Isaac Cohen, a worldwide businessman, spoke Wednesday about the formation and development of the Central American Free Trade Agreement (CAFTA).
About 50 Ball State University students listened to Cohen speak in the Forum Room to start the International Affairs Lecture Series.
Cohen, President and CEO of INVERWAY LLC, a company based in Washington D.C. that is dedicated to business development, speaks around the world discussing economic affairs.
"This is my second time at Ball State to speak for the International Affairs Lecture Series in discussing economy," Cohen said.
During the speech, Cohen briefly discussed the North American Free Trade Agreement (NAFTA), which consists of Canada, Mexico and the United States.
After World War II, the United States made a decision to open all parts of trade with any country willing to lower the boundaries, he said. Slowly, over several years, the United States began trade agreements with many smaller countries in order to make the U.S. economy more powerful. Though the goal of global trade hasn't been made, a step-by-step process has begun to make this possible, Cohen said.
"In my speech, even though it is called, 'North American Trade Agreement,' I mostly wanted to discuss CAFTA, the trade between the United States and Central America," he said.
CAFTA, has been the most debated trade agreement in recent history, Cohen said. Being an advisor for CAFTA, Cohen had several statements in understanding why the trade agreement was such a controversy.
He said the main reason for the United States to trade with Central America wasn't economically based, but instead it was actually for security. On the other hand, it was a great opportunity for Central American countries to expand economically, Cohen said.
Organized labor, sugar producers and textile makers from the United States were all against the signing of CAFTA, yet none opposed CAFTA for economic reasons.
The organized labor unions didn't want to sign a trade agreement with countries that don't enforce labor laws, Cohen said. The sugar producers were afraid the trade union would be the lead to the end of protection for them inside the country. Textile makers were concerned that consumers would be introduced to cloth from other countries, instead of using materials produced in the United States, he said.
Free trade agreements are becoming more politically polarized and are having many people asking what will happen to several other negotiations, Cohen said.
Other trades that are in the works include the Andean countries of Columbia, Ecuador and Peru. If trade agreements go well, the trade agreement could possibly stimulate the countries away from illegal drug dealing, Cohen said.
Alaska and Patagonia have recently started trade agreements, and the worldwide trade agreement is still under negotiation. Cohen said the difference between CAFTA and future negotiations is that CAFTA wasn't formed for economic reasons.
"I was interested in discovering his point of view when it comes to corporate development, and to see if I agree with his standpoint and how it affects corporate America," Kat Kramer, a freshmen psychology major, said.
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