 07/27/2005 5:42:46 PM PDT by x
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To: CDB
[CAFTA] ... could decide the very fate of the infant democracies [in Central America].

If you ask me, it's high time some of these "infants" grew up and stood on their own two feet. If we're going to give away American prosperity to every two-bit banana republic that threatens to go socialist on us, we're just going to end up squandering our wealth buying friends. It's never worked in the past, and it's not going to work this time.

CAFTA is an abomination.

15 posted on 07/27/2005 6:06:01 PM PDT by IronJack
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To: CDB
GATT - Bad

NAFTA - Worse

CAFTA - Even worse, No more jobs for deserving Americans.

No more globalism, start looking out for your own countrymen BUSH!

16 posted on 07/27/2005 6:09:00 PM PDT by pctech
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