Arnold Schwarzenegger on Free Trade Republican CA Governor

Promote the Andean Free Trade Agreement.

After a month of debate the Senate passed a The Andean Free Trade Agreement (H.R. 3009) including language to grant the president trade promotion authority. With the unanimous support of all eight Republican Main Street Partnership Senators, H.R. 3009 passed 66 to 30. Included in the legislation is an expansion of Trade Adjustment Assistance (TAA) providing a tax credit for 70% of the cost of health insurance purchased individually after losing employment as a result of a trade agreement. While the Senate maintained its pro-trade reputation by defeating amendments by Senator Kerry (MA) and Senator Byrd (WV) diluting Trade Promotion Authority, one amendment strongly opposed by Main Street remains in the bill. An amendment offered by Senator Dayton (MN) and Senator Craig (ID) would allow the Senate to remove from fast-track consideration any provision of an agreement that would limit US trade remedy laws. Main Street firmly believes that this negates Trade Promotion Authority entirely, and supports President Bush's veto threat should this language remain intact after a House/Senate conference.

Declined state commitment to CAFTA.

States' commitments under CAFTA:

Americans for Legal Immigration PAC (ALIPAC) compiled a list of the status of each of the 50 states with regards to CAFTA procurement. For states that have rescinded their commitment, we infer that the incumbent governor strongly opposes CAFTA (because the state made a commitment and then un-made it). For states that declined to commit, we infer that the incumbent governor somewhat opposes CAFTA. For states that committed, we infer that the incumbent governor supports CAFTA.

CAFTA is the Central American Free Trade Agreement. CAFTA expands NAFTA (the North American Free Trade Agreement, between the U.S., Canada, and Mexico) to five Central American nations (Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua), and the Dominican Republic. It passed Congress on July 27, 2005.

Opposition to CAFTA procurement rules (by Public Citizen): Should an international trade agreement determine how we are allowed to spend our domestic tax dollars? Prior to the passage of CAFTA, the majority of state governments agreed: Subjecting decisions about how to spend state taxpayer dollars to second-guessing by foreign trade tribunals is a bad idea! As a result, a bi-partisan group of governors withdrew their initial agreement to bind their states to comply with CAFTA's procurement rules. Many other governors simply avoided binding their states to CAFTA's procurement rules in the first place. Common state economic development and environmental policies are prohibited by trade agreement procurement rules include:

• Measures to stop the offshoring of state jobs;
• "Buy Local" or "Buy America" policies;
• Preferences for recycled content, renewable energy, and alternative fuel vehicles.