ASSESSMENTS

Washington May Draw a Bull's-Eye on Central American Trade Pact

Feb 15, 2018 | 09:00 GMT

In this 2005 file photo, former U.S. President George W. Bush talks about the Central America-Dominican Republic Free Trade Agreement in Washington, joined by former Cabinet officials who supported the trade deal.

In this 2005 file photo, former U.S. President George W. Bush talks about the Central America-Dominican Republic Free Trade Agreement in Washington, joined by former Cabinet officials who supported the trade deal. The Trump administration could move to renegotiate the agreement by 2019.

(MARK WILSON/Getty Images)

Highlights

  • U.S. trade negotiators could move to renegotiate aspects of the Central American-Dominican Republic Free Trade Agreement by 2019.
  • The United States already has a trade surplus with the pact's member states, so any renegotiation will likely focus on making trade gains or amending aspects of the agreement's fine print.
  • Because Honduras, Guatemala, and El Salvador figure prominently in the Trump administration's security concerns, any renegotiation may be accompanied by U.S. pressure to tighten law enforcement against illegal migration, drug trafficking and criminal gang activity.

Since coming to office, U.S. President Donald Trump has made no bones about his desire to comprehensively refashion Washington's trade deals. But while more prominent deals such as the North American Free Trade Agreement have grabbed the most attention, a pact that brings together the United States and some Central American countries and the Dominican Republic has largely flown under the radar. Recent rumblings from Central America and U.S. lobbyists, however, suggest that the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) ultimately may end up in the Trump administration's sights. The U.S. government's preoccupation with other trade deals might preclude any move by Washington to alter CAFTA-DR before Trump's current tenure ends, but the administration could open talks on the pact, pursuing both changes to trade and demanding that area countries enact more robust security measures....

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