CAFTA Bill Signed By President Bush

The President signed into law today a treaty creating a free enterprise zone including the United States and more than a dozen Central American countries.

The Central American Free Trade Agreement (CAFTA) was passed despite opposition from critics who said that it would cost American jobs and affect the U.S. standard of living.

President Bush gave a speech lauding the treaty, calling it a reward for those countries in Central America who have chosen freedom.

Source consulted: CNN.

Comment: CAFTA may have negative short-term consequences for specific industries in the United States. For example, sugar producers, no longer protected by tariffs, may find the price of their product subject to downward pressure from foreign competitors. On the other hand, the treaty benefits other American producers and allows cheaper goods for the American consumer.

I have mixed feelings about the treaty and believe that its effects should be scrutinized with caution as the years go on.