An industrial park creating 8,000 new jobs was expected to be built by Jacobo Kattan after implementation of a regional free-trade agreement in January this year.
On the contrary, he had to lay off almost 2,000 workers and shut down three clothing factories due to delay in implemention of the Central American Free Trade Agreement.
The free trade agreement, CAFTA-DR, was to be implemented from January 1, 2006. But Guatemala, El Salvador, Honduras, Nicaragua and the Dominican Republic had reservations over certain issues, that delayed its implementation resulting in the decline of the region's clothing industry.
Their complaint was for an unstable set of rules and regulations brought forward by US negotiators, including strengthening of intellectual property laws.
Guatemala's Vice Minister of Foreign Trade, Enrique Lacs considers that US team further wants several minor agreements from Guatemala, which includes lifting of restrictions on antennas import and other telecommunications equipment.
Neena Moorjani, spokeswoman for US Trade Representative Rob Portman, said delay was normal as processes should not be hurried else benefits to farmers, workers, businesses, and consumers of the United States and its CAFTA partners may not fructify.
El Salvador plans to implement CAFTA from March 1, 2006. Guatemala and Nicaragua have decided for April or May, while Honduras may take six months to do so.
The Dominican Republic will wait till summer, it is learnt.
Central America's factories have been mainly impacted due to flooding of cheap textiles and apparels from China to the US since the elimination of Multi Fibre Agreement begining January, 2005.
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