USAID Steps Up Trade Capacity Building Efforts in Central America
Effort Seeks to Advance President Bush's Goal of Signing a Free Trade Agreement with Five Central American Countries by the End of the Year
WASHINGTON, DC 20523
PRESS OFFICE
http://www.usaid.gov/
Press: (202) 712-4320
Public Information: (202) 712-4810
2003-006
FOR IMMEDIATE RELEASE
January 15, 2003
Contact: USAID Press Office
Washington, DC - The Assistant Administrator for Latin America and the Caribbean of the U.S. Agency for International Development (USAID), Adolfo A. Franco, today announced that USAID will step up trade capacity building assistance to Central American nations to help them prepare for a U.S.-Central America Free Trade Agreement (CAFTA). The U.S.-Central America Free Trade Agreement will eliminate tariffs and other barriers to trade in goods, agriculture, services, and investment between the United States and Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. CAFTA negotiations were officially launched in Washington last week, on January 8, and working-level negotiations will begin in San José, Costa Rica, on January 27. The participants will seek to complete the negotiations by December 2003.
"USAID is committed to advancing President Bush's intention of signing a free trade agreement with Central America. Under the leadership of Administrator Andrew Natsios, USAID funding for trade capacity building in the Latin American and Caribbean region will more than double in 2003. A significant portion of that amount will be programmed to assist the Central American countries in preparing for full and effective participation in CAFTA," stated Franco. During 2002, USAID provided approximately $20 million to the region for trade-related assistance, including some micro-enterprise and agriculture funds for non-traditional exports. During 2003, USAID seeks to provide approximately $40 million in trade-related assistance to the CAFTA countries.
U.S. Trade Representative Robert Zoellick and Central American Ministers at CAFTA launch press conference, January 8, 2003
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During last week's official launching of CAFTA negotiations, U.S. Trade Representative Robert Zoellick stressed the importance of USAID trade capacity building efforts in Central America. "The CAFTA negotiations will provide an opportunity for us to do something different - to try to combine aid and trade in an innovative way to promote development. I was delighted to spend a good portion of our meeting today with my colleague from AID, Adolfo Franco. We need to link trade to development strategies and that's one reason why I had as part of the U.S. delegation our assistant administrator for AID," said Zoellick.
To foster trade and development in innovative new ways, CAFTA negotiations will include a trade capacity building group meeting. The group's work has already begun, with each Central American
country identifying its needs in a "National Trade Capacity Building Strategy." USAID has coordinated
closely with the Central American countries and other donors, notably the Inter-American Development Bank, the Organization of American States, and the United Nations Economic Commission for Latin America and the Caribbean, to support each country in preparing its national strategy-as well as a prioritized list of short-term trade capacity building assistance needs.
USAID has supported trade capacity building efforts since 1996, primarily through its regional office in Guatemala. These efforts are complemented by the bilateral missions in the Central American Isthmus.
This support focuses on more open trade and investment policies, Central American regional economic integration, and improved regional labor markets and protection of core labor standards. USAID recently added a new component to the regional activity specifically to assist the countries in preparing for CAFTA.
Further, the individual USAID offices in Nicaragua, Honduras, Guatemala, and El Salvador are continuing ongoing programs, and developing new programs, in longer-term areas such as competitiveness and business services, non-traditional agricultural exports, and support to small and medium enterprises.
USAID also plans activities and projects that will respond to the national strategies and priority requests for trade capacity building assistance from each country. Some of this assistance will be at the regional level and some at the individual country level.
USAID's regional program for Central America plans to provide support across priority trade capacity building areas to strengthen trade-related information systems, enhance technical capacity of trade officials, improve the trade policy consultative processes (between government and civil society), and ensure compliance with trade-related commitments.
USAID offices in El Salvador, Guatemala, Honduras, and Nicaragua are planning complementary TCB activities on a national level for each country, including: assistance to the government and private sector to prepare for the transition to CAFTA; assistance on labor issues, especially on child labor and core labor rights; assistance on commercial laws and regulations; and training courses and workshops for negotiators and technical officers on several specialized issues, such as customs valuation, rules of origin, and dispute settlement.
More information on USAID's economic growth and trade programs.
More information on USAID's programs in Latin America and the Caribbean.
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The U.S. Agency for International Development has provided economic and humanitarian assistance worldwide for more than 40 years.
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