Central American Trade Agreements

Regional Paper

Countries from Central America have been trying to improve competitive improvements by joining together their economies to make a larger profitable business that is associated with the free trade agreements with superior markets. As soon as Central America was introduced to the strength of the U.S.-Central American Free Trade Agreement (CAFTA), a high trade priority that the second term of President Bush's Administration helped create for regions like Dominican Republic, will join the historic trade with the United States. Mexico and Panama also have their free trade agreement with the United States along with their neighbors from Central American; which is essential for their expanding agendas. In the course of trade-led, diversified economic growth, the countries from Central America are indicating their true dedication to create and expand their financial opportunities that will facilitate the distribution of prosperity and elevate the way of living for everyone in Central America.

Free trade and economic development have become the starters of expansion for many countries, even though they exactly resolve differences. Central America's economy is growing slowing, but showing some improvement, although it is still too low to handle an aggressive anti-poverty agenda. Unfortunately, the profits of economic increases are not stretching equally between the residents of these countries. Other disputes have came up that consist in the risk of loss of profits and the change of rural jobs were brought when CAFTA was established and of course, termination of the Multi-Fiber Agreement. Additional challenges that CAFTA faces are customs integration and harmonization of tax, fiscal, sanitary and phyto-sanitary (SPS), and ecological procedures as well as board of the Meso-American Biological Corridor.

In order to gain benefits from the CAFTA as well as from further global trade opportunities, Central American and Mexican governments have had the need to improve their they way they compete by lowering operation expenses across the borders; harmonizing regional commercial, tax, environmental, and labor laws and policies; along with using the natural resources that these countries promote as an example could be green market products that are use in third-party certifications. In changing coffee production into an excellent quality and the specialty of the marketplace along by country farming the will diversify programs, both governments from these countries are suppose to give practical financial choices for these entire agriculture farm. The natural resources from these countries are a huge gift as well as the environment that supply proportional compensation that the countries ought to benefit from moving forward to accomplish an expansion.