House lawmaker links CAFTA fate to China

There are two proposals being considered at the moment: CAFTA and FTAA.

CAFTA: Central America Free Trade Agreement

FTAA: Free Trade Area of the Americas

I don’t understand the link with China, though.

Yahoo News

The Bush administration has been struggling to drum up votes for the U.S.-Central American Free Trade Agreement, or CAFTA, in the face of stiff opposition from unions, sugar farmers and many textile companies.

The pact would eliminate tariffs on U.S. exports to Costa Rica, El Salvador, Honduras, Guatemala, Nicaragua and the Dominican Republic, while locking in the trade preferences those countries are enjoy in the U.S. market.

Republican leaders in the U.S. House of Representatives may have to back legislation prodding China toward a more flexible exchange rate as part of their efforts to attract votes for a free trade pact with Central America, House Ways and Means Committee Chairman Bill Thomas said on Tuesday.

It’s become “very difficult for (many lawmakers) to vote on a trade package without getting some kind of meaningful response on the issue of China.

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