MercoPress. South Atlantic News Agency

President Bush signs CAFTA-DR bill

United States President George W. Bush signed into law Tuesday a free trade agreement with Central America and the Dominican Republic following one of the hardest fought battles in Congress particularly in the Lower House where it was passed by two votes.

Flanked by Congress members, administration officials and ambassadors from Honduras, Guatemala, Costa Rica, El Salvador, Nicaragua and the Dominican Republic, President Bush signed the accord known as CAFTA-DR in the East Room of the White House after delivering a short speech in which he stressed the treaty "is good for America".

CAFTA-DR eliminates customs barriers on U.S. products and services exported to Washington's partners, which have a total of 44 million people and a potential market of 30 billion US dollars. The pact also provides protection to intellectual property.

"I welcome the opportunity to make our nation more secure by strengthening our ties with democracies that share our belief in free markets and free governments" emphasized the US president.

Mr. Bush said the new framework would also be beneficial for the region because it would attract much-needed investment. In addition, it will provide a disincentive to illegal immigration to the United States from the region.

The political and strategic significance of CAFTA-DR was also highlighted. "CAFTA-DR will strengthen democracy in the area", said Bush, who also contended that it "will make us more secure".

The agreement becomes effective next January 2006 in those countries where it has congressional approval that so far includes El Salvador, Guatemala, Honduras and United States. The other nations have up to two years to approve the pact.

The House of Representatives approved CAFTA-DR last week by a vote of 217-215, an important political victory for the administration after months of intense lobbying by the president who visited Congress on more than an occasion and his trade officials. The Approval in the Senate June 30 was swifter, 54-45.

Several of these countries already benefited from lower tariffs in the US market under the Caribbean Basin initiative which expires in 2006. CAFTA-DR makes those benefits permanent.