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The Missing Point in CAFTA

  • José Antonio Reyes
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    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.

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    Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4528.

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    Date of creation: Dec 2007
    Date of revision:
    Handle: RePEc:idb:wpaper:4528
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    1. 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.
    2. Dollar, David & Micco, Alejandro & Clark, Ximena, 2002. "Maritime transport costs and port efficiency," Policy Research Working Paper Series 2781, The World Bank.
    3. Jan Hoffmann, 2001. "Latin American Ports: Results and Determinants of Private Sector Participation," Maritime Economics and Logistics, Palgrave Macmillan, vol. 3(2), pages 221-241, June.
    4. Trujillo, Lourdes & Nombela, Gustavo, 1999. "Privatization and regulation of the seaport industry," Policy Research Working Paper Series 2181, The World Bank.
    5. Ricardo J S�nchez & Jan Hoffmann & Alejandro Micco & Georgina V Pizzolitto & Mart�n Sgut & Gordon Wilmsmeier, 2003. "Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs," Maritime Economics and Logistics, Palgrave Macmillan, vol. 5(2), pages 199-218, June.
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