EL SALVADOR: PRESIDENT SACA PUSHES FOR JANUARY 1

UNCLAS SAN SALVADOR 003458

SIPDIS

DEPT PASS USTR FOR RPORTMAN

E.O. 12958: N/A
TAGS: ETRD ES CAFTA
SUBJECT: EL SALVADOR: PRESIDENT SACA PUSHES FOR JANUARY 1
CAFTA



1. (U) During a December 9 conversation with the DCM,
President Saca reiterated El Salvador,s strong support for
January 1 entry into force of CAFTA, even if El Salvador is
the only country to qualify on that date. Saca promised that
El Salvador would have all measures in place by the end of
the current legislative session (which ends before
Christmas). The US should agree to January 1 EIF for all
countries that are ready, he argued; others could enter
whenever they are ready. To delay CAFTA implementation, Saca
stated, &would send a bad message to the enemies of free
trade8 in the region. Saca added that the combination of
CAFTA and NAFTA would mean that President Bush &would be
half-way to his goal of a Free Trade Area of the Americas.8


2. (U)DCM noted that January 1 EIF could result in temporary
loss of current textile accumulation benefits for El
Salvador, should entry of other Central American countries be
delayed. Saca responded that he understood the issue; El
Salvador still wanted January 1 EIF. Issues such as
temporary loss of textile benefits could be addressed
separately.
Barclay