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The Missing Point in CAFTA

Author

Listed:
  • Reyes, José Antonio

Abstract

Ports are a crucial element in any Free Trade Agreement because of their role in moving goods. Unfortunately, the port situation in Central America was not considered during Free Trade Agreement negotiations with the United States (CAFTA). Although CAFTA is intended to provide benefits for exporters and importers, these benefits will not be fully realized due to the regions high port costs. These high costs, along with concerns regarding infrastructure, security, efficiency, and productivity, can diminish CAFTAs potential benefits. Central America must therefore enact legal reforms to privatize port operations, as the private sector possesses the resources necessary to invest in those ports and make them competitive.

Suggested Citation

  • Reyes, José Antonio, 2007. "The Missing Point in CAFTA," IDB Publications (Working Papers) 1609, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:1609
    DOI: http://dx.doi.org/10.18235/0010882
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    References listed on IDEAS

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    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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