Global Market Brief: CAFTA Signed

The U.S. trade representative and five Central American trade ministers have signed the U.S.-Central American Free Trade Agreement (CAFTA). However, the U.S. Congress might not approve CAFTA until late 2005 or even 2006. This will have consequences on investment and employment in Central America, both before and after CAFTA is finally approved in Washington. It also will increase pressures on poor Central Americans to migrate illegally to the United States.