MEDIA REACTION ON CAFTA, SEPTEMBER 18, 2003

UNCLAS TEGUCIGALPA 002219

SIPDIS

DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; EB/TPP DCLUNE, AND
IIP/T/ES
DEPT. PASS USTR FOR AGASH

E.O. 12958: N/A
TAGS: OIIP KPAO ETRD HO USTR
SUBJECT: MEDIA REACTION ON CAFTA, SEPTEMBER 18, 2003



1. Article in Tegucigalpa-based moderate daily "El Heraldo" on
9/18 entitled "Central AMERICA insists in protecting its
agriculture against U.S. subsidies". "The sensitive issue of
market access was the main feature of the third day of the CAFTA
round. Once again, Central AMERICA insisted in protecting its
sensitive industries against the `unfair competition' of U.S.
products receiving subsidies from the U.S. government."

"The concern of the Central American delegations increased after
the WTO meeting in Cancun, where there was no agreement on the
issue of subsidies to exports and other aid received by producers
from rich countries, mainly in the U.S. and Europe."

"Unknown sources stated that the U.S. has agreed to eliminate its
subsidies to the exportation of agricultural products, but it's
been reluctant to abolish other subsidies. Apparently, this
issue will not be addressed until the eighth and ninth rounds."

Palmer