Contrary to what you often read, free trade agreements can be very beneficial to the economic health of this country. Specifically, the Central America Free Trade Agreement, or Cafta, will help preserve and create jobs at a local textile company.

		Jack Ouellette is president and chief executive officer of American Textile Co. in Duquesne.

But before I tell you how, let me give you some background about my company. American Textile is an 80-year-old, privately held business selling mattress covers, pillow covers and pillows to all the large retailers in the United States.

The first 70 years of our history were devoted to cutting, sewing and packaging textile bedding products. One of our big initiatives in the 1980s was to emphasize products that were "Crafted With Pride in the USA."

Neither our customers nor consumers responded positively. Our prices were too high since others could produce similar products more cheaply. Our market share began to erode. In the early 1990s, we forced ourselves to look beyond Pittsburgh and adapt to changes in the world economy. We took three important initiatives that saved our business from obscurity:

1. We began importing vinyl mattress covers and pillow covers from China, the world's low cost producer of vinyl sheeting.

2. We began sewing cloth bedding covers in El Salvador to take advantage of labor rates that were globally competitive in a country only a four-day boat trip from the United States.

3. We partnered with 3M Co. to utilize a high tech fabric that we made into unique allergen barrier bedding.

The results have been remarkable and representative of what is good for this country:

1. Today, we are the largest supplier of mattress and pillow covers to U.S. retailers.

2. We are the largest U.S. importer of vinyl bedding products

3. Our company sales have increased every year over the last 5 years

4. US sewing jobs have been replaced with higher paying U.S. jobs in product development, computer programming, marketing, production planning, purchasing, sales analysis, manufacturing controls and warehouse management.

5. Two years ago, we built a $7 million headquarters and distribution center in Duquesne, and the new construction has an unique history. It is built on top of an old US Steel plant; the first name on the deed was Andrew Carnegie, who conveyed the property to J.P. Morgan; we are part of the revitalization of an old industrial site in Pittsburgh; we are contributing to the economic redevelopment of the Mon Valley, an area depressed by the loss of steel making jobs.

So why is Cafta important? We prefer manufacturing in the United States because it is easier. However, we realize that sewing jobs will not come back to this country. We are part of a much larger global economy.

We are obviously not opposed to trading with China. But we do have a strong desire to keep as much trade in this hemisphere as possible. Cafta helps us accomplish that goal in several ways:

1. Duties ranging from 7 percent to 12 percent will be eliminated

2. Our prices will be more competitive with those from Asia

3. We will keep our speed to market advantage by trading with Central America rather than increasing trade with China.

4. Our investments in this hemisphere will be maintained.

What will we do if Cafta passes?

1. We will buy more U.S. fabric made with U.S. yarns because Cafta makes it advantageous to do so.

2. Our business will grow in the US and in Central America.

3. We will reinvest duty savings into our latest initiative: making bed pillows in the United States. Here is how that will work: Pillows are too expensive to import from Asia, so pillow shells will be made in El Salvador generally from fabrics made from U.S. yarns, and pillow sewing, filling, packaging and machine maintenance jobs will be created in the United States.

What will happen if Cafta does not pass?

1. We will gradually move away from Central America and source more in China and other low cost producing countries.

2. We will source fabric regardless of fabric and yarn origin.

3. Our investment in Central America will begin to shrink. We purchase the following type goods and services in the United States and Central America today: fabric woven in North Carolina and Alabama; fabric woven in Guatemala from cotton, poly cotton and 100 percent polyester; zippers, thread and packaging supplies; and cutting, sewing and packaging services

4. But please note, these jobs will not come back to the United States, they will go to other parts of the world

The conclusion?

Applaud your congressmen and senators who support Cafta because they realize that free trade has many more benefits beyond the cheaper prices you pay for products at the store. Please also keep in mind how Cafta can help the 92 local employees at American Textile.

In short, Cafta will preserve and create jobs in the United States and help jobs will remain in this hemisphere. Strong free trade in this hemisphere creates security and social benefits of interest to the United States.

In the process, we will be improving the lives of thousands of people in Central America. We travel there often and have seen the difference we have made.