US embassy cable - 05TEGUCIGALPA1640

UNCLAS TEGUCIGALPA 001640 
 
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 4, 2005 
 
 
1. On 08/04, the Tegucigalpa-based moderate daily "El 
Heraldo" published an editorial titled "CAFTA: A Turning 
Point." "There's no doubt that when it enters into force 
January of next year, the Central America-Dominican Republic 
Free Trade Agreement with the United States will be a 
turning point for trade relations between poor countries and 
the biggest economy in the world. The agreement can be 
compared to a gigantic door that opens to allow our 
producers access to the large U.S. market, but it also 
allows giants from that country to enter freely into ours." 
 
"There are two large shadows that loom over the Free Trade 
Agreement. First are the subsidies that the United States 
gives to its agricultural producers, which when put together 
with the technological gap, make it impossible for our 
farmers to compete.  Secondly, the clauses related to 
intellectual property eliminate the possibility of producing 
in our countries pharmaceuticals patented by the large U.S. 
companies. It was through pharmaceutical production that 
Brazil was able to reduce the price of medicines, mainly 
those needed by AIDS victims." 
 
"In general terms, the benefits that the Free Trade 
Agreement will provide in countries like Honduras will 
depend on the local capacity to create a favorable 
environment, not only to attract large foreign and national 
investments, but also to guide and effectively help the 
micro, small, and medium businesses become competitive." 
 
"CAFTA is a triumph for Bush, who will not arrive empty- 
handed to the next Summit of the Americas -- a small 
consolation after the failure of the Free Trade Agreement 
for the Americas -- but it also represents a great 
opportunity for poor countries like ours." 
 
 
Tuebner