CENTRAL AMERICA/CARIBBEAN: Trade zone pros and cons
Industrialisation through free trade zones has resulted in job creation and export diversification in Central America and the Caribbean.
Our judgement
While industrialisation through free trade zones has led to job creation, the strategy has a number of shortcomings, which means that competition from low-wage economies will become an increasing threat, even with approval of the Central American Free Trade Agreement (CAFTA).
See today's CENTRAL AMERICA/CARIBBEAN: Trade zone pros and cons.