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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 91 / 153

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How to Trade Up: Can trade negotiations with the United States help Central America to Unite?

- The Economist, Feb. 13, 2003 –

What two countries in the region have not been part of the Central American Common Market (1960) nor the current proposed CAFTA?

The US exports $9 billion in goods each year to Central America yet this accounts for less than 1% of total US exports => region not important to US trade or economy.

Therefore, why does the US want CAFTA?

Does Central America have a high tariff structure?

What benefits does Central America hope to receive from CAFTA?

Why do the five Central American countries desire greater cooperation between themselves?

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