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Other Views: Stay Off CAFTA Highway
September 11, 2004
By Donald Nelson, The Forum

What will the Dominican Republic-Central American Free Trade Agreement do to North Dakota and the United States? To answer these questions, we need to first look at the North American Free Trade Agreement.

Under 10 years of NAFTA:

  • The United States lost 879,280 jobs.
  • North Dakota lost 1,090 jobs.
  • Between 1997 and 2002, North Dakota lost 1,729 farms.
  • The $30 billion United States net export deficit with Canada and Mexico in 1993 has increased by 281 percent to $85 billion in 2002.

According to a report by Won W. Koo, director of the Center for Agricultural Policy and Trade Studies at North Dakota State University, DR-CAFTA will follow suit by jeopardizing roughly 370,000 jobs nationwide - 13,000 in North Dakota in the sugar industry alone. This will virtually eliminate the $21.1 billion U.S. sugar industry.

Not only will DR-CAFTA cost the American economy in lost jobs, it will also result in multi-million dollar lawsuits.

How, do you ask? DR-CAFTA contains language similar to Chapter 11 in NAFTA, which grants foreign corporations the right to sue governments through a secret tribunal for any laws inhibiting their anticipated or real "profit-making potential."

Everyone is at risk, including but not limited to local zoning, conservation and pollution laws/regulations, human health and safety measures, farmers (farm subsidies), ranchers, public utilities, postal services and the mandatory country of origin labeling law.

In August, Canadian Cattlemen for Fair Trade decided to use Chapter 11. They are claiming damages for investments in feedlots and farms that have been hurt by the border closure to live cattle. In May 2003, the United States closed the Canadian border to live cattle in order to protect the health of U.S. consumers and cattle herds.

If the Canadian Cattlemen for Fair Trade win this lawsuit, the United States will lose its sovereignty to protect its citizens' food supply. This time it will be from BSE ("mad cow" disease). What will be next?

Congress needs to know that DR-CAFTA is a destructive trade for all of America. Write, call or fax your congressmen today and voice your concerns.

Nelson is a Keene, N.D., farmer/rancher and a member of the Dakota Resource Council.

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