Moreover, CAFTA will actually exacerbate the China problem. Loopholes in the deal allow for massive quantities of Chinese yarn, fabric and other components to displace U.S. yarn, fabric and components.
Through loopholes such as the Nicaraguan TPL and the Single Transformation provisions, millions of square meters of Chinese components can and will be sent to CAFTA countries for assembly and then exported duty free to the United States. In fact, there are already well-established trading relationships between China and the CAFTA countries. In 2004, the six CAFTA countries imported $566 million worth of textiles and apparel from China. Although China is not a signatory to the CAFTA agreement, they will be one of the biggest beneficiaries at the expense of U.S. companies and workers.
American Manufacturing Trade Action Coalition
marketing@alchempro.com
