President Bush Signs CAFTA Into Law

by Glen Shapiro, LawAndTax-News.com, New York

04 August 2005

It emerged on Tuesday that US President, George W. Bush has signed the Central American Free Trade Agreement (CAFTA) into law.

The agreement is designed to reduce trade barriers between the United States and the Central American signatories, which comprise Costa Rica, the Dominican Republic, Guatemala, El Salvador, Honduras and Nicaragua.

CAFTA would immediately eliminate duties on more than half the value of US farm exports to the region, expand IP protections and open telecommunications and other markets.

Speaking at the signing ceremony on Tuesday, President Bush announced that:

"Right now, Central American goods face almost no tariffs when they enter the United States. By contrast, US exports to Central America still face hefty tariffs there. CAFTA will end these unfair tariffs against American products and help ensure that free trade is fair trade."

He went on to add:

"By leveling the playing field for our products, CAFTA will help create jobs and opportunities for our citizens. As CAFTA helps create jobs and opportunity in the United States, it will help the democracies of Central America and the Dominican Republic deliver a better life for their citizens. By further opening up their markets, CAFTA will help those democracies attract the trade and investment needed for economic growth."

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