Guatemala joins trade agreement
Miami Herald, USA
Guatemala joins trade agreement
By Jane Bussey
1 July 2006
A free-trade agreement with Central America inched closer to completion with the announcement that Guatemala will join three nations already in the pact today.
Guatemala is the latest country to join the U.S.Dominican Republic-Central American Free Trade Agreement, or CAFTA. El Salvador implemented the agreement in March and Honduras and Nicaragua in April after receiving the green light from Washington. Costa Rica and the Dominican Republic have yet to join.
The Guatemalan congress passed legislation implementing CAFTA Wednesday after months of delay. President Bush signed the proclamation sealing the deal Friday.
’’Now it is the responsibility of the private sector to complete this accord,’’ said Mariano Rayo, chairman of the Economy and Foreign Trade Commission.
The Guatemalan government has been struggling for months to meet Washington’s conditions. Its congress met in a special session to approve new rules on telecommunications and commerce regulations and new laws for industrial property, copyright and arbitration.
CAFTA makes already existing duty-free benefits for apparel permanent for the six countries. The six countries will lower duties or increase quotas for U.S. agriculture and manufactured products.
The agreement faced opposition in Guatemala, and at least one person was killed in protests when the accord was first approved last year. Critics have said increased imports of U.S. subsidized corn and rice will create hardships for Guatemalan farmers.
