US embassy cable - 03TEGUCIGALPA1470

UNCLAS TEGUCIGALPA 001470 
 
SIPDIS 
 
FOR PD/WHA (MBUCKLEY); IIP/G/WHA DIPASQUALE; EB/EPPD DCLUNE; 
USTR AGASH 
INFO IIP/T/ES 
EMBASSIES FOR PAOS, IOs, 
 
E.O. 12958: N/A 
TAGS: OIIP, KPAO, HO, PA, ETRD, USTR 
SUBJECT: MEDIA REACTIONS ON CAFTA, JUNE 23, 2003 
 
 
1. Op-ed by Moises Starkman in Tegucigalpa-based moderate 
daily "El Heraldo" on 6/23 entitled "CAFTA opportunities". 
"The conflicts that the CAFTA negotiations have faced show, 
once again, that we as Central Americans have not learned to 
work taking into account our common regional interests." 
 
"Unfortunately, CAFTA does not expect to solve the problems 
that the Central American integration process has 
experienced for so many years. we should not waste the 
opportunity to sign CAFTA and promote through it higher 
levels of investment, production, exports and employment in 
the region, as well as access to better and cheaper 
products." 
 
"We are confident that the Honduran delegation will be able 
to defend the national interests during these negotiations. 
We are optimistic that they will listen to the proposals and 
suggestions from the private sector, workers and consumers, 
who should be the basis of this agreement." 
 
2. Editorial in San Pedro Sula-based liberal daily "La 
Prensa" on 6/23 entitled "The failures of CAFTA". "The facts 
are more eloquent than words and they show that the Fifth 
round of CAFTA negotiations carried out in Tegucigalpa were 
a complete failure." 
 
 
 
"One of the factors that caused this fiasco was the lack of 
vision of the U.S. lead negotiator Regina Vargo, or perhaps 
of her superiors, that led to an absurd offer from 
Washington to act as if the Generalized System of 
Preferences and the Caribbean Basin Initiative do not exist, 
proposing that trade with the U.S. should start from scratch 
which could mean a step back for Central America in certain 
productive areas, such as textile production." 
 
"To go forward, it is crucial to find out what Washington 
wants from this negotiation, to offer the U.S. something 
they are interested in, and put an end to the stagnation of 
the process." 
 
3. Editorial in San Pedro Sula-based liberal daily "Tiempo" 
on 6/23 entitled "Fifth Round of CAFTA negotiations". "These 
negotiations should not only be limited to trade, CAFTA 
should become a mechanism to solve the basic problems of the 
relationship between Central America and the U.S." 
 
". CAFTA should help to create a value-added production zone 
and employment in Central America to prevent the current 
massive flows of illegal migration to the U.S. Furthermore, 
it ought to eliminate the socio-economic problems that 
favors other unlawful activities such as narco trafficking, 
terrorism and organized crime." 
 
4. Article in "La Tribuna" on 6/23 entitled "The U.S. wants 
to make a double play". According to Medardo Galindo, 
president of the Federation of Agricultural Exporters of 
Honduras, many Honduran products would be exported to the 
U.S. tax-free since they are included in the Caribbean Basin 
Initiative, but if CAFTA was approved as it is now, they 
would be paying taxes in a range of 11 to 29 percent. 
 
5. Article in "La Tribuna" on 6/23 entitled "CAFTA proposals 
were unrealistic". The Honduran congressman and private 
entrepreneur Gilberto Goldstein stated, "We're like small 
fish facing a shark. An agreement was trying to be signed 
when the region is not even united, making any proposal 
unattainable. My suggestion is that the Central American 
presidents find a form of unity within the isthmus in order 
to deal with the first and biggest economy of the world." 
 
 
 
6. On 6/23 "La Tribuna" featured an article entitled 
"Chicken in pounds". "During the fifth Round of CAFTA 
negotiations, there were discussions on the possibility of 
exporting and importing chicken breasts and legs between the 
US and the region. The trading of chicken parts would fall 
under the `sensitive' category, along with fruits, grains, 
pork and beef." 
 
 
Palmer