WASHINGTON-Telecom and high-tech lobbyists will have little time to savor Senate passage of the Central America Free Trade Agreement, with the upcoming House vote too close to call.
The Senate’s 54-45 approval of CAFTA -Dominican Republic last Thursday night-before Congress broke for its July 4 recess-was hailed as big victory for free trade. The Bush administration, whose trade agenda is riding on CAFTA-DR making it out of Congress this year, is said to be aggressively lobbying lawmakers. The telecom and high-tech sectors will now shift gears and attempt to persuade House members to back CAFTA-DR.
“The precedent-setting nature of this agreement-in terms of Costa Rica’s first-ever telecommunications commitments, capacity-building assistance for labor and the environment and methods for addressing labor violations-are valuable ‘wins’ for our country,” said Matthew Flanigan, president of the Telecommunications Industry Association. “We are very happy to see the Senate’s endorsement of an agreement that levels the playing field with our partner countries and which will create jobs and grow our economy.”
The Information Technology Industry Council predicts the trade accord will lead to increased annual U.S. high-tech exports to CAFTA-DR countries by 11 percent. In addition, ITC said CAFTA-DR will save U.S. high-tech exporters more than $75 million annually by eliminating tariffs; prevent Central American countries from discriminating against e-commerce products; require Central American countries to bolster piracy enforcement; and provide expanded market access to U.S. telecommunications and other high-tech services.
Growth in wireless and other telecom-sectors is significantly realized through exports to emerging markets.
“The naysayers claimed CAFTA-DR was dead in Congress, but tonight they were proven wrong,” said ITI President Rhett Dawson. “Half the battle is won now, and tonight’s vote puts new wind in our sails for the House vote.”
The House is expected to vote on CAFTA-DR later this month.
“More than anything, passage of CAFTA is a victory for the American economy,” said John Ensign, chairman of the Senate Republican High Tech Task Force. “I’m very proud of the job the High Tech Task Force did in spreading the word about CAFTA’s benefits.”
