Opinion: Kamala Harris' immigration efforts should include a push to update trade deal

Vice President Kamala Harris’ meeting last month with the Congressional Hispanic Caucus and her subsequent visit to Mexico and Guatemala illustrate the current administration's determination to address the pressing issue of immigration.

With President Joe Biden drawing heavy criticism for his handling of the immigration crisis, incentivizing potential migrants to stay home by providing economic opportunity in key countries is a top priority. While many solutions are being considered, one option that has not been discussed nearly enough involves modernizing trade agreements like the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

Unfortunately, last year's global pandemic in conjunction with two devastating hurricanes further exacerbated the systemic problems already present within Central America. Economies across the region have seen serious setbacks, and the stagnation in economic growth experienced in 2020 will almost certainly worsen both income inequality and poverty. 

This has escalated the migration issue at our southern border, and this year the number of unaccompanied minors crossing into the United States surpassed previous highs. Currently, nearly 8 million people in the Northern Triangle — Guatemala, Honduras, and El Salvador — are facing hunger this year, according to the World Food Program, and with economic prospects continuing to shrink, the program found that nearly 15% of those surveyed were making concrete plans to migrate.

Recognizing that something must be done to create economic hope in these countries and stem the influx of migration, Biden tasked Harris with cutting immigration from Mexico and Northern Triangle countries.

One way to revitalize countries in Central America, especially the Northern Triangle, would be to make key updates to CAFTA-DR. CAFTA-DR was intended to address this very issue and was proposed as a way to increase economic prosperity and stability in Central America. Unfortunately, since it was enacted, economic growth in Central America has not been consistent, and migrants have continued to leave the region for better opportunities. 

Not only has CAFTA-DR not created growth, but it has actually been dangerously detrimental, and has institutionalized an uneven playing field. The agreement forced CAFTA-DR countries to open their markets to the dumping of agricultural imports from the United States, at the expense of millions of farmers who are unable to compete with the artificially low prices of imports from the United States. To make matters worse, many of these local farmers were among those seriously affected by the hurricanes that devastated the region last year.  

Additionally, CAFTA-DR has prevented growth in other sectors that could potentially offset these losses. It was argued that CAFTA-DR would expand Central America’s exports in textile production and manufacturing, a highly lucrative industry that could provide thousands of jobs. However, in order for apparel products to be duty free under CAFTA-DR, they must be manufactured using yarns from a participating country. This limits the industry heavily and makes it harder for this industry to develop in the region. Central American apparel producers shouldn’t be limited by monopolistic American yarn producers that charge a premium because CAFTA created a captive market for them. Eliminating these anti-competitive rules would allow the apparel industry to grow and create new economic opportunities.

As Harris continues her efforts to address the migration crisis, I urge her to work with Congress and other key members of the administration, such as National Security Advisor Jake Sullivan and U.S. Trade Representative Katherine Tai, to update the rules so that the agreement creates jobs and economic growth in both the United States and the Northern Triangle countries.

Mitch Henry, an Iowa Democratic activist, was an early supporter of Kamala Harris' Iowa caucuses campaign.