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AFI on Capitol Hill to Fight for CAFTA - Free Trade Agreements Action Program Alert
Central American and Dominican Republic Free Trade Agreement (CAFTA-DR)

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AFI on Capitol Hill to Fight for CAFTA - Free Trade Agreements Action Program Alert
Provided by Jeff Levin - Schmeltzer, Aptaker & Shepard - Harris Ellsworth & Levin International Trade Group



Monday, July 25, 2005
 

With the vote on the proposed Central American – Dominican Republic Free Trade Agreement (CAFTA-DR) likely this week in the U.S. House of Representatives, the Association’s Vice Chair, Dee Bartlett, and President, Bob Bauer, made a round of “House calls” this past Friday to rally support for the agreement and express AFI’s strong support for the measure. The Association’s chairman, Howard Schreiber, wanted very much to join Ms. Bartlett and Mr. Bauer but was unable due to a scheduling conflict. However, Mr. Schreiber authorized his strong proxy of support and wrote a personal letter to his Congressman, Scott Garrett, detailing this support, which added substantial strength to our position.

Accompanied by Counsel, Jeff Levin and Mateo Paz-Soldan, Ms. Bartlett and Mr. Bauer met with the legislative assistants for Congressmen Rush Holt (D-NJ), Rodney Frelinghuysen (R-NJ), and Scott Garrett (R-NJ). The AFI representatives also had an extended personal visit with Congressman Garrett. After their time on the Hill, Ms. Bartlett and Mr. Bauer also met with officials of the U.S. Department of Agriculture in order to communicate to the Administration the efforts that AFI has made and is making in support of the CAFTA-DR, and with officials of the U.S. Chamber of Commerce in order to learn more about the massive lobbying pressures that other major trade associations have been bringing to this battle.

Like the vast majority of Democratic Representatives, Congressman Holt is a definite “no” vote on the proposed agreement. Congressman Frelinghuysen, on the other hand, is a definite “yes,” while Congressman Garrett is “leaning no.” Congressman Garrett detailed his concerns that implementation of the CAFTA-DR will result in an unacceptable loss of “sovereignty” for the U.S. While we respect the Congressman’s reasoning on this issue and appreciated his forthrightness, we expressed our disagreement and our hope that he will reconsider his position before the vote.

Present indications are that the vote will be held on either Wednesday or Thursday, just before Congress leaves town for its August recess. Head-counters estimate that the Administration and Republican leadership will need the votes of approximately 200 House Republicans and 15 House Democrats to be successful. Present indications are also that the vote will be very, very close. However, the legislative assistant for Congressman Frelinghuysen and the USDA officials expressed optimism that in the end – and through whatever reasonable means necessary – supporters of CAFTA-DR will ultimately prevail.

Members who have not already done so are strongly encouraged to transmit the “political action letter” which we previously disseminated to their Congressional Representative (see links below). These steps matter.

For Members’ reference, set forth below are the “talking points” which guided our visits on Friday:

TALKING POINTS:
AFI CAPITOL HILL CONTACTS ON CAFTA-DR
Washington, DC
July 22, 2005

What Is AFI?

■ The Association of Food Industries (AFI) is a trade association of U.S. importers of food products. The Association is headquartered in Neptune, NJ, and has more than 200 U.S.-based member companies. Approximately 90 percent of these companies are located in the New York metropolitan area.

■ AFI Members import a wide array of food products, from nuts and other raw agricultural products, to olive oil, to processed food products such as canned fruits and vegetables. AFI Members import products from more than 50 countries – including the six countries covered by the CAFTA-DR. Their products – which are sold under such well-known brand names as Cento, Empress and Goya – are sold to restaurants, grocery stores, retail outlets, distributors and institutions throughout the United States.

■ AFI companies based in New Jersey generate annual sales in excess of $1 billion. These companies employ approximately 1,500 persons, supporting families throughout New Jersey and the metropolitan New York City region.

■ AFI is involved in a wide range of activities that support the U.S. food importing industry. In recent years, AFI has actively supported approval of the Chile Free Trade Agreement and the Morocco Free Trade Agreement.

■ AFI believes that it is vital for policymakers and the public to be aware that the U.S. food importing industry is composed of American companies, much like the companies in other so-called “domestic” industries, whether they are textile fabricators, sugar processors or growers of citrus fruits. Its workers are employed here in the United States, and it makes a vital contribution to the tax base of our national, state and local economies.

AFI Strongly Supports Approval of CAFTA-DR

First, CAFTA will secure the path towards increasing trade liberalization with important trading partners in our own hemisphere. As such, it is a vital commercial tool for the U.S. food importing industry. Many AFI companies have established steady and high-quality supply sources in the CAFTA countries. It is anticipated that, as AFI’s membership continues to grow, more and more companies within the Association will source a range of products from CAFTA countries.

The State of New Jersey is one of the most important transit and distribution areas for imported food products in the United States. The food importing industry in New Jersey generates a multitude of jobs which benefit the local and State economies, including: the personnel at the ports that off-load cargo; the local Customs brokers hired by AFI companies to clear shipments through Customs; local trucking companies that transport product from the pier to the warehouse, and from the warehouse to the final point of sale; and warehouse personnel that unload and distribute product.

Therefore, approval of CAFTA would provide an important benefit not only to those current and prospective AFI members that source product from CAFTA countries, but also to the wide range of industries that support these companies.

Second, CAFTA will result in clear and tangible economic benefits to the State of New Jersey as a whole. A recent study conducted by the U.S. Chamber of Commerce projects that by nine years after implementation of CAFTA, it will result in $381 million in increased output for companies based in New Jersey, $79 million in increased earnings for employees in New Jersey, and the creation of nearly 2,000 jobs.

Third, we are convinced that rejection of CAFTA will jeopardize the important and ambitious trade agenda established by this Administration, and could fatally injure the prospects for a favorable conclusion to the Doha Round of multilateral negotiations under the WTO. Should that occur, it would have an undeniable harmful impact on the U.S. economy and the global economy as a whole, for decades to come. Rejection of CAFTA will signal to our trading partners around the world that the U.S. is prepared to disengage from the path of trade liberalization and to retrench from our fundamental responsibility as the greatest global economic engine this world has ever known.

Fourth, many U.S. imports from CAFTA countries already benefit from duty-free treatment under U.S. trade preference programs, while many U.S. exporters to CAFTA countries still face high tariffs. Since this is a reciprocal trade agreement, CAFTA would in fact “level the playing field” for the large and growing number of U.S. companies that are seeking increased access to foreign markets. As determined in a study concluded by the U.S. International Trade Commission, CAFTA would in fact reduce our trade deficit.

■ For these reasons, we urge your support for this important agreement, and we pledge our support for your efforts in this fight.

*********************************************

As always, Members with questions or comments are urged to contact Bob Bauer at AFI or Jeff Levin.

We will keep Members closely advised as the battle for CAFTA-DR continues to unfold.

AFI :: 3301 RT 66 :: STE 205, BLDG. C :: NEPTUNE, NJ 07753 :: (732) 922-3008 :: FAX (732) 922-3590 :: INFO@AFIUS.ORG


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