Dreier Applauds Signing of CAFTA

May 28, 2004

WASHINGTON, D.C. - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, praised today's signing of the Central America Free Trade Agreement (CAFTA) by Ambassador Robert B. Zoellick and the trade ministers from Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.

"Ambassador Zoellick has done a tremendous job in negotiating a comprehensive regional trade agreement for the 21st Century. This historic pact creates a clear win-win for American workers, consumers, and businesses, as well as the citizens of these emerging Central American countries. American exporters will gain access to a growing consumer market that will generate economic growth here at home. At the same time, CAFTA will solidify the free-market reforms already occurring in that region. And it will promote democracy-building and strengthen the rule of law that are key to economic growth and expanded opportunities for our Central American neighbors."

Under current law, most Central American products already enter the U.S. duty-free. CAFTA ensures that U.S. goods and services receive the same treatment, eliminating more than 80% of all tariffs immediately and vastly improving export opportunities for key U.S. sectors. All remaining tariffs will eventually be phased out in their entirety. The agreement also addresses non-tariff barriers, including strong IP protection, a predictable legal framework for U.S. investors, anti-government corruption measures, and transparent dispute resolution mechanisms.

Dreier noted, "This agreement marks a significant step in the President's efforts to expand open trade throughout the Western Hemisphere. I applaud the commitment of the President and Ambassador Zoellick to expanding trade and look forward to continuing to work with them and my Congressional colleagues to advance our economic growth agenda."