US embassy cable - 05TEGUCIGALPA1631

UNCLAS TEGUCIGALPA 001631 
 
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, AUGUST 3, 2005 
 
 
1. On 08/03 the Tegucigalpa-based liberal daily "La Tribuna" 
published an editorial entitled "There's No Turning Back." 
"In a White House ceremony attended by the Secretary General 
of the Organization of American States and various 
ambassadors, U.S. President George W. Bush signed the Free 
Trade Agreement with Central America and the Dominican 
Republic.  It had been recently approved by the House of 
Representatives with a narrow margin of 217 to 215 votes." 
 
"Bush's triumph gives him the opportunity to show his 
interest in the neighboring democracies. Alternatively, the 
lack of a commercial framework would have created a bad 
situation for Central American economies. Up to now, these 
countries have enjoyed the benefits of the Caribbean Basin 
Initiative, which provides access to the North American 
market." 
 
"A recent article published in the Wall Street Journal 
confirms that the agreement `essentially gives permanent 
status to the temporary packet of benefits already enjoyed 
by the region, (specifically those benefits under the 
Caribbean Basin Initiative) and allows limited access for 
the highly competitive industries such as sugar.'" 
 
"The article also points out that `Washington's 
unenthusiastic approval of an agreement that was extensively 
seen in Latin America as favoring the United States will 
probably add to the country's decreasing influence over the 
region.'" 
 
"Regardless of the criticism from the American newspaper, 
the influence that the United States has over Central 
America is irrefutable when taking into account that much of 
our economic development is strongly linked to what we do 
within the CAFTA framework. Whatever the feelings were 
towards CAFTA in the past, we have to recognize that it is 
now a reality.  The Agreement has passed the approval stages 
in the United States and will only need to be ratified by 
three countries to enter into force. There is no turning 
back.  It is a reality for which the only option is to 
create a position of competitive advantage for the country." 
 
 
Tuebner