Which of the following Is the Aim of the Central American Free Trade Agreement

The Central American Free Trade Agreement (CAFTA) is a trade agreement between the United States and several countries in Central America, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. The primary aim of the agreement is to increase trade and economic growth between these countries and the United States.

One of the key objectives of CAFTA is to eliminate trade barriers between the signatory countries. This includes reducing or eliminating tariffs on goods and services, as well as removing non-tariff barriers such as quotas and licensing requirements. By doing so, the agreement promotes greater trade and investment between the member countries.

Another goal of CAFTA is to promote economic development in the signatory countries. By opening up new markets and increasing access to goods and services, the agreement can help to stimulate economic growth and job creation. This can be particularly important for developing countries like those in Central America, which may struggle with high levels of poverty and unemployment.

In addition to promoting trade and economic growth, CAFTA also includes provisions related to intellectual property rights, labor standards, and environmental protections. These provisions help to ensure that trade is conducted in a fair and ethical manner, and that all participating countries uphold basic human rights and environmental standards.

Overall, the aim of the Central American Free Trade Agreement is to promote greater trade, investment, and economic growth between the United States and Central American countries. By working together to eliminate trade barriers and promote fair and ethical trade practices, the signatory countries can create a more prosperous and sustainable future for themselves and their citizens.

This entry was posted in Uncategorized. Bookmark the permalink.