Final answer:
In August 2005, President George W. Bush signed the Central American Free Trade Agreement (CAFTA), a trade agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua designed to reduce trade barriers.
Step-by-step explanation:
In August 2005, President George W. Bush signed the Central American Free Trade Agreement (CAFTA), which is a comprehensive trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States. This agreement, often referred to as CAFTA-DR to include the Dominican Republic, aimed to eliminate tariffs and trade restrictions among its member countries. An expansion of the North American Free Trade Agreement (NAFTA), which included the United States, Canada, and Mexico, CAFTA was designed to extend the benefits of free trade to additional countries in the Central American region.
Under President Bush's leadership, reducing trade barriers was viewed as a way to promote U.S. commerce and influence globally. While there was substantial support for such agreements, they also faced opposition from various groups, including American labor unions, which feared that the free trade would lead to job losses in the United States. Despite these concerns, the agreements were believed to encourage American companies to develop new sectors beyond traditional manufacturing.