US embassy cable - 03TEGUCIGALPA2900

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 002900 
 
SIPDIS 
 
DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; EB/TPP DCLUNE, AND 
IIP/T/ES 
DEPT. PASS USTR FOR AGASH, BMAKENS, AND JWOLFE 
 
E.O. 12958: N/A 
TAGS: OIIP, KPAO, ETRD, HO, USTR 
SUBJECT: MEDIA REACTION ON CAFTA, DECEMBER 11, 2003 
 
 
1. Editorial in Tegucigalpa-based moderate daily "El Heraldo" 
on 12/11 entitled "CAFTA: inequality and opportunities". 
"Nowadays, when economic and trade globalization keeps 
growing and generating excellent results for developed 
countries but increased impoverishment for developing 
countries, it's becoming very obvious that the ability to 
compete in the global free market is closely tied with the 
socioeconomic background of a country." 
 
"In terms of CAFTA, Honduras which is one of the poorest 
countries in Central America, is clearly the one with less 
comparative advantages in this trade exchange that doesn't 
properly address the asymmetries between a powerful country 
and a poor region, which is being forced to open its market 
to products that are particularly sensitive, not only in 
economic, but also in social terms.  The CAFTA negotiations 
were an obligation for Central America, to avoid being left 
without any chances of achieving economic growth." 
 
"We're compelled to be part of the global economy, and our 
negotiators should defend the interests of all Hondurans 
because if we're able to negotiate a positive agreement 
with the richest country of the world, and we work hard to 
improve the quality and quantity of our production, we'll 
have a better chance of not only surviving, but getting 
some benefits from the whole globalization process." 
 
2. Editorial in Tegucigalpa-based liberal daily "La Tribuna" 
on 12/11 entitled "An excellent CAFTA".  "The lead U.S. 
negotiator in the CAFTA negotiations has said that by next 
week the U.S. expects to end the negotiations to establish 
a free trade agreement with five Central American countries 
which already enjoy some trade advantages that make that 
75% of their products already enter the U.S. free of 
tariffs." 
 
"She added that she believes all parts will benefit from 
this excellent agreement, starting from the fact that these 
countries already sell to the U.S. about 75% of all their 
production, thanks to the benefits granted by the Caribbean 
Basin Initiative." 
 
"On the other hand, the Honduran Catholic church has 
demanded to postpone the signing of CAFTA, because it will 
increase poverty and will weaken our food security.  It 
will also eradicate the benefits that workers have achieved 
for many years, and create more taxes." 
 
"Cardinal Oscar Andres Rodriguez himself has demanded to 
promote a broader discussion on the issues that are being 
negotiated.  He added that the access to international 
markets may be a necessary condition to fight poverty, but 
it's not enough by itself.  The challenge of combating 
poverty also requires coherent social policies, and a 
better distribution of wealth within the society." 
 
"It's clear that the secretive manner in which the CAFTA 
negotiations have been managed has not permitted many 
sectors with important interests in it to be well informed, 
therefore we can expect to have more demonstrations and 
protests against this agreement.  Nobody can support 
something that they see as detrimental when they haven't 
been convinced of its benefits." 
 
3. Editorial in San Pedro Sula-based liberal daily "Tiempo" 
on 12/11 entitled "CAFTA".  "A few days before the conclusion 
of the negotiations of the CAFTA agreement, the Catholic 
church has released its views about this issue, based on 
its own research of the agreement's economic and commercial 
implications.  The Church's main proposal, as expressed by 
the Cardinal Oscar Andres Rodriguez, is to postpone the 
signing of CAFTA until it establishes all the necessary 
conditions to enable the agreement to be beneficial for all 
parts.  The document affirms that if the Central American 
countries sign this agreement as it is now, it will bring 
more poverty for all Central Americans." 
 
"The proposals of the Catholic church correspond to the 
views of some sectors, including some private sector and 
workers organizations.  However, they have been released at 
a time when the negotiations have nearly reached their end, 
although they're important to support the latest 
negotiations, particularly those related to the U.S. policy 
to subsidize its agricultural production." 
 
"The key point will be the existence of economic and 
financial policies to promote investment, especially for 
the micro, small and medium enterprises which are the 
backbone of our development.  However, these policies don't 
exist yet, and they should be part of a broad framework of 
a permanent political, economic and social development." 
 
PALMER