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| Caribbean-Latin America |
| El Salvador in US free trade deal |
| 2006-02-26 |
| The US has formally agreed a free trade pact with El Salvador but has told five more Central American nations that they must do more to finalise similar deals. Congress sanctioned a Central American Free Trade Agreement (Cafta) last year but official implementation has been delayed by a series of legal wrangles. But the US-El Salvador agreement will now come into force on 1 March. The announcement, by the US Trade Representative's office, came ahead of a meeting between US President George W Bush and his Salvadorean counterpart Antonio Saca. Washington has urged Costa Rica, Guatemala, Honduras, Nicaragua and the Dominican Republic to make greater efforts to bring domestic regulations into line with multilateral standards required by the treaty. Rules governing meat inspection remain a major sticking point. The US views certain countries' reluctance to recognise its own system as equivalent to their own as a barrier to its exports. "We hope and expect that we will be able to bring additional Cafta partners into the agreement soon," Rob Portman, the US Trade Representative said on Friday. |
| Posted by:Steve White |
| #5 Not sure I follow that ... the free trade arrangements with El Salvador have been in place for a good while in the leadup to CAFTA, as have the resulting business relationships. |
| Posted by: lotp 2006-02-26 18:49 |
| #4 Sounds like quid-pro-quo for their help in Iraq. |
| Posted by: xbalanke 2006-02-26 18:28 |
| #3 According to the US govt: Trade (2004): Exports--$3.3 billion: textiles, diverse manufactures, coffee, sugar, and shrimp. Major markets--U.S. 65.4%, Central American Common Market (CACM) 24.9%. ... The Salvadoran economy continues to benefit from a commitment to free markets and careful fiscal management. The economy has been growing at a steady and moderate pace since the signing of peace accords in 1992 ... Much of the improvement in El Salvador's economy is a result of free market policy initiatives carried out by the ARENA governments, including the privatization of the banking system, telecommunications, public pensions, electrical distribution and some electrical generation, reduction of import duties, elimination of price controls, and enhancing the investment climate through measures such as improved enforcement of intellectual property rights. One of the biggest challenges in El Salvador has been to manage the decline in the coffee sector ... Moderate climate and a hard-working and enterprising labor pool comprise El Salvador's greatest assets. El Salvador has sought to leverage these assets in creating new export industries through fiscal incentives for free trade zones, and currently there are 15 free trade zones in El Salvador. The largest beneficiary has been the maquila industry, which directly provides 88,700 jobs, and primarily consists of cutting and assembling clothes for export to the United States. The apparel industry has greatly benefited from the Caribbean Basin Trade Partnership Act, which allows these goods to enter the United States duty free under certain conditions. Moreover, the U.S.-Central America Free Trade Agreement (CAFTA), negotiated by the five countries of Central America with the United States in 2003, will make these benefits permanent. ... U.S. support for El Salvador's privatization of the electrical and telecommunications markets markedly expanded opportunities for U.S. investment in the country. More than 300 U.S. companies have established either a permanent commercial presence in El Salvador or work through representative offices in the country. The Department of Commerce maintains a Country Commercial Guide for U.S. businesses seeking detailed information on business opportunities in El Salvador. |
| Posted by: anon 2006-02-26 11:17 |
| #2 Semiconductors. Really. I have some that are marked "Made in El Salvador." |
| Posted by: Jackal 2006-02-26 10:45 |
| #1 What does El Salvador export to the US? Besides MS-13 members? Bannanas, sweatshop designer clothing? |
| Posted by: Whealet Angoth7913 2006-02-26 08:24 |