RESEARCH TRIANGLE PARK, NC — Automotive suppliers hailed the House’s passage of the U.S.-Central American Free Trade Agreement (CAFTA) as an important step forward for free trade across the Americas.
“CAFTA will be another tool to help the industry export and sell automotive parts to Central America. The economic growth created by this trade agreement is going to benefit both our industry and the automotive parts and service markets in Central America,” said Bob McKenna, president and CEO of the Motor & Equipment Manufacturers Association (MEMA).
Over time, CAFTA will save American automotive suppliers millions of dollars by eliminating tariffs on U.S. exports of automotive parts and components. The agreement also removes foreign trade barriers against remanufactured goods and cores, McKenna noted.
The House passed the U.S.-Central American Free Trade Agreement early Thursday by a two-vote margin, 217-215. The Senate approved CAFTA in June by a 54-45 vote. The measure now goes to President Bush for his signature.
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