CAFTA's Covert Opponent: China

In the Multi Fiber Arrangement world of quota-free trade in yarns, fabrics, and finished textiles, the Central American Free Trade Agreement (CAFTA) represents a direct threat to China’s growing power—indeed, its near-monopoly—in world textile production. If passed, CAFTA would enhance the competitiveness of Central American factories that pay higher wages than China and predominantly use U.S. cotton. But if CAFTA fails, U.S. cotton exports to Central America will come to an end, while U.S. imports of Chinese textiles—with little or no U.S. content—soar. Full article.