CAFTA Likely To Miss Jan. 1 Target
The Bush administration said Thursday it is unlikely that the Central American Free Trade Agreement (CFATA-DR) or Tratado Libre de Comercio  (TLC)  known locally, will become active Jan. 1, as had been planned.

The office of the U.S. Trade Representative would not comment on reports that no country is ready to implement the trade pact.

Administration officials said an announcement on the implementation date will be made Friday.

The reports were foreshadowed by a Dec. 19 USTR news release that indicated implementation was proceeding more slowly than had been envisioned.

The release said CAFTA-DR would be implemented on a "rolling basis ... as soon as possible with those countries that the United States has determined to have taken sufficient steps to complete their commitments."

The release said that an announcement would be made before the end of the year as to which, if any, countries would be ready by Jan. 1.

A statement from USTR spokeswoman Christin Baker said all parties had recognized that the Jan. 1 start date "was an ambitious goal, and that all countries might not have completed their implementation process by that time. Other U.S. free trade agreements have had a longer preparation period to get ready, so the need for additional time is not unusual."

She continued, "The United States is prepared to have the CAFTA-DR enter into force as early as Jan. 1, but only with countries that have made sufficient progress in adopting new laws and regulations where necessary. We will move forward as long as at least one country is prepared, and will accommodate new entrants as they become ready."

Signatories to the agreement include the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.

All of the signatories have ratified the agreement except Costa Rica.

In the United States, President Bush signed the legislation in August. CAFTA-DR represents the second-largest U.S. export market in Latin America, behind Mexico.

Supporters predict the accord will boost political and economic stability in the region and open markets to the United States.