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Republicans push for an early House vote on Cafta
By Edward Alden in Washington
Published: July 19 2005 19:58 | Last updated: July 19 2005 19:58

CaftaThe US Congress is poised to decide by the end of this month whether to approve a free trade pact with Central America, as Republican House leaders on Tuesday set a deadline for consideration of the deal.

Bill Thomas, chairman of the House ways and means committee, predicted the controversial agreement would pass in spite of nearly united opposition from House Democrats.


“We haven't lost a vote yet, and I don't intend to start now,� Mr Thomas said. “It's always difficult to pass trade agreements. It always has been. But we've always succeeded.�

The vote on the pact, which would open up trade among the US, five Central American countries and the Dominican Republic, has become a crucial test of whether the administration of President George W. Bush can press ahead with an ambitious trade policy.

The US is negotiating several other trade pacts in Latin America, Asia and Africa, and is hoping for a broader Doha Round world trade agreement. But a congressional defeat on the Central American Free Trade Agreement (Cafta) would imperil those efforts.


Mr Thomas on Tuesday acknowledged that Republicans did not yet have enough support to pass the agreement, but said that “all the pieces are in place� for getting the deal approved. He was set to send the bill to the House floor on Tuesday, which under congressional rules for considering trade agreements would start a 15-day legislative clock, by which a vote on the bill must be held.
While the Bush administration and Republican leaders are pushing for a vote next week, it could conceivably be delayed until the first week after Congress returns from its month-long August recess.


In an effort to round up further support, Mr Thomas said the House would also vote shortly on a bill to toughen enforcement of trade agreements with China and to allow US companies to seek import duties against government-subsidised Chinese exports. Some House Republicans have linked their votes on Cafta to a tougher US stance on China.


But Mr Thomas emphasised his strong opposition to a Senate proposal championed by Democrat Charles Schumer that would levy a 27.5 per cent tariff on all Chinese imports if China fails to revalue its currency.