CAFTA, China and the WTO

Paper Summary:

This paper considers the case of the CAFTA and its juxtaposition against the entry of China into the WTO. As China becomes a more powerful trading force globally the free trade agreements such as CASFTA become more important. This paper highlights the concerns of the Central American nations and the US as they formulate the FTA to accommodate Chinese competition.

From the Paper:

"When China joined the World Trade Organization in 2001, the calculus for trade in the Western Hemisphere changed significantly. Whereas before the Americas had always had a special trade relationship due to proximity and cultural-geographical ties, the entry of China into the WTO threatened to turn trade among the U.S. and the countries of Central and South America into an open battle for survival, especially for smaller countries with limited but developing economies such as Honduras and Guatemala. "

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