Washington, DC, July 28, 2005 - Electronic Industries Alliance (EIA) President Dave McCurdy issued the following statement in reaction to the U.S. House of Representatives' passage of the Dominican Republic-Central American Free Trade Agreement (CAFTA) today:
"With the House's passage of the Dominican Republic-Central American Free Trade Agreement (CAFTA), the U.S. has sent a strong and positive message to expand free markets and free trade to nations not only in the Western Hemisphere, but throughout the world. As EIA noted in its 2004 Policy Playbook entitled The Technology Industry at an Innovation Crossroads, free trade agreements are a critical part of the international trading system. They allow companies to compete on level playing fields, they protect consumers from hidden import taxes on merchandise, and they advance the security of trade. In this way, they lock in the benefits of free trade for all. Multilateral regional agreements such as CAFTA that can reduce tariffs and non-tariff barriers to low levels are in the best interests of the U.S., its consumers and its companies. Free trade agreements are also a powerful incentive for countries to participate in the WTO efforts to reduce tariffs globally.
"Congressional approval of CAFTA sends the important signal that the United States stands with the fledging democracies of Central America. We will continue to encourage economic growth, pluralism and democracy, which will benefit the U.S. as much as it does the people of these nations.
"CAFTA will encourage the creation and retention of high-tech jobs in the U.S. by eliminating U.S. export trade barriers to other CAFTA treaty nations; currently, Central American and Dominican tariffs on electronics and other high-tech goods are as high as 20 percent, with average tariffs between 2.1 and 5.5 percent. Additionally, because 99 percent of all US industrial exports will receive duty-free treatment immediately upon implementation of the agreement, CAFTA gains will be realized promptly, rather than 'phased-in' over an extended period. CAFTA also allows US manufacturers to recover the cost of duties paid on materials imported from third countries and subsequently exported again. EIA and its 1,300 member companies commend the House for passing CAFTA, and in doing so, taking a stand in favor of free trade."
About EIA: The Electronic Industries Alliance (EIA) is the leading advocate in Washington, D.C., for the U.S. high-tech industry. The Alliance, which traces its origins to the Radio Manufacturers Association (chartered in 1924), is a partnership of electronic and high-tech associations and companies whose mission is to promote the market development and competitiveness of the $400 billion U.S. high-tech and electronics industries through domestic and international policy efforts. EIA's corporate members - nearly 1,300 - provide products and services ranging from microscopic electronic components to state-of-the-art defense, space and industry high-tech systems, as well as the full range of telecommunications and consumer electronics products. Headquartered in Arlington, Va., the Alliance is made up of the Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics & Information Technology Association (GEIA); JEDEC; the Telecommunications Industry Association (TIA); and leading consumer electronics companies who participate in EIA's Environmental Issues Council. EIA is also heavily involved in cyber security issues through the Internet Security Alliance (ISAlliance), and education issues, through the National Science & Technology Education Partnership (NSTEP).
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