CAFTA, positive or negative?

Danielle, 18

The Central American Free Trade Agreement (CAFTA), an economic arrangement between the United States and countries of Central America, will slowly go into effect within the next 20 years. Depending on your view, it can either be a positive or negative thing for Costa Rica.
There are quite a few benefits that CAFTA will bring for Costa Rica. CAFTA will reduce a $2.3 billion deficit with other countries. Foreign investments may bring jobs. It will reduce trade taxes between the United States and Central American nations. Having CAFTA may allow Costa Rica's economy to grow more. Even though it seems like there are many benefits that CAFTA will bring to Costa Rica there are also a lot of negative effects as well.

Some say there are more risks with CAFTA then benefits. Small businesses may close which will cause many people to become unemployed. People not having jobs will create poverty. People will have a hard time trying to live. Also, cost of things will go up such as rice by 35%, clothes tax by 95%, and health costs. There are many different things that can go wrong from CAFTA.

Depending on your view of CAFTA, it can either have a positive or negative affect on Costa Rica. People can have these ideas on how CAFTA will affect Costa Rica, but they really don't know if their ideas are true until CAFTA is in effect.

What I Learned About CAFTA

Kiera, 16

There are many who believe that CAFTA will affect Costa Rica in a negative way and there are those who believe the contrary. Epsy Campbell, a political figure in Costa Rica, believes that CAFTA is negative, which led her to vote against it. Her reasoning for why CAFTA is not good for the country is because she says it will not help the middle-class and the poor; it will only benefit the wealthy sectors of society.

She claims that CAFTA will hurt the social security system in Costa Rica, and that the cost of telecommunication services will rise as it has in the rest of Latin America. Costa Ricans will not be protected because they will have no help with loans or subsidies. It will weaken their ability to undertake social and infrastructure investments, she says, because Costa Rica will have many more debts that everyone will be required to help pay off. Another reason she doesn’t believe it will benefit Costa Rica is because Mexico has already gone through it with NAFTA and she is unhappy with the results.

Others like Jose Antonio Munoz, approved of CAFTA. They believe that it will help Costa Rica’s economy grow through the years. Supporters believe that it will be great for them to have diverse exports. Other countries will have “greater confidence” in Costa Rica’s willingness to trade. Munoz believes that it will not affect the farmers there that much, because many of them have left. He wants their economy to be great like Brazil and Ecuador.

Jon Huenemann, said that things will change, but Costa Rica will just have to adapt to it, because the world is changing and they have to be up to date with other countries. He believes that the US and Costa Rica will both be in better shape as a result of CAFTA. Sonia Picado agrees. She believes that CAFTA will work out because Costa Rica is creative, and they will make a way through all the negatives.

Furthest From Home.

Siena, 17

The furthest I have ever been from home is Toronto, Ontario in Canada. I went there to visit my great uncle and aunt. I went there with my parents and stayed for about a week. While I was there the most meaningful thing I learned was about my family history and how my uncle and his family immigrated to America from Russia. I was able to learn about where my family came from and the obstacles they had to overcome during WWII. It really made me appreciate my family and my heritage.

The trip I will be taking next is further away than Ontario. It’s the furthest I will have ever been. It’s Costa Rica. Going on this trip will be the furthest from home I have been, and it will be the longest time I have been away from my family. To prepare for this trip I have bought all the supplies I need and am mentally preparing myself for not being able to see or talk to my family or friends for almost two weeks. Although this may seem difficult, I am determined to pull through and do the best I can and have the most fun and adventure I can. I can tell this trip is going to be great and be a turning point in my life. I know I am going to learn a lot of valuable lessons and cannot wait to get there.