US embassy cable - 05TEGUCIGALPA1878

UNCLAS TEGUCIGALPA 001878 
 
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, SEPTEMBER 12, 2005 
 
 
1.   On 09/11, the San Pedro Sula-based liberal daily 
  "Tiempo" 
carried an op-ed by J. E. Mejia Ucles entitled "Reflections 
on CAFTA."  "CAFTA-DR's ratification is still pending. This 
commercial mechanism has a false perception of opportunities 
and challenges. This perception has caused some sectors to 
view this treaty as a great threat to Central American 
territory and sovereignty, while in reality it distorts the 
perception that the treaty is a development instrument that 
promotes productivity and economic growth." 
 
"Only with free market economies can countries be 
competitive. Closed markets only contribute to structural 
setbacks and stagnation of a nation's economic development." 
 
"CAFTA-DR's challenge consists of avoiding, before the 
elimination of duty barriers and negotiated tariffs, the 
rules and sanitary requirements that constitute unjustified 
barriers to trade in agricultural products." 
 
"Those who oppose CAFTA talk about the situation which 
occurred in Honduras called `arrozazo,' [rice corruption 
scandal] a situation that was created by corruption and the 
payment of political favors not by dumping and the 
liberalization of commerce. The scandal allowed the 
excessive importation of rice with the excuse of protecting 
the consumer while seriously damaging small rice producers 
in the country." 
 
"In light of this it is necessary for agricultural workers, 
the agricultural industry, and the government to join forces 
and maintain cooperation while identifying ways to obtain 
growth in external and internal commerce." 
 
"That is the only way to slow the decline of Central 
American agricultural production and improve our poverty 
indicators that Central America is living in." 
 
2.   On 09/12, the Tegucigalpa-based moderate daily "El 
Heraldo" published an op-ed by Sigfrido Pineda Green, 
executive director of `El Sol de California,' entitled 
"CAFTA starts to roll."  "The Bush administration has begun 
to accelerate the signing of commercial treaties with 
different blocks and countries, like the one in effect with 
Mexico and Canada and the one recently approved with the 
countries of Central America and the Dominican Republic, 
under the name of CAFTA. The treaty was designed to resist 
the colossal Eastern production [China]." 
 
"Mainland China, which once was an enigmatic society 
opposing the West, is opened today to the rest of the world. 
China's output and productive quality represent a very 
serious threat for the West, with the United States at the 
top, where there are 300 million domestic consumers willing 
to obtain quality product at better prices." 
 
"CAFTA has received blessings and curses in the U.S., 
Central America, and the Dominican Republic. Governmental 
bureaucrats and private sectors expressed tenaciously angry 
theses opposing the just approved commercial pact." 
 
"Despite of this bleak prognosis, seeing CAFTA as a whip to 
the economy, worse than hurricane "Mitch," in Honduras there 
is a great optimism for the agreement." 
 
"Will it be, perhaps, so much beauty skin deep?" 
 
Williard