MercoPress. South Atlantic News Agency

Rice lobbies strongly for free trade with Central America

Pushing for freer trade in a continent where many interpret it as a tool for the rich northern part of the hemisphere Secretary of State Condoleezza Rice Tuesday hailed Latin America as a region that understands the value of free markets and democracy.

"U.S. Congress should approve the Central American Free Trade Agreement (CAFTA), which also includes the Dominican Republic, as a way of promoting liberty in the region" she said in an address to the Council of the Americas, a business group whose members promote free trade and open markets in the Americas.

Ms. Rice reviewed the state of United States relations with Latin America, whose countries "now share a consensus that democracy and economic liberty are the only pathways to success" pointing out that the real divide in the Americas today is not between governments of the left and the right, "the real divide is between those who are elected and govern democratically and those who do not".

In a veiled reference to Venezuela which in the past she has described as "a negative force in the region" Ms. Rice said that "we must insist that leaders who are elected democratically have a responsibility to govern democratically". And one of the main ways of promoting democracy and freedom is through "free trade".

"A region that trades in freedom, after all, benefits everyone".

CAFTA will help advance democracy, strengthen security and promote prosperity among some of United States most important neighbours insisted Ms. Rice arguing in support of the free-trade agreement which is facing growing opposition in Congress.

A number of Democratic and Republican members of Congress have expressed concerns about potential job losses, particularly in states that produce sugar and textiles. They contend that given United States large current account deficit -equivalent to 5.7% of GDP-, compliance with existing agreements is needed before signing new ones.

CAFTA supporters explain that U.S. textile producers will actually benefit from the trade deal because Central America's maquilas, or assembly plants, use a large percentage of pieces made in the United States. China, Central America's main competitor in the textile industry, barely uses material from the United States. In her call to Congress, Rice noted that the United States exports more to CAFTA's members "than we do to Russia, India and Indonesia combined"

"Even more importantly, CAFTA will contribute to stability and democracy in Central America, making our nation's immediate periphery stronger and safer and free" added Ms. Rice describing it as a great opportunity for the Western Hemisphere.

For many decades according to Ms- Rice a genuine partnership between the many nations of the Americas was impossible because of disagreement over fundamental issues of principle, "but this is no longer true".

"Today our hemisphere is committed to democracy and we share the same great purpose: freedom, prosperity, and dignity for all of our citizens" stressed Ms. Rice emphasizing the president Bush administration commitment to the region.

"For too many decades, U.S. policy toward Central America and the Dominican Republic has oscillated from engagement to disregard and then back again to disengagement and back again to disregard. With CAFTA, with the permanent engagement that free trade brings, we can break this trend once and for all and we can demonstrate that the United States is committed to the success of all Latin American countries that embrace the challenge of democracy", concluded the US Secretary of State.