Which Country Is Not a Party to the Central American Free Trade Agreement Quizlet

The Central American Free Trade Agreement (CAFTA) is an international trade agreement between the United States and countries in Central America. It aims to reduce trade barriers and promote economic growth among the member countries. However, not all Central American nations are party to this agreement. In this article, we`ll take a look at which country is not a party to the Central American Free Trade Agreement on Quizlet.

Before we dive into the answer, let`s first understand what the Central American Free Trade Agreement entails. The CAFTA was signed in 2004 between the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. The agreement aims to eliminate tariffs and other trade barriers between these countries, promote fair competition, and protect intellectual property rights.

However, one country in Central America is not a part of this agreement – Belize. While Belize is geographically a part of Central America, it is not considered a part of the Central American Integration System (SICA) which is a prerequisite for joining the CAFTA. SICA is an economic and political organization that promotes regional integration and cooperation among Central American countries.

Belize, formerly known as British Honduras, was a British colony until 1981 when it gained independence. Unlike its Central American neighbors, Belize is an English-speaking country and has closer ties to the Caribbean region than Central America. Therefore, it did not join SICA, and subsequently, it is not a party to the Central American Free Trade Agreement (CAFTA).

Despite not being a part of the CAFTA, Belize has several other trade agreements in place with other countries. For example, it is a part of the Caribbean Community (CARICOM) which is a regional trade organization consisting of 15 Caribbean nations. Belize also has a bilateral trade agreement with the United States called the Caribbean Basin Initiative (CBI) which provides trade preferences for certain products.

In conclusion, Belize is not a party to the Central American Free Trade Agreement (CAFTA) as it is not a part of the Central American Integration System (SICA). Despite this, Belize has trade agreements in place with other countries and plays a vital role in the regional economic landscape.