UNCLAS TEGUCIGALPA 002753

SIPDIS

FOR PD/WHA (MBUCKLEY)
INFO IIP
EMBASSIES FOR PAOS, APAOS, Ios,

E.O. 12958: N/A
TAGS: OIIP KPAO HO PA
SUBJECT: MEDIA REACTION: RAUL MORENO, SALVADORAN ECONOMIST,
CRITICIZES THE IDEA OF A CA FREE TRADE AREA BEFORE HONDURUAN
CONGRESS; REPORTING ON TWO ECONOMIC CONFERENCES



1. September 28, "El Heraldo," a moderate Tegucigalpa-based
daily, carried a full-page article on the presentation of a
Salvadoran Economics expert to the Honduran national
Congress. The President of the Honduran National Congress,
Porfirio Lobo, had invited him to talk about the "Social
Impact of a Free Trade Agreement in Central America. Other
papers also reported on the speech.

Media Coverage on Free Trade Agreement


1. On Saturday September 28, "El Heraldo" and "La Tribuna"
(Liberal party periodical) ran articles focusing on the Free
Trade Agreement and the presentation of the Salvadoran
economist to the Congress.

El Heraldo, "Free Trade Agreements will be the kiss of
death for Central American Integration" - The Central
American Free Trade Agreements with Mexico and the
United States do not guarantee sustainable development,
but rather guarantee an increase in poverty and
disparity of incomes and the loss of competitiveness of
the small states.

"These agreements are not just commercial, they upset
the social relationship inherent in production and the
circulation and distribution of income; furthermore
they harm the political and legal systems, the
environment and labor relations within the country.
these are not Free Trade Agreements but agreements for
free investment."

"FTA will stop the integration process because its aim
is to establish bilateral free trade..FTA is flawed due
to the absence of a social agenda."

MEDIA COVERAGE-- September 24-27


2. September 26, "El Tiempo"- San Pedro Sula-based Liberal
paper owned by Businessman and Congressional Deputy
Rosenthal, reported on an AmCham-Honduras, SICA (Secretaria
de Integracin Centroamerica) and USAID-hosted conference on
FTA and its impact on regional integration and the economy,
saying "the biggest obstacle to negotiations on fta is
reaching a consensus on Central American integration."


3. September 27, "El Tiempo" ran an article called "Free
Trade Agreement could break Honduran small businesses" in
reporting on an economic conference hosted by the Honduran
Foundation for Development (FUNHDE) at the Central American
Bank of Economic Integration, which discussed the economic
and social sector implications of the FTA. According to the
President of FUNDHE, "at least 15,000 micro and small
businesses will disappear if they do not receive support to
handle the challenges that the free trade agreements will
present."


4. September 28, La Tribuna reported on a speech by a
deputy from the Democratic Unification Party to a group of
students. "The ftaa will promote investments and the
circulation of northamerican capital, but will not encourage
symmetry between the economy of latin america and the
Caribbean and that of the us.

Pierce.