Washington, Dec 18: The United States and four central American nations have entered into a comprehensive free trade agreement, Cafta, that will eliminate tariffs and promote economic growth in the region. The agreement reached yesterday would provide Guatemala, Honduras, El Salvador and Nicaragua duty-free access to the vast US market while consumers in United States would enjoy cheaper prices.
The Central American Free Trade Agreement needs an approval from the US Congress.
The US Trade Representative Robert Zoellick called the Cafta a "top-quality, groundbreaking free trade agreement" that will provide "almost all" of central Americas exports, industrial and agricultural, immediate duty-free access to the United States.
The agreement is on similar lines with the decade-old north American free trade agreement linking the US, Mexico and Canada.
Bureau Report