The Summit Textile lunch
July 19, 2005

I would like to thank the organizers of this event – the Ministry of Economy, PROESA and the Apparel Producers Industry of El Salvador, the American Apparel and Footwear Association, and the American Apparel Producers Network. I am honored to join you, for the second year in a row, at this gathering that brings together textile producers and manufacturers from the U.S. and Central America.

It’s no secret to any of us that we gather at a crucial moment for free trade and prosperity in the Americas. We’ve all paid close attention to the free trade negotiations. We rejoiced when the six governments finalized the CAFTA agreement, and later when the Dominican Republic joined that agreement. We applauded when El Salvador, Guatemala, and Honduras ratified it. Finally, we are down to the wire. We will know in the next few weeks whether or not the U.S. House of Representatives approves CAFTA-DR.

NOTE WASHINGTON TRIP.

In any case, your presence here shows that you agree that we all stand to benefit from doing more business together. We’re seeing an increased emphasis on regionalization of the textile sector as a way to take advantage of our geographical proximity so we can all produce more and sell more.

To those of you who might be considering opening operations in El Salvador, let me say that I can attest to the drive to succeed and the professionalism of the Salvadoran work force. As you heard from President Saca this morning, the Government of
El Salvador is working hard to make El Salvador an ever-more attractive location for foreign investment, and I believe they are on the right track.

The U.S. Embassy is helping build trade with Central America in several ways. One way is through the Trade Capacity Building programs from USAID that will help Central American businesses in improving rules of origin verification, customs procedures, and standards. Here in El Salvador, for example, that program is helping streamline import and export processes to ensure that merchandise flows with minimal delay. In addition, I know many of you who represent U.S. companies are working with offices of the Department of Commerce in order to find Central American agents, distributors, sales representatives and strategic business partners. The Commerce Department also has officers here at the Embassy. I encourage all of you to let us know how we at the U.S. Embassy can be most helpful to you.

I look forward to discussing these and other issues with you while we enjoy this fine luncheon.

Thank you.