Free trade talks between the US and five Central American countries were at a critical stage on Tuesday, as top negotiators tried to resolve remaining differences over textiles, agriculture and other politically sensitive trade sectors.
Grant Aldonas, Commerce undersecretary for international trade, said an early afternoon meeting between US Trade Representative Robert Zoellick and his five Central American counterparts could hold the key to whether an agreement can be reached this week.
The proposed US-Central American Free Trade Agreement, or CAFTA, would create a free trade zone between the US, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua similar to the North American Free Trade Agreement between the US, Mexico and Canada.
Negotiators have been meeting since early last week for what was intended to be the last round of talks.
Outstanding issues include sugar and textiles, two sensitive areas for the US, and services such as insurance, where Costa Rica has been resisting opening its market, sources said. Failure to reach an agreement would be the third such disappointment this month for the Bush administration, which had hoped to conclude free trade pacts with Australia, Morocco and the Central American nations by the end of this year.
US trade officials have already given up hope of reaching deals with Australia and Morocco this year.
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