The Central American Free Trade Agreement Essay -- CAFTA International

The exchange the Statesn Free Trade AgreementCAFTA is a proposed international free trade agreement between the join States and numerous countries within Central America. Some of the nations who could potencyly participate in this accordance are Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. This proposed agreement stems primarily from the fact the linked States relies on Central America as a primary exporting market. In fact, it is intrustd this area of world is Americas 18th largest export target. Another bring 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 Caribbean toilet Initiative. This initiative on the wholeowed around 74% of all exports to America to arrive concern free. Meanwhile, U.S. goods entering their region faced of much deeper import duty of well-nigh 10%. All in all, the U.S. gove rnment believes this act will change integrity democracy and level the playing field for future products produced by the United States. From the very beginning, The United States has gone to great lengths to express the upside to modify this existing policy. The country takes the stand that this will benefit both parties by allowing greater access to the U.S. market. The U.S. has also continually used the North American Free Trade Agreement (NAFTA) as a model for the policies potential success. Current government leaders contend CAFTA will benefit all American consumers buy opening up a broader spectrum of trade. They also believe putting this policy into action will promote a much modern concept of trade in Central America, allowing the region to sojourn in stinting development and democratic governance. Perhaps the biggest benefit occurring from CAFTA would be the eventual promoting of U.S. exports. Opening this trade agreement would broaden the spectrum in which U.S. goods a re bought and sold. This of course would widen the market allowing for a stronger American economy as a result of a bigger consumer instauration. Furtherto a greater extent, a bigger consumer base overseas creates a direct result of a need for to a greater extent production hither at home. In the simplest of terms, that means more jobs here there for creating a stronger economy. Besides all the numbers and economic figures, America also benefits by spreading the philoso... ...e they say, who should be in the forefront of our finale making.Creating a position on CAFTA is a hard and complicated process. on that point are so many angles to be viewed that it makes a definitive view almost impossible. When simply going over the general facts it is very homely both sides create some excellent points. Hypothetically, the United States argument is improve in the fact creating worldwide trade does open the doors for growth and economic expansion. Trade agreements no doubt break down b arriers and provide a more cohesive policy. However, the possible side effects can not be ignored, especially in an area as delicate as Central America. In an economy that thin it is dangerous to say the least(prenominal) to alter their entire system and try to mold it after a huge and stable democracy. Just because it works for us does not unavoidably mean it will create benefits for them. Furthermore, to throw this policy upon a country that is uneducated in its principles is down right ignorant, and reeks of a self table service motive. Due to this fact, I believe it is in Central Americas best interest to reject the CAFTA proposal, and perhaps wait for a more proven and solid trade philosophy.