Thread: Hondurans Brace for Pros, Cons of CAFTA

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Hondurans Brace for Pros, Cons of CAFTA

by Kathleen Schalch
Audio for this story will be available at approx. 10:00 a.m. ET


Serafin Jimenez, who works with an advocacy group that assists indigenous farmers.
Kathleen Schalch, NPR

Serafin Jimenez, who works with an advocacy group that assists indigenous farmers, says CAFTA would threaten a way of life in small mountain villages.


Morning Edition, May 19, 2005 · The Central America Free Trade Agreement has been as controversial in other countries as it has in the United States. For Honduras and other small, relatively poor countries, the consequences of free trade with the largest economy in the world could be enormous.

In Honduras, the two businesses that CAFTA may affect the most are agriculture and manufacturing. While corporate manufacturers are expected to benefit more than individuals, it seems sure that the number of factory jobs will increase. But critics say those changes will help U.S. corporations more than Honduran businesses.

Already, manufacturing plants are slated to open in Honduras -- often by companies who believe wages in Mexico have grown too high. Some 50 percent of Hondurans live on less than a dollar a day.

Also, unions complain that CAFTA is unfair to local farmers. One example they cite is sugar cane. Despite producing sugar more cheaply than their U.S. counterparts, Honduran farmers will face quotas on what they import to the United States. In contrast, U.S. farmers will not be restricted.

Some economists share these concerns. They point out that roughly half of Central Americans live in rural areas, and more than a third are farmers. The World Bank's Philippe Jaramillo admits that while some farmers will likely be hurt by CAFTA, the resulting economic growth will help -- particularly if Central American governments invest in essential programs, like roads and education.


This report is part of public radio's "Thinking Globally" series.

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Morning Edition, May 19, 2005

I guess I found it early.

Look at this crap!

The World Bank's Philippe Jaramillo admits that while some farmers will likely be hurt by CAFTA, the resulting economic growth will help -- particularly if Central American governments invest in essential programs, like roads and education.

Yes, these dictator/thieves will certainly invest in essential programs and infrastructure! And it snows in the summer.

Disgusting