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Bush criticizes CAFTA foes as votes remain short
Reuters
Wednesday, June 22, 2005; 6:29 PM

WASHINGTON (Reuters) - President Bush criticized as "economic isolationists" the opponents of a free trade agreement with Central America on Wednesday, as the White House and business groups struggled to win congressional votes for the pact.

"See I have a different approach to some of the economic isolationists who oppose this agreement. I believe they're pessimistic about America. I believe American workers can compete with anybody, anywhere, anytime if the rules are fair," Bush said during a visit to a Maryland nuclear plant.


The Bush administration has been trying to reach a deal with sugar-state lawmakers to alleviate their concerns about the U.S.-Central American Free Trade Agreement, or CAFTA, which is also opposed by labor groups and some textile and manufacturing organizations who fear it will lead to job losses.

Most farm and business groups support the pact, which they expect to boost exports to the Central American region.

According to a Senate source, a new proposal from the administration relating to the sugar provisions in the pact was turned down by the industry on Wednesday.

Sugar producers claim the additional market access provided to Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Dominican Republic could destroy the U.S. sugar industry -- especially if extended to other potential free trade partners like Thailand, South Africa and Brazil.

"We continue to talk to House and Senate members to see if there is some way we can work with them. I'm going to continue reaching out," U.S. Agriculture Secretary Mike Johanns told Reuters, declining to give further details.

One idea that appears to be under discussion would be for the Agriculture Department's Commodity Credit Corp. to ensure sugar does not flood the U.S. market between now and the next U.S. farm bill in 2007, an industry official said.

HOUSE CONTROL

The battle over CAFTA also has turned into a high-stakes fight over control of the House of Representatives.

With an eye on 2006 elections, House Minority Leader Nancy Pelosi, a California Democrat, is urging party members to vote against CAFTA, which would put pressure on Republicans from marginal districts to decide between voting for the pact or breaking with Bush, a House Democratic leadership aide said.

Republicans control the House with 231 votes, but many party members from sugar- and textile-producing states are reluctant to support the pact. That has made it difficult for the White House to get to the 218 votes it needs for approval in the House.

"My information is we're a handful of votes short," said Jim Fendell, president of the Association of American Chambers of Commerce in Latin America, said at a breakfast with small business owners in town to lobby for the pact.

Rep. Robin Hayes, a North Carolina Republican who helped the White House win authority in 2002 to negotiate trade agreements that can not be changed by Congress, told reporters on Tuesday that he was leaning no against CAFTA. Hayes was re-elected last year with 55 percent of the vote.