Thursday, July 28, 2005
This is an interesting Investor's Business Daily article about the effect of CAFTA:
Take, for instance, Transportes Guzman in Los Angeles' Pico-Union district. There, boxes pile nearly to the ceiling. For $190, a Guatemalan can ship all sorts of things — clothes, medicines, household supplies and foods — back home. Items that can't be bought there, only here. With CAFTA — which creates duty-free trade with previously high-tariff countries — such businesses will boom.and:
"CAFTA is a larger U.S. export market than Russia, India and Indonesia, combined," said Ayse Oge, trade consultant with Los Angeles-based Ultimate Trade, who notes that Central American consumers are desperate for U.S. goods.
According to recent estimates, the jobs and incomes CAFTA creates will boost purchasing power by $15 billion in the U.S. and $5 billion in Central America.Interesting, but only time will tell.
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