CA+, the new blog focussed on Central American Business and investment, has a great article today, on how the Central American Free Tree Agreement will benefit both the United States and the Region. If you are looking for comprehensive news on the region, especially on business and investment, this is the blog for you.

Bush signed CAFTA into law today, and it will be interesting to see it's effects.
I have mixed emotions.

There is no doubt that CAFTA will have major benefits to Grupo Utopia, the company I founded here in Costa Rica. Despite HEAVY opposition from trade unions here, who see the opening of the market as a threat to their job security, the agreement will likely eventually pass. What it means is that that ICE, the local telephone monopoly, and other government owned monopolies in Insurance, etc. will be forced to compete, something that will challenge their records of slow and often BAD customer service. It will also mean investment by high technology companies like cellular providers, that will directly challenge ICE. This is good news for Utopia, as the high technology and wireless market is our base.

On the flip side, I do believe that CAFTA will continue to erode employment opportunities for people in the States, especially in the low end manufacturing sector, as more investment is made in Near Shore manufacturing in Central America, where cost are considerably lower and productivity often higher.

We will no doubt expoit the opportunities offered by CAFTA, and are evaluating how we can best take advantage of the opportunities now. Nevertheless, I can not help but to feel for some Americans who will suffer as a result of its passing.