MercoPress. South Atlantic News Agency

CAFTA: Lower House approval in doubt

The United Stated Senate after twelve hours of debate approved 54 to 45 the Central America (and Dominican Republic) Free Trade Agreement which now faces a fierce debate in the House of Representatives.

Voting was not strictly along party lines since several Republicans joined Democrats in opposing the treaty which confirms many trade preferences Central American countries already enjoy.

Republican Senator John McCain was one of the leading voices in supporting CAFTA arguing that the debate "will determine whether the vigorous experience of free trade advances, or the protectionists will surround us with walls".

However the debate was not only on trade and economics. Several CAFTA supporters said that there was a growing scepticism in Latinamerica with democracy and the treaty has the potential "to show the merits of free markets in association with the US".

Looking back into recent history Senator McCain insisted that the US must prove a reliable partner if "we want to avoid a repeat of the Central American civil wars of the eighties", underlining the presence in the region of de-stabilising characters such as Venezuela's Hugo Chavez or Daniel Ortega in Nicaragua.

However Democrat Senator Richard Durbin warned that CAFTA will only benefit US industry, sweeping aside the Central American economies particularly agriculture and farming.

According to Senator Durbin the unemployed will then look north for jobs and a new wave of undocumented workers will attempt to reach into the United States.

Nevertheless the big battle will take place in the Lower House, where apparently there are not enough votes to support CAFTA. But the quick approval in Senate could have an influence, estimate analysts.

According to the fast track system, both Houses can only approve or reject the treaty, with no modifications introduced.

If CAFTA finally becomes effective 80% of tariffs and quotas among country members will immediately fall with the rest gradually reducing in a twenty year period.