Cafta : Challenges and Opportunities in the Agricultural and Agro-Industrial Sectors
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World Bank, Washington, DC
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A Central America Free Trade Area
(CAFTA) has been under negotiation since January 2003. A
World Bank report, Opportunities and Challenges for the
Agricultural and Agroindustrial Sectors of Central America
from a Free Trade Agreement with the United States of
America, examines how a FTA between the US and CA countries
might affect the agricultural and agroindustrial sectors of
Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
Two main questions are addressed: (i) how to guarantee
better US market access for CA's agricultural and
agro-industrial exports, and (ii) how to promote greater
openness to imports from the US of food products that are
"sensitive" in each CAdomestic market. The
authors analyze the structure of agricultural and
agro-industrial exports and patterns of revealed comparative
advantages in Central America (CA), and tariff and
non-tariff barriers (NTBs) these exports face in the US.
The report suggests that the CAFTA negotiations consider (i)
lessons from Mexico's entry into NAFTA, (ii) existing
protectionism in the US, and (iii) specific features of each
CA country. It recommends domestic policy reforms to
improve the competitiveness of CA producers of sensitive and
new export goods.
Palabras clave
TRADE LIBERALIZATION, PROTECTIONISM, WORLD TRADE ORGANISATION, FREE TRADE AREAS, CARIBBEAN BASIN INITIATIVE, AGRICULTURAL INDUSTRIES, NORTH AMERICAN FREE TRADE AGREEMENT, DOMESTIC POLICIES, AGRICULTURAL EXPORTS, HUMAN CAPITAL, INFRASTRUCTURE, EXPORT ABSOLUTE VALUE, AGRICULTURAL COMMODITIES, AGRICULTURAL EXPORTS, AGRICULTURAL PRODUCTION, AGRICULTURE, APPLIED TARIFF, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPETITIVENESS, COMPETITIVENESS OF FIRMS, DEVELOPMENT ECONOMICS, DOMESTIC CONSUMPTION, DOMESTIC MARKET, DOMESTIC PRODUCTION, DOMESTIC PRODUCTION SUBSIDIES, DUMPING, ECONOMIC EFFECTS, EXPORTERS, EXPORTS, FISH, FREE ACCESS, FREE TRADE, FREE TRADE AGREEMENTS, FREE TRADE AREA, GDP, HUMAN CAPITAL, IMPORT SUBSTITUTION, IMPORTS, INDUSTRIAL PRODUCTS, LIBERALIZATION OF TRADE, MARKET ACCESS, MEAT, NET EXPORTER, NON-TARIFF BARRIERS, OPENNESS, POLICY MAKERS, PREFERENTIAL TARIFF, PREFERENTIAL TARIFF TREATMENT, PREFERENTIAL TREATMENT, PRICE ELASTICITY, PRIMARY PRODUCTS, PRODUCERS, PRODUCTION COSTS, PROTECTIONISM, PROTECTIONIST PRESSURES, QUOTAS, RATES OF PROTECTION, SUGAR, TARIFF BARRIERS, TARIFF REDUCTIONS, TERMS OF TRADE, TRADABLE GOODS, TRADE AGREEMENT, TRADE AGREEMENTS, TRADE BARRIERS, TRADE FLOWS, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE PARTNER, TRADE POLICY, TRADE POLICY REFORMS, TRADE RESTRICTIONS, URUGUAY ROUND, VALUE ADDED, WORLD PRICES, WTO