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USAID LAC Trade Update - June 15, 2004
CAFTA
United States and Central America Sign Historic Free Trade
Agreement - Five Central American countries and the United
States signed the U.S. Central American Free Trade Agreement
(CAFTA) on May 28, 2004. The act provides a timetable for
eliminating tariffs and trade barriers and expands regional
opportunities for workers, manufacturers, consumers, farmers,
ranchers and service providers of all the countries.
The five CAFTA countries are Costa Rica, El Salvador, Guatemala,
Honduras and Nicaragua.
Why it’s good for the US:
- Consumer and industrial products --
More than 80 percent of the U.S. exports of consumer and
industrial goods will become duty free immediately with
remaining tariffs phased out over ten years. These include
information technology, agricultural and construction equipment,
paper, chemicals, and medical and scientific equipment and
products.
- Agriculture and ranching products --
More than 50 percent of U.S. farm exports will become duty
free immediately with the remaining to be phased in over
a 15 year period. These include high quality cuts of beef,
cotton, wheat, soybeans, key fruits and vegetables, processed
food products, and wine. Also expected to benefit from improved
market access are pork, dry beans, vegetable oil, poultry,
rice, corn, and dairy products.
- Boost for all states -- Each of the
50 U.S. states and the District of Columbia exports to the
CAFTA region. Alabama, California, Florida, Georgia, Louisiana,
Massachusetts, North Carolina, Pennsylvania, South Carolina
and Texas are expected to get the biggest exporting boost.
Why it’s good for Central American Countries:
- Provides access to services: The Central
American countries will gain substantial market access to
services in such areas as telecommunications, express delivery,
computer and related services, tourism, energy, transport,
construction and engineering, finance, insurance, audio/visual
and entertainment, professional, environmental, and other
sectors. Central American countries have agreed to loosen
restrictions so as to open opportunities for U.S. firms
to establish more workable marketing arrangements with product
distributors and dealers.
- Provides protections for worker rights:
The agreement is expected to improve domestic labor laws,
ensure effective enforcement, and build the capacity to
monitor and enforce labor rights.
- Extends environmental protections: CAFTA
is expected to ensure that local outreach is conducted,
that regional environmental activities are coordinated and
uniform, and input from international organizations is secured.
For additional information on CAFTA and other trade issues,
see the web site of the Office
of the U.S. Trade Representative
US-Andean FTA Negotiation
The Andean Trade Capacity Building Group met in May in Cartegena
and in Atlanta, GA in June to address the capacity building
needs that the Andeans have identified in their national trade
capacity building strategies with respect to preparing for
trade negotiations, implementing trade agreement obligations,
and adjusting their productive sectors to take advantage of
a more liberalized trade environment once a free trade agreement
is in force.
New Trade Resources
Upcoming Events
- June 23-24 - “Florida-Caribbean
Collaborative Development Strategies: Positioning Caribbean
Businesses to Compete in an FTAA Era” Symposium
(Sherbourne Conference Centre in Bridgetown, Barbados) –
The World Trade Center Miami and Caribbean Central American
Action (CCAA) in conjunction with CARICOM will host. The
objective of the event is to strengthen the competitive
position of Caribbean businesses to succeed in a post-FTAA.
For more information and to register for the conference
contact: Tel: 305-871-7910 or visit www.worldtrade.org
- June 28-29 - U.S.-Mexico Partnership
for Prosperity Entrepreneurial Workshop, Guadalajara
- June 28-Jul 2 - 30th
Session-Economic Commission for Latin America and the Caribbean
(ECLAC) San Juan, Puerto Rico
- July 26-30 3rd Round of U.S. Andean FTA
Negotiation, Peru
- Sept. 13-17 4th Round of U.S.-Andean
FTA Negotiation (tentative location: Chicago)
- Oct. 25-29 5th Round of U.S.-Andean
FTA Negotiation (Guayaquil, Ecuador)
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