Senate OKs trade contract with 6 Latin American nations

WASHINGTON — The Senate on Thursday endorsed a free-trade agreement with six Latin American nations, handing a major win to President Bush, who has promoted the accord as a mark of U.S. commitment to democracy and prosperity in the hemisphere.

The vote was 54-45 in favor of the Central America Free Trade Agreement, setting the stage for a final battle in the House, where the agreement's many critics have vowed to defeat it.

The House vote, probably in July, is too close to call.

"The stakes could hardly be higher," said Sen. John McCain, R-Ariz., a supporter. "It's important because at stake is the future of Central America in its economic and political dimensions and hence its security dimensions."

U.S. officials signed the agreement a year ago with the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua as well as the Dominican Republic in the Caribbean. It needs congressional approval to go into effect, however.

Action in Congress has been slowed by strong opposition from Democrats, who say its labor provisions are too weak and will lead to continued worker rights abuses in the region, and lawmakers from sugar beet and sugar cane-growing areas, who say it will hurt local industries.

Bush, in a statement released by the White House after the Senate vote, said: "I appreciate the bipartisan support in the United States Senate for the CAFTA-DR agreement, which is good for American workers, good for our farmers and good for small businesses." When passed, it will eliminate trade barriers immediately on 80 percent of U.S.-made goods and the rest within a few years, which will help increase sales abroad and job creation at home.

"The agreement is also a strong boost for young democracies in our own hemisphere, whose success is important for America's national security and for reducing illegal immigration," Bush said.

The Bush administration, which has never lost a trade battle in Congress, has turned on the pressure in recent weeks. Bush has met with all six CAFTA leaders at the White House and administration trade officials have been camping out on Capitol Hill, seeking to win over undecided lawmakers.

One argument has been that the defeat of CAFTA would be a devastating blow to the U.S. leadership position in future market opening negotiations with the World Trade Organization and other Western Hemisphere nations.

Supporters also stressed that CAFTA would be a bulwark to protect the hemisphere from further inroads by China.