[Ecommerce] AP: Honduras, Nicaragua Join CAFTA

[Thiru Balasubramaniam]

<SNIP>


Costa Rica, Guatemala, and the Caribbean island of the Dominican
Republic remain left to join after implementing promises in such areas
as the protection of intellectual property rights, a key U.S. demand.

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Honduras, Nicaragua Join CAFTA
Associated Press
April 1, 2006 9:55 p.m.

TEGUCIGALPA, Honduras -- Honduras and neighboring Nicaragua on Saturday
joined a regional free trade agreement with the U.S. that has provoked
protests throughout Central America amid fears it will harm small
businesses and farmers.

At a ceremony to inaugurate the Central American Free Trade Agreement,
Honduran President Manuel Zelaya said his country is embarking on a
"different and extremely important path for the strengthening of
democracy."

The treaty, he added, is "a way for us to broaden our growth
possibilities and reduce our poverty."

At an agricultural plant outside Managua, President Enrique Bolanos
certified his country's first export under the treaty -- a $20,000
shipment of beans.

A spokesman for Bolanos, Lindolfo Monjarretz, said Nicaragua hopes to
increase its exports by 20% and produce more jobs.

Last month, El Salvador became the first Central American country to
join the pact.

Costa Rica, Guatemala, and the Caribbean island of the Dominican
Republic remain left to join after implementing promises in such areas
as the protection of intellectual property rights, a key U.S. demand.

U.S. ambassador to Honduras, Charles A. Ford, called Saturday "an
important day for my country and Honduras."

"Change causes fear, but we are confidant in the future," he added.

But not everyone was celebrating.

Thousands of farmers, street vendors, university students and others
have marched in cities across Central America to protest the agreement.

Lawmaker Doris Gutierrez, of the leftist Party of Democratic
Unification, said the pact violates the constitution, omitting "all
possibilities that small and medium-size producers can compete."

She added that while U.S. products already dominate Honduras' import
market, the United States "buys few products from Honduras...and that's
going to hurt us."

Melvin Redondo, Honduras' lead negotiator in the trade talks, said the
pact will help attract foreign investment and create jobs.

Honduras has an "opportunity to show the world our capabilities to
produce, compete and develop," he said.

The deal is designed to eliminate tariff and non-tariff barriers among
the participating countries and is part of Washington's push to strike
free trade deals with nations around the world as a way of boosting
U.S. exports.

The agreement cleared the U.S. Congress after a hard-fought battle last
year. It had been expected to take effect on Jan. 1 with all six
nations, but it has run into a series of obstacles as different
countries have had trouble passing laws to meet U.S. demands.

Copyright =A9 2006 Associated Press