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Commerce secretary argues for CAFTA
Central America trade pact

By Paul Nowell
Associated Press

GREENSBORO - A free trade agreement with Central America will mean more business for North Carolina, Commerce Secretary Carlos Gutierrez told business leaders Friday in an area hit hard by textile and furniture job losses.

The Central America Free Trade Agreement, or CAFTA, will mean increased exports of textiles, apparel, farm products and other goods, Mr. Gutierrez said.

CAFTA would give would end import taxes on U.S. goods ranging from construction equipment to cars and jeans. The pact would also eliminate the few remaining U.S. duties on exports from the six other countries that are part of the agreement: Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.

"The good news for North Carolina is these CAFTA countries are using North Carolina textiles and apparel and shipping finished products back to the United States," he said.

North Carolina ranks third among the states in exports to Central America behind Texas and Florida with $1.7 billion in shipped goods, Mr. Gutierrez said. Over the past four years, North Carolina has led the nation in export growth to CAFTA nations with a 65 percent increase, he said.

North Carolina also ranks among the nation’s leaders in job losses within the past few years after shedding traditional jobs in the textile and furniture sectors.

The Bush administration acted against illegal dumping of Chinese furniture last year, Mr. Gutierrez said, and he vowed to do it again.