CAFTA Passes

In a major victory for free trade, the House of Representatives passed the Central American Free Trade Agreement by a vote of 217-215 today. The Senate approved the measure last month. The bill now goes to the President for his signature. Amazingly enough, each of Alabama's 5 Republican Representatives - Aderholt, Bonner, Bachus, Everett, and Rogers - voted for the bill. Both Democrats - Cramer and Davis - voted against it.

In a related matter, Japan is planning to impose tariffs on U.S. steel in retaliation for the U.S. tariffs on steel imports.

Local media reported Thursday that Japan was planning to impose a 15 percent retaliatory tariff in September on about 10 products as a countermeasure to duties imposed by the United States on Japanese steel products under the so-called Byrd amendment, an antidumping law ruled illegal by the World Trade Organization.

As you may remember, the steel tariffs were imposed under the guise of protecting American jobs. No matter what the polls say and no matter how much money big business and big labor pour into anti-trade initiatives, protectionism is a bad deal any way you cut it.