Dominican Republic Free Trade Deal Goes Through U.S. Senate

The U.S. Senate passed last week a controversial free trade pact with Central America and the Dominican Republic by a close 54-45 vote, with a battle likely at its next stage in the House of Representatives.

The Dominican Republic-Central American Free Trade Agreement (CAFTA-DR) is likely to go before the House after the July 4 holiday break.

The key test in the Senate came last week after the House Ways and Means Committee voted largely along party lines to implement the trade pact with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua .

The pact would eventually eliminate most tariffs on the roughly $30 billion in goods traded annually between the United States and the participating nations.

U.S. President George W. Bush, expressing appreciation for bipartisan support over the bill, said the CAFTA-DR agreement was good for American workers, farmers and small businesses.

"When passed it will eliminate trade barriers immediately on 80 percent of US-made goods and the rest within a few years, which will help increase sales abroad and job creation at home,” Mr. Bush said

Senate Majority Leader Bill Frist said the bill would "open the door to 44 million new consumers of American goods."