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The Central American Free Trade Agreement Central American Studies Research Paper

3156 words - 13 pages

Jorge Esparza Esparza1
Professor Carranza
CAS 355
16 December 2013
The Central American Free Trade Agreement
The hopes that the Central American Free Trade Agreement (CAFTA) was going to help promote democracy, and stabilize the economy of Central America, is why U.S. President George W. Bush's proposed the agreement to the countries of Central America. The impact of CAFTA was great/substantial to the nations economies that joined the free trade agreement with the United States. There were five countries of Central America who entered the agreement; Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. The Dominican Republic was the last country that entered the free trade agreement in the year 2004.
While the effects of CAFTA were significant to the entire region, this essay will focus on the impact of CAFTA to the country of El Salvador and the negative effects of CAFTA on the country. The impact of CAFTA to El Salvador will be divided into three key arguments. The first is that, the neoliberal economic model strengthened the multinational corporations and weakened the state. Evidently, the emergence of CAFTA in Central America automatically detracted El Salvador national sovereignty. The Central American Free Trade Agreement increased the power of the Multinational Corporations, and as a result, the government of El Salvador is limited to making policies to protect its people. The second argument that this paper will make is that CAFTA destabilized the economy of the country; by, creating unemployment, and increasing the price of goods
Funes 2
and services for the habitants of El Salvador. The third argument is that CAFTA increase the number of human, and environments rights violations in El Salvador. It is clear that the Central American Free Trade Agreement has impacted the country of El Salvador negatively.
The first key argument that we will be looking at deals with the question of national sovereignty in El Salvador. In El Salvador, when the inhabitants of that country heard about CAFTA they immediately organized and protested against that free trade agreement. In her article titled Central Americans Speak Out Against CAFTA the writer Karen Hansen-Kuhn argues that the citizens of El Salvador organized and protested against CAFTA because the Salvadoran citizens understood that CAFTA was going to detract the national sovereignty from their country. The neo liberal economic model produces competition, furthermore, it encourages free trade and it also strengthens Multinational Corporations, and consequently it weakens the state.
In El Salvador, after the civil war in the early 1990s, the right wing government in power attempted to privatize certain sectors in the healthcare in the country. Due to tremendous opposition by the masses of people in El Salvador, the right wing government was not allow to privatize the health care in the...

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