MEDIA REACTION ON CAFTA, JUNE 1, 2004

UNCLAS TEGUCIGALPA 001259

SIPDIS

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

E.O. 12958: N/A
TAGS: OIIP KPAO ETRD HO USTR
SUBJECT: MEDIA REACTION ON CAFTA, JUNE 1, 2004



1. Editorial in Tegucigalpa-based moderate daily "El
Heraldo" on 5/29 entitled "Towards an uncertain future."
"CAFTA took a step ahead after being signed by the Central
American trade ministers and the U.S. Trade Representative,
even though it has an uncertain future because it depends on
the results of the upcoming U.S. elections in which
President Bush attempts to be reelected."

"It's expected that CAFTA will be ratified without much
complications in Central America, although it may have some
difficulties in El Salvador and Costa Rica. Its main
problem will be to pass the U.S. Congress, when President
Bush presents it, if he gets reelected. Although the U.S.
presents itself as a promoter of free trade, left and right
wing groups have agreed to oppose CAFTA, mainly because they
fear it would increase unemployment up North."

"Perhaps the closer relationship between Latin America with
Europe, and even with China, might convince the Americans
that the snow ball they created themselves has grown too
much for them to try to stop it."

Palmer