US embassy cable - 03TEGUCIGALPA1852

UNCLAS TEGUCIGALPA 001852 
 
SIPDIS 
 
FOR PD/WHA (OHILTON); 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 REACTION ON CAFTA, AUGUST 4, 2003 
 
 
1. Article in Tegucigalpa-based moderate daily "El Heraldo" on 
8/2 entitled "The crucial issues will be discussed in future 
rounds". "The sixth round of CAFTA negotiations came to an end 
with progress in some regulatory issues of the treaty, but the 
negotiators couldn't reach an agreement on some key issues that 
will be discussed in the next three rounds." 
 
"The negotiators have already concluded negotiations in two 
chapters: electronic trade and customs procedures and trade 
facilitation, but there was no consensus around the most 
sensitive issues, such as agricultural products, textiles, 
patents and trade sanctions related to labor and environmental 
violations." 
 
"The US was clear that their positions will be flexible, but it 
also wants reciprocity in access to Central American markets. On 
this issue, the lead US negotiator Regina Vargo said, `we want 
reciprocity and also some flexibility. although we don't 
necessarily mean reciprocity in the sense of exchanging one thing 
for another." 
 
2. Editorial in Tegucigalpa-based moderate daily "El Heraldo" on 
8/4 entitled "Progress of CAFTA". "The most positive result from 
the sixth round of the CAFTA negotiations was that the isthmus 
kept the unified position it should have had from the beginning, 
after the Guatemalan reconsideration. The negotiations themselves 
progressed on some regulatory principles, but the discussions on 
key issues were left for the last three rounds." 
 
"Meanwhile, the Bush administration celebrated the Congressional 
ratification of the FTA with Chile, the first the U.S. has signed 
with a South American country, which improves the possibility of 
achieving the goal of establishing a free trade agreement region 
in the Americas by the year 2005." 
 
"We hope that in the seventh round of negotiations, the US goes 
further than the `flexibility' shown last week, to progress on 
the most sensitive issues such as agricultural products, textiles 
and patents. In the interim, the Central American negotiators 
should work together and stay alert because it's up to them to 
sign a good or bad agreement with the utmost and unique global 
superpower." 
 
 
Pierce