Thread: Senator's EXPLANATION of CAFTA & FTAA

My blood's boiling, however, here's S. Lautenberg-D NJ- expanations

May 2, 2005

Dear xxxx:

Thank you for your correspondence expressing your views about the U.S.-Central American Free Trade Agreement (CAFTA). Enhanced trade with neighbors to the South is economically essential. CAFTA is a trade agreement that would create a free trade zone among the United States and five Central American countries (Guatemala, Honduras, El Salvador, Nicaragua, and Costa Rica). Over the course of this year, nine meetings are scheduled between the United States and these Central American countries to negotiate the terms of this agreement.

I believe that this agreement presents both economic opportunities for the peoples of the Western Hemisphere as well as some potential problems.

Please be assured that I share your concerns about CAFTA. I, too, worry that CAFTA might exacerbate the pervasive social and economic inequality already present in many of the Central American countries. I worry about whether CAFTA will perpetuate or perhaps worsen the current poverty plaguing many citizens of Central America. I also worry that Central American products could put U.S. producers, including those in New Jersey, out of business, because Central American firms have cheaper labor costs. U.S. firms competing with Central American imports have clearly registered this concern. As the negotiations progress this year, I will continue to monitor the labor standard provisions of the proposed agreement, as well the environmental standards and export substitution rates.

Despite these reservations, CAFTA could generate economic benefits for the region. Economists indicate that though the effects of the trade agreement might be small on a macroeconomic level, they will increase the profits to the local firms affected by the regional trade. For U.S. producers, access to new markets for goods such as agricultural products could become advantageous. In general, U.S. companies could benefit from the opportunity to increase their foreign investment in this region. Finally, CAFTA may reinforce political stability in these five Central American countries by providing institutional structures that will reinforce recent progress made in efforts to strengthen the rule of law and to fight terrorism, organized crime, and drug trafficking.

Thank you for your interest in this issue and for writing to me. I will carefully monitor the progress of the CAFTA negotiations to ensure that any new trade agreement meets the highest standards for labor, environmental, and social protection.

May 2, 2005

Dear XXXX:

Thank you for expressing your concerns about the proposed Free Trade Area of the Americas (FTAA).

I am concerned that the FTAA may jeopardize American jobs in a fragile economy. Although I have demonstrated a willingness to consider liberalized trade agreements with other nations, I voted against Free Trade Agreements (FTAs), such as the North American Free Trade Agreement (NAFTA), that I think will hurt domestic jobs. Since President Bush took office in 2001, America has lost over two million private sector jobs.

I am discouraged by the Bush administration's foreign trade policy which has contributed to a trade deficit which reached $535.7 billion last year. The U.S. Trade Representative (USTR) has usurped Congressional authority in settling immigration, employment, and environmental disputes that are common and important among FTA negotiations. Recent FTAs passed by the Republican-controlled Congress, such as the Chile and Singapore FTAs, included controversial immigration policies that historically have been the prerogative of Congress to develop. Furthermore, opened trade between the two partners encouraged off-shore development of American businesses that took advantage of low wages overseas.

Given the past three years of dangerous trade policies that threaten global environments, outsource American jobs, and increase the American trade deficit, I remain skeptical of President Bush's trade policies. The FTAA is currently slowed by conflicts between U.S. and Brazilian interests. Rest assured, however, I will keep your important views in mind if the FTAA vote comes to the Senate floor. Thank you again for your correspondence.

Looks like a form letter to me.

DMAN, It's not the "form" of the letter, LOL, that I'm concerned with..........

IT'S THE VIEWS & PLAIN BS COMING FROM THIS DEMENTED MAN'S MOUTH! His position in writing is what's important in this fight re: CAFTA