The recently signed Central American Free Trade Agreement, supported by your June 1 editorial should not be approved by Congress because it will only benefit a few Central American countries, while offering little if any benefits to the U.S.

The United States stands as a leading proponent of free trade across the globe. Recent administrations of both political parties have assumed a leadership role in spreading the economic benefits of trade to other countries and reaping the benefits of those agreements here at home.

The hallmark of successful free trade agreements has been – and always will be – a strong give-and-take between the nations involved. Each country and its people should be expected to contribute equally to the positive outcome of the agreement. Indeed, our leaders in Congress would be abdicating their responsibility if they did not carefully evaluate each proposed free trade agreement to ensure it did not leave Americans at a disadvantage.

Unfortunately Congress will soon be forced to consider CAFTA, an arrangement that stands to benefit just a handful of wealthy corporate barons in a few small Central America. The people of the United States will be asked to give, with little return for their sacrifices – except for job losses.

Unlike the considerable markets available to U.S. manufacturers exporting goods to countries such as Canada and Mexico, the Central American nations represent a tiny pool of economic activity. In fact, it may surprise you to learn that the combined economies of the nations involved carry no more buying power than the Tampa metropolitan area.

Certainly, Congress would never approve an agreement to give preferential treatment to the people of Tampa at the expense of other Americans, yet that would compare to the likely outcome if CAFTA were to be approved.

The economies of the countries involved – Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, with the Dominican Republic soon to be included – are not generally centered on what’s good for the average worker. In fact, only the elites in each nation stand to benefit the most from CAFTA; any help to the middle and lower classes would be coming only as an afterthought.

Worse, these nations have not stood with us through thick and thin. At a time when President Bush has been working hard to expand the international presence in Iraq following the liberation of that country, both the Hondurans and the Dominicans chose to pull out. In doing so, Honduras and the Dominican Republic demonstrated that they wish to be a partner with the United States only when it suits their purposes. Nicaragua also sent home its troops earlier this year.

Americans want to see their leaders build strong relations with other nations, but only when those relationships remain a two-way street.

Calculate carefully

The bottom-line judgment that members of Congress must make in evaluating CAFTA will be whether the costs outweigh the benefits to American workers and the economy. One must calculate carefully, since there may well be a market in the U.S. for some goods produced in Central America, but their peoples’ buying power is not likely to accept a measurable inflow of goods manufactured here at home.

At a time when offshoring has become the word of the year, it seems unwise for politicians to approve of a plan that makes it easier to export jobs, not products.

Free trade frequently benefits Americans, but CAFTA fails the basic test. Congress must not approve a one-way agreement that benefits Central American elites at the expense of average Americans, especially when the leaders of the countries involved have failed to offer their support for U.S. efforts to spread peace and democracy worldwide.

Gene Miranda is a Miami businessman involved in the construction and agricultural industries.