Controversy over US Retaliation Act II

Representative Linda Sanchez published a clarification regarding her interview with La Nacion yesterday. An excerpt:

“I understand that some in Costa Rica have reported that I believe the President of the United States can unilaterally withdraw Caribbean Basin Initiative (CBI) benefits that Costa Rica currently enjoys if the people of Costa Rica vote to reject the Central American Free Trade Agreement (CAFTA). This report is obviously the result of some confusion concerning my remarks.

"The fact is that under the laws of the United States, the President of the United States does not have the power to cancel CBI benefits to Costa Rica if Costa Rica rejects CAFTA. Eliminating basic CBI benefits with Costa Rica would require an act of Congress. The leaders of both the United States Senate and the United States House of Representatives have stated in a recent letter that they would not do that.

"Further, that September 28, 2007, letter from Senate Majority Leader Harry Reid and Speaker of the House Nancy Pelosi made clear that they oppose any linkage between CBI benefits and approval or disapproval of CAFTA.

"Finally, I note that the United States Trade Representative has been opining in the media about what may or may not take place following the referendum on Sunday in Costa Rica. It is important to note that she is an appointee of President Bush, who will leave office at the beginning of 2009 and is likely to be replaced by a successor who does not share his political perspective. One thing is certain. Regardless of the outcome of the referendum, Costa Rica's basic CBI benefits cannot be unilaterally taken away by the Bush Administration."

Today, three Democratic Senators (Dorgan, Bown and Sanders) sent a letter to President Bush, expressig their concern over Secratary of Commerce Susan Schwab's statements in yesterday's interview with La Nacion:

"We are particularly disturbed by her comment that "Costa Rica could lose valuable access to the US market if the country rejects a free trade agreement with the United States when its voters go to the polls on Sunday."

"As you know, this is nonsense. Barriers to access of Costa Rican goods will not change if Costa Rican voters reject CAFTA. [...] For an official of the United States to warn the people of Costa Rica of possible retaliation of any kind for exercising their rights in an election is unworthy of the democratic traditions our countries share. This is particularly disheartening since CAFTA is just as controversial in the US as it is in Costa Rica."

For now, the last chapter in this controversy for now, was written by the Chairman of the House Ways and Means Committee, Charles B. Rangel in a press release:

"“Congress is constitutionally responsible for regulating international commerce. As such, we reiterate our longstanding position that preference programs should not be conditioned on a country entering into a free trade agreement (FTA) with the United States . No U.S. preference program currently includes such conditionality. Furthermore, there is no provision in the current preference program statute that would permit the President to withdraw benefits if a beneficiary country failed to implement an FTA.”