With the U.S. trade deficit topping $61 billion — it’s highest level ever — a fierce debate over free trade is brewing in the nation’s capital. At the same time, Congress is starting the talk about CAFTA, the proposed Central American free trade agreement that would give countries like Guatemala, Costa Rica, and Nicaragua the same low tariffs and relaxed regulations that Mexico was granted about ten years ago under NAFTA.
Supporters say CAFTA will help the U.S. by opening markets to the south and giving U.S. manufacturers renewed economic muscle they need to compete against China. Detractors say passing CAFTA will just mean more of the same: lost jobs, environmental ruin and falling wages for American workers. Another test for free trade.
Guests:
Otton Solis, economist, presidential candidate and leader of Costa Rica’s Citizens Action Party
Calman Cohen, president of the Emergency Committee for American Trade;George Naylor, Iowa farmer
Charles Beckendorf, Texas dairy farmer