In state-state disputes, both sides agree on the procedural stages for the setting up of dispute resolution panels, the lists of panels and on the initial and final findings of panels. Issues remain on the terms of participation of interested Parties in the resolution process (for example the claiming party, the consultative party, the third party), on model rules of procedure and most importantly, on the suspension of benefits and compensation for damages suffered as a result of breaches of the agreement.

In person-person disputes, the areas of agreement include the interpretation of the treaty before internal judicial and administrative entities and the rights of persons vis-a-vis measures imposed by another Party in the area. But Central America also wants the consultative committee for private commercial disputes to play a more active role in promoting and disseminating alternative means of conflict resolution.

Free trade agreements can involve onerous and costly institutional obligations. CAFTA will create a Free Trade Commission and several subsidiary committees to service the agreement. But much remains to be worked out on how to give effect to the requirements of transparency, especially with regards to Central America’s obligations for notification and for the exchange of information on the internal procedures of publication of laws, regulations, procedures, and administrative provisions of general application. Details of a proposed Subcommission on Free Trade to facilitate the work of the Commission also remain outstanding.

Central America is proposing to include cooperation on environmental matters within the CAFTA. It wishes to have guarantees on the sovereign right of each country to establish its own levels of environmental protection and respect for internal procedural norms relating to the environment. A possible source of disagreement is the issue of sanctions against countries that fail to carry out their obligations in environmental matters, where it is believed that the US may present a proposal.

Labour is another subject that will be brought within the ambit of CAFTA. The US has proposed a mechanism of cooperation that Central America has accepted as a basis of discussion. But Central America is insisting that the mechanisms should respond to the priorities established by each Party, and should not be one-sided. Accordingly, Central America undertook to provide by the end of April proposals to access funds from the US Department of Labour. The US for its part has indicated its intention to include elements similar to the bilateral agreement with Chile and Singapore.

One interesting feature of the CAFTA is the inclusion of cooperation programmes within the terms of the proposed Treaty. The US has already committed several million dollars for capacity building aimed at helping the Central Americans prepare for negotiations. Cooperation is to extend to the private sector, and the US Trade Department is to visit each Central American country to identify cooperation projects for information technology applications. Other proposed projects include the application of science and technology in the rural areas of Costa Rica and the support for the production and commercialization of organic agriculture in that country.