The biggest share of U.S. exports to the six CAFTA nations is not the traditional job-creation kind. These are products that are not consumed in the purchasing nations.
Sentiment: NEGATIVE
If you consider that a typical Central American consumer earns only a small fraction of an average American worker's wages, it becomes clear that CAFTA's true goal is not to the increase U.S. exports.
There's a lot of exaggerated talk about CAFTA, but it's actually a fairly routine trade agreement. Although it involves fairly small nations, they're still more important trade partners than places like Australia or many other larger nations.
The CAFTA region currently imports $15 billion annually of U.S. agriculture and manufactured goods.
U.S. exports to China have more than quintupled since China entered the WTO and have grown more quickly than imports. In fact, China is America's fastest-growing export market.
U.S. corn exports to CAFTA countries will benefit from reduced tariffs and duty-free access for corn products.
America's biggest export is media and I think that's a positive thing.
Mexico is the second most important destination of U.S. exports. What does this mean? The U.S. sells to our country almost the same as it sells to all the European Union, five times what it sells Brazil. More than what it sells together to Brazil, Russia, China, and India.
Rather than subsidize 'American' exporters, it makes more sense to subsidize any global company - to the extent it's adding to its exports from the United States.
For us to grow globally, it's not enough to just be an exporter. We have to be a creator.
I think every country has to recognize its competitive advantage and liberate its strengths to be a partner in global trade, and that's the only way you can survive and succeed.
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