US embassy cable - 05TEGUCIGALPA1566

UNCLAS TEGUCIGALPA 001566 
 
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, JULY 25, 2005 
 
 
1. Editorial in San Pedro Sula-based liberal daily "Tiempo" 
on 7/23, titled "Reforms."  "Despite President Bush's 
renewed efforts to obtain CAFTA-DR approval the picture is 
still not clear and the possibility of a set-back exists for 
the North American president." 
 
"A similar situation seems to exist in Central America where 
50% of the region hasn't yet ratified this commercial 
instrument and where the rejection of certain sectors 
persists." 
 
"In the middle of this now arises an IMF warning that if the 
Central American countries want to take advantage of CAFTA- 
DR, they will have to make a lot of reforms, which is easy 
to say but harder to do." 
 
"A single situation interferes with the Central American 
integration process that is at a standstill, not to say 
going backwards, precisely because the presidents' political 
will towards this is highly inconsistent and fragmentized." 
 
"This is evidence in that even Central American commercial 
development needs regional integration, and it would be a 
mistake to consider FTA as an integration instrument, such 
as some of the presidents believe. These commercial 
mechanisms can play an anti-integrationist role." 
 
2. Editorial in San Pedro Sula-based liberal daily "La 
Prensa" entitled "In the Final Round."  "The CAFTA-DR 
decision is in the final round, awaiting a debate in the 
House of Representatives in the upcoming week. The document 
passed the Senate but the most difficult test is still to 
come, despite a campaign by the White House and Hispanic 
organizations." 
 
"The House of Representatives will start debating the 
agreement next Tuesday night. It will be a test for 
Washington on its leadership in world commercial 
negotiations." 
 
"The White House maintains confidence that the undecided 
congressmen will favor the commercial treaty. Robert 
Portman, U.S. Trade Representative, said, `We are getting to 
that.'" 
 
3. Editorial in Tegucigalpa-based liberal daily "La Tribuna" 
entitled "CAFTA."  "President Bush is again using the OAS as 
a forum to talk about CAFTA-DR ratification." 
 
"Bush explained that CAFTA is `pro-employment, pro-growth, 
and pro-democracy,' and he encouraged Hispanic leaders and 
Central American diplomats to intensify their negotiations 
with members of the North American Congress and make them 
understand that we `cannot and should not reject these young 
democracies, because it is our obligation to support 
democracy in our neighborhood.'" 
 
"CAFTA has an initial grace period for the region. There 
will be several years where our products will enter the 
North American market under favorable conditions. Once the 
grace period is over we have to compete on an equal level 
with North America. If the countries don't start the reform 
process to reach the required level of competitiveness, who 
knows if all these benefits will ever take root and we will 
remain disadvantaged? The countries that advance the 
furthest will be the ones that will make the most of the 
opportunities; the ones that don't will suffer the 
consequences." 
 
Tuebner