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Increasing Trade and Economic Ties It's Good for Our
Neighbors … and Good for U.S.
American business, farmers and workers all stand to benefit
from increased trade with Costa Rica, the Dominican Republic,
El Salvador, Guatemala, Honduras and Nicaragua. Together,
the DR-CAFTA nations make up the 2nd largest market in Latin
America, behind only Mexico.
DR-CAFTA will benefit American businesses - large and small
- as Central American tariffs are reduced and U.S. products
become more affordable.
The following are just a few of stories from America's small
and medium-sized businesses that illustrate the importance
of DR-CAFTA to everyday Americans.
Alabama Center for Commerce, Alabama Development Office
Montgomery, Alabama
The Alabama Development Office is the lead state agency for
promoting trade and development to facilitate quality job
opportunities Alabama. The office works to reduce unemployment,
raise the per-capita income in Alabama, and improve the quality
of life for all Alabamans.
Trade with Central America is very important to the state's
economy. DR-CAFTA would help many Alabama businesses explore
new markets and expand their businesses. The elimination of
barriers to trade among the member nations means more trade,
more shipping, and more economic development opportunities.
This free trade agreement is particularly important to our
agricultural and textiles industries. If DR-CAFTA is not supported
and signed into law, the textile and apparel industry in Alabama
will pack up and go to China.
Birmingham Vending Company
Birmingham, Alabama
Since 1931, Birmingham Vending Company has sold a wide assortment
of high-quality vending machines, jukeboxes, and video games
to consumers worldwide. The company has 45 employees, 20 of
those whom work at its facility in Birmingham.
For the past three-quarters of a century, Birmingham Vending
Company has searched for ways to compete effectively in new
markets. Currently, about 1 dollar in every 20 it earns comes
from Central America-a market that holds huge potential. That
is, if DR-CAFTA is passed by Congress and signed into law.
No longer would the company's pool tables, video arcade games,
and pinball machines be subject to the high tariffs that make
it difficult for them to compete against other products in
the marketplace. Simply put, with DR-CAFTA, Birmingham Vending's
products would become cheaper for consumers in these Central
American countries.
DR-CAFTA will help them compete on a level playing field
in the DR-CAFTA countries, creating increased sales, the need
for additional workers, and possibly additional facilities.
Mason Corporation
Birmingham, Alabama
Mason Corporation is a manufacturer of aluminum and steel
building products, producing items such as patio and carport
covers, screen and glass enclosures, service station canopy
material, walkway covers, window screen frame and accessories,
and much more. The company's central offices are in Birmingham,
but it also has facilities in Dallas, Kansas City, Knoxville,
Little Rock, Columbia, Leesburg, and Raleigh.
One of the reasons Mason has been in business for more than
50 years is that it always looks for new ways to expand sales.
Mason Corporation would like to begin selling its products
in Central America, but has found that as a result of tariffs,
its prices are not competitive enough to make it feasible.
Mason's products-like most U.S. products exported to the region-would
be hit with very high taxes when they entered those countries.
The Dominican Republic - Central American Free Trade Agreement
would eliminate those taxes on our products. We could then
explore these lucrative markets and sell our products on an
equal level with those companies whose goods aren't currently
taxed.
Bush Hog
Selma, Alabama
Founded 50 years ago, Bush Hog manufactures a wide range
of agricultural machinery and equipment, including backhoes,
rotary cutters, loaders, and tillers. Exports to other countries
accounted for almost $3 million in revenue for Bush Hog last
year.
Currently, most of its exports are to Canada, but the company
has its eye on expanding its presence in Central America.
Agriculture and agribusiness are large industries in this
region, but farmers don't always have access to the best equipment.
Free trade with Central America will allow Bush Hog company
to provide consumers there with quality, U.S.-built products.
Bush Hog supports free trade with Central America, because
it would allow the company to export products to the region
without tariffs or other trade barriers, allowing them to
offer its equipment to consumers at a more competitive price,
encouraging more sales.
Haas Automation
Oxnard, California
Haas Automation is the largest manufacturer of computer numerically
controlled (CNC) machine tools in the United States. We have
been in business for over 20 years, and we currently employ
more than 860 people at our manufacturing facility in Oxnard,
CA.
Haas Automation manufactures machine tools that help other
companies produce high quality machined parts quickly and
easily. These parts feed the automotive, aerospace, agricultural,
textile, computer, etc. industries.
We currently have a distributor in Central America, but are
hesitant to invest in expanding our market in that region,
because of the tariffs put on our products and because of
the volatile economies of these nations.
Our success in the U.S. and abroad is due in large part to
the fact that we deliver a quality product at an affordable
and reasonable price. We are able to do this by having low
margins on every product we sell. Countries with high tariffs
increase the cost of our machines by 20 - 50 percent, and
since our margins are already low, we cannot offer very much
discounting. DR-CAFTA will help us compete more effectively
in this region, since it would enable us to offer our products
for the same price as in the U.S.
We pride ourselves in being an American company and in the
fact that our machines are manufactured 100% in the U.S. We
have no intention of ever moving our manufacturing facility
to another country.
If we can increase our sales in Central America and the
Caribbean, this will increase our production, leading us to
hire more workers, which will further stimulate our domestic
economy.
As a Latino, I have another reason to support DR-CAFTA. This
free trade agreement should help create more jobs in Central
America by:
- Increasing the exports from these countries into the
U.S.
- Increasing the exports of technologically advanced machinery
from the U.S. to Central America and the Caribbean.
The goal here would be to create new opportunities in Central
America and the Caribbean. People in these countries immigrate
to the U.S. because they believe that they cannot prosper
in their own countries. I believe it is very important to
change this trend and encourage the people of this region
to work hard to improve their own countries' economic strength.
Furthermore, if DR-CAFTA is implemented correctly, the potential
exists that its passage will aid in stabilizing these countries'
economies, and the people of this region will then have more
power to spread freedom and democracy.
RPM Material Handling Co.
San Diego, California
RPM Material Handling Co. is a forklift and material handling
sales and leasing company. Founded forty years ago, RPM is
headquartered in San Diego with sixty employees providing
service to customers throughout San Diego and Imperial Counties
and in Baja California.
RPM represents five of the finest forklift lines available.
The company also provides service on a wide variety of equipment
and extensive technical support.
RPM has benefited greatly from the expansion of free trade
in the last decade, leading us to open additional facilities
in El Centro, Tijuana and Mexicali.
Currently, the company estimates that 30% of its annual revenue
is derived from international commerce. The greatest growth
occurred in the years following the adoption of NAFTA, which
lead to the significant expansion of cross-border commerce.
RPM believes that the Dominican Republic-Central American
Free Trade Agreement will have a similarly positive effect.
Opening the markets in Central America will make American
products more competitive and will encourage the expansion
of market-based economies in that region.
Union Distributing Company
San Pedro, California
Union Distributing Co. has served the maritime industry since
1947. Located at the Port of Los Angeles, it is a global distributor
of supplies to the commercial and recreational fishing industry
and others in the maritime community.
With the collapse of the U.S. west coast fishing industry,
Union Distributing has had to aggressively pursue other markets,
including export markets, for its products. Recent changes
in the law of the sea and the extension of offshore boundaries
of coastal nations has helped to fuel the growth of the fishing
industry worldwide.
Passage of DR-CAFTA would help Union Distributing and others
like it to compete in the growing offshore fishery business
in Central America and elsewhere. This will lead to an improved
economic climate, and it will help lift many of the areas
affected out of poverty.
Amazonas Imports
Sun Valley, California
For more than 28 years, Amazonas Imports has imported a
wide range of unusual and hard-to-find foods from Central
America into the U.S. Our 28 employees work hard to bring
a taste of home for Latinos living in the United States.
As we trade primarily with Central American countries, as
well as some South American countries, DR-CAFTA will dramatically
increase our business by decreasing our import costs. The
current high tariffs and duties levied against the products
we import oftentimes are more than the original cost of the
items themselves!
Without these tariffs and other barriers to trade, we will
be able to offer lower prices for the specialty fruits, vegetables,
grains, beans, and spices we import. This will make us more
competitive in the marketplace and boost our sales.
Additionally, this free trade agreement offers unique opportunities
for other U.S. businesses to tap into unexplored markets,
compete with China, and create new jobs.
DR-CAFTA will also have a great effect on these Latin American
countries, because it will help jumpstart their economies.
This means more jobs, and citizens won't have to resort to
growing coca plants that will eventually be harvested for
the drug trade, nor will they feel that they have to immigrate
to the United States to succeed.
Walker Zanger, Inc.
Sun Valley, California
Walker Zanger is a producer and retailer of natural stone,
ceramic, metal, and glass tile, for both the consumer and
professional markets. The company has been in business for
more than 50 years, has 15 facilities nationwide, and employs
more than 400 people. In addition to its domestic facilities,
it has facilities in Italy, Portugal, Brazil, the Philippines,
and China. Because of its international presence, the company
is no stranger to free trade. Free trade helps them stay competitive
by exploring new markets and opportunities for growth.
Walker Zanger trades with companies in Canada and Mexico,
and has seen many benefits from NAFTA since its implementation
more than ten years ago. It also trades with firms in the
Caribbean and would like to expand its business into Central
America. The Dominican Republic - Central American free trade
agreement (DR-CAFTA) would help them explore these markets,
as its products would no longer be subject to high tariffs
and other barriers to trade, allowing Walker Zanger to compete
on an equal footing against companies from across the globe.
Port of Sacramento
West Sacramento, California
The inland Port of Sacramento is located 79 nautical miles
northeast of San Francisco and is centered in one of the richest
agricultural and industrial regions in the world. The Port
sits at the nexus of a transportation network with direct
access to and from the entire western United States.
The Port is engineered to handle bulk, break-bulk and project
cargos. Its cargo capabilities offer a unique transit gateway
to numerous countries throughout the Pacific, Central America,
South America and Europe. With 150 acres of operating terminals,
the Port offers customers from around the world a complete
package of services needed to move cargo between the vessel
and the front gate, and provides as a central hub for rail
and truck transportation to the Western United States.
When pro-trade policies such as DR-CAFTA are enacted it
allows imports and exports to thrive - not only at the Port
of Sacramento, but also throughout the network of maritime
facilities on the West Coast. DR-CAFTA will eliminate tariffs
on 50% of U.S. exports immediately, and most remaining duties
within 15 years, benefiting California's exports. Since 99%
of agricultural imports from DR-CAFTA already enter the United
States duty-free, this agreement is critical to level the
playing field for farmers in our region.
Bagged and bulk rice, safflower seed, and bulk and bagged
wheat are just a few of the Port's agricultural cargos. Reductions
in the tariffs on these commodities mean more products will
be shipped. More cargo means more jobs, and increased economic
growth not just for the Port, but also for the entire Northern
California region.
Maxie Vue Windows and Doors
Brooksville, Florida
Maxie Vue Windows and Doors prides itself on making the highest-quality
specialty doors, windows, and roofing materials to protect
homes from invasion and the elements, and to sustain internal
environments.
The company's products are manufactured 100% in the U.S.
by American workers - and it has no intention of ever moving
its manufacturing facility to another country. If Maxie Vue
can increase its sales through free trade, this will increase
production, allowing us to hire more workers.
Currently, Maxie Vue pays anywhere from 60 to 100% in tariffs
to export some of our products. These outrageous taxes make
it much more difficult for foreign customers to afford the
products that they need in order to protect their personal
and professional investments.
Free trade provides opportunities to make trading less expensive,
but more importantly, would strengthen America's trading relationships
within our hemisphere. Free trade agreements and trading relationships
are important tools in staying competitive with global powers
such as the EU and China.
Furthermore, if free trade is implemented correctly, the
potential exists that its passage will aid in stabilizing
Central American and Caribbean economies, and the people of
this region will then have more power to combat corrupt governments
and spread freedom and democracy.
Ram Freezers and Coolers
Hialeah, Florida
Since 1979, Ram Freezers and Coolers has manufactured industrial
freezer and coolers. We currently have 22 employees at our
facility in Hialeah.
Nothing else in our 26 years as a business will help us as
much as passage of DR-CAFTA.
At least 75% of our revenues come from this region, so free
trade there will be huge for the expansion of our business.
Further, DR-CAFTA will help make American companies more competitive
in foreign markets, and would go a long way toward creating
lasting relationships between the U.S. and Central America.
International Graphics Equipment
Hollywood, Florida
International Graphics Equipment distributes printing tools
and materials to Central America.
Trade with companies in the countries participating in DR-CAFTA
accounts for about one-third of the company's business. Congressional
passage of DR-CAFTA would have a substantial positive impact
on International Graphics Equipment, as trade with the countries
involved could increase to become as much as 50% of its business.
DR-CAFTA would allow IGE to offer its products without high
tariffs or other barriers to trade, making the prices of printing
tools and materials more competitive in these markets. Without
this open trade, IGE could not compete on such a level playing
field.
Like many small-businesses, trade drives the growth of the
company. DR-CAFTA will help make IGE a more efficient and
productive company, allowing it to potentially hire additional
employees and open new offices.
DR-CAFTA will have a positive impact for Latin American and
Caribbean countries. Free trade helps open up countries and
empowers citizens to demand more accountability from their
governments. This free trade agreement will allow freedom
and prosperity to developing nations, improving the lives
of millions of people.
Florida Import-Export Trading Corp
Lakeland, Florida
Florida Import-Export Trading Corporation has been an exporter
of American-made goods and services to Central America and
the Caribbean since 1982 and has experienced the difficulties
of doing business with countries that have restrictive trade
barriers and artificial protections of inefficient local industries.
Both its customers in Central America and the U.S. have seen
a tremendously positive change in business relationships over
the past decade with significant reduction in duties and tariffs
on imported goods from the United States, and unanimously
agree that a complete elimination of these would lead to even
greater trade between our countries.
American Fasteners
Miami, Florida
American Fasteners provides a wide range of industrial fasteners,
hardware, tools and other related products to a considerable
number of customers (End-users, retailers, wholesalers, manufacturers)
in Central America, South America, and the Caribbean.
Passage of DR-CAFTA is very important to the continued success
of our company. Reduced tariffs on our trade with these countries
will help us increase and streamline our business in this
region.
A couple of years ago HISPANIC BUSINESS MAGAZINE, a major
US Business Magazine rated us amongst the top 400 Hispanic
Export Companies, it also rated us amongst the fastest growing
50 Hispanic Exporters. Reduced barriers to trade in these
areas will most certainly help American Fasteners increase
our trade in the region considerably, expand into new markets,
and be in a more competitive position in the regional international
markets.
Natural Freight
Miami, Florida
At least 20% of Natural Freight's revenue comes from the
import and export of goods between the U.S. and Central America,
so the passage of DR-CAFTA is critical to our success. As
a freight forwarder, we are dependent on the amount of trade
that occurs among international businesses. DR-CAFTA will
eliminate tariffs and other barriers to trade, so our clients
will import and export more goods with Central America, bringing
more business to us.
As I am originally from Honduras, I have another reason for
supporting this free trade agreement. DR-CAFTA will assist
my home country in building up its infrastructure, industry,
and economy. Small businesses will have opportunities to expand,
bringing more jobs and increased economic stability to Honduran
workers.
Universal Sewing Machine Company
Miami, Florida
Universal Sewing Machine relies heavily on trade with Central
America. We manufacture and export industrial sewing machines
to textile companies in the region. Many of these manufacturers
are feeling increased pressure from Chinese companies when
it comes to the U.S. retail market. Passage of the Dominican
Republic - Central American Free Trade Agreement would eliminate
the high tariffs on the U.S. materials they use to make their
garments. This will help their products remain competitive
with the products that are produced in China. Being more competitive
helps my clients sell more garments and increase their production-and
they order more sewing machines from us, helping our business.
Valladares Manufacturing, Inc.
Miami, Florida
Valladares Manufacturing has been buying and selling manufactured
clothing both domestically and internationally for almost
20 years. Anything that the government can do that will expand
free trade will create a windfall for this country. By reducing
trade barriers in Central America, this trade agreement will
open up new markets for the company-in fact, DR-CAFTA will
potentially increase the company's export business by 15 to
20 percent.
Small businesses need access to every market and every consumer
they can find. Better access to Central American markets-at
competitive prices-will help them not only stay in business,
but also grow and prosper.
Alpico International
Palmetto, Florida
Founded in 1997, Alpico International is a freight forwarding
and shipping company that primarily ships goods between the
United States and Central American countries.
I believe that Congressional passage of DR-CAFTA will have
an enormous impact on our company's success. As Alpico depends
on the trade of goods to stay in business, any increase in
trading between nations helps our bottom line. DR-CAFTA will
bring about a huge increase in trade between companies in
the U.S. and Latin America because there will be an open zone
free of tariffs and other barriers to trade.
The simple fact is that when more trade is conducted, there
are more goods for us to ship. DR-CAFTA will allow us to grow
our company, hire more employees, and expand into new areas.
Salone IT Solutions
Tallahassee, Florida
Salone IT Solutions was founded over ten years ago, offering
a wide range of IT systems design, development, and deployment
services with particular emphasis on leading-edge technologies
involving electronic records management, e-commerce, distance
learning, web hosting, web design and programming and software
development.
By eliminating current trade obstacles, DR-CAFTA will strengthen
the American economy and the economies of the other countries
involved, finally making our hemisphere competitive with Asia
and Europe.. Florida's largest export region is Central America,
and it is also the second largest market for computer hardware
and software. With the passage of DR-CAFTA, Salone IT Solutions
expects to see increased opportunity in Central America.
The passage of DR-CAFTA will also improve U.S. national
security by uniting the United States of America with our
neighbors. In this current time of war and terrorism, creating
allies through trade will set the stage for a safer more secure
nation.
Commercial Plastic Recycling
Tampa, Florida
Our company buys scrap plastics domestically and abroad,
which we then recycle and sell to businesses in the U.S.,
Latin and Central America, China, and the European Union.
We have three facilities, a sales office in Denver, and our
headquarters located in Tampa.
I believe that DR-CAFTA can help us expand our business
significantly. The elimination of tariffs will benefit us
in two ways: scrap plastics will be cheaper for us to purchase,
and prices for our products can be lowered. Trade with Central
American companies currently makes up about 12 - 15% of our
business, but this free trade agreement can really help us
increase our foreign and domestic sales.
DR-CAFTA will make U.S. companies like Commercial Plastic
Recycling more competitive with Asian countries by opening
up markets that were previously unattainable due to high tariffs
and other trading costs.
Tampa Tank & Welding
Tampa, Florida
Tampa Tank & Welding is a steel construction and fabrication
company that has been in business for 30 years. It maintains
three facilities, employs about 175 people, and has annual
sales of $35 million.
The company currently exports steel to several countries
in Central America, including El Salvador, Panama, Guatemala,
Nicaragua, and Honduras, where it is used for construction
and fabrication projects.
Free trade is beneficial because it creates jobs in the
U.S. and improves our economy. Additionally, this agreement
will help mprove the U.S.'s image abroad, promote goodwill
between us and the region, and bring better employment opportunities
for workers in Central America.
Church Chair Industries
Rome, Georgia
Church Chair Industries manufactures a wide range of seating
products for use by churches, auditoriums, convention halls,
etc. The company has more than 300 employees, and is always
seeking new ways to grow its business.
Church Chair Industries would love to sell seating to the
thousands of churches, convention halls, banquet facilities,
and school auditoriums in Central America. The free trade
agreement with Central America offers us that chance by cutting
all the tariffs our products are currently hit with when they
reach those countries.
NAFTA significantly aided the company's business, and it
thinks that DR-CAFTA will, too. After NAFTA was passed, Church
Chair saw a sharp increase in sales to Canada, and the Canadian
market has been an integral part of its business ever since.
The company hopes that sales to Costa Rica, El Salvador, Guatemala,
Honduras, and Nicaragua will become just as important and
valuable to Church Chair Industries.
Supreme Rice Mill
Crowley, Louisiana
Supreme Rice Mill is a third generation family owned and
operated business, which was founded in 1943. We have grown
to a company that employs roughly one hundred people. Based
in Crowley, Louisiana, we are in the heart of the rice growing
community.
As we continue our success in the rice industry, we rely
on the promise of better trade for our rice industry. CAFTA
will expand our market and be a great benefit to our industry
and to America. My company stands in full support of this
agreement and for free trade.
Burris Mill & Feed
Franklinton, Louisiana
Burris Mill & Feed in Franklinton, LA, was founded as a dry
good store serving rural southeast Louisiana in 1898. Meeting
the needs of rural Louisiana's budding dairy industry in 1945,
the Burris family established Burris Mill & Feed. Today, Burris
Mill & Feed supplies customers throughout the world with the
quality aquaculture and specialty feeds. In 2004, Burris Mill
& Feed became part of Cargill Animal Nutrition, a subsidiary
of Minneapolis-based Cargill, to enable the business to continue
to grow and expand its presence as a global aquaculture solutions
company. Operating through its facility in Franklinton, Burris
Mill & Feed has 36 employees.
The proximity of Burris Mill & Feed to Gulf of Mexico Ports
allows the business access to economical shipping worldwide.
Between 60 and 70 percent of Burris Mill & Feed products are
sold throughout Latin America. The Central American Free Trade
Agreement (CAFTA) would further expand opportunities for Burris
Mill & Feed and its customers in the growing field of aquaculture.
The Irwin Brown Company
New Orleans, Louisiana
The Irwin Brown Company is a New Orleans-based customs broker/freight
forwarder, with branch offices in New Orleans and Gulfport,
Mississippi, employing 22 persons at all locations. Since
the late 1980s (under the first permutation of the CBI-Caribbean
Basin Economic Recovery Act,) the firm began processing Customs
clearance of fresh produce (cantaloupe, honey dew melons)
from Honduras, Guatemala and El Salvador. We also secured
the business of a first tier multinational banana importer,
shipping bananas and other tropical fruit from plantations
and contract growers in Ecuador, Colombia, Panama, Nicaragua,
Costa Rica, Honduras and Guatemala.
In short order the firm began handling other products from
the region, principally wearing apparel, via the CBI "807"
(now 9801/9802) program in Costa Rica, Honduras, El Salvador,
Nicaragua and Guatemala.
As the business from Central America increased the firm
took on new employees, especially since the enactment of the
Caribbean Basin Trade Partnership Act (CBTPA) in October 2000.
At this juncture, the firm's top half dozen clients are in
the apparel sector, shipping principally from the five countries
of Central America, Mexico, Peru and Guyana. The product mix
from Central America represents fully 20 percent of the firm's
revenue.
We see the CAFTA as affording a win/win for the U.S. and
Central America, with quicker turn times and sourcing of inputs
such as yarn, fabric, and trims from the U.S., a condition
that would not be true of the Pacific Rim and Southwest/Southeast
Asia. It is important to note that currently, every dollar
of Central American imports results in $1.36 worth of exports
from the U.S. to the region; whereas, every dollar of imports
from China translates into 2.6 cents of exports from the U.S.
to China. Finally, the U.S. enjoys a favorable trade balance
with the region, Central America sourcing 57 percent of all
its imports from the U.S.
A CAFTA also locks in the preferences of the CBI/CBTPA in
perpetuity, affording a better investment climate for U.S.
firms, creating thereby more employment opportunities in the
United States and Central America. Without a CAFTA, Central
America could lose significant ground in developing a viable
middle class, Democratic institutions, the rule of law and
social stability, all of which provide a secure bulwark to
the U.S. on its "third border."
K-Line Industries, Inc.
Holland, Michigan
K-Line Industries was founded in 1958 as a family-owned business
manufacturing for the OEM and automotive aftermarket specialty
equipment industry. We have approximately 100 employees.
Although most of our business is in the United States, we
do almost $100,000 per year of exports in Central America
alone. We like working there, but existing trade barriers
make conducting business in Central America more costly than
it should be.
I believe that the more we eliminate barriers to trade,
the more we can help American companies and the economy.
We are always working to expand our business, and passage
of DR-CAFTA could help us grow in promising markets like Nicaragua
and Honduras. DR-CAFTA could bring significant benefits not
only to my company, but to Michigan and to the economies of
Central Americans as well. I urge President Bush and Congress
to enact DR-CAFTA as soon as possible.
Intex Corporation
Metuchen, New Jersey
Intex Corporation specializes in export management, assisting
companies who want to sell their products abroad. Intex identifies
potential markets, negotiates with trade authorities, and
navigate transnational trading regulations. Its clients are
primarily companies who sell housewares.
Trade with the Dominican Republic and Central America accounts
for 25 percent of the company's business, and Intex strongly
supports passage of DR-CAFTA. The free trade agreement will
make negotiations simple, straightforward, and consistent.
Streamlined procedures will reduce trading costs, making it
more affordable for U.S. businesses to export their products
to this region.
NAFTA had a similar effect on U.S. business. After NAFTA
was passed, Intex increased trade with Mexico significantly
as tariffs were eliminated and bureaucratic red tape was cut.
The free trade agreement with the Dominican Republic and Central
America will allow U.S. companies to compete in those markets
on a level playing field, increasing demand for their products.
When demand for U.S. products increases, our economy grows
and jobs are created.
Megatex International, Inc.
New York, New York
MTI, Inc. produces a wide range of women's garments, such
as jackets, shirts, vests, dresses, and so on. All of our
garments are manufactured in El Salvador and then shipped
back to the United States for sale. Passage of DR-CAFTA would
eliminate the high tariffs that make it difficult for our
garments to remain competitive with products produced in China.
Chinese companies have access to a vast pool of cheap labor,
and are therefore able to offer their merchandise at prices
that we cannot easily match. DR-CAFTA will put us on level
playing field with our Chinese rivals, while simultaneously
employing hundreds of unskilled workers in a developing country.
DR-CAFTA is a win-win proposition for both the U.S. and our
Central American and Caribbean trading partners. Many American
distributors and retailers will gain new access to regional
manufacturers who offer an inexpensive alternative to the
cheap Chinese goods that currently flood the market.
In sum, I believe that DR-CAFTA will improve the prosperity
of businesses and workers in Central American countries, and
will also provide American companies with a way to keep pace
with Chinese manufacturers. DR-CAFTA should absolutely be
a top priority for President Bush and Congress in 2005.
INT Trading
White Plains, New York
INT Trading is apparel manufacturer specializing in sportswear
and active wear. We know from experience that strategic partnerships
with the Dominican Republic and the countries of Central America
are the only thing keeping the remaining apparel manufacturing
jobs in this hemisphere.
In our case, we buy U.S. yarn for use in our apparel. These
garments are cut, sewn, and finished in Guatemala, and are
then shipped back to the States for sale domestically. This
arrangement works well for everyone involved: U.S. yarn producers,
Guatemalan manufacturers, and INT Trading.
We like using Central American manufacturers because they
are able to respond quickly to changes in the market. This
is incredibly important, because our retailers demand speed,
accessibility, and above all, pricing. We experience extreme
pricing pressures from Chinese products. If this symbiotic
relationship did not exist, we couldn't offer our products
at competitive prices.
This relationship is in extreme danger, and the only thing
that can help is DR-CAFTA. This agreement must be approved
soon, because in July and August apparel quotas will be filled.
This trade agreement is important for our whole industry.
Simply put, if DR-CAFTA is not implemented, U.S. textile companies
will disappear-as will their Central American counterparts.
We must continue our strategic trade with Central America.
It will not only help the U.S. textile industry, it will help
our Central American neighbors. It's very important to assist
other countries around you in developing their economies.
I believe if our neighbors are prosperous, it will also help
the security of the United States.
Plastic Packaging
Hickory, North Carolina
Plastic Packaging has been serving the textile industry
for 50 years. North Carolina's remaining textile business
of yarn, thread and cloth still exists because of major customers
in Central America. If these apparel manufacturers are not
protected by CAFTA, the Central American apparel industry
will move to China, India and Bangladesh. If we are to have
any Textile Industry in North Carolina, we need to pass CAFTA.
Weststar Precision, Inc.
Holly Springs, North Carolina
Weststar is a rapidly growing contract manufacturer of precision
devices, components, and assemblies for commercial and industrial
applications. The company excels in rapid prototype development
and contract precision machining by applying innovative technology
to meet a client's specifications, budget and schedule.
Weststar has been manufacturing high quality precision devices
and components for use in commercial and industrial applications
since 1996. It achieves close tolerances using state of the
art CAD-CAM software, abrasive water jet and CNC machine centers.
Four years ago Weststar located a new office and manufacturing
facility in San Jose, Costa Rica, which also has approximately
10,000 sq. ft. with similar equipment as the main office.
This facility is designed for high volume production to support
both international and domestic clients.
Since it opened in Costa Rica, Weststar has been able to
grow its business in both countries. The benefits of operating
in North Carolina and Costa Rica has allowed the business,
and employment to grow in both locations.
Goulston Technologies Inc.
Monroe, North Carolina
Founded in 1963, Goulston Technologies has been a leader
in fiber lubricant technology for half a century. As an industry
leader, the company understands the importance of free and
open trade. It distributes fiber lubricant chemicals to companies
all over the world. Free trade agreements permit Goulston
to continue to grow and discover new marketplaces for its
products.
Currently, Goulston's exports to Central America are limited
relative to its exports to the rest of the world. A free trade
agreement with Central America, however, will give the company
access to valuable new markets and millions of new consumers.
Free trade is good for business. By eliminating tariffs and
other barriers to trade, free trade keeps costs down and levels
the playing field for U.S. businesses.
Tuscarora Yarns, Inc.
Mt. Pleasant, North Carolina
Tuscarora Yarns has been a reliable resource for the apparel
and textile industry since 1899. The company is proud of its
heritage and being the leading manufacturer of heather and
mélange yarns in the world. Tuscarora's focus on innovation
and attention to its customers' needs continue to be a formula
for success.
Tuscarora Yarns produces 100% cotton, synthetic and blended
yarns manufactured both open-end and ring spun for a variety
of applications. They include men's and women's sportswear,
underwear, hosiery, sweaters, home furnishings, automotive
and many other textile applications. Tuscarora produces in
excess of 400,000 pounds of finished specialty yarns each
week.
Tuscarora ships into all of the DR-CAFTA countries except
Nicaragua, which at this time has no knitting or weaving industry.
Exports make up approximately thirty-five percent of the company's
current sales, with the goal being to increase that to fifty
percent. Shipments into the Caribbean Basin Initiative countries
account for approximately eighty percent of Tuscarora's current
exports.
Tuscarora Yarns believes that DR-CAFTA will open new market
opportunities and level the playing field for U.S. exporters.
If the Congress doesn't pass DR-CAFTA, U.S. exporters will
lose out on a growing market that's right in our neighborhood
- being overwhelmed by imports from China.
Developers Diversified Realty (DDR)
Beachwood, Ohio
Developers Diversified Realty is the nation's leading owner,
developer and manager of market-dominant community centers.
DDR is a fully integrated real estate investment trust engaged
in business of developing, leasing and managing shopping centers.
One of DDR's featured properties is The Plaza Rio Hondo.
The Plaza Rio Hondo is 535,334 square foot facility located
near San Juan, Puerto Rico. The shopping center is a hub of
retail activity.
Anchor stores for Plaza Rio Hondo are Big K-Mart, Walgreen's,
and Capri. A Marshall's Megastore and CompUSA are opening
soon. The tenant mix with the Plaza Rio Hondo mall includes
retailers such as Champs Sports, The Children's Place, Footlocker,
Pacific Sunwear, Payless, and Radio Shack.
Some of Puerto Rico's strongest local retailers such as Donato,
Infinito, Kress, and Marianne are also housed in the enclosed
mall. Associated with the mall are free-standing Caribbean
Cinemas and Pueblo Supermarket. The trade area of Plaza Rio
Hondo includes nearly 450,000 people.
If the United States Congress passed DR-CAFTA, it would
enable DDR the possibility of opening additional facilities
like Plaza Rio Hondo throughout Central America.
DR-CAFTA would help DDR compete on a level playing field
throughout Central America, just as they have been able to
do in Puerto Rico.
Polychem
Mentor, Ohio
Polychem has been in business for 30 years, and has grown
to more than 200 employees. During that time, we have seen
trade policies change dramatically; free trade agreements
have made it less costly to conduct business overseas and
have, without question, helped us grow. As we have grown,
so has the contribution we have been able to make to Ohio's
economy and to the U.S. overall. DR-CAFTA will help create
additional opportunities for Polychem, leading to greater
success for our company and-by extension-the people we employ.
Polychem manufactures industrial strapping. Exports to Central
America currently account for only about two percent of our
business. We would like to expand in this area, but have found
it difficult to do so. Our competitiveness is limited: Although
our products are just as good as or better than our competitors',
we can't compete on price in these countries-particularly
because of high tariffs. DR-CAFTA would help level the playing
field for us.
Free trade in Central America will be good for American
businesses and communities, and it will be essential if companies
like Polychem are to remain competitive. Emerging markets
such as those in Central America literally are the future
of manufacturing companies like ours. DR-CAFTA should be enacted
this year.
Powell Electrical Manufacturing
North Canton, Ohio
Powell Electrical Manufacturing is a manufacturer and exporter
of custom electrical energy equipment. Its North Canton facility
specializes in manufacturing traction substations used for
power trains. The North Canton plant is home to more than
110 Ohio employees.
Since 1947, Powell's products have provided safe and energy
efficient means for commuter transportation in cities across
the United States and in several countries around the world.
The company's success in the U.S. and abroad is due in large
part to the fact that it delivers quality products at affordable
and reasonable prices. They are able to do this by maintaining
low margins on every product they sell. Countries that apply
high tariffs increase the price of U.S. products, making them
more difficult to purchase by city-level governments, Powell's
main clientele.
Free trade has given Powell Electrical opportunities to
expand its business in foreign markets and increase its production
at home, bringing in more revenue to the local economy and
allowing the company to continue its growth and production
capability. Powell supports free trade for the many benefits
that it brings to Powell Electrical and the U.S. economy as
a whole. It also provides America's trading partners with
quality, U.S.-made products at competitive prices.
Texo
Greenville, South Carolina
Texo is one of the world's leading manufacturers of weaving
looms for the production of paper machine clothing, felts,
and fabrics. Now in its twenty-first year of operation, the
company has eight employees. Congressional passage of the
Dominican Republic - Central American free trade agreement
(DR-CAFTA) should have a significant positive impact Texo's
continued success as a small business.
Texo exports its products to other countries in North America
and also exports to South American countries. DR-CAFTA is
critical to opening a gateway to a comprehensive free trade
agreement among nations in North, Central, and South America,
making the Western Hemisphere more competitive with the European
Union.
DR-CAFTA is a win-win proposition for both the U.S. and our
regional trading partners. American textiles retailers and
distributors will gain equal, duty-free access to valuable
new markets, and the developing economies of Central America
and the Dominican Republic will receive a much-needed boost.
TVIG Inc.
Chattanooga, Tennessee
The Tennessee Valley Infrastructure Group (TVIG) specializes
in mid-scale power and utility projects, including renewable
energy facilities and the delivery of municipal-scale infrastructure
solutions to emerging economies.
TVIG was founded in 1998 on the premise that there is significant
demand in underserved regions of clean, cost-effective quality
infrastructure, and that addressing this need will stimulate
economic development and improve people's lives around the
globe.
TVIG has leveraged its capabilities to implement energy
and infrastructure projects in regions within the Caribbean,
Central America, Latin America, Africa, and Central Europe.
The company is very interested and supportive of DR-CAFTA
and other free trade agreements that will enhance our business
opportunities around the world.
Maupin Farms
Dyersburg, Tennessee
Agriculture consistently ranks among the top industries that
export goods and services to foreign markets. As such our
jobs and economic success is largely based on international
trade and trade agreements that reduce tariffs and provide
access to new markets.
Central America will provide access to a large number of
consumers in potential growth markets with the populations
of Costa Rica, El Salvador, the Dominican Republic, Guatemala,
Honduras, and Nicaragua over 40 million. Obviously, enhancing
free and fair trade in Central America will provide the Tennessee
agriculture community expanded market opportunities.
With more open access to international markets, American
crops such as corn, wheat and soybeans will continue to feed
the world and bring more stability to the American economy.
Avionics Specialist, Inc.
Memphis, Tennessee
Avionics Specialist, Inc., manufactures specialized avionics
test equipment for airlines and military organizations worldwide,
operating in a "home" market that is very mature. Therefore,
the company's future growth is dependent on expanding its
market by reaching outside U.S. borders. There are literally
billions of people outside our borders who will soon reach
middles-class status. In turn, they will want the superior
food, tools and technology that we can produce.
While companies like Avionics have profited enormously from
the North American Free Trade Agreement (NAFTA) and similar
deals, trade barriers in other parts of the world inhibit
opportunity. As such, it is vitally important that the President
and Congress move forward with trade agreements such as DR-CAFTA.
Passage of DR-CAFTA could help Avionics and many other companies
to grow rapidly in the promising markets of Central America.
These areas represent potentially fertile ground. Currently,
the existing trade barriers limit opportunities in Central
America. However, DR-CAFTA would change that and bring significant
benefits to not only Avionics Specialist, Inc., but to companies
all across Tennessee and the U.S.
QualCast, LLC
Nashville, Tennessee
QualCast is in the business of replacement engine parts
for automotive, heavy duty, agricultural, industrial and marine
applications. Approximately 35% of QualCast's business goes
to both direct and indirect exports. Mexico is QualCast's
largest export market - which should put the company in good
position for sales to Central and South America. Unfortunately,
the playing field is not level, and high import tariffs penalize
the company.
QualCast feels it has to trade internationally, not just
to prosper, but to survive as a significant entity in the
world today. QualCast is a small company employing only 12
people. However if it were not for exports it would likely
employ only six people, assuming it could stay in business,
as the added volume of exports has helped in keeping the company
competitive domestically.
As a small business, QualCast continues to pay health insurance
for employees and maintains a matching 401K plan. Without
the added revenues from its exports, these benefits could
not continue to be offered.
C & C Enterprises
Sparta, Tennessee
C & C Enterprises, relies heavily on trade with Central
America. For 8 years, we have supplied sewing equipment to
textile factories in the region. As of 2004, 75 percent of
our business comes from Central America.
Currently, however, C & C Enterprises is being threatened
by the increase of imported products from China. Passage of
DR-CAFTA would prolong the life of my business and will have
a similarly profound effect on small businesses all over the
country. Without DR-CAFTA, there will be few, if any, opportunities
for my business to continue to grow.
Like most small businesses, we operate with a small staff
and rely on free trade to provide the resources we need. In
the case of C & C Enterprises, we have a staff of 15 in the
United States, with many more in Central America. By increasing
our business under DR-CAFTA, we would be able to grow our
staff both domestically and internationally, bringing money
into the local communities where it is needed most.
Buehler's Food Market, Inc
Dover, Ohio
Buehler's was founded in 1929 in New Philadelphia, Ohio.
Buehler's Food Market is locally owned and is a Northeast
Ohio small business. In the grocery industry, profits are
typically less than one percent of sales. At Buehler's emphasizing
attention to detail and tight control of business expenditures-therefore
maintaining a strong financial base.
For over 75 years, Buehler's has searched for ways to compete
effectively in new markets while continuing to deliver the
service we have been known for. Currently, Buehler's has numerous
contracts with companies supplying goods with Central America.
Buehler's receives fresh fruits and vegetables from Central
American countries.
DR-CAFTA will help Buehler's compete on a level playing
field with larger grocers. DR-CAFTA will allow Buehler's to
increase sales, hire more workers, and add to the 11 Buehler's
Food Markets throughout Northeast Ohio.
Buehler's will not be the only company in the United States
to benefit from DR-CAFTA. All sorts of other manufacturers,
wholesalers, and retailers will see substantial increases
in trade with Central American nations.
Centrex Corporation
New Kensington, Pennsylvania
Centrex exports a wide variety of manufactured goods to
Latin America on behalf of manufacturers. Though we do not
pay any tariffs on the goods that we ship to this region,
our clients certainly do.
In the 23 years since our founding, almost nothing is as
important to our continued success as the enactment of the
Central American trade agreement. Eliminating the barriers
to trade in Central America will dramatically increase the
amount of goods that our clients export to these countries.
This increase in shipping will certainly help our bottom line,
and allow us to grow in the future. It's a win-win proposition,
as American exporters and shippers, as well as companies in
Latin America, will reap the benefits of free trade.
Krennerich International, Inc.
Houston, Texas and Metairie, Louisiana
Krennerich International, Inc. was founded in 1984. We are
a family-owned business, employing 9 people. Though we are
headquartered in Houston, TX, we have operated an office in
Metairie, LA since our inception. As natives of New Orleans,
we all have a strong affinity for the area and take pride
in the city and the state of Louisiana.
Krennerich International, Inc. provides import and export
services to companies shipping cargo into and from the United
States. The implementation of NAFTA during the 1990's produced
a significant increase in the number of shipments that we
handled for our customers to and from Mexico. I strongly believe
that the lowering of barriers to trade helps American companies
and strengthens our economy in many industries.
We are always working to expand our business, and passage
of DR-CAFTA could help our customers to grow rapidly in the
nearby markets of Guatemala, Costa Rica, and Honduras. Our
manufacturing customers in Louisiana produce synthetic resins,
synthetic rubber, paper products, oilfield equipment and electronic
equipment used by these countries. As our customers increase
their trade with Central America, our business will grow and
increase our need for additional employees. Increased trade
benefits the Port of South Louisiana, The Port of New Orleans,
drayage business, warehouses and all those vendors that supply
these businesses.
The existing trade barriers make it costly for industry to
conduct business in Central America. DR-CAFTA could change
that, and bring significant benefits not only to my company,
but to Louisiana and to the economies of Central America as
well. Improved economies in Central America will eventually
mean less illegal immigration and the costs associated with
that issue. I urge President Bush and Congress to enact DR-CAFTA
as soon as possible.
F. C. Bloxom Company
Seattle, Washington
For more than 30 years, F.C. Bloxom Company has specialized
in exporting fresh fruit, vegetables, and nuts to numerous
countries worldwide. Currently, 40 percent of its business
is with Central American countries; this percentage will undoubtedly
rise with the passage of DR-CAFTA.
Because DR-CAFTA will eliminate the majority of tariffs
on agricultural items exported to this region, the company
will be able to lower the prices on the items it exports.
These lower prices will make them more competitive in the
marketplace and help to boost sales.
Spancrete Machinery Corporation
Waukesha, Wisconsin
Spancrete Machinery Corporation, headquartered in Waukesha,
manufactures pre-cast concrete products and equipment.
Sales to customers in Central America are an important part
of the company's revenue. Recently, it sold three of its largest
machines to this region. All of the products sold in Central
America were built-100 percent-in the Waukesha plant.
Because the construction sector is growing so rapidly in
many of the region's countries, Spancrete has identified Central
America as a target market, and has very positive projections
for market growth.
The Central American trade agreement, DR-CAFTA, would be
the catalyst for that growth. All of the prohibitively expensive
barriers to trade with this region will be eliminated. Spancrete
will be able to lower its overall delivery cost, thereby becoming
more competitive against companies who don't have to pay these
tariffs. As Spancrete continues to grow and boost our sales,
it will be able to bring on new employees to meet increased
production demand. The companysaw the same thing happen after
NAFTA, and thinks DR-CAFTA will bring the same benefits.
This agreement will help other U.S. manufacturers, as well.
American businesses are always looking for new markets for
their products to help them develop new revenue bases. Plus,
exports help businesses stay afloat when there are downturns
in domestic sales.
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