Joining its close ally, El Salvador, as well as Nicaragua and Honduras, Guatemala has today fully entered the Central American Free Trade Agreement. Two more countries are yet to ratify their entry, but Guatemala has gotten it together and today is a happy day.
Trade, in and of itself, is why the U.S.’ economy has grown so strongly, despite high oil prices and big layoffs and other economic plagues. Trade is simply a much stronger factor.
It’s also something that scares the hell out of Hugo Chavez of Venezuela. There is nothing he fights the U.S. harder on or bullies his neighbors more strenuously on than this matter of no business of his, than free trade.
With free trade, Guatemala will grow prosperous, its institutions will strengthen and it will become a bigger player on the international stage than its tiny size might dictate. For examples of this, just look at tiny Singapore or tiny Hong Kong, both trade giants, and experiencing excellence on every other front of human achievement as a result.
Welcome, Guatemala!
Here is the press release:
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
USTR Press Releases are available on the USTR website at www.ustr.gov.
For Immediate Release:
June 30, 2006
Statement of USTR Susan C. Schwab Regarding Entry Into Force of the U.S.
– Central America – Dominican Republic Free Trade Agreement (CAFTA-DR)
for Guatemala
“I am pleased the President has issued a proclamation to implement the
CAFTA-DR agreement for Guatemala as of July 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 Guatemala is now ready to join El Salvador, Honduras
and Nicaragua in full implementation of this agreement. I greatly
appreciate the sincere and diligent effort by Guatemala to adopt the
necessary regulatory and legislative framework under CAFTA-DR.
“We will continue our work with the remaining two 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.
The CAFTA-DR entered into force for El Salvador on March 1, 2006, and
for Honduras and Nicaragua on April 1, 2006.
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