CAFTA fate linked to China

Concerns about the ballooning US trade deficit with China, which many US lawmakers blame on China's currency peg to the dollar, could bottleneck the passage of the US-Central American Free Trade Agreement, state media reported. House Republican leader Bill Thomas said US lawmakers may have to support legislation to get China to loosen its currency regime to attract votes for CAFTA, saying it has become "very difficult for (many lawmakers) to vote on a trade package without getting some kind of meaningful response on the issue of China". The White House has been struggling to lobby votes for CAFTA, in the face of stiff opposition from unions, sugar farmers and textile companies.