Why is CAFTA important for Central America?
First, because it will send a good signal from our ally, the U.S. Second, it will make permanent all of the [zero-tariff] provisions that [the U.S.] has unilaterally given us through the Caribbean Basin Initiative. Third, it will make Central America interesting for investors, because of its good labor force and infrastructure. Q: What happens if CAFTA doesn’t pass? A: We would have to ask the U.S. to widen the range of export goods that would qualify [for duty-free access to the U.S.] under the Caribbean Basin Initiative. Without CAFTA, we would be at a frank disadvantage against China. We would have a lot of unemployment. This region has believed in democracy and in free trade, and now that we are prepared with solid institutions and infrastructure, if we don’t achieve free trade with the largest market in the world, that would send a very bad signal to Central America. Still, it wouldn’t be the end of the world. [Either way], we are going to launch a new housing-construction and ind
