CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
CAFTA likely to miss Jan. 1 target
Several countries affected by slowly pending trade agreement may need additional preparation time.

WASHINGTON (CNN) - Staffers on Capitol Hill and in the Bush administration said Thursday it is unlikely that the Central American-Dominican Republic Free Trade Agreement will become active Jan. 1, as had been planned.

The office of the U.S. Trade Representative would not comment on reports that no country is ready to implement the trade pact.

Administration officials said an announcement on the implementation date will be made Friday.

The reports were foreshadowed by a Dec. 19 USTR news release that indicated implementation was proceeding more slowly than had been envisioned.

The release said CAFTA-DR would be implemented on a "rolling basis ... as soon as possible with those countries that the United States has determined to have taken sufficient steps to complete their commitments."

The release said that an announcement would be made before the end of the year as to which, if any, countries would be ready by Jan. 1.

A statement from USTR spokeswoman Christin Baker said all parties had recognized that the Jan. 1 start date "was an ambitious goal, and that all countries might not have completed their implementation process by that time. Other U.S. free trade agreements have had a longer preparation period to get ready, so the need for additional time is not unusual."

She continued, "The United States is prepared to have the CAFTA-DR enter into force as early as Jan. 1, but only with countries that have made sufficient progress in adopting new laws and regulations where necessary. We will move forward as long as at least one country is prepared, and will accommodate new entrants as they become ready."

Signatories to the agreement include the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.

All of the signatories have ratified the agreement except Costa Rica.

In the United States, President Bush signed the legislation in August. CAFTA-DR represents the second-largest U.S. export market in Latin America, behind Mexico.

Supporters predict the accord will boost political and economic stability in the region and open markets to the United States.

Opponents, many of them Democrats, criticize the agreement for failing to include labor and environmental protections to stop abuses of workers in Central America.

Some Republicans also oppose the measure, worrying that competition from the region could threaten such U.S. industries as textiles and sugar.

_______________

Japan's Nikkei index showed its biggest gains since the 1980s this year. You can read the full story here.

For all the latest headlines in International, click hereTop of page

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?