US Free Trade Talks With Central America To Begin This Month

by Mike Godfrey, Tax-News.com, Washington

10 January 2003

US Trade Representative, Robert Zoellick, in conjunction with ministers from Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua announced on Wednesday that free trade negotiations between the United States and Central America will begin on January 27.

According to the AM Costa Rica news service on Thursday, Costa Rican Foreign Trade Minister, Alberto Trejos welcomed the launch of the negotiations, which will be aimed at removing tariffs and trade barriers between the United States and the Central American countries, calling it an 'important moment' for the nations in question.

AM Costa Rica quoted Mr Trejos as observing that given the relatively small size of the region's economies, such an arrangement offers the only viable way for the countries to move away from poverty and achieve significant development. He also observed that the agreement, when reached, should allow Central America to create jobs and attract increased international investment as a result of more sophisticated production capabilities.

This is a viewpoint shared by Mr Zoellick, who told a news conference on Wednesday:

'What we hope to try to do is transform traditional trade agreements into a broader project that will show the power of free trade to strengthen democracy and promote prosperity.'

However, opponents of the US plan to create a free trade zone encompassing Alaska and Central and Southern America by 2005 have argued that the zone will cripple local markets.

According to AM Costa Rica, nine rounds of talks are planned, with five negotiating groups poised to address topics including market access, investment and services, government procurement, intellectual property, labor, the environment, and institutional issues such as dispute settlement.

Recommended