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The Missing Point in CAFTA

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  • José Antonio Reyes

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 region’s high port costs. These high costs, along with concerns regarding infrastructure, security, efficiency, and productivity, can diminish CAFTA’s 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

  • José Antonio Reyes, 2007. "The Missing Point in CAFTA," Research Department Publications 4528, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4528
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    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=WP-610&pub_file_name=pubWP-610.pdf
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    References listed on IDEAS

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    1. Ricardo J Sánchez & Jan Hoffmann & Alejandro Micco & Georgina V Pizzolitto & Martín Sgut & Gordon Wilmsmeier, 2003. "Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(2), pages 199-218, June.
    2. Jan Hoffmann, 2001. "Latin American Ports: Results and Determinants of Private Sector Participation," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 3(2), pages 221-241, June.
    3. Dollar, David & Micco, Alejandro & Clark, Ximena, 2002. "Maritime transport costs and port efficiency," Policy Research Working Paper Series 2781, The World Bank.
    4. Cullinane Kevin & Song Dong-Wook & Ji Ping & Wang Teng-Fei, 2004. "An Application of DEA Windows Analysis to Container Port Production Efficiency," Review of Network Economics, De Gruyter, vol. 3(2), pages 1-23, June.
    5. Trujillo, Lourdes & Nombela, Gustavo, 1999. "Privatization and regulation of the seaport industry," Policy Research Working Paper Series 2181, The World Bank.
    6. Sánchez, Ricardo & Wilmsmeier, Gordon, 2005. "Bridging infrastructural gaps in Central America: prospects and potential for maritime transport," Recursos Naturales e Infraestructura 97, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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