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US House passes Central American trade pact
Published in Saudi Press Agency on 02 - 07 - 2005

The U.S. House of Representatives narrowly approved a free-trade agreement with Central America on Thursday, handing President George W. Bush a hard-fought victory in difficult times for efforts to expand global trade, Reuters reported.
The Republican-controlled House voted 217-215 in favor of the U.S.-Central American Free Trade Agreement, or CAFTA, after a final push by Bush and top aides to win over many reluctant Republicans.
Only 15 of the House's 202 Democrats backed CAFTA, and 27 Republicans opposed it.
The agreement eliminates tariffs on U.S. exports to Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. It also locks in and expands the duty-free access those countries already have to the U.S. market.
The pact's approval came as international negotiators struggle to make progress toward a new world-trade agreement. A congressional defeat of CAFTA would dealt a heavy blow to the talks by raising questions about Washington's ability to follow through on trade deals.
House leaders held open the vote for more than an hour as they pressured fellow Republicans. Rep. Robin Hayes, a Republican from the textile state of North Carolina, switched his vote in the closing minutes to clinch the win.
Afterward, Bush said he looked forward to signing the bill.
"The agreement is more than a trade bill: it is a commitment of freedom-loving nations to advance peace and prosperity throughout the Western Hemisphere," Bush said in a statement. The Senate approved CAFTA last month.
U.S. Trade Representative Rob Portman said he would take the next flight to Geneva to discuss how to revitalize World Trade Organization talks on a new global deal.
"Frankly, if this had gone down tonight it would have made my life much more difficult ... The truth is the rest of the world was watching," Portman told reporters.
European Union Trade Commissioner Peter Mandelson applauded the vote. "CAFTA is a great thing. We are all relieved that it got through," he told journalists in Geneva, where he was attending meetings on the WTO trade round.
--mor 1359 Local Time 1059 GMT


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