http://www.nola.com/business/t-p/index. ... 213420.xml


Honduran envoy is bullish on CAFTA
Trade deal to boost U.S. security, he says
Friday, August 26, 2005
By Mary Judice
Business writer

The Central American Free Trade Agreement is about more than trade, the Honduran ambassador to the United States said Thursday.

CAFTA, which was approved by Congress this summer, will eliminate most trade barriers between the United States and five Central American countries -- Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua -- as well as the Dominican Republic. The agreement will facilitate commerce between the countries and encourage investment in the Central American nations. But it also will be good for U.S. national security, Norman Garcia said.


This year the port in Honduras will begin housing a U.S. customs office under the Homeland Security Department's direction so ships will be able to go through customs before they enter U.S. waters.

More security for the United States will result as the Central American countries stabilize their political and economic infrastructures because of CAFTA, Garcia said.

The job and economic growth that increased trade will create in Central America will act as a buffer against the region's problems with social unrest and socialism, Garcia said. Indirectly, those concerns are a national security issue for the United States, he said.

And with investment, there will be "disincentives for immigration" to the United States, said Garcia, who spoke Thursday during a luncheon briefing at the World Trade Center.

CAFTA became a highly controversial issue in last year's presidential race, with many politicians split on the issue.

The Louisiana delegation exemplified the split. The sugar-cane industry in the state lobbied against CAFTA, saying it would result in a flood of cheap imported sugar that would undermine the state's growers. The industry also said CAFTA would open the door to even more trade pacts that could hurt Louisiana sugar.

The Port of New Orleans, on the other hand, actively supported CAFTA, saying it would increase the tonnage moving through the port, creating as many as 2,700 jobs in the city. The trade agreement passed the House by two votes late last month; it was approved 54-45 by the Senate.

CAFTA could help New Orleans re-establish its reputation as a main connection to Central America.

Garcia said New Orleans has lost its reputation as the "Gateway to the Americas" for several reasons. He said the city's port had become expensive and that the Latin community in Miami, heavily populated by Cuban immigrants, is aggressive in its approach to business.

"The Port of New Orleans has made an effort to re-establish past relationships," he said. "What they need is continuity."

But governments can't do it alone, Garcia said. Entrepreneurs must get involved in pursuing business deals as well.

. . . . . . .

Mary Judice can be reached at mjudice@timespicayune.com or (504) 826-3496.