§ Lord Hyltonasked Her Majesty's Government:
Whether they have studied the proposed Central American Free Trade Area Agreement; whether it has yet been ratified by the six states; and what its impact will be on the Government's policies for investment and development in the region. [HL4307]
§ The Minister of State, Foreign and Commonwealth Office (Baroness Symons of Vernham Dean)We have been following the negotiations for a US-Central America Free Trade Agreement. It was signed in May by the US and the five Central American states, and in August by the Dominican Republic, but it has yet to be ratified by any of the parties. It is a regional trade agreement and as such will have no direct impact on UK policies. But, if ratified, US-CAFTA should lead to greater harmonisation of trade policies and standards in the region and thus new opportunities for trade and investment. UK development assistance to the region will take CAFTA into consideration.