I’m happy to announce that the U.S. House of Representative has delivered a resounding victory for free trade. Last week, by a vote of 338-86, members rejected a proposal to withdraw from the World Trade Organization. At a time when political sentiment in Washington seems to be swinging toward protectionism, it’s encouraging to see more than three-quarters of the House come down squarely on the side of international commerce.
But the result of the vote was a negative accomplishment--i.e., it avoided a manifest catastrophe, rather than achieving a positive good. As we move ahead, Congress should build on its recent record of expanding free trade with Australia, Jordan, and Morocco. It can do this by approving CAFTA-DR, an important agreement between the United States, Central America, and the Dominican Republic.
President Bush recently identified CAFTA-DR as one of his top legislative priorities. He has linked its passage to national security interests. “CAFTA is more than just a trade agreement,” he said on June 6. “It is a signal of the U.S. commitment to democracy and prosperity for our neighbors.”
For anybody who remembers the 1980s--a time when our hemisphere was “divided by resentment and false ideologies,” as Bush put it--the stability of Central America is nothing to take for granted. The United States must do everything it can to promote freedom in these fledgling democracies. Trade is an excellent way of doing that.
The enemies of CAFTA-DR don’t talk about this key point, perhaps because it’s so obvious and so indisputable. Instead, they concentrate on the question of labor rights--and their concerns deserve a careful response.
It should begin with a clear statement of fact: With respect to labor rights, CAFTA-DR is the best trade agreement that the United States has ever negotiated.
First of all, labor rights in Central America start out much healthier than they are in Jordan and Morocco (even though Congress had little trouble approving trade deals with these two countries). In Jordan, for example, workers need government approval to strike. That’s not true among the CAFTA-DR signatories. And in Morocco, younger children are allowed to work longer hours than they are in any of the CAFTA-DR nations.
Yet it would be a mistake to claim that labor rights in Central America and the Dominican Republic are wonderful. They’re not, and we should do what we can to improve them. As it happens, CAFTA-DR proposes a solution--something that its enemies have yet to provide.
“The opponents of CAFTA-DR offer only strategies that are like a clumsy sledgehammer aimed in the wrong direction,” said U.S. Trade Representative Rob Portman last week. “By contrast, the CAFTA-DR is like a razor-sharp scalpel aimed at precisely the right problem.”
Under CAFTA-DR, the United States will spend millions on implementing labor rights among its trade partners. If a country fails to enforce its labor laws, it faces serious fines: as much as $15 million per year, per occurrence. This money would be plowed right back into the offending country’s economy, in the form of efforts directed specifically at improving labor conditions.
In Washington, D.C., of course, $15 million is pocket change. After all, it was that consummate creature of our nation’s capital--a senator--who once quipped, “A billion here, a billion there, and pretty soon you’re talking serious money.”
A million here and a million there can add up to serious money as well--especially in Central America. “A $15 million fine isn’t small in this region,” said Portman. “In fact, it is more than the annual labor ministry budget of every one of the CAFTA-DR countries.”
Finally, consider the alternative to CAFTA-DR: absolutely nothing. We can set aside all of the economic and security benefits of this pact and focus exclusively on the question of labor rights. The opposition claims to care about this matter passionately--but so far it hasn’t offered a realistic solution to the problem.
“For those who care about labor rights,” said Portman, “CAFTA-DR is the right kind of trade agreement, at the right time.”
Congress did the right thing regarding the WTO. Now it must do the right thing on CAFTA-DR.
News 
I’m happy to announce that the U.S. House of Representative has delivered a resounding victory for free trade. Last week, by a vote of 338-86, members rejected a proposal to withdraw from the World Trade Organization. At a time when political sentiment in Washington seems to be swinging toward protectionism, it’s encouraging to see more than three-quarters of the House come down squarely on the side of international commerce.
