Bipartisan Bill Would Require USTR to Review Nicaragua's Compliance With CAFTA-DR
Eighteen House members, led by Reps. Maria Salazar, R-Fla., and Tom Malinowski, D-N.J., introduced the Nicaragua Free Trade Review Act, which requires the Office of the U.S. Trade Representative to review Nicaragua's compliance with the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) within 60 days of the bill becoming law. “Under Daniel Ortega, Nicaragua has become a land of oppression” Salazar said in a June 17 news release. “Ortega's thugs are jailing political opponents and violently silencing dissenting voices. I've introduced the Nicaragua Free Trade Review Act because trade with the United States is a privilege, not a right. We must show Ortega's regime that they cannot continue repressing the Nicaraguan people while reaping the economic benefits of free trade with the United States.”
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While there is a mechanism for the U.S. to withdraw from CAFTA-DR, the trade agreement does not require that countries remain democracies. The planks on governance deal directly with trade, not free elections. Members of the agreement “resolve to eliminate bribery and corruption in international trade and investment,” according to an official USTR summary of the FTA. “To this end, Parties are obligated to make it a criminal offense to offer or accept a bribe in exchange for favorable government action in matters affecting international trade or investment. Parties must also endeavor to protect persons who, in good faith, report acts of bribery or corruption and to work together to encourage and support initiatives in relevant international fora to prevent bribery and corruption.”