MEDIA REACTION ON CAFTA, AUGUST 3, 2005

UNCLAS TEGUCIGALPA 001631

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, AUGUST 3, 2005



1. On 08/03 the Tegucigalpa-based liberal daily "La Tribuna"
published an editorial entitled "There's No Turning Back."
"In a White House ceremony attended by the Secretary General
of the Organization of American States and various
ambassadors, U.S. President George W. Bush signed the Free
Trade Agreement with Central America and the Dominican
Republic. It had been recently approved by the House of
Representatives with a narrow margin of 217 to 215 votes."

"Bush's triumph gives him the opportunity to show his
interest in the neighboring democracies. Alternatively, the
lack of a commercial framework would have created a bad
situation for Central American economies. Up to now, these
countries have enjoyed the benefits of the Caribbean Basin
Initiative, which provides access to the North American
market."

"A recent article published in the Wall Street Journal
confirms that the agreement `essentially gives permanent
status to the temporary packet of benefits already enjoyed
by the region, (specifically those benefits under the
Caribbean Basin Initiative) and allows limited access for
the highly competitive industries such as sugar.'"

"The article also points out that `Washington's
unenthusiastic approval of an agreement that was extensively
seen in Latin America as favoring the United States will
probably add to the country's decreasing influence over the
region.'"

"Regardless of the criticism from the American newspaper,
the influence that the United States has over Central
America is irrefutable when taking into account that much of
our economic development is strongly linked to what we do
within the CAFTA framework. Whatever the feelings were
towards CAFTA in the past, we have to recognize that it is
now a reality. The Agreement has passed the approval stages
in the United States and will only need to be ratified by
three countries to enter into force. There is no turning
back. It is a reality for which the only option is to
create a position of competitive advantage for the country."


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