CAFTA Today In Force in Honduras & Nicaragua While Costa Rica Continues To Dawdle
The Central America Free Trade Agreement (CAFTA-DR) now has been ratified by all signatories countries - Honduras, Guatemala, Nicaragua, El Salvador and the Dominican Republic - except Costa Rica.

The trade agreement known locally as the Tratado Libre de Comercio (TLC) was sent to the Legislature by president Abel Pacheco late last year but has been held up in the legislative process, with both opponents and supporters pitching the pros and cons of the trade pact.

Meanwhile, United States president George W. Bush issued a proclamation March 31 to implement the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) in Honduras and Nicaragua today  (April 1).

"Honduras and Nicaragua are now ready to join El Salvador as countries that have fully implemented the agreement," U.S. Trade Representative Rob Portman said in a March 31 statement.

"I greatly appreciate the sincere and diligent effort by our partners to adopt the necessary regulatory and legislative framework under CAFTA-DR, and I look forward to seeing the benefits of CAFTA realized by all participants," said Portman.


Following is the text of Portman's statement:
"I am pleased that the President issued a proclamation to implement the CAFTA-DR agreement for Honduras and for Nicaragua on April 1, 2006.

"We have worked closely and intensively with all six CAFTA-DR countries to ensure they meet the obligations and responsibilities under the agreement. Our constructive engagement has had positive results and we're pleased that Honduras and Nicaragua are now ready to join El Salvador as countries that have fully implemented the agreement. I greatly appreciate the sincere and diligent effort by our partners to adopt the necessary regulatory and legislative framework under CAFTA-DR, and I look forward to seeing the benefits of CAFTA realized by all participants.

"We will continue our work with the remaining three CAFTA-DR partners to ensure timely and full implementation of the agreement."


Background
The United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua signed the CAFTA-DR in August 2004.

Implementing legislation for the CAFTA-DR passed the U.S. Senate in June 2005 and the House of Representatives in July 2005 and was signed by the President in August 2005.

El Salvador was the first country to enter into force on March 1, 2006. With the entry into force with Honduras and Nicaragua, the U.S. now has the CAFTA-DR agreement implemented with three countries.