A Central American Free Trade Agreement (CAFTA) could create a great economic opportunity for all countries involved. On the other hand, it could create an immense economic burden in ways that are unexpected. Some industries may prosper while others may face severe economic hardships. Much speculation has been made over what will happen within the first five years following CAFTA’s ratification. Proponents say that free trade will raise each country’s standard of living, while opponents say that agriculture sectors will not be able to compete with US subsidized producers. This study makes projections for each country based on current trade patterns and economic strengths and weaknesses. These projections will be built upon individual country comparative advantages, factor endowments, and technological capabilities. Outputs from the study include country trade projections, standard of living projections and a listing of other likely social and economic side effects. Parallels will be drawn between the North American Free Trade Agreement (NAFTA) experience and what will likely happen with the introduction of CAFTA.
|Presenter:||Amber Steinhilber (Undergraduate Student)|
|Time:||9:35 am (Session I)|