MEDIA REACTION ON CAFTA, JUNE 01, 2005

UNCLAS TEGUCIGALPA 001179

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, JUNE 01, 2005



1. On 06/01 the Tegucigalpa-based moderate daily "El
Heraldo" ran an op-ed by Walter Astie-Burgos, Mexican
Ambassador in Honduras, entitled "CAFTA-DR's opposition."
"In the last weeks, CAFTA-DR's opposition in the U.S.
Congress has intensified. In a certain way history repeats
itself because the same thing happened with NAFTA. There are
several reasons for opposition but it can be summarized as
U.S. `special interests.'"

"It is well known that free trade treaties do generate
wealth and progress through a dynamic commerce and major
flows of investments, but there are always winners and
losers. In the U.S., not everybody understands or wants to
understand this new reality and opposes less developed
countries taking their place by offering better products,
quality or prices. Logic tells us that the ones who will
suffer greater negative impacts are the less developed, but
`special interests' emphasize protectionism dressed up as
opposition."

"We can expect a long debate which, in the end, will finally
result in CAFTA-DR's approval. But we have to remember, as
Tony Saca, president of El Salvador, said: "The real
competition comes from China and not from Central American
economies. Almost 25% of U.S. commercial deficit originates
in exchanges with this Asian country."

"The treaties generate richness, Mexico's case is a proof of
that, but logically they are no more than commercial and
economical instruments, which don't have social conscience.
CAFTA-DR's implementation should be accompanied by adequate
domestic measures of economic and social policies that will
favor an equal distribution and that will avoid the gap
between rich and poor nations."

Palmer