AGENCIES

The House of Representatives narrowly approved a controversial trade deal with Central America early today, handing Silicon Valley's high-tech industry and President Bush a major victory after weeks of intense lobbying and deal-making.

U.S. President George W. Bush (R) and Speaker of the House, Dennis Hastert (-IL) departs the Republican Conference in the Capitol Building in Washington, D.C., July 27, 2005. Bush was on Capitol Hill to push the CAFTA Bill. Photo: REUTERS / Mannie Garcia

Despite that support and the relatively small size of the market, the Central American Free Trade Agreement, known as CAFTA, struggled to pass in the House, 217-215. The GOP leadership extended the normal 15-minute voting period to an hour as it lobbied for support. The pact passed in the Senate, 54-45, on June 30.

More than 90 percent of House Democrats voted against CAFTA, arguing that it will cost U.S. manufacturing jobs because it is not strong enough on labor and environmental rights in the Central American countries. The vote continued a drop in House Democratic support for controversial trade deals that could hurt the party with the high-tech industry.

The only member of the Bay Area congressional delegation to vote for CAFTA was the lone Republican, Rep. Richard Pombo of Stockton. Reps. Zoe Lofgren, D-San Jose, and Anna Eshoo, D-Palo Alto, undecided until Wednesday night and under pressure from tech executives in their districts, both voted against CAFTA.

CAFTA will immediately eliminate tariffs on 80 percent of U.S. exports to the region, with the remaining tariffs phased out in the next decade. Silicon Valley high-tech firms, which are heavily dependent on exports, strongly backed the deal because it will lower tariffs ranging from 5 to 30 percent on their products, saving U.S. exporters $75 million annually.

``Access to such markets around the world is critically important to the future success of Intel, the U.S. technology industry and our nation's economy as a whole,'' Intel Chairman Craig Barrett said in a written statement. ``More than 70 percent of Intel's revenue currently comes from outside the United States and sales in the Latin American region were our fastest growing during the second quarter of this year.''

Still, CAFTA covers a relatively small market. The six nations involved -- Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua -- have just 44 million people, and the $15 billion in annual U.S. exports to those countries makes it just the 14th-largest foreign market.

But with partisan tensions high in Congress and after the loss of manufacturing jobs to Mexico and China in recent years, CAFTA took on great symbolism.

Back to to

Agencies

Luis Alberto Moreno, Colombia's ambassador to the United States, was elected as the Inter-American Development Bank's fourth president on Wednesday, the IADB said.

Buoyed by U.S. support and heavy lobbying by Colombian President Alvaro Uribe, Moreno overcame Latin American divisions to clinch the vote in a single ballot.

" He reached a majority in the first vote," said an IADB source. "It was very clear."

Analysts had expected the election to be a divisive and difficult one, with the United States and Mexico backing Moreno and much of South America rallying behind Brazil's candidate, former planning minister Joao Sayad.

Finance minissters, central bankers and senior officials representing the IADB's 47 member countries participated in the election, held behind closed doors at the IADB's Washington headquarters, which lasted about two hours.

While the detailed vote count was not released, a source present at the meeting said Moreno won the support of a majority of Central American and Caribbean countries, helping him to a quick victory and avoiding a drawn-out battle like that seen at the Organization of American States this spring.

" He had strong support," the source said. "We got to a resolution without division."

" I want to thank President Uribe for his leadership. He was permanently on the telephone over the last five weeks," Moreno said. "The victory is due to him."

Skilled Diplomat
Moreno, who has been Colombia's ambassador to the United States since 1998, is a charismatic former television producer, investment banker and minister of economic development.

He is considered one of the most skilled diplomats in Washington and was instrumental in securing Plan Colombia, which since 2000 has brought more than $3 billion in mainly military U.S. aid to confront Colombia's cocaine trade.

Others in the running for the presidency included Peru Economy Minister Pedro Pablo Kuczynski, former Venezuelan Finance Minister Jose Alejandro Rojas and Nicaragua Central Bank President Mario Alonso.
Moreno will take office in October for a five-year term, the IADB said.

Back to to

Metro | Nacional | Espectáculos | Deportes | CasaGuía |
AutoGuía | Gente | Conexiones | Subscriptions and Advertising |
Contact Us | Past Issues | El Tiempo | Site Map