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-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.
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 House is expected to vote on CAFTA-DR later this month.
