US embassy cable - 05TEGUCIGALPA500

UNCLAS TEGUCIGALPA 000500 
 
SIPDIS 
 
DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES 
DEPT. FOR EB/TPP DCLUNE, WHA/EPSC AND WHA/CEN 
DEPT. PASS USTR 
 
E.O. 12958: N/A 
TAGS: OIIP, KPAO, ETRD, HO, USTR 
SUBJECT: MEDIA REACTION ON CAFTA, MARCH 4, 2005 
 
 
1. Editorial in San Pedro Sula-based liberal daily "Tiempo" on 
3/4, entitled "RATIFICATION."  "Congress approved CAFTA, cutting 
off at the knees the strong polemic debate about this important 
issue." 
 
"Somehow the strong criticism of CAFTA served to help add benefit 
to the commercial trade language by adding (at the margins) 
equalizing measures that if implemented by the government should 
balance its effect on economic development policies." 
 
"These policies will have to address the agreement's 
liberalization and the rights that it grants to transnational 
companies, and for foreign investment capital as well as its 
impact on labor rights in the region." 
 
"The fact is that CAFTA is not a tool of economic development but 
commercial trade. It is linked to the social and economic 
development problems facing the country; but we have to wait and 
see how the political parties respond, which should have nothing 
to do with repetitious propaganda but with serious proposals for 
Honduras' economic future." 
 
 
2. Editorial in San Pedro Sula-based liberal daily "La Prensa" on 
3/4, entitled "TLC in sight" "The Free Trade Agreement with the 
United States has been ratified by the Honduran Congress to 
strengthen trade relations; it opens more doors to our products 
with favorable effects to create more job opportunities and 
improve the conditions for capital investment that at the same 
time will generate employment." 
 
"However, many doubts and fears exist toward Free Trade. The 
working class fears losing jobs if products coming from the 
United States bankrupt business." 
 
"But without a doubt, the consumer will benefit from multiple 
buying choices, as well as a vigorous capital movement of 
investment and financing, allowing small and big industry to 
obtain lower and cheaper capital that allows them to diversify 
their economic activities." 
 
 
3. Editorial in Tegucigalpa based-liberal daily "La Tribuna" on 
3/4, entitled "Finally approved." "Very effective was the 
pressure that business organizations, specially the maquila 
sector, exerted in warning the government that the country has 
lost several thousands of jobs because of the delay in approving 
CAFTA, and if they continue delaying the ratification they will 
lose more." 
 
"To the opposition groups, the ratification by the Congress of 
CAFTA has caught them with their pants down, while businessmen 
were meeting in a local hotel waiting for the final approval and 
getting ready to open the Champagne - after the ratification the 
union members called for demonstrations because they consider 
that the transnational companies will appropriate the country, 
forcing small businesses to disappear and leaving more than 
300,000 workers jobless." 
 
"We couldn't be left out of this agreement because without it we 
could lose access to the big North American market. It could 
provoke a massive loss of jobs, with more impact in the maquila 
sector, now that the region has to face the Asiatic competition. 
Honduras is the second country to ratify CAFTA." 
 
 
Palmer