The DR stands to benefit greatly from legislation introduced last week in the US Senate. Taking advantage of the more sympathetic climate in Congress following the acknowledgment of damages caused by hurricanes Georges and Mitch in the region, Senator Robert Graham (D-Florida), and a bipartisan group, sponsored new legislation, the "Central America and Caribbean Relief Act." The bill includes a provision for CBI-party, which they say would be the most effective way to speed economic recovery in the storm-damaged region through enhanced trade, emergency U.S. bilateral assistance, and multilateral financial aid. The so-called CBI-party would permit Caribbean and Central American nations the same trade benefits afforded to Mexico in the North American Free Trade Agreement (NAFTA). The US, Mexico and Canada are the three current members of NAFTA. Senator Graham explained, upon introducing the bill, that without CBI parity, the region’s manufacturing base will not have the incentives it needs to grow during this period of reconstruction. That could result in massive refugee flows to the United States and a decades-long dependence on U.S. food and medical aid, he said.Graham explained that by lowering trade barriers on all sides of the Caribbean Sea, CBI has spurred exports, investments, and employment creation for both the United States and its trading partners. When Congress passed the first CBI in 1983, the United States had a $700 million trade deficit with the Caribbean nations. By 1993, that deficit had become a $2,000 million surplus, Graham said.Senate Majority Leader Trent Lott said last week he supports the effort. The bill faces opposition from Senators Jesse Helms, R-N.C., and Fritz Hollings, D-S.C.The Journal of Commerce has been covering the issue on the Internet. See http://www.joc.com
