CAFTA A CLOSER LOOK H.E. Ren é A. León Ambassador of El Salvador to the United States of America The Central American  Fre...
Who are the CAFTA partners? <ul><li>The United States of America </li></ul><ul><li>and Central America: </li></ul><ul><ul>...
Why CAFTA makes sense? <ul><li>Because we are strong trade partners </li></ul><ul><ul><li>The total trade between the US a...
CAFTA will increase North Carolina exports to Central America <ul><ul><li>Figures in thousands of dollars </li></ul></ul><...
North Carolina is doing business  in Central America! <ul><li>Sample of successful businesses: </li></ul><ul><ul><li>AMERI...
CAFTA will increase North Carolina exports to CAFTA & DR <ul><ul><li>Figures in thousands of dollars  </li></ul></ul><ul><...
CAFTA is strategic for the US textile industry <ul><li>US textile exports to CAFTA countries are growing </li></ul>-15% 16...
CAFTA will keep competitive the US Vrs. China in a quota-free world <ul><ul><li>CAFTA’s apparel exports to the US are made...
<ul><li>D-CAFTA is the 2nd largest buyer of US textiles in the world </li></ul><ul><ul><li>90 percent of apparel exports f...
Why CAFTA makes sense?  <ul><li>Because we are strong trade partners </li></ul><ul><ul><li>The US is the most important tr...
CAFTA is a great market for US exports  <ul><li>A larger market than Australia: </li></ul><ul><ul><li>Total U.S. exports t...
Why North Carolina textile industry is a CAFTA winner? <ul><li>D-CAFTA is the 2nd largest buyer of US textiles </li></ul><...
Who Benefits From CAFTA? <ul><li>U.S. Textile and Apparel Industry </li></ul><ul><ul><li>U.S. cotton growers and fiber pro...
Who sees in CAFTA a good business opportunity? <ul><li>Industries supporting the agreement: </li></ul><ul><ul><li>Recordin...
US companies doing business  in Central America <ul><ul><li>3 COM CENTROAMERICA, 3M, ABBOTT LABORATORIES, ACE INDUSTRIAL H...
Let’s do business! <ul><li>Support North Carolina businesses </li></ul><ul><li>Support your partners in Central America </...
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Fabric Mill Products Apparel

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Fabric Mill Products Apparel

  1. 1. CAFTA A CLOSER LOOK H.E. Ren é A. León Ambassador of El Salvador to the United States of America The Central American Free Trade Agreement
  2. 2. Who are the CAFTA partners? <ul><li>The United States of America </li></ul><ul><li>and Central America: </li></ul><ul><ul><ul><li>El Salvador </li></ul></ul></ul><ul><ul><ul><li>Guatemala </li></ul></ul></ul><ul><ul><ul><li>Honduras </li></ul></ul></ul><ul><ul><ul><li>Nicaragua </li></ul></ul></ul><ul><ul><ul><li>Costa Rica </li></ul></ul></ul>An additional partner will be added: Dominican Republic
  3. 3. Why CAFTA makes sense? <ul><li>Because we are strong trade partners </li></ul><ul><ul><li>The total trade between the US and Central America amounted $23.2 billion in 2003. </li></ul></ul><ul><ul><li>If we include Dominican Republic along with Central America, the total trade amounted $31.9 billion in 2003. </li></ul></ul>US trade with CAFTA & DR
  4. 4. CAFTA will increase North Carolina exports to Central America <ul><ul><li>Figures in thousands of dollars </li></ul></ul><ul><li>Currently, without Duty Free access North Carolina exports $1.4 billion to Central America (CAFTA) </li></ul>
  5. 5. North Carolina is doing business in Central America! <ul><li>Sample of successful businesses: </li></ul><ul><ul><li>AMERICAN & FRID / HILOS A&E (Yarns and threads) </li></ul></ul><ul><ul><li>BLUE BELL </li></ul></ul><ul><ul><li>CONTINENTAL AFA DISPENSING CO. </li></ul></ul><ul><ul><li>MERRIMAC INDUSTRIES INC. </li></ul></ul><ul><ul><li>PRECISION CONCEPTS INC. </li></ul></ul><ul><ul><li>SARA LEE PROD. CORP. / INDUSTRIA TEXTILERA DEL ESTE, (Apparel) </li></ul></ul><ul><ul><li>VF CORPORATION </li></ul></ul><ul><ul><li>WESTSTAR MEDICAL CO. </li></ul></ul><ul><ul><li>PARKDALE (Yarns) </li></ul></ul><ul><ul><li>AVONDALE (Yarns) </li></ul></ul>
  6. 6. CAFTA will increase North Carolina exports to CAFTA & DR <ul><ul><li>Figures in thousands of dollars </li></ul></ul><ul><li>Currently, North Carolina exports $1.7 billion to Central America and the Dominican Republic (D-CAFTA) </li></ul>
  7. 7. CAFTA is strategic for the US textile industry <ul><li>US textile exports to CAFTA countries are growing </li></ul>-15% 16% $17 million $62 million $20 million $54 million VIRGINIA Fabric Mill Products Apparel 7% $132 million $123 million SOUTH CAROLINA Fabric Mill Products 30% $620 million $475 million NORTH CAROLINA Fabric Mill Products -2% $192 million $195 million GEORGIA Fabric Mill Products 42% $80 million $57 million CALIFORNIA Fabric Mill Products 57% $121 million $77.4 million ALABAMA Fabric Mill Products % CHANGE 2002-2003 EXPORTS 2003 EXPORTS 2002 STATE
  8. 8. CAFTA will keep competitive the US Vrs. China in a quota-free world <ul><ul><li>CAFTA’s apparel exports to the US are made with more than 90% of US inputs (yarns, fabrics, sewing threads, trims, packaging, linings), compared with apparel imports from China whose industries use none US components. </li></ul></ul><ul><ul><li>In a world post 2005, CAFTA will help the US textile and apparel industry to be competitive vis a vis non-quota exports from China, India, Pakistan, Vietnam, and others. CAFTA provisions such as: Cumulation, De-minimis, Yarn forward, Short supply, Special provisions for woven fabrics, are critical to US industry competitiveness, and for US exports to the region. </li></ul></ul>
  9. 9. <ul><li>D-CAFTA is the 2nd largest buyer of US textiles in the world </li></ul><ul><ul><li>90 percent of apparel exports from CAFTA to the US are made with US yarns. </li></ul></ul><ul><ul><li>80 percent of apparel exports from CAFTA to the US uses US fabric. </li></ul></ul><ul><ul><li>90 percent of apparel exports from CAFTA to the US contains US sewing threads . </li></ul></ul>Why CAFTA is a good agreement for the US textile industry?
  10. 10. Why CAFTA makes sense? <ul><li>Because we are strong trade partners </li></ul><ul><ul><li>The US is the most important trading partner for every Central American country, and for the region as a whole. </li></ul></ul><ul><ul><li>US companies’ exports to Central America are higher than those to Spain, Israel, Eastern Europe or Egypt. </li></ul></ul><ul><ul><li>US exports to Central America are equivalent to those to Russia and India combined. </li></ul></ul><ul><ul><li>US imports from Central America are larger than those from Argentina, Chile or South Africa. </li></ul></ul><ul><ul><li>50% of Central American imports are originated in the US, while almost 50% of our region’s exports are destined to the US. </li></ul></ul>
  11. 11. CAFTA is a great market for US exports <ul><li>A larger market than Australia: </li></ul><ul><ul><li>Total U.S. exports to Central America and DR in 2003 were $15 billion, while total U.S. exports to Australia during the same year totaled only $12.5 billion </li></ul></ul><ul><ul><li>For textile product exports, the DCAFTA countries are the 2nd largest buyer of US textile goods totaling $4.3 billion behind Mexico at $5.3 billion. Canada is in third place with $3.5 billion. </li></ul></ul>
  12. 12. Why North Carolina textile industry is a CAFTA winner? <ul><li>D-CAFTA is the 2nd largest buyer of US textiles </li></ul><ul><ul><li>North Carolina exports of Fabric Mill Products to D-CAFTA are growing: $475 million (2002) and $620 million (2003). </li></ul></ul><ul><ul><li>North Carolina exports of Fabric Mill Products grew 30% in one year (2002-2003) </li></ul></ul><ul><ul><li>States like North Carolina will be able to increase their benefits in exporting to the D-CAFTA countries under a free trade agreement. </li></ul></ul>
  13. 13. Who Benefits From CAFTA? <ul><li>U.S. Textile and Apparel Industry </li></ul><ul><ul><li>U.S. cotton growers and fiber producers </li></ul></ul><ul><ul><li>U.S. yarn spinners </li></ul></ul><ul><ul><li>U.S. fabric manufacturers </li></ul></ul><ul><ul><li>U.S. apparel manufacturers </li></ul></ul><ul><li>U.S. Farmers </li></ul><ul><ul><li>Animal feed producers </li></ul></ul><ul><ul><li>Grain producers: wheat, corn, soybeans. </li></ul></ul><ul><ul><li>Poultry and pork producers </li></ul></ul><ul><ul><li>Fruit and nuts producers: apples, grapes, strawberries. </li></ul></ul><ul><li>U.S. High-tech and IT Companies </li></ul><ul><li>U.S. Service Providers </li></ul><ul><ul><li>Banks, insurance companies, transportation </li></ul></ul><ul><li>U.S. Investors </li></ul><ul><ul><li>More business opportunities, better business climate, stronger IPR protection, predictability. </li></ul></ul><ul><li>U.S. Tourism Industry </li></ul><ul><li>U.S. Consumers </li></ul>
  14. 14. Who sees in CAFTA a good business opportunity? <ul><li>Industries supporting the agreement: </li></ul><ul><ul><li>Recording Industry Association of America </li></ul></ul><ul><ul><li>Information Technology Industry Council </li></ul></ul><ul><ul><li>Telecommunications Industry Association </li></ul></ul><ul><ul><li>International Intellectual Property Alliance </li></ul></ul><ul><ul><li>Distilled Spirits Council of the United States </li></ul></ul><ul><ul><li>National Corn Growers Association </li></ul></ul><ul><ul><li>U.S. Grains Council </li></ul></ul><ul><ul><li>U.S. Apple Association </li></ul></ul><ul><ul><li>California Table Grape Commission </li></ul></ul><ul><ul><li>National Potato Council </li></ul></ul><ul><ul><li>American Soybean Association </li></ul></ul><ul><ul><li>Northwest Horticultural Council </li></ul></ul><ul><ul><li>Grocery Manufacturers Association </li></ul></ul><ul><ul><li>Pet Food Institute </li></ul></ul><ul><ul><li>United States Chamber of Commerce </li></ul></ul><ul><ul><li>National Association of Manufacturers </li></ul></ul><ul><ul><li>Coalition of Service Industries </li></ul></ul><ul><ul><li>National Cattlemen's Beef Association </li></ul></ul><ul><ul><li>National Pork Producers Council </li></ul></ul><ul><ul><li>National Chicken Council </li></ul></ul><ul><ul><li>USA Rice Federation </li></ul></ul><ul><ul><li>USA Poultry and Egg Export Council </li></ul></ul><ul><ul><li>National Turkey Federation </li></ul></ul><ul><ul><li>U.S. Dairy Export Council </li></ul></ul><ul><ul><li>American Insurance Association </li></ul></ul><ul><ul><li>American Council of Life Insurers </li></ul></ul><ul><ul><li>Travel Goods Association </li></ul></ul><ul><ul><li>The Air Courier Conference of America </li></ul></ul><ul><ul><li>Motion Picture Association </li></ul></ul>
  15. 15. US companies doing business in Central America <ul><ul><li>3 COM CENTROAMERICA, 3M, ABBOTT LABORATORIES, ACE INDUSTRIAL HARDWARE, CO., AEROPOST / AEROCASILLAS S.A., AES CORPORATION, AGROTEC ANALYTICAL LABORATORIES, ALCON LABORATORIES, AMERICAN & FRID / HILOS A&E DE C.R., AMERICAN AIRLINES, AMERICAN APPAREL CORP., AMERICAN HOME ASSURANCE CO., AMERICAN INTERNATIONAL GROUP, AMWAY CORP, ANIXTER INC., ARROW CO., ARTMARINA, ASSA INTERNATIONAL CORP., AT & T, ATENTO HOLDING, ATOM MFG. CO., INC., AVENT, AVENTIS PHARMA FRANKFURT / BRIDGEWATER, AVIS RENT A CAR, AVON PRODUCTS INC., BASF CORPORATION, BAXTER PRODUCTOS MEDICOS LTDA., BEARCOM USA, BELLSOUTH , BERLITZ LANGUAGE SERVIES, BLH ELECTRONICS / PHAROS DE C.R., BLUE BELL DE HONDURAS, BOLIVAR TRADING HONDURAS, BOURNS INC. / TRIMPOT ELECTRONICAS, S.A., BRIDGESTONE FIRESTONE, BRIGHTSTAR CORPORATION, BRISTOL-MYERS SQUIBB, BURGER KING, C & K COMPONENTS S.A., CARGILL COTTON, CARRINGTON LAB. / SABILA INDUSTRIAL, CARTER, WILLIAM, CO., THE CARTEX MANUFACTURERA, S.A., CATERPILLAR AMERICAS, CELTEL, CENTROAMERICANA CIGARS, CENTURY 21 REAL ESTATE CORP., CHALLENGE AIR CARGO, CHARTER TRADING CORPORATION / SERCOM TELECOM. SYSTEMS S.A., CHESTNUT HILL FARMS, CHIQUITA BRANDS INTERNATIONAL, CHUCKEE CHEESE PIZZA, CID GALLUP, CISCO SYSTEMAS, CITIBANK, N.A., COCA COLA COMPANY, COLGATE PALMOLIVE, COMIDAS ESPECIALIZADAS, COMPUTER ASSOCIATES/ DATANET, INTERNACIONAL, S.A., CONAIR / BABYLISS, CONTINENTAL AFA DISPENSING CO., CONTINENTAL AIRLINES, COOPERS ELECTRONIC TECH., COPHER BROTHERS INC., CROWLEY AMERICAN TRANSPORT, CROWN CORK & SEAL CO., CSI LATINA FINANCIAL, CUTLER HAMMER, DEL MONTE FRESH PRODUCE, DELOITTE & TOUCHE, DELTA AIR LINES, INC., DEVAN HOUSTON / CONFECCIONES IMPERIO, DHL, DIAL CORPORATION, DODONA S.R.L. / AMNET, DOLE FRESH FRUIT INTERNATIONAL, DOMINOS PIZZA, DUKE ENERGY, DUNKIN' DONUTS, ECOLAB, EDELMAN PUBLIC RELATIONS/ MULTIMEDIOS G.C., EL PASO TECHNOLOGY, ELI LILLY AND COMPANY, ENRON GLOBAL POWER, EQUIFAX, ERNST & YOUNG GLOBAL, EXPESCA, S.A., EXXON CO. (ESSO STANDARD), FEDERAL MOGUL DE FEDEX, FINE AIRLINES, FING’RS FOOTE CONE & BELDING, FRANKLIN COVEY TM, FRUIT OF THE LOOM, GBM / IBM, GENERAL ELECTRIC CENTROAMERICA, GENERAL NUTRITION, GEO J. BALL INC. / LINDA VISTA ,S.A., GILDAN ACTIVEWEAR, GLAXO SMITHKLINE, GLOBAL CROSSING, GOLDSMITH SEEDS, INC., GOOD YEAR TIRE & RUBBER CO., GTE DIRECTORIES CORP. / VERIZON, H.B. FULLER CO. - FULL PRODUCTS, H.J. HEINZ CO. / ALIMENTOS HEINZ DE C. R., S.A., HANNOVER FOODS, INC. / ALIMENTOS CONGELADOS MONTE BELLO, HERTZ, COMFORT HOTELS, HAMPTON INN,MARRIOTT… </li></ul></ul>
  16. 16. Let’s do business! <ul><li>Support North Carolina businesses </li></ul><ul><li>Support your partners in Central America </li></ul><ul><li>Support CAFTA! </li></ul><ul><li>Thank You! </li></ul>
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