US embassy cable - 05TEGUCIGALPA1179

UNCLAS TEGUCIGALPA 001179 
 
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, JUNE 01, 2005 
 
 
1. On 06/01 the Tegucigalpa-based moderate daily "El 
Heraldo" ran an op-ed by Walter Astie-Burgos, Mexican 
Ambassador in Honduras, entitled "CAFTA-DR's opposition." 
"In the last weeks, CAFTA-DR's opposition in the U.S. 
Congress has intensified. In a certain way history repeats 
itself because the same thing happened with NAFTA. There are 
several reasons for opposition but it can be summarized as 
U.S. `special interests.'" 
 
"It is well known that free trade treaties do generate 
wealth and progress through a dynamic commerce and major 
flows of investments, but there are always winners and 
losers. In the U.S., not everybody understands or wants to 
understand this new reality and opposes less developed 
countries taking their place by offering better products, 
quality or prices. Logic tells us that the ones who will 
suffer greater negative impacts are the less developed, but 
`special interests' emphasize protectionism dressed up as 
opposition." 
 
"We can expect a long debate which, in the end, will finally 
result in CAFTA-DR's approval. But we have to remember, as 
Tony Saca, president of El Salvador, said: "The real 
competition comes from China and not from Central American 
economies. Almost 25% of U.S. commercial deficit originates 
in exchanges with this Asian country." 
 
"The treaties generate richness, Mexico's case is a proof of 
that, but logically they are no more than commercial and 
economical instruments, which don't have social conscience. 
CAFTA-DR's implementation should be accompanied by adequate 
domestic measures of economic and social policies that will 
favor an equal distribution and that will avoid the gap 
between rich and poor nations." 
 
Palmer