U.S. signs free trade agreement

WASHINGTON – The United States and five Central American countries signed a free trade agreement on Friday that the Bush administration hopes will lead to an even bigger, hemisphere-wide free trade deal by next year.

However, the Central American Free Trade Agreement faces stiff opposition in Congress because many Democrats contend it fails to do enough to protect American workers from unfair competition from low-wage countries.

The agreement is also likely to become an issue in this year’s presidential campaign. Presumptive Democratic nominee John Kerry said he opposed the deal as negotiated by the Bush administration because it did not have enforceable rules on labor rights and environmental protection.

In a statement, Kerry said he would bring the Central American countries “back to the negotiating table to develop an agreement that provides economic benefits, creates jobs and includes strong protections for labor and the environment.”

In his remarks at the signing ceremony, U.S. Trade Representative Robert Zoellick made note of the differences that exist between Kerry and President Bush over trade issues.

Zoellick said that “opportunism and economic isolationism” were being used to attack efforts to promote democracy in Latin America.

The five Central American countries that participated in today’s signing agreement were Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.

It was uncertain when the Bush administration and Republican congressional leaders will bring the pact up given strong opposition from Democrats and even some Republicans.