Formation of Central American Free Trade Agreement (CAFTA): The Business Logic


Code : ITF0022

Year :

Industry :General Business

Region : :USA Central America

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: With a trade volume of $31.9 billion between them in 2003, the US and the six Central American countries had a lot at stake in the formation of CAFTA (Central American Free Trade Agreement). After the agreement was signed on May 28 th 2004, CAFTA's probable impact on global trade had been debated all over the world. On June 30 th 2005, despite concerns over the disagreement between Republicans and Democrats, CAFTA was passed by a 54 to 45 vote in the US senate. On July 28 th 2005, CAFTA, backed by President George W. Bush and Vice President Dick Cheney, was passed by the US House of Representatives by a two-vote margin of 217 votes to 215

Pedagogical Objectives:

  • To discuss the main features of CAFTA and the business logic behind its formation
  • To discuss the various shortcomings in CAFTA, anticipated by trade experts.

    Central American Free Trade Agreement (CAFTA) Dominican Republic (DR), Trade between US and Central America, Caribbean Basin Initiative (CBI), Trade blocs, Free Trade Area, Regional trade agreements, Tariff liberalisation, Duty free market access, Conditional cash transfers, Decoupled income support payments, Free Trade Area of Americas (FTAA), International Trade & World Economy Case Study, North American Free Trade Agreement (NAFTA), Rules of Origin, Apparel trade in Central American countries

    Contents :
    Conception of Euro
    Regional Trade Agreements
    CAFTA: The Business Logic
    CAFTA: As it is Perceived

    Case Introduction >>

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