Sunday, June 19, 2005

CAFTA fight intensifies

The battle in the US Congress over the ratification of CAFTA is reaching its final stages. The AP has a story about strategy sessions being conducted on both sides of the debate. Business leaders and government officials in Central America are planning on a final big push. Meanwhile opponents remain optimistic about their chances to block ratification.

Meanwhile, Marcela Sanchez at the Washington Post notes that El Salvador's neighbor Honduras has won the lottery for potential poverty reduction. Honduras is one of the 18 world nations which will have its foreign debt forgiven. The country will also receive $215 million from the US Millennium Challenge Account to aid rural farmers. Finally it may receive the purported benefits of CAFTA. Sanchez notes that this is an unprecedented opportunity for Honduras, but whether poverty reduction becomes a reality will depend on whether Honduras is able to combat the corruption which has diverted so much aid in the past.

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