Central American Trade Bill To Be Signed This Month
May 13, 2004
By Stephen J. Norton, CQ Staff

U.S. Trade Representative Robert B. Zoellick announced Thursday a free-trade agreement with five Central American countries will be signed May 28 - a possible sign the administration wants to push the measure to a vote in Congress this year.

The Central America Free Trade Agreement (CAFTA) - with Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua - would knock down duties on U.S. products sold in those nations and promote more open trade in services between the United States and those countries.

It was completed in February but under so-called fast-track rules (PL 107-210), the administration had to wait 90 days before formally signing the accord. There is no deadline for the administration to send implementing legislation to Congress. Once it does, Congress has 90 days to accept or reject that bill without amendment.

Rep. Kevin Brady, R-Texas., who has been leading efforts to garner congressional support for CAFTA, has admitted that election-year concerns about trade-related job losses will make passage of the agreement difficult. However, he insisted as recently as last week that the votes will be there when a vote is held - whether later this year or early next year.

Congressional Democrats have expressed strong opposition to the accord, contending it would do little to strengthen labor rights in those countries. Rep. Sander M. Levin, D-Mich., has said repeatedly that there is no way it can pass because some Democrats who have supported other trade agreements, such as House Minority Leader Nancy Pelosi, D-Calif., will not be willing to provide the winning margin on this one.

According to the Office of the U.S. Trade Representative, the administration plans to submit a single legislative package to Congress that includes both CAFTA and a trade pact with the Dominican Republic.

The United States has finished trade negotiations with the Dominican Republic but the congressional consultation on that agreement will continue into next month.

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