MEDIA REACTION ON CAFTA, JULY 25, 2005

UNCLAS TEGUCIGALPA 001566

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, JULY 25, 2005



1. Editorial in San Pedro Sula-based liberal daily "Tiempo"
on 7/23, titled "Reforms." "Despite President Bush's
renewed efforts to obtain CAFTA-DR approval the picture is
still not clear and the possibility of a set-back exists for
the North American president."

"A similar situation seems to exist in Central America where
50% of the region hasn't yet ratified this commercial
instrument and where the rejection of certain sectors
persists."

"In the middle of this now arises an IMF warning that if the
Central American countries want to take advantage of CAFTA-
DR, they will have to make a lot of reforms, which is easy
to say but harder to do."

"A single situation interferes with the Central American
integration process that is at a standstill, not to say
going backwards, precisely because the presidents' political
will towards this is highly inconsistent and fragmentized."

"This is evidence in that even Central American commercial
development needs regional integration, and it would be a
mistake to consider FTA as an integration instrument, such
as some of the presidents believe. These commercial
mechanisms can play an anti-integrationist role."


2. Editorial in San Pedro Sula-based liberal daily "La
Prensa" entitled "In the Final Round." "The CAFTA-DR
decision is in the final round, awaiting a debate in the
House of Representatives in the upcoming week. The document
passed the Senate but the most difficult test is still to
come, despite a campaign by the White House and Hispanic
organizations."

"The House of Representatives will start debating the
agreement next Tuesday night. It will be a test for
Washington on its leadership in world commercial
negotiations."

"The White House maintains confidence that the undecided
congressmen will favor the commercial treaty. Robert
Portman, U.S. Trade Representative, said, `We are getting to
that.'"


3. Editorial in Tegucigalpa-based liberal daily "La Tribuna"
entitled "CAFTA." "President Bush is again using the OAS as
a forum to talk about CAFTA-DR ratification."

"Bush explained that CAFTA is `pro-employment, pro-growth,
and pro-democracy,' and he encouraged Hispanic leaders and
Central American diplomats to intensify their negotiations
with members of the North American Congress and make them
understand that we `cannot and should not reject these young
democracies, because it is our obligation to support
democracy in our neighborhood.'"

"CAFTA has an initial grace period for the region. There
will be several years where our products will enter the
North American market under favorable conditions. Once the
grace period is over we have to compete on an equal level
with North America. If the countries don't start the reform
process to reach the required level of competitiveness, who
knows if all these benefits will ever take root and we will
remain disadvantaged? The countries that advance the
furthest will be the ones that will make the most of the
opportunities; the ones that don't will suffer the
consequences."

Tuebner