MEDIA REACTION ON CAFTA, DECEMBER 21, 2004

UNCLAS TEGUCIGALPA 002822

SIPDIS

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

E.O. 12958: N/A
TAGS: OIIP KPAO ETRD HO USTR
SUBJECT: MEDIA REACTION ON CAFTA, DECEMBER 21, 2004



1. Editorial in Tegucigalpa-based liberal daily "La Tribuna"
on 12/21, titled "They should hurry." "CAFTA is now in the
process of being ratified by the Congresses of each country.
Just last week and after long discussions, El Salvador was
the first one to ratify it despite the opposition of leftist
parties and popular organizations."

"For sure, the same will happen here in Honduras. The
Executive Board of Congress has said the treaty will be
considered for approval right after Christmas and before the
end of the year, although people in the other countries may
be better informed on the actual content of the treaty.
Anyway, it's likely that CAFTA will be ratified in the same
manner Congress does with the annual budget and other
controversial bills that are approved thoughtlessly, and if
possible, very late at night to avoid popular
demonstrations."

"This won't be the first thing Congress approves without
people really knowing what it's about. There are sectors
which depend on the projected benefits of CAFTA and there
will be others that will surely be affected, possibly the
most sensitive ones such as agriculture, which won't be able
to transform themselves to reach a competitive level to
survive. We hope CAFTA's benefits exceed its limitations."


2. Editorial in San Pedro Sula-based liberal daily "Tiempo"
on 12/21, entitled "Sharks and Sardines." "Congress is now
ready to discuss and approve CAFTA, in the midst of strong
opposition throughout Central America. According to the
latest developments from Congress, its approval is almost
certain in view of the commitments acquired after a long and
demanding negotiation, which evidenced the considerable
asymmetries between the U.S. and Central America, as well as
the differences between the regional economies."

"However, despite all the criticism, the general idea is
that if CAFTA isn't ratified by Honduras, the country would
be greatly isolated from our Central American counterparts
and especially from the U.S., our main commercial partner."

"CAFTA also brings a great challenge for Honduran
businessmen, because it will promote an open competition
where the most apt, hard working and better trained will
subsist or, to put it in other terms, the bigger fish will
eat the smaller."

Palmer