Question

Will Central America, by adopting trade pacts such as PPP and CAFTA, trade one form of dependency for another?

Answer 1

It is possible as a result of new free trade agreements that the Central American countries will become more dependent on the United States as a result of the terms of the agreement. However, the Central American countries have decided to engage in this agreement because they feel that the terms of the agreement will help to boost trade and gain greater access to the American market. The trade pact was put into place in 2005 and 2006. It takes careful analysis to determine who the winners and losers of this trade bloc will be, however, the possibility remains for inequitable gains to be made.