For Immediate Release
Office of the Press Secretary
January 16, 2002
Fact Sheet -- U.S. - Central America Free Trade Agreement
Today I announce that the United States will explore a free trade
agreement with the countries of Central America. My Administration will
work closely with Congress towards this goal. Our purpose is to strengthen the economic ties we already have with these nations 'to
reinforce their progress toward economic, political, and social reform
... and to take another step toward completing the Free Trade Area of
the Americas.
President George W. Bush,
January 16, 2002
Today's Presidential Action
President Bush announced an important
next step in effort to expand trade and create jobs. The
Bush Administration is prepared to explore the possibility
of negotiating a U.S.-Central America Free Trade Agreement with Central
American leaders.
This exploration will entail close
consultations with the U.S. Congress, as well as with leaders in the
Central American region.
Background on U.S. - Central America Free Trade Agreement
The United States is committed to
proceeding with trade initiatives globally, regionally and with
individual nations.
These free trade arrangements will
strengthen our economy at home -- benefiting American farmers,
businesses, workers, and consumers. At the same time, these
agreements will promote economic development and democratic governance among our trading partners.
By moving on multiple fronts simultaneously, this strategy will enhance America's world leadership on trade by strengthening our economic ties, promoting fresh approaches to international economic problems, and leveraging American influence to improve the quality of life at home and abroad.
The Administration has already made key progress toward expanding trade with Central America. During 2001, the Bush Administration discussed with Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua their interest in a free trade
agreement with the United States.
These countries met in Managua in September 2001 to explore ways to forge closer economic relations and advance free trade. On the basis of the interchanges, the five Central American countries have expressed interest in pursuing a free trade agreement with the United States as a group, and have indicated their readiness for negotiations.
A U.S. - Central America Free Trade
Agreement would:
Promote U.S. Exports: The United States exported $8.8 billion to Central America in 2000 -- more than we sold to Russia, Indonesia, and India combined. Mexico and Canada -- our NAFTA partners -- have already recognized the potential of the
Central American market and the need to support Central American
reforms by pursuing their own free trade agreements with countries in
the region. Chile has done the same.
The U.S. should not be left behind in North America's economic engagement with Central America. A U.S.-Central America free trade agreement would ensure that American workers and companies are not disadvantaged, build on the $4 billion of U.S. investment in the region, and avoid erosion of U.S. competitiveness.
U.S. duties for the region are already low, as these countries are beneficiaries of the Caribbean Basin Initiative. U.S. imports from Central America totaled $11.8 billion in 2000.
Support Democracy and Economic Reform:
During the past decade, Central American countries have established
democratic systems of government and begun implementing economic
reforms to promote privatization, competition, and open
markets.
The United States has supported the development of
democracy, enhanced economic growth, and security for human rights
through the Caribbean Basin Initiative, including the Caribbean Basin
Trade Partnership Act.
The proposed free trade agreement with the
United States would commit these countries to even greater openness and
transparency, which would deepen the roots of democracy, civil society,
and the rule of law in the region, as well as reinforce market reforms.
These reforms, coupled with the increased trade and investment flows,
would promote expanded growth and openness in the region, as well as
support common efforts to achieve stronger environmental protection and
improved working conditions.
Furthermore, trade negotiations
would lead to close cooperation among the Central Americans, thereby
advancing Central America's integration and contributing to greater
peace, economic cooperation, and stability in the region.
A free trade
agreement would be reciprocal, and without a limited term, unlike
current statutory trade preference laws, assuring all partners of a
long-term outlook that will strengthen North American cooperation with
Central America.
Advance FTAA: This negotiation will
complement the United States' goal of completing the Free Trade Area
of the Americas (FTAA) no later than January 2005 by increasing the
momentum in the hemisphere toward lowering barriers, opening markets,
and achieving greater transparency.
The United States
already has a free trade agreement with Mexico and Canada, and the
Administration expects to complete our negotiation for a free trade
agreement with Chile this year.
Furthermore, by working together on
common disciplines and trade objectives through bilateral negotiations,
the United States will enhance the ability of all parties to forge
consensus in other multilateral trade negotiations, especially the
FTAA.
For more information on the President's initiatives, visit
www.whitehouse.gov
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