The Bush administration's free-trade agreement with Central America would cost taxpayers $50 million a year in loan forfeitures by sugar farmers, the Congressional Budget Office says.

An administration official said Thursday that the analysis was unrealistic and that there would be virtually no cost under sugar provisions in the deal.

The CBO released its estimate as House leaders planned for a vote next week on the Central America Free Trade Agreement. It would remove or lower trade barriers with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and he Dominican Republic.

Overall, CAFTA would cost the U.S. about $4.4 billion over the next 10 years, primarily in lost tariffs, the CBO said.

Posted by: Jonathan Singer / 4:25 PM | Basie! Home