MercoPress. South Atlantic News Agency

CAFTA launch: Jan 1, 2006

The CAFTA trade accord linking five Central American countries and the Dominican Republic with the United States will enter into force on Jan. 1, leaders of the region agreed here Thursday at a meeting with U.S. Commerce Secretary Carlos Gutierrez.

Salvadoran President Tony Saca said that "Jan. 1 begins free trade with our main trading partner," adding that the Central American countries "declare ourselves ready" for the new phase in economic links.

Gutierrez, speaking at the same press conference in the Salvadoran presidential palace, remarked that "it's a matter of work, of implementation, of doing some pending things," but he added that "we don't see any obstacle" to CAFTA's taking effect at the beginning of next year.

Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the United States signed CAFTA on May 24, 2004, and the Dominican Republic joined the group three months later.

The congresses of the signatory nations, except for that of Costa Rica, have ratified the treaty.

Also attending the Thursday meeting with Gutierrez were Guatemalan President Oscar Berger, Honduran leader Ricardo Maduro, Costa Rican Agriculture Minister Rodolfo Coto and Dominican Foreign Minister Carlos Morales.

Groups representing peasant farmers in Guatemala, which suffered as many as 2,000 fatalities and massive damage from rains associated with Hurricane Stan, had urged Berger's government to delay formal adhesion to CAFTA. The rural activists said Guatemalan farmers are in no shape to face unfettered competition from imports.