Maxine Waters: “CAFTA, the United States Central American Free Trade Agreement, is yet another unfair trade deal that will hurt American…”

“CAFTA, the United States Central American Free Trade Agreement, is yet another unfair trade deal that will hurt American workers. CAFTA is the latest unfair trade deal in a decade of failed trade policies. Over the last 12 years, the United States trade deficit has exploded from $39 billion in 1992 to over $618 billion in 2004. If CAFTA becomes effective, the result will be fewer jobs for American workers. CAFTA is modeled on NAFTA, the North American Free Trade Agreement, which had and continues to have a devastating impact on many American workers. When NAFTA was passed in 1994, the United States had a $2 billion trade surplus with Mexico. In 2004, we had a $45 billion trade deficit in Mexico. That means our trade deficit with Mexico increased by an average of $4.7 billion per year over the last 10 years. As a result of NAFTA, the United States has been exporting American jobs to Mexico. Mr. Speaker, the countries of Central America already receive preferential trade benefits. About 80 percent of exports from CAFTA countries enter the United States duty free. If CAFTA is passed, 100 percent of nontextile manufactured goods from Central America will enter the United States duty free. CAFTA supporters like to claim that CAFTA will create new markets for American products, but this argument is highly flawed.…”