US Deals Shake Central American Trade
Central American countries participating in the US-Devised Free Trade Agreement for Central America and Dominican Republic reported a trade imbalance late last year.

The Salvadoran daily La Prensa Grafica says the trend affects all the members of the CAFTA-DR, except Nicaragua.

The Central Reserve Bank said El Salvador had a 12.95 percent decline while garment assembly plants from Asia multiplied sales to the US.

Despite the losses and trade imbalance of 2006, Economy Minister Yolanda de Gavidia claims that without the accord with the US the industry would be at a loss.

Economists blame the commercial imbalance on the fact that they did not negotiate preferential treatment for textiles from third countries to improve the productive chain.

By contrast, Nicaraguan annual textile imports may round 328.08 million sq feet and it enjoys a ten-year moratorium to adopt the package system: cutting, pasting, textile dyeing, plus boxes, bags and buttons.

In addition, sales to the US rose 23 percent in 2006 compared to 2005, and many plants that operated in El Salvador moved over to Nicaragua because they pay lower salaries, adds the paper.