North Carolina - the next CAFTA battleground

Date: Wednesday, July 13, 2005 6:34 PM

JOB DESTRUCTION NEWSLETTER

by Rob Sanchez
July 13, 2005 No. 1291

NumbersUSA has posted online the excellent analysis of CAFTA's immigration potential that was discussed in a recent newsletter. Read it here:
http://www.numbersusa.com/PDFs/CAFTAandImmigration063005.pdf

The battlelines are forming over CAFTA. On Friday Bush will go to a North Carolina cotton mill to try to convince the workers to support a trade bill that will force the plant to close. Don't underestimate Bush's power to convince American workers to shoot themselves - he is a master of chicanery!

It will be interesting to see if Bush can sell these factory workers on legislation that will force them into despair and joblessness. Both of NC's Senators voted for CAFTA but of course a couple of politicians are easier to buy than factory workers.

There is a good video report on the News 14 website. The text below is a transcript of the video.

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http://rdu.news14.com/content/headlines/?ArID=72107&SecID=2

CAFTA opponents cite problems in free-trade pact
Updated: 7/13/2005 12:29:13 PM
By: Tim Boyum & Web Staff

(RALEIGH) - President Bush visits Charlotte Friday but opponents of a free trade plan are already speaking out about his trip.

The president plans to promote CAFTA or the Central America Free Trade Agreement during his visit.

A crucial vote comes next week in the U.S. House of Representatives and North Carolina has quickly become a focal point of the issue.

Labor leaders from across the state and the nation met Wednesday to speak out about CAFTA.

"CAFTA will only speed up the loss of American jobs and worsen the inequalities and exploitation of workers in Central America," said N.C. AFL-CIO President James Andrews.

CAFTA would allow the U.S. and Central American countries to trade freely without extra fees.

Supporters believe it will increase companies sales to those countries but labor leaders believe those countries are too poor to buy much and will take American jobs.

"That's why there are only two kinds of people who supPORT 66,69,254,99,130,66 rlotte.bizjournals.com/charlotte/stories/2005/07/11/daily29.html

Bush to tour Gaston plant, tout CAFTA
President George Bush will visit Gaston County on Friday to woo support for the Dominican Republic-Central American Free Trade Agreement.

Arriving in the morning, Bush will tour the Helms Plant of yarn-maker R.L. Stowe Mills Inc. in Belmont. The president then will make a speech touting the trade pact, known as CAFTA, in the Myers Center Auditorium of Gaston College in Dallas.

Gaston College officials referred questions about the visit to the White House.

D. Harding Stowe, R.L. Stowe Mills chief executive, says it is the first time the company has hosted a president.

The Helms Plant is a cotton yarn-spinning plant built in 1989.

"It seems to be coming together," Stowe says of the visit. "It is exciting. We want to make sure the plant looks as good as possible."

CAFTA is a proposed treaty governing trade among the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. If approved, more than 80% of U.S. consumer and industrial exports and over half of U.S. farm exports to Central America would become duty free. All nontextile and nonagricultural goods exported from Central American countries to the United States would be duty free. Tariffs on other goods would be phased out over 20 years.

The Bush administration is pushing for passage of CAFTA, saying it is essential for keeping the United States competitive in the global economy.

Stowe Mills is among the large yarn spinners supporting CAFTA.

"Central America has become the single largest market for U.S. yarn," says Stowe, who serves on the administration's manufacturer's council. "CAFTA will expand that opportunity. Under CAFTA, there will be more investment in the region and an expansion of customers (for U.S. products)."

Stowe Mills now sells about 25% of the yarn it makes to Central American apparel makers from about 20% a year ago.

Critics contend CAFTA will lead to a further drain of manufacturing jobs, especially in North Carolina, similar to what occurred following passage of the North American Free Trade Agreement about 10 years ago. They also fear countries such as China will use Central American countries to funnel their products into the United States illegally, as has happened in Mexico, a NAFTA partner.

The U.S. Senate approved CAFTA July 1 by a 54-45 vote. It could be voted on in the U.S. House of Representatives as early as Monday. Rep. Sue Myrick (R-N.C.) has said she will vote to approve the measure, while Rep. Robin Hayes (R-N.C.) has said he will oppose it.

North Carolina exports about $1.7 billion in goods annually to CAFTA countries, or about 10% of all N.C. exports, according to the U.S. Department of Commerce. Textiles comprise the bulk of those exports, and Central American countries are the world's second-largest buyer of U.S. fabric and yarn, a mainstay of Charlotte-area manufacturing.

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http://rdu.news14.com/content/headlines/?ArID=71574&SecID=2

Dole, Burr vote in favor of CAFTA
7/1/2005 9:19:53 AM
By: Associated Press
(RALEIGH) - North Carolina's two U.S. senators voted in favor of the Central American Free Trade Agreement, saying it will bring jobs to the state and encourage economic growth.

Republican Senators Elizabeth Dole and Richard Burr voted for CAFTA, which passed the Senate 54-to-45 Thursday.

Both say CAFTA now contains provisions that address concerns of the textile industry.

Dole says CAFTA addresses a region that's a significant market for North Carolina exports.

She said North Carolina industries would benefit from having the same tariff-free status that the majority of products coming from that region into the United States have.

U.S. officials signed the free trade agreement a year ago with the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua as well as the Dominican Republic in the Caribbean. It needs congressional approval to go into effect.

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