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United States To Implement
CAFTA In January 2006 Without
Costa Rica
The United States government has
announced that it will implement
the Central American and
Domincan Republic Free Trade
Agreement (CAFTA-DR) on January
1, 2006 despite the fact that
Costa Rica has yet to ratify the
agreement.
The Tratado Libre de Comercio
(TLC), as it is known locally
known locally, is still before
the Legislative Assembly and it
won't be until the new year that
discussion continues as the
Legislature reconvenes after the
holiday break.
CAFTA-DR is designed to reduce
trade barriers between the
United States and the Central
American signatories, which is
made up of Costa Rica,
Guatemala, El Salvador,
Honduras, Nicaragua and the
Dominican Republic,
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.
Following months of evasive
moves, president Abel Pacheco,
finally decided to send the TLC
to the Legislature, saying it
was his duty. He was quoted May
of this year as saying "My
position has not changed. It's
not that I am for or against
CAFTA... I am in favour of a
good free trade agreement and
against a bad free trade
agreement".
The government wants to move
forward free trade with it's
partners, but legislators and
unions are not so sure.
Legislators have been stalling,
while unions have been
threatening paralyzing strikes.
In a statement by US Trade
Representative spokesperson
Cristin Baker, it emerged that
the United States intends to
forge ahead with the
implementation of the agreement
in January regardless of Costa
Rica's preparedness or
otherwise.
"The US is prepared to implement
the free trade agreement among
the United States, Central
America and the Dominican
Republic (CAFTA-DR) as soon as
possible with those countries
that the United States has
determined to have taken
sufficient steps to complete
their commitments," Baker
stated.
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