Honduras and Nicaragua on Saturday joined a regional free-trade agreement with the US that has provoked protests throughout Central America amid fears it will harm small businesses and farmers.
At a ceremony to inaugurate the Central American Free Trade Agreement, Honduran President Manuel Zelaya said his country is embarking on a "different and extremely important path for the strengthening of democracy."
The treaty, he added, is "a way for us to broaden our growth possibilities and reduce our poverty."
PHOTO: AP
At an agricultural plant outside Managua, President Enrique Bolanos certified his country's first export under the treaty -- a US$20,000 shipment of beans.
Bolanos' spokesman, Lindolfo Monjarretz, said Nicaragua hopes to increase its exports by 20 percent and produce more jobs.
Last month, El Salvador became the first Central American country to join the pact.
Costa Rica, Guatemala, and the Caribbean island of the Dominican Republic remain left to join after implementing promises in such areas as the protection of intellectual property rights, a key US demand.
US ambassador to Honduras, Charles Ford, called Saturday "an important day for my country and Honduras."
"Change causes fear, but we are confidant in the future," he added.
But not everyone was celebrating. Thousands of farmers, street vendors, university students and others have marched in cities across Central America to protest the agreement.
Lawmaker Doris Gutierrez, of the leftist Party of Democratic Unification, said the pact violates the Constitution, omitting "all possibilities that small and medium-size producers can compete."
She added that while US products already dominate Honduras' import market, the US "buys few products from Honduras ... and that's going to hurt us."
Melvin Redondo, Honduras' lead negotiator in the trade talks, said the pact will help attract foreign investment and create jobs.
Honduras has an "opportunity to show the world our capabilities to produce, compete and develop," he said.
The deal is designed to eliminate tariff and non-tariff barriers among the participating countries and is part of Washington's push to strike free-trade deals with nations around the world as a way of boosting US exports.
The agreement cleared the US Congress after a hard-fought battle last year.
It had been expected to take effect on Jan. 1 with all six nations, but it has run into a series of obstacles as different countries have had trouble passing laws to meet US demands.
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