El Salvador and the Central American Free Trade Agreement: Consolidation of a Transnational Capitalist Class

Abstract

On December 17, 2004, El Salvador became the first of six signatory countries to ratify the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) and on March 1, 2006, it became the first to implement the agreement. However, even staunch supporters of trade agreements would likely agree that DR-CAFTA provides questionable advantages for the five Latin American signatories, as they already received most of the DR-CAFTA-related trade benefits through the Caribbean Basin Initiative (CBI) with fewer conditions. Meanwhile, the potential benefits are questionable, at best. Thus, begs the question, why would any of the five Latin American economies sign on to such an agreement? Understanding El Salvador's participation in CAFTA-DR is critical not only because it's government was the most vociferous supporter of the agreement but because DR-CAFTA demonstrates the consolidation of the country's previously nascent Transnational Capitalist Class (TCC). Keywords:Caribbean Basin Initiative (CBI); DR-CAFTA; El Salvador; Latin American economies; Transnational Capitalist Class (TCC)