SUCCESSFUL TRADE EVENTS MARK CAFTA ANNIVERSARY

UNCLAS SAN SALVADOR 000194 STATE FOR EEB/TPP STATE PASS USTR SIPDIS E.O. 12958: N/A TAGS: ECON ETRD PREL ES SUBJECT: SUCCESSFUL TRADE EVENTS MARK CAFTA ANNIVERSARY ¶1. Summary. Over 200 entrepreneurs, mostly from small and medium enterprises, attended a February 25 Commercial Service trade promotion event that received national media coverage. The following day, President Saca and the Charge were two of the featured speakers at a GOES-organized event celebrating the third anniversary of CAFTA-DR implementation in El Salvador. Both events reflected the positive impact of CAFTA and the growing interest to participate in the trade opportunities it presents. End Summary. USA Open for Business -------------- ¶2. The Commercial Service sponsored the February 25 "Doing Business with the USA" trade-promotion event that provided practical tips for Salvadorans who wanted to do business with the United States. Over 200 entrepreneurs, mostly from small and medium companies, heard from Salvadorans who had benefitted from doing business in the United States. The owner of Twins Bakery and a local dentist described how they improved their businesses through equipment purchases and best practices from the United States. The Commercial Service informed the audience about their services, the variety of conventions in U.S. cities as a source for material and expertise and other opportunities to do business with the United States. ¶3. The AmCham Executive Director talked about knowing the market and discussed the growing Hispanic population in the United States and its increasing importance as a market segment in the country. The Charge and Regional Senior Commercial Officer spoke of the increased trade since CAFTA and how countries that provided the most economic and democratic freedoms were those that also enjoyed the highest standards of living. The event was covered by the national print and electronic media, which generated considerable and positive reports on the conference and on CAFTA. CAFTA Successes -------------- ¶4. In another packed room on February 26, the GOES held an event to mark the third anniversary of CAFTA, which went into effect in El Salvador on March 1, 2006. Minister of Economy Ricardo Esmahan provided numerous statistics (discussed more in septel) on how El Salvador had benefitted from CAFTA-DR. GOES representatives illustrated how ethnic food product exports represent a new and rapidly growing CAFTA opportunity by showing an entertaining video of a Salvadoran market in Los Angeles selling Salvadoran ethnic food products not only to other Salvadorans, but to Guatemalan and Mexican customers as well. Afterwards the Economy Minister presented awards to some small businesses that were benefitting from CAFTA. ¶5. President Saca diverted from his prepared text and gave a spirited speech on the benefits of trade and the close ties between El Salvador and the United States. He reminded the audience that CAFTA had barely passed the U.S. Congress, but has since proven to be a success for both countries. The Charge noted how the agricultural sector, possibly the sector most wary of CAFTA when it was being negotiated, was one of the greatest beneficiaries of CAFTA. He also emphasized how extensive our partnership was with El Salvador, specifically citing our trade capacity building and other technical assistance programs. He added that CAFTA reflected but one of the many positive aspects of our bilateral relationship. Comment -------------- ¶6. Despite the current worldwide economic situation, CAFTA continues to have a positive impact in both the United States and El Salvador. It has also promoted economic integration within the region and expanded regional trade opportunities. Just as important, CAFTA has put increased emphasis on environment and labor issues. Also, as evidenced by the attendance at these events, CAFTA continues to generate enthusiastic interest in doing business with the United States and is one of the highlights of our bilateral relationship. Blau