CHINA LEGISLATION MAY IMPACT CAFTA VOTE IN US
Some US legislators are linking support for the Central America Free Trade Agreement-Dominican Republic (CAFTA-DR) to US commercial policy with China. On 20 July, Representative Bill Thomas (Republican-California), chair of the influential congressional committee that reviews trade legislation, signalled he was prepared to send CAFTA-DR for a vote in the US House of Representatives. The House is also set to vote on a bill to toughen enforcement of trade agreements with China.
Last week on 14 July, Thomas accepted a proposal from Representative Phil English (Republican-Pennsylvania) that would allow the US government to impose retaliatory tariffs against purportedly government-subsidised Chinese exports. English — head of the Congressional steel caucus — said the deal could produce up to six CAFTA-DR votes from Republicans representing states whose heavy manufacturing industries have lost jobs to low-cost countries, such as China and Mexico. Representative Sander Levin (Democrat-Michigan) countered that "linking China to CAFTA-DR diminishes the importance of both trade matters." Some trade analysts have noted that bilateral and regional trade agreements are often motivated by political and strategic concerns, and can be of dubious economic value.
In a 17 July radio address, US President George Bush urged the House to follow the lead of the Senate which passed the CAFTA-DR on 30 June.
ICTSD reporting; "Republicans push for an early House vote on Cafta", FINANCIAL TIMES, 20 July 2005; "President’s Radio Address", WHITE HOUSE, 16 July 2005; "G.O.P. Hopes Bill on China Will Assist Trade Pact", NEW YORK TIMES, 15 July.