17 October 2005

Guatemala Hosts Conference on U.S.-Central American Trade Pact

U.S. Commerce Secretary Gutierrez participating in October 17 event

By Eric Green
Washington File Staff Writer

Washington -- U.S. Commerce Secretary Carlos Gutierrez is participating in an October 17 conference in Guatemala City on promoting the U.S. free-trade agreement with Central America and the Dominican Republic (CAFTA-DR).

The trade and investment conference will focus on successfully implementing CAFTA-DR, how to make the trade pact work for all citizens, and what needs to be done to attract greater foreign investment in Central America and the Dominican Republic.  The U.S. Commerce Department, the U.S. Agency for International Development (USAID), a Washington-based group called Caribbean-Central American Action, and the Guatemalan Ministry of Economy organized the conference.

Conference organizers say the fact that CAFTA-DR has been ratified by the United States and the national assemblies of El Salvador, Honduras, Guatemala, the Dominican Republic and Nicaragua signals "the dawn of a new and hopeful future for the people living and working in Central America."  CAFTA-DR still awaits ratification by Costa Rica.  (For more information, see Central America Free Trade Agreement-Dominican Republic.)

Gutierrez is participating in the Guatemalan conference as part of his October 15-22 trade mission to Central America.  Other scheduled stops on his trip include Honduras and El Salvador to promote the benefits arising from CAFTA-DR. (See related article.)

Organizers for the Guatemalan event said the process of negotiating, signing and ratifying CAFTA-DR required the public sector and the business community in both Central America and the United States to come together in an "unprecedented spirit of cooperation to achieve this once unimaginable goal," adding: "Our challenge is now to build upon this solid foundation and successfully implement the agreement in a timely manner."

The organizers said that the theme of the Guatemalan conference, "A Common Destiny," recognizes that CAFTA-DR can become a "catalyst for sustainable development" only if the trade pact has a positive effect on all segments of society.

The organizers also said the business community "must take the lead in reaching out to civil society and become forceful advocates with the public sector for the policy changes needed to successfully implement CAFTA-DR and aggressively pursue" what they call a "transformation agenda."  That agenda involves integration of trade markets, harmonization of standards and institutionalization of the rule of law.

The conference will also discuss what is called the "Alliance for CAFTAction" initiative, for which USAID provided initial funding.  Backers of the alliance say its creation recognizes the key role that the business community must play in "actively reaching out to civil society and the public sector in order to build the strategic partnerships needed for the successful implementation" of CAFTA-DR.

More information is available at Caribbean-Central American Action’s Web site.

For additional information on U.S. policy in the region, see Central America.

(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)