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Work Cited

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
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