A Letter to Congressman Zach Wamp

20 July 2005

CAFTA

          The “Republican Leadership” in the house have now offered a “China Bill”, which would presumably address some of the trade practices of the Chinese, such as subsidizing their exports to the US and other abuses, as an incentive to pass The Central American Free Trade Agreement (CAFTA). This is an entirely disingenuous and fraudulent move on their part. First, CAFTA has already passed the Senate and is currently a cliffhanger in the House. If the House were to pass CAFTA, there is no guarantee that the “China Bill” would still be brought up for a vote. Odds are that, oops, it would then be killed in the House. Even if it did make it out of the House, it would probably be killed in the Senate. All of that good Chinese lobbying money sure does buy a lot of influence. If it were to pass the Senate, Bush would probably veto it, as the administration has already indicated that it is less than happy with the “China Bill”.

            Also, the Republican leadership is now offering "protections" to some domestic textile manufacturers as a part of the inducement to support CAFTA. If this is necessary, why not offer it by itself, rather than as a bribe for a Congressman's vote? Collecting revenues through tariffs is a good idea; it's not "protectionism". It was the approach advocated by Madison and Jefferson.

            In recent speeches, the President has been touting CAFTA as a “anti-terrorism measure”. In so doing, he makes the point that CAFTA isn’t so much about true free trade as it is, in part, a disguised foreign aid program for these Central American governments to entice their participation in a regional political block beloved by Globablists, but detrimental to our Nation’s sovereignty and dangerous to our individual freedom. The “foreign aid” will, of course, consist of the manufacturing and agricultural jobs sent south. In so many areas, American tariffs and quotas are eliminated immediately, but CAFTA countries’ tariffs and quotas remain in place for ten years or more. That is some “Free Trade”!

            A good example that “CAFTA is about anything but free trade is the inclusion of the “Codex” standard as a reference for regulating dietary supplements, as is currently done in the European Union. While passage of “CAFTA” would not result in an immediate ban, its inclusion gives more control of the US regulatory process to international bureaucrats which would be set up under CAFTA.

            The Preamble of the CAFTA agreement mentions CAFTA’s role as a stepping stone to The Free Trade Area of the Americas (FTAA), an American version of the European Union. This is plain loss of national sovereignty and loss of control over our nation’s future.

            The Preamble and Chapter 1 on the CAFTA agreement details CAFTA’s subservience to the World Trade Organization.

            Chapter 19 of CAFTA details how the CAFTA Free Trade Commission will dictate US policy and law.

            Chapter 10 and 20 of the CAFTA agreement further detail more powers over US policy and law being given to the World Bank and various United Nations tribunals.

            Chapter 11 details the loss of independence of US federal, state, and local governments to regulate service professions and businesses due to CAFTA’s “Cross-Border Trade in Services” provisions.

            The CAFTA countries buy most of their consumer goods from Japan, Korea, and China. Their economies are miniscule, and do not present a market for American manufactured or agricultural goods. They are a market, however, for our jobs.

            In the recent past, Congressman Wamp voted for withdrawal from the World Trade Organization. This was a commendable vote, as the WTO serves to dictate and regulate US trade policies, and is increasingly hostile to the US. However, the WTO vote was nowhere close to a toss-up, so Congressman Wamp’s vote may not have meant much. As CAFTA is a cliff hanger, it is this vote where Congressman Wamp’s vote will be critical. Let’s encourage him to oppose sending ever more American jobs out of the country and to oppose surrendering ever more American sovereignty to International Bureaucrats.

            Congressman Wamp – for the sake of my children and grandchildren, for their future economic well being and freedom, please vote “NO” to CAFTA.

Eighty percent of everything Central America ships to the U.S. is duty free, but we pay up to 16.7% tariffs when we export to these countries.  Afterthought - what a crock! Who's fault is that! The Constitution gave you the power to do something about that. Shame on you for giving them a free ride (no tariffs) the same time that you tax American Producers into the ground! CAFTA eliminates these tariffs altogether.  Tennessee's exports to the CAFTA region grew 35% between 2000 and 2004, which is more than double the 16% export gain of the U.S. as a whole.  CAFTA levels the playing field for competing with Central American countries, particularly in the sugar industry.
Virtually all of the US tariffs will be dropped immediately. However, the CAFTA countries will be able to keep many of theirs in place for the next ten years. This is hardly a level playing field. But, again, Congressman, why do you prefer the Marxist Income Tax, which is destroying American Industry, and reject the tariff as a means of Revenue? It's sad when Marx is followed rather than Madison and Jefferson.
East Tennessee is home to many confectioners whose existence is contingent on access to affordable sugar.  American food makers are penalized because our sugar production cannot compete with other countries.  CAFTA is expected to reduce sugar prices 4.5%
CAFTA will reduce our jobs more than it will suger prices. Afterthought - the candy lobby must shell out alot of campaign contributions! Everybody else - too bad for you!!!!!!! Once enough American sugar producers are put out of business, does anybody believe that the foreign producers won't then raise their prices?
By removing barriers from Trade with Central America, the United States will be able to push forward with an aggressive economic strategy to compete in the ever-changing global marketplace while protecting our national interests here at home.  CAFTA clearly enhances America's national security and the livelihood of Tennessee's economy.

You don't need a thousand pages of regulations and tribunals to reduce barriers. A simple 1 - 5 page agreement saying that we'd use tariffs only for revenue, of which X% would be the maximum rate, the same time that we drop quotas would have provided true "Free Trade".
                                                                                                                                               
Warmest regards,

Zach Wamp
Member of Congress

Zach Wamp - loving Karl Marx, despising Jefferson & Madison!