Secretary's Speech

U.S. Commerce Secretary Carlos M. Gutierrez
Caribbean-Central America Action Conference
Guatemala City, Guatemala

Before I begin, let me say how saddened we were to hear of the landslides and floods that have hit this region.

We know how devastating these natural disasters can be.

My first stop this morning was the CONRED headquarters, where relief efforts are being coordinated. I met with officials there.

I also talked to a military officer with the U.S. Southern Command. This group has been flying helicopters non-stop to transport emergency assistance and evacuate the injured.

The U.S. Government is contributing millions of dollars to support the recovery effort. And I understand that U.S. companies have donated food, water, radios and other essential supplies.

Please know that our prayers are with all those in the region who lost loved ones and their homes.

I want to thank Federico Sacasa and the CCAA trustees for organizing this conference.

I’m pleased to be here with so many distinguished Central American government and business leaders.

I especially want to recognize: Vice President Eduardo Stein, Ambassador James Derham and Minister Marcio Cuevas.

I want to recognize the members of the U.S. government delegation who are with me on this mission.

I also want to recognize the members of the business development delegation.

These ladies and gentlemen represent 19 large and small U.S. companies that are eager to do business with our neighbors in Central America and the Dominican Republic.

They come from industries as diverse as energy, automotive, textiles, chemicals, information technology, medical devices and services.

One example of the great interest that U.S. firms have in the Central American market is this: John Kelly, chairman of the board of the Pan-American Life Insurance Company, is here after recently coping with the loss of his New Orleans home to Hurricane Katrina.

All of these executives have come to Central America to do business.

They are here to explore the opportunities that CAFTA is creating for the people of Central America and the United States.

As you know, the Caribbean Basin Initiative opened the door for expanded U.S. trade with the region. NAFTA was the very successful next step.

CAFTA and the other free trade agreements in the hemisphere mark another advance toward bringing our nations closer together and securing the benefits of trade for all.

We were pleased to hear the news last week that Nicaragua ratified. We’re hopeful that Costa Rica will soon join us in this partnership.

The World Bank reports that economies that sign free trade agreements tend to grow an additional 0.6 percent annually during the first five years after implementation.

For CAFTA, this would translate into lifting nearly a half million Central Americans out of poverty by 2010.

When President Bush signed the CAFTA-DR agreement last August, he said: “CAFTA is more than a trade bill; it is a commitment among freedom-loving nations to advance peace and prosperity throughout the region.”

As a Hispanic American, it’s a special pleasure for me to be in Central America leading my first trade mission.

I’ve had the good fortune of doing business in Central America since 1980, so I’ve been traveling to this region for 25 years.

Like many of you, I can recall what it was like a generation ago. And I see how much progress has been made. Today, the CAFTA countries are making the transition to freedom.

Further opening your markets will help you attract the trade and investment needed for continued economic growth and job creation.

And, as you well know, there is no substitute for growth.

Two-way trade between the United States and Central America is already significant for both sides.

More than 50 percent of the region’s exports go to the United States. And more than 40 percent of the region’s imports come from the United States.

However, there’s still lots of room for trade and cooperation.

For example, the textile and apparel sectors are important to all of our countries. But, worldwide quotas that have existed for decades have come to an end.

Through CAFTA, we expect to meet this challenge by setting terms that will help companies in Central America, the Dominican Republic and the United States combine competitive operations.

This should ensure that jobs remain in this hemisphere and are not exported to Asia.

We in the Americas need to continue building regional economic frameworks to remain globally competitive.

In Europe and Asia, countries are working together regionally to improve their competitive position.

We need to extend cooperation and integration throughout our hemisphere.

A free trade agreement is a beginning. It’s an important first step. But, there’s much hard work yet to be done.

Governments have to create the right conditions for expanding trade and investment in the region.

That includes improved infrastructure, access to credit, secondary and technical education, and streamlined government regulations.

We look to the business community to work with government to enact sound policies that promote growth, transparency and strong institutions.

The Department of Commerce will support this process.

We’ll be working closely with the private sector and government to establish responsible business practices.

CAFTA will promote the indispensable building blocks of a free society – respect for the rule of law, private property rights, competition and government accountability.

These values, in turn, will reinforce the habits and institutions of democracy that Central America has been working so hard to create.

Our goal is to empower all of our neighbors to become full-fledged partners in prosperity through free enterprise, through freedom, through business, through growth, through entrepreneurship.

There’s a lot of optimism in the United States since Congress approved the agreement. There’s no need to remind you what a tough fight it was. Now, we must deliver on the high expectations.

Our goal is to implement the CAFTA-DR agreement by January 1, 2006.

Our trade and customs authorities must continue to work closely together in the coming months.

And we all will need to monitor the commitments made by our partners to ensure full compliance.

Our CAFTA-DR partners have committed to important legal reforms that will enhance IPR protections and spur innovation.

Enforcement of these commitments will be essential to generate new investment.

With CAFTA-DR a reality, our challenge now is to ensure the successful implementation of this historic free trade agreement.

Free trade and free enterprise are strongly in the long-term best interests of every person in our hemisphere. CAFTA is about building a better future.

I have great respect and admiration for the vision you have shown in support of free trade.

And I look forward to working with all of you for a stronger, more prosperous and more economically engaged Americas.

Thank you and God bless you.