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Mixed sentiments greet passage of CAFTA
Mexico City: Central American government and business leaders on Thursday hailed the U.S. congressional passage of CAFTA, a regional free trade agreement, while the region's labour unions and agricultural interests warned of job losses and other dire effects.

Though the Central American Free Trade Agreement won't have much effect on the U.S. economy because U.S. trade with the region is relatively small the proponents of the agreement say that the trade pact may give a much-needed lift to one of the poorest regions of the hemisphere if it delivers benefits as promised.

The U.S. House of Representatives passed the pact by the narrowest of margins late Wednesday. It had been previously approved by the U.S. Senate and will soon be signed by President Bush.

The Bush administration contended that CAFTA would promote economic development in Central America, which in turn could boost the region's political stability, stem the flow of immigration and lay the groundwork for more ambitious trade deals encompassing the Western Hemisphere and the entire world.

Over an 18-year period, the deal would remove most trade barriers between the United States and El Salvador, Honduras, Guatemala, Costa Rica, Nicaragua and the Dominican Republic. The latter three countries have yet to approve the bill.

The pact's terms particularly seem to favour investment in Central American textile and apparel manufacturing, sectors that have been hit hard by Asian competition in recent years. The most important rule change in the trade pact allows regionally produced clothing, thread and fabric to qualify to enter the U.S. duty-free without the high proportion of U.S.-produced content that was previously required.

But agricultural unions warned that some of Central America's farm sectors could be overwhelmed by U.S. agribusiness. Union leaders said local farmers couldn't compete against U.S. economies of scale and hyper-efficient farming methods.

Many farm worker unions pointed to the experience of some Mexican farmers after passage of the North American Free Trade Agreement in 1994. Many lost their jobs in the face of low-cost U.S. grain and livestock imports and were driven to illegally emigrate to the United States to look for work.
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Lachlan Murdoch resigns from News Corp.
New York: Rupert Murdoch's eldest son, Lachlan, who was expected to succeed his father as head of News Corp., has announced his resignation from the global media conglomerate.

The announcement that the younger Murdoch, 33, would step down as deputy chief operating officer has now raised questions about the succession at News Corp., which owns Fox Television, 20th Century Fox studio and numerous other media properties.
"I look forward to returning home to Australia with my wife, Sarah, and son, Kalan, in the very near future," Lachlan Murdoch said in a statement. "I would like especially to thank my father for all he has taught me in business and in life. It is now time for me to apply those lessons to the next phase of my career."

Murdoch, who will leave the company at the end of August after working at several positions for 11 years, oversees News Corp.'s Harper Collins publishing group, U.S. television stations, and serves as publisher of the New York Post. He will remain as a board member.

Rupert Murdoch, 74, said in a statement that he was "particularly saddened" by his eldest son's decision.

Murdoch has long made it known that he wants a family member to succeed him as chairman and chief executive of the New York-based company. Attention is now focused on 32-year-old James Murdoch, who heads the company's pay-TV operations.

Murdoch's eldest daughter, Elisabeth, left the company in 2000.
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