CITES IMPORTANCE OF PROMOTING ECONOMIC GROWTH AND POLITICAL STABILITY IN CENTRAL AMERICA

Washington, Jul 27, 2005 - "I have a record of skepticism toward international trade agreements; I opposed NAFTA, Normal Trade Relations with China, and Trade Promotion Authority for the President," said Rep. Cliff Stearns (R-Ocala). "Earlier this week, I met with President Bush in the Oval Office to talk about CAFTA. He stressed the importance to our national security of strengthening the economic and political conditions in Central America by approving CAFTA. He also noted that products from these nations enter the United States duty free while our exports are subject to duties. This agreement levels the playing field on duties, removing barriers to our exports. I believe that the geopolitical ramifications of approving CAFTA will benefit our nation, and I recognize the economic benefits of the overall agreement, which will not compromise our sovereignty."

"In the 1980s, dictatorships and civil wars dominated the countries of Central America," explained Stearns. "Today, except for Cuba and Haiti, these nations have elected governments and economic freedom. However, former Marxist leader Daniel Ortega of Nicaragua and the pro-Castro President of Venezuela oppose CAFTA because it will promote political and economic freedom. Furthermore, if we want to stem the flow of illegal immigrants from these nations, we must help them expand economic opportunities for their people. In addition, CAFTA will increase exports for the 7,000 businesses in Florida that do business in Central America. Central America is Florida's second largest trading partner, where they buy $3.5 billion in Florida products each year."

Stearns joined the House in approving H.R. 3045, the Dominican Republic --Central America - United States Free Trade Agreement (CAFTA). The provisions of CAFTA will:

* Make more than 80 percent of U.S. exports of consumer and industrial products to Central America and the Dominican Republic duty free;
* Solidify the United States as the leading supplier of goods and services to the Western Hemisphere at a time when China is making serious inroads as an investor and exporter in the region;
* Contain the highest level of intellectual property protection in Latin America;
* Boost U.S. agricultural exports by an estimated $1.5 billion (American Farm Bureau Federation);
* Benefit small and medium-sized businesses, which were responsible for an estimated 37 percent of U.S. exports to the Dominican Republic and Central America in 2002; and
* Create jobs by opening foreign markets.