By  on May 17, 2005

WASHINGTON — The stakes of the Central American Free Trade Agreement are higher than just textiles and sugar — the two big U.S. constituencies that have opposed the agreement.

Hanging in the balance are social structures and nascent democracies in Central America, said the presidents of the Latin American countries, who were in Washington last week pushing CAFTA.

The leaders made stops at 10 cities, Capitol Hill and the White House, painting the agreement as a struggle to maintain democracy in the region and shore up shaky economic foundations.

On the tour were the leaders of the Central American countries Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, as well as the Caribbean nation, the Dominican Republic.

"Approving DR-CAFTA will create new hope in our nations," President Leonel Fernandez of the Dominican Republic said in the wood-paneled Hall of Flags at the U.S. Chamber of Commerce last week.

The event was part pep rally, part preamble to a meeting with President Bush later in the week.

"Democracy up until now has not been able to deliver," said Fernandez, noting that CAFTA is needed to shore up the country's fragile economy.

The U.S. market was initially opened to the region by the Caribbean Basin Initiative, which promoted a switch from agricultural exports to manufacturing.

"Having this access to the U.S. has truly transformed the nature of our economies," said Fernandez.

That access expires in 2008, though, and CAFTA is needed to make permanent reciprocal trade possible, he said, acknowledging that the agreement is also a tough sell to farmers in the region who are scared of losing their jobs.

"Your neighbor, Central America, needs CAFTA," said Nicaraguan President Enrique Bolanos. "I care for CAFTA because it's good for my country. It's good for my people."

He pointed out that Nicaragua has an unemployment rate close to 40 percent and lags other Central American countries economically.

Honduran President Ricardo Maduro highlighted the importance of the agreement at an earlier stop on the tour in Miami.

Earlier this month, a small plane carrying Maduro lost power and crashed into the Atlantic Ocean near a beach in Honduras. As the plane fell, Maduro, according to a report in the Miami Herald, said his unfinished agenda ran though his mind and CAFTA was at the top of the list.

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus