The CAFTA intelligence agency. enterprise florida, n.d. Web. 10 Nov. 2013. <http://www.caftaintelligencecenter.com/subpages/what_is_cafta.asp>.
CAFTA information headquarters. N.p., 2005. Web. 10 Nov. 2013. <http://storesonline.com/site/1435596/page/45031>.
Spotts, Greg. CAFTA and Free Trade: What Every American Should Know (All Access). N.p.: Disinformation Books, 2005. N. pag. Web. 10 Nov. 2013.
Jaramillo, Felipe C., and Daniel Lederman. Challenges of CAFTA: Maximizing the Benifits for Central America. N.p.: n.p., 2006. N. pag. Web. 11 Nov. 2013.
Effects of CAFTA
Why was it formed?
- Florida
- Nearly 40% of trade from these countries to the United States goes through Florida
- More than $18 billion per year
- Nearly 40 companies from Central America operate in Florida and almost 20 from Florida in those countries
- Florida has more airports that offer flights to the CAFTA countries than all other airports in the United States
-Failed model of North American Trade agreement (NAFTA)
-North American free traders failed to launch the Free Trade Area of the Americas (FTAA)
-Expanded coporate rights to the poorest countries in Central America
More effects
- Tariffs
- The tariffs on more than 80% of the goods were ended immediately
- 80% of the $20 billion that the U.S. exported to the CAFTA countries
- Within ten years all of the other tariffs should end as well
CAFTA
Central American Free Trade Agreement (CAFTA)
- Signed May 28th, 2004
- Passed through the U.S. House of Representatives by one night on July 27, 2005
- Free Trade between the United States and Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua and Dominican Republic
http://www.ustr.gov/webfm_send/2633
Products/Services
Clothing and Textiles
- Central America/Dominican Republic factories that make clothes and other fabric items are duty free if they use U.S. yarn and fabric
- They are second in importing yarn and fabric
- Helps U.S. exports and jobs
- U.S. and these countries are uniting to compete with Asia
Why these Countries?
Digital Age
Services
- The market these countries are in is the 16th largest in the world
- Central America and the Dominican Republic are the second largest U.S. export market of Latin America
- Mexico is larger but it is included in the NAFTA
- U.S. wants to help developing countries and promote a secure market for goods and services produced in these countries
- Protection of U.S. software music and text is increased
- Also protection of U.S. patents and trademarks is increased
- Central America has had strict rules that make distribution of services and has agreed to loosen these restrictions
- This agreement offers more accessibility to services:
- Energy
- Transport
- Construction and Engineering
- Financial services
- Insurance