The International Trade Agreement With Costa Rica,...

Introduction On August 2004, the United States signed the Central America Free Trade Agreement with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. CAFTA is the first free trade agreement of its kind given that it is between the United States and smaller developing countries. The agreement encourages economic cooperation among these nations resulting in a stronger regional integration and contributing to greater stability. Beginning with a brief overview about the history of CAFTA, in this paper I will discuss the main issues being debated on CAFTA and analyze the effect it will have on US industries, specifically on sugar, textiles, and agriculture, as well as the benefits to the Central American countries involved in the agreement. CAFTA Historically, the United States has established free trade agreements with each of the countries in the agreement. These agreements, as well as CAFTA, are currently active. The US government policy had originally granted these countries relative open access to US markets, as well as protection of their own markets with the use of tariffs and other trade barriers. These were implemented specifically to restrict US access to their markets. Then, CAFTA changed the trend by eliminating tariffs, opening markets, reducing barriers to goods and services, and promoting transparency through regulatory practices, while supporting environmental protections (7). Moreover, it promotes investment between theseShow MoreRelatedCentral America Free Trade Agreement1242 Words   |  5 PagesFree Trade Agreement and Its Economic Impact Overview Negotiations started in early 2004 on the Central America Free Trade Agreement, later on in the negotiation process the Dominican Republic joined to make CAFTA-DR. The original countries that made up CAFTA were Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua with the Dominican Republic joining forces later on. CAFTA was coupled together with NAFTA and the Canada-Costa Rica Trade Agreement separating them from the Free Trade of theRead MoreHistory Of CAFTA-DR924 Words   |  4 PagesCentral American Free Trade Agreement is an expansion of the North American Free Trade Agreement and is the largest free trade agreement. It expanded by including five Central American nations. CAFTA members are United States and Guatemala, El Salvador, Honduras, Costa Rica, Nicaragua, and the Dominican Republic. The Central American Free Trade Agreement started on April 1, 2006, when Honduras and Nicaragua fully implemented the agreement. On May 18, 2006, the Congress of Guatemala ratified CAFTA-DRRead MoreThe Dominican Republic-Central America-United Stats Free Trade Agreement1218 Words   |  5 PagesRegional Trade Agreement (RTA) have remained fairly consistent. 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Table 1 U.S. Goods Exports to FTA Partners-Top 7 Billion U.S. DollarsRead MoreInternational Trade Agreements And How Governmental Influences Benefited Trade1231 Words   |  5 Pagesengaging in international trade agreements and how governmental influences benefitted trade. To regulate international trade between nations, international trade agreements exist. These agreements involve regulating imports, exports and international trade of some specialty goods. The United States have been involved in many international trade agreements including free trade agreements. Free trade Agreements (FTA) helps the United States to open up foreign markets for domestic firms. The agreements helpRead MoreBenefits Of A Free Trade Zone Between The United States And Six Less Developed Central American Countries2122 Words   |  9 PagesChelsea Jorgensen INB 260 Debate Topic : Benefits of CAFTA When the Central American Free Trade Agreement CAFTA was passed, it created a free trade zone between the United States and six less developed Central American countries. The creation of a free trade zone would increase the standards of living for all countries involved by driving down production costs. By opening the markets, CAFTA aimed to create more economic opportunities to produce in areas where a country has a comparative advantageRead MoreU.s. Foreign Agricultural Production1492 Words   |  6 Pages300 and in 2014 the employment was 2,138,300. Between 2004 and 2014 employment has increased by 26,900. The projected employment for 2024 is 2,027,700. Between 2014 and 2024 employment is projected to decrease by 110,500 which is 6%. Although international demand for crops and other agricultural products has increased, fewer agricultural workers may be needed due to consolidation and technological advancements in farm equipment. Overall in the U.S. the decline in workers is redu cing fruit and vegetable