Essay about The Central American Free Trade Agreement

The Central American Free Trade Agreement CAFTA is a proposed international free trade agreement between the United States and numerous countries within Central America. Some of the nations who could potentially participate in this treaty are Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. This proposed agreement stems primarily from the fact the United States relies on Central America as a primary export market. In fact, it is believed this area of world is Americas 18th largest export target. Another contributing factor to the proposed agreement comes from what is believed to be an unfair trade policy. During the presidency of Ronald Reagan, Central American countries had many tariffs slashed under what is known as the†¦show more content†¦By having nations worldwide adopt such programs as free trade, they also are more likely to convert into a democratic government. The United States also takes the position that a free trade agreement will help introduce Central America into the modern world. Many countries south of the border still relay heavily on small farms and independent growers for much of the nations fiscal identity. The U.S. stands firm in the belief CAFTA would allow Central America to adapt to a more modernized economic system, which would in turn create growth and prosperity for the countries and their respective people. It is our government’s belief CAFTA would create stability in an otherwise up and down area of the world. Going off the belief that our economic system is a cycle highly dependent on cooperation from other nations, this means nothing but positives for all involved. It is the solid belief of the U.S. government that the key to economic growth and financial gain through world trade is open markets and transparency. According to the United States, a free trade agreement breaking down barriers and widening the trade field will allow for permanent gains and growth for all nations involved. Despite these points put forth by the U.S., there still exist a strong and valid opposition to the proposed CAFTA agreement. It is a solid belief that a free trade agreement will swallow up and destroy the back bone of most agricultural nations. This of course is theShow MoreRelatedThe U.S. Central American Free Trade Agreement Essay919 Words   |  4 PagesThe U.S.-Central American Free Trade Agreement (CAFTA). The U.S.-Central American Free Trade Agreement(CAFTA) is a trade agreement that is being negotiated between the United States and five Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The United States is committed to opening markets around the world because American farmers, workers, consumers and businesses want to sell our world class goods and services. 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