Reply #1: Council on Hemispheric Affairs see thousands of farmers losing w/ CAFTA

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CAFTA Would Likely Cause Thousands of Central American Farmers to Lose Their Jobs as Highly Subsidized U.S. Agricultural Goods Flood Their Markets

* The countries of Central America — with predominantly agricultural economies — stand to gain little trade benefits from the proposed Central American Free Trade Agreement (CAFTA), as most of their exports already enter the U.S. duty free under the Reagan-era Caribbean Basin Initiative (CBI).

* CAFTA will not lead to job creation within the United States, but is almost certain to accelerate the continuation of manufacturing job loss.

* Washington-pressed CAFTA talks could be useful to U.S. trade negotiators by providing additional leverage against South America in faltering FTAA negotiations.

* Washington will overlook corruption and drug trafficking in Central America so as not to delay the trade agreement.

In January 2002, President Bush announced his intention to “explore a free trade agreement with the countries of Central America,” modeled after the North American Free Trade Agreement (NAFTA) and as another precursor to the proposed region-wide Free Trade Area of the Americas, scheduled to be achieved by 2005. The Central American Free Trade Agreement (CAFTA), whose members include Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua (negotiations with the Dominican Republic will begin in 2004), has undergone a series of negotiating rounds with the U.S. throughout the past year that are expected to conclude in the ninth and final gathering, scheduled to take place in Washington from December 8-12.

<http://www.coha.org/NEW_PRESS_RELEASES/New_Press_Releases_2003/03.73_CAFTA.htm>