MEDIA REACTIONS ON CAFTA, JUNE 23, 2003

UNCLAS TEGUCIGALPA 001470

SIPDIS

FOR PD/WHA (MBUCKLEY); IIP/G/WHA DIPASQUALE; EB/EPPD DCLUNE;
USTR AGASH
INFO IIP/T/ES
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E.O. 12958: N/A
TAGS: OIIP KPAO HO PA ETRD USTR
SUBJECT: MEDIA REACTIONS ON CAFTA, JUNE 23, 2003



1. Op-ed by Moises Starkman in Tegucigalpa-based moderate
daily "El Heraldo" on 6/23 entitled "CAFTA opportunities".
"The conflicts that the CAFTA negotiations have faced show,
once again, that we as Central Americans have not learned to
work taking into account our common regional interests."

"Unfortunately, CAFTA does not expect to solve the problems
that the Central American integration process has
experienced for so many years. we should not waste the
opportunity to sign CAFTA and promote through it higher
levels of investment, production, exports and employment in
the region, as well as access to better and cheaper
products."

"We are confident that the Honduran delegation will be able
to defend the national interests during these negotiations.
We are optimistic that they will listen to the proposals and
suggestions from the private sector, workers and consumers,
who should be the basis of this agreement."


2. Editorial in San Pedro Sula-based liberal daily "La
Prensa" on 6/23 entitled "The failures of CAFTA". "The facts
are more eloquent than words and they show that the Fifth
round of CAFTA negotiations carried out in Tegucigalpa were
a complete failure."



"One of the factors that caused this fiasco was the lack of
vision of the U.S. lead negotiator Regina Vargo, or perhaps
of her superiors, that led to an absurd offer from
Washington to act as if the Generalized System of
Preferences and the Caribbean Basin Initiative do not exist,
proposing that trade with the U.S. should start from scratch
which could mean a step back for Central America in certain
productive areas, such as textile production."

"To go forward, it is crucial to find out what Washington
wants from this negotiation, to offer the U.S. something
they are interested in, and put an end to the stagnation of
the process."


3. Editorial in San Pedro Sula-based liberal daily "Tiempo"
on 6/23 entitled "Fifth Round of CAFTA negotiations". "These
negotiations should not only be limited to trade, CAFTA
should become a mechanism to solve the basic problems of the
relationship between Central America and the U.S."

". CAFTA should help to create a value-added production zone
and employment in Central America to prevent the current
massive flows of illegal migration to the U.S. Furthermore,
it ought to eliminate the socio-economic problems that
favors other unlawful activities such as narco trafficking,
terrorism and organized crime."


4. Article in "La Tribuna" on 6/23 entitled "The U.S. wants
to make a double play". According to Medardo Galindo,
president of the Federation of Agricultural Exporters of
Honduras, many Honduran products would be exported to the
U.S. tax-free since they are included in the Caribbean Basin
Initiative, but if CAFTA was approved as it is now, they
would be paying taxes in a range of 11 to 29 percent.


5. Article in "La Tribuna" on 6/23 entitled "CAFTA proposals
were unrealistic". The Honduran congressman and private
entrepreneur Gilberto Goldstein stated, "We're like small
fish facing a shark. An agreement was trying to be signed
when the region is not even united, making any proposal
unattainable. My suggestion is that the Central American
presidents find a form of unity within the isthmus in order
to deal with the first and biggest economy of the world."




6. On 6/23 "La Tribuna" featured an article entitled
"Chicken in pounds". "During the fifth Round of CAFTA
negotiations, there were discussions on the possibility of
exporting and importing chicken breasts and legs between the
US and the region. The trading of chicken parts would fall
under the `sensitive' category, along with fruits, grains,
pork and beef."


Palmer