There have been winners and losers as our economy integrates into the world marketplace. But these trials and tribulations have helped create the most vibrant and innovative economy the world has ever seen.
Now our friends and neighbors in Central America face a similar economic crossroad. Down one path lies economic protectionism, closed markets, and weak development opportunities. Down the other lies open markets, economic integration and invigorated democracies as jobs are created and a middle-class grows.
I believe that in the end, entering into free trade agreements that create open markets and a level playing field is worth some temporary discomfort.
Unfortunately, the debate over the Central American Free Trade Agreement, passed by the U.S. House of Representatives Wednesday, became polarized. Trade shouldn't be a partisan issue. I also understand that there are genuine, heart-felt concerns with the agreement's provisions on labor and the environment.
No one argues that CAFTA will, by itself, solve the problems of poverty, human rights and labor conditions in Central America. Those problems are serious and real. Nor does anyone argue that CAFTA could not be improved. But rejecting the trade agreement would do little to protect worker rights, level the playing field for American goods, or create a stronger, more stable Western Hemisphere.
Are the labor laws in these countries perfect? Of course not. But the governments of the CAFTA countries voluntarily invited the International Labor Organization to critique their labor standards. The result was a plan to reform their labor laws.
CAFTA has been used as leverage to improve labor rights in Central America. New Mexico Sen. Jeff Bingaman secured commitments from the administration of $180 million in labor and environmental capacity-building funding over the next four years. That includes money to monitor and enforce CAFTA country commitments to core labor standards such as anti-child labor laws, the right to organize and the right to bargain collectively, principles I strongly support. Bingaman also negotiated a commitment whereby $3 million would be set aside annually for an independent third party institution Ð the ILO Ð to benchmark and monitor progress. This is a step forward in advancing workers' rights in the region.
Through earlier legislation, America's markets are already open to CAFTA countries. This agreement would finally open their markets to our goods, farm products and services. Almost 80 percent of the exports from CAFTA countries enter into the U.S. duty-free as a result of trade preference programs - initially begun in the early 1980s - designed to spark economic opportunity in this impoverished region. CAFTA is the next logical step in our trade relationship, ensuring that open trade flows both ways.
Removing trade barriers for Utah products is a good thing for our state's economy and employees. Twenty percent of all manufacturing workers in Utah depend on exports for their jobs. Small businesses across the nation will especially benefit, as 97 percent of all U.S. exporters are small enterprises. Expanding markets is a clear win for American workers and businesses.
Most importantly, strengthening peace and prosperity have long been U.S. priorities in the Western Hemisphere. The democracies in Central America have emerged from troubled times - the bloody Sandinista revolution, the Salvadoran death squads and military thugs like Manuel Noriega. Now the presidents of all six democracies have come to Washington, D.C., asking for our support. Jimmy Carter recently wrote, "If the U.S. Congress were to turn its back on CAFTA, it would undercut these fragile democracies, compel them to retreat to protectionism and make it harder for them to cooperate with the U.S."
It is true that while expanding international trade raises our standard of living, free trade can also dislocate some workers. America must do more to better equip these workers to compete in the global economy. Worker retraining programs should be strengthened and must become a national priority as the U.S. seeks new trading partners and markets for our goods.
The pace of global change can be dizzying and for some, downright disruptive. However, ensuring a level playing field, creating jobs benefiting farmers, manufacturers and service providers and solidifying democracy in our hemisphere are all in America's best interest.
Democrats and Republicans should continue advancing the free trade agenda that holds so much promise for peacefully engaging with the world and strengthening America's economic future.
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Congressman Jim Matheson, D-Utah, represents the 2nd Congressional District.
