BUSINESS COALITION FOR
U.S.-CENTRAL AMERICA TRADE
January 23, 2004
The Honorable Dennis J. Hastert
Speaker
U.S. House of Representatives
Washington, D.C. 20515
Dear Mr. Speaker:
We, the undersigned companies and associations, are writing to urge your full consideration and support of the recently completed U.S.-Central American Free Trade Agreement (FTA) with El Salvador,
Guatemala, Honduras and Nicaragua. As members of the Business Coalition for U.S.-Central America
Trade – a broad-based and cross-sectoral group of American companies, farmers, and trade associations representing the principal sectors of the U.S. economy, we look forward to working closely with the
Administration and all Members of Congress to support the successful implementation of this FTA, which is critical to the development of a full and reciprocal relationship with our Central American neighbors.
We will also continue to work with the U.S. negotiators for the quick conclusion of negotiations to bring
Costa Rica and the Dominican Republic into this comprehensive and commercially meaningful agreement.
For two decades, the United States has unilaterally opened its markets to most goods from
Central America, as part of its broader Caribbean Basin initiatives. And it has done so with overwhelming bipartisan Congressional support of both the Caribbean Basin Initiative in 1983 and the
Trade and Development Act of 2000 (which included the Caribbean Basin Trade Partnership Act).
As a result of these and other programs, about 75 percent of Central American exports already enter the United States duty-free.
With the completion of the U.S.-Central American FTA, the United States now has the opportunity to make that relationship reciprocal and enter into an agreement that not only will further open U.S. markets, but will substantially open markets in Central America for U.S. farm products, U.S. consumer and industrial exports, and U.S. services.
Already, the countries of Central America buy more from the United States as a percentage of their imports than any other country in the world, with U.S. goods representing about 50 percent of
Central American imports. As our 18 th
largest export market, Central America already represents an important market for a wide range of U.S. goods and services, including electrical machinery, high technology goods, motor vehicles, chemicals, textiles, paper and fertilizer.
Under the FTA, this access will be substantially increased: over 80 percent of U.S. consumer and industrial exports to Central America will be duty-free immediately upon the agreement’s implementation, as will over 50 percent of U.S. agricultural exports. In addition, many non-tariff barriers to U.S. goods and services exports and investment will be eliminated, leveling the playing field for U.S. farmers, companies and their workers. The countries also reached agreement on strong provisions on transparency, anti-corruption, intellectual property, investment, government
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procurement, labor, the environment and other rules that are critical to ensure market access and generate new opportunities for the United States.
But this agreement is about much more than trade and investment. It can help strengthen democracy and the rule of law in a region that was wracked by civil war not that long ago. This is important for all Americans, but particularly the 2 million who have emigrated from these countries and still have family members living there.
This agreement also can help to promote economic development and economic opportunities for Central American countries whose per capita income is less than $1,700 a year.
The U.S.-Central American FTA cannot and should not be expected to cure all problems, but it can be a force for positive change by generating new economic opportunities, new investment and new hope for the region. The alternative – not implementing or delaying approval of a comprehensive and commercially meaningful FTA – is far worse because it will signal that the status quo is acceptable, helping to perpetuate the poverty in much of a region where millions live on less than $2 a day.
We look forward to working with you in support of Congress’ approval of the U.S.-Central
American FTA as early as possible this year.
Respectfully,
Aerospace Industries Association
Alcon Laboratories
Alticor Inc.
American Apparel & Footwear Association
American Association of Port Authorities
American Bakers Association
American Chamber of Commerce of the Dominican Republic
American Chamber of Commerce of El Salvador
American Chamber of Commerce in Guatemala
American Chamber of Commerce of Nicaragua
American Chemistry Council
American Council of Life Insurers
American International Group, Inc.
American Textile Co.
APL Ltd.
Asheboro Elastics
Association of American Chambers of Commerce in Latin America
Bacardi USA, Inc.
The Boeing Company
Business Roundtable
California Chamber of Commerce
Cargill, Incorporated
Caribbean Central American Action
Caterpillar Inc.
Charles Gilbert and Associates
Citigroup Inc.
Coalition of Service Industries
Coats North America
Computer & Communications Industry Association
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Consumers for World Trade
Costa Rican-American Chamber of Commerce
Council of the Americas
Diageo North America
Distilled Spirits Council of the United States
Detroit Regional Chamber of Commerce
EDS
Eastman Kodak Company
El Paso Corporation
Emergency Committee for American Trade
Exxon Mobil Corporation
FedEx Express
The Fertilizer Institute
Fleishman-Hillard
Footwear Distributors and Retailers of America
Gap Inc.
The Grocery Manufacturers of America
Harodite Industries, Inc.
Hewlett-Packard Company
Honduran-American Chamber of Commerce
IBM Corporation
Information Technology Association of America
Information Technology Industry Council
Intel Corporation
International Freight Forwarders & Customs Brokers Association of New Orleans, Inc.
International Mass Retail Association
The Irwin Brown Company
Jockey International, Inc.
Johnson & Johnson
Kellwood Company
Leading Lady Companies
Liz Claiborne, Inc.
Maersk Sealand
The McGraw-Hill Companies
Motor and Equipment Manufacturers Association
National Association of Manufacturers
National Confectioners Association
National Customs Brokers & Forwarders Association of America, Inc.
National Electrical Manufacturers Association
National Foreign Trade Council
National Retail Federation
NCR Corporation
Nestlé Brands Company
Nestlé Business Services
Nestlé Prepared Foods Company
Nestlé Purina PetCare Company
Nestlé Waters North America Inc.
Nestlé USA
North Alabama National Trade Association
North American Export Grain Association
Novartis Corporation
NPES The Association for Suppliers of Printing, Publishing and Converting Technologies
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Oracle Corporation
Perry Ellis International
Pfizer Inc.
Pharmaceutical Research and Manufacturers of America
The Procter & Gamble Company
Rocky Shoes and Boots
Rockwell Automation
Russell Corporation
Russell-Newman, Inc.
Sara Lee Corporation
Seaboard Marine, Ltd.
Software & Information Industry Association
StorageTek
Sweetener Users Association
Telecommunications Industry Association
Texas Instruments Incorporated
3M
Time Warner
Travel Goods Association
Tropical Shipping
Tropical Sportswear International
Unisys Corporation
UPS
U.S. Chamber of Commerce
U.S. Council for International Business
VF Corporation
Wal-Mart Stores, Inc.
Warnaco
Wheat Export Trade Education Committee
Wyeth
Xerox Corporation
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