U.S. Central America Trade Pact in Force in Honduras, Nicaragua

CAFTA-DR now has been ratified by all partners except Costa Rica

President Bush issued a proclamation March 31 to implement the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) in Honduras and Nicaragua on April 1.

"Honduras and Nicaragua are now ready to join El Salvador as countries that have fully implemented the agreement," U.S. Trade Representative Rob Portman said in a March 31 statement.

Other countries participating in CAFTA-DR with the United States are Guatemala, Costa Rica and the Dominican Republic. All but Costa Rica now have ratified the trade pact.

"I greatly appreciate the sincere and diligent effort by our partners to adopt the necessary regulatory and legislative framework under CAFTA-DR, and I look forward to seeing the benefits of CAFTA realized by all participants," said Portman.

For more information on the trade pact, see Central America Free Trade Agreement-Dominican Republic.

The full text of the presidential proclamation is available on the White House Web site.

Following is the text of Portman's statement:

OFFICE OF THE U.S. TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.

FOR IMMEDIATE RELEASE
March 31, 2006

Statement of USTR Rob Portman
Regarding Entry Into Force of the U.S.-Central America-Dominican Republic
Free Trade Agreement (CAFTA-DR)
for Honduras and Nicaragua

"I am pleased that the President issued a proclamation to implement the CAFTA-DR agreement for Honduras and for Nicaragua on April 1, 2006.

"We have worked closely and intensively with all six CAFTA-DR countries to ensure they meet the obligations and responsibilities under the agreement. Our constructive engagement has had positive results and we're pleased that Honduras and Nicaragua are now ready to join El Salvador as countries that have fully implemented the agreement. I greatly appreciate the sincere and diligent effort by our partners to adopt the necessary regulatory and legislative framework under CAFTA-DR, and I look forward to seeing the benefits of CAFTA realized by all participants.

"We will continue our work with the remaining three CAFTA-DR partners to ensure timely and full implementation of the agreement."

Background

The United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua signed the CAFTA-DR in August 2004. All but Costa Rica have ratified the Agreement.

Implementing legislation for the CAFTA-DR passed the U.S. Senate in June 2005 and the House of Representatives in July 2005 and was signed by the President in August 2005.

El Salvador was the first country to enter into force on March 1, 2006. With the entry into force with Honduras and Nicaragua, the U.S. now has the CAFTA-DR agreement implemented with three countries.

Source: U.S. Department of State

judythpiazza@gmail.com