US Senate approves Central American Trade Agreement
July 1, 2005
The US Senate on Thursday voted to approve the Central American Trade Agreement (Cafta).
Cafta is a hotly debated trade deal, promoted by its supporters as a way of aiding free markets and democratic governments in the region but raising fears of competition among sugar producers in the United States, who see Central American countries as a source of imported sugar.
Sugar producers, however, have been put on notice that if they block the trade pact, they could see other consequences.
Senator Pat Roberts of Kansas has told representatives of the sugar industry that if Cafta fails due to their efforts, they can expect price supports for their products to be cut in the next round of farm legislation.
Earlier in the day, the Senate decided to postpone until October a vote on a bill that would put a 27.5 percent tariff on imported Chinese goods if Beijing does not revalue the renminbi within six months.
The decision gives the Bush administration another few months to pursue less coercive measures to convince China to revalue its currency.