7/28/2005 10:26:00 AM|||Nathan Moore|||

I intended to write an economically laced and detailed post on CAFTA last night. I still intend to do so (intentions...the paving has just begun). This email from Rep. Ander Crenshaw's office came in this morning (R - Florida's 4th District). It's pretty straightforward, and makes what I think to be sound points. Most of it is Florida specific, but the benefits of new markets for American goods and services, and the enhancement of comparative advantage, are applicable to any region of the country.

Crenshaw Hails Passage of the Dominican Republic -

Central American Free Trade Agreement (DR-CAFTA)

Agreement Will Benefit Florida's Economy by Increasing Trade and Creating Jobs


(WASHINGTON) - Congressman Ander Crenshaw (R-FL), a member of the House Appropriations Committee, today applauded House passage of the Dominican Republic - Central American Free Trade Agreement (DR-CAFTA), which would expand trade between the U.S. and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua. DR-CAFTA passed by a vote of 217-215.

"This is more than just a free trade agreement," Crenshaw said. "DR-CAFTA is an opportunity to create jobs all over the U.S., especially in Florida, while spreading the American ideals of democracy and free markets in Latin America."

Florida is one of the states that will benefit most from DR-CAFTA. Florida is already the largest trading partner with the DR-CAFTA nations, accounting for $3.2 billion of the state's annual exports. After passage, Florida vegetables, fruits and nuts will no longer be subject to a 16.7% tariff and Florida's cattle will be free of its 5.7% tariff, allowing U.S. exports to finally compete on equal footing with local commodities in these nations.

In addition to tariff reductions, over half of the trade between the U.S. and DR-CAFTA countries would move through Florida, potentially creating thousands of manufacturing and distribution jobs in the future. One estimate says Florida could gain as many 40,000 jobs in 10 years and 500,000 in the future as a result of DR-CAFTA.

"Today, DR-CAFTA countries export 80% of their products to the United States free of duties. Yet, U.S. exports face excessive tariffs as they try to compete in these nations. As Florida's largest export destination, it is critical to seek reductions in tariffs in these countries. Tonight, we leveled the playing field for American goods and services - that's good news Florida, American businesses, and our economy," Crenshaw stated.

Crenshaw also highlighted the following benefits of DR-CAFTA:

- Agriculture exports to the DR-CAFTA region would rise by $1.5 billion while exports of manufactured products would increase by $1 billion.

- Reduced and eliminated tariffs on U.S. goods will increase demand for them in the DR-CAFTA region, which will create more U.S. jobs.

- U.S. national security increases as DR-CAFTA nations adapt democratic governments and free-market economies.

- Regional unification will aid the U.S. against competition from Chinese imports to U.S. markets.

- DR-CAFTA helps keep textile jobs in the U.S. In 2004, North Carolina exported $360.6 million worth of textiles to DR-CAFTA nations while Florida sent $538.7 million in textiles to the region.

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