Thread: Rogers gets Felker OK for CAFTA vote

http://www.dailyhome.com/news/2005/dh-l ... 5v4454.htm

Rogers gets Felker OK for CAFTA vote

By Chris Norwood
07-26-2005

While visiting Talladega in June, U.S. Rep. Mike Rogers said he would vote for the Central American Free Trade Agreement, which the White House is pushing for, if Avondale Mills Chairman and CEO Stephen Felker Sr. gave his blessing, but not under any other circumstances.

Rogers publicly announced the agreement had gotten Felker’s blessing during a conference call Monday afternoon, with Felker, Russell Mills deputy general counsel Chris Champion and Bill Canary of the Business Council of Alabama on the line.

"The major textile manufacturers in the Third District have had their concerns about the Central American Free Trade Agreement resolved, and he is prepared to vote in favor of the bill," a press release issued just before the call stated.

"I represent a poor, rural district," Rogers said during the call, "where we have seen very negative effects of the North American Free Trade Agreement," which CAFTA resembles.

"I made very clear when I was elected that I was going to be a tough sell on trade issues. I know Avondale and some others in the agricultural sector were concerned, but those concerns have been remedied. Russell Mills and Frontier Yarns consistently supported the legislation from the beginning. To my knowledge, today there is not a single employer in my district who opposes CAFTA. I have the utmost confidence in the U.S. trade representative and our ambassadors."

Felker said Avondale is working with several partners in the region, and supported the general intent of the bill, but also characterized it as "flawed."

Specifically, the company worried that Chinese manufactured goods and raw materials could be shipped to Central American and Caribbean countries, then shipped to the United States duty free.

"The modifications to the original document, with Rogers’ leadership, alter those exceptions. Now, to utilize Asian fabrics, they will need U.S. growth as well."

This is accomplished through trade preference limits, or TPL, on cotton and manmade fiber trousers from Nicaragua and, to a lesser extent, on wool products from Costa Rica.

The TPLs would expire after 10 years, but would allow Nicaraguan industries, which are currently lagging behind the other signatories, to develop at a faster rate.

For manmade fibers, the TPL would require an equal match of U.S. made fabric and fabric from countries that are not signatories to CAFTA. For cotton, there is a complex 10 year schedule, which would require a one-to-one match for the first 20 million square meters during the first year, 30 million square meters the second year, 40 million square meters the third year, etc., for the first 10 years of the agreement.

Following the 10th year, the TPLs will expire, and any foreign product or product manufactured with foreign materials will be subject to normal duties.

Felker said he has visited Nicaragua on several occasions, and was involved in negotiating the TPLs.

Champion characterized the new agreement as "the best model to compete with Asia."

Felker agreed. Both also said they did not expect any jobs currently in America to move south after the agreement passes.

"The best place for me to do what I do is in the United States, in Alabama," Felker said.

"We are competitive using this model already," Champion added, "and I believe that will continue for the foreseeable future."

In addition to benefiting businesses in his district, Rogers said CAFTA will also benefit "national security concerns. CAFTA will shore up economies in the area, and will bring long-term stability to the democracies in that part of the world."

Canary said he expressed the gratitude of "the 750,000 employees I represent, for this opportunity to dramatically expand free, fair trade. This will bring new export opportunities to Russell, Avondale and many other businesses in Alabama."

As for the agricultural concerns, Rogers said, "Those just worked themselves out. ALFA had some concerns, but now they’re in favor of the bill, and so is the Poultry Association and the Cattlemen’s Association."

The treaty would expand the decade old North American Free Trade Agreement to Honduras, Nicaragua, Guatemala, Costa Rica, El Salvador and the Dominican Republic.

The bill passed the Senate last month, and is expected to come up for a vote in the House this week. Even with the support of Rogers and other textile state Republicans, however, passage of the bill is by no means a sure thing.

About Chris Norwood
Chris Norwood is a staff writer for The Daily Home.

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Bill Canary is head of the Alabama Business Council. HE does NOT represent 750,000 employees....he represents their BOSS, the employers who can't wait for those low wage immigrants to replace these American Workers!!

Ironies and opposites at work...

Geez....