MEDIA REACTION ON CAFTA, AUGUST 4, 2003

UNCLAS TEGUCIGALPA 001852

SIPDIS

FOR PD/WHA (OHILTON); IIP/G/WHA DIPASQUALE; EB/EPPD DCLUNE; USTR
AGASH
INFO IIP/T/ES
EMBASSIES FOR PAOs, IOs

E.O. 12958: N/A
TAGS: OIIP KPAO HO PA ETRD USTR
SUBJECT: MEDIA REACTION ON CAFTA, AUGUST 4, 2003



1. Article in Tegucigalpa-based moderate daily "El Heraldo" on
8/2 entitled "The crucial issues will be discussed in future
rounds". "The sixth round of CAFTA negotiations came to an end
with progress in some regulatory issues of the treaty, but the
negotiators couldn't reach an agreement on some key issues that
will be discussed in the next three rounds."

"The negotiators have already concluded negotiations in two
chapters: electronic trade and customs procedures and trade
facilitation, but there was no consensus around the most
sensitive issues, such as agricultural products, textiles,
patents and trade sanctions related to labor and environmental
violations."

"The US was clear that their positions will be flexible, but it
also wants reciprocity in access to Central American markets. On
this issue, the lead US negotiator Regina Vargo said, `we want
reciprocity and also some flexibility. although we don't
necessarily mean reciprocity in the sense of exchanging one thing
for another."


2. Editorial in Tegucigalpa-based moderate daily "El Heraldo" on
8/4 entitled "Progress of CAFTA". "The most positive result from
the sixth round of the CAFTA negotiations was that the isthmus
kept the unified position it should have had from the beginning,
after the Guatemalan reconsideration. The negotiations themselves
progressed on some regulatory principles, but the discussions on
key issues were left for the last three rounds."

"Meanwhile, the Bush administration celebrated the Congressional
ratification of the FTA with Chile, the first the U.S. has signed
with a South American country, which improves the possibility of
achieving the goal of establishing a free trade agreement region
in the Americas by the year 2005."

"We hope that in the seventh round of negotiations, the US goes
further than the `flexibility' shown last week, to progress on
the most sensitive issues such as agricultural products, textiles
and patents. In the interim, the Central American negotiators
should work together and stay alert because it's up to them to
sign a good or bad agreement with the utmost and unique global
superpower."


Pierce