A Central America Free Trade Area(CAFTA) has been under negotiation since January 2003. AWorld Bank report, Opportunities and Challenges for theAgricultural and Agroindustrial Sectors of Central Americafrom a Free Trade Agreement with the UnitedStates ofAmerica,examines how a FTA between the US and CA countriesmight affect the agricultural and agroindustrial sectors ofCosta Rica, El Salvador, Guatemala, Honduras and Nicaragua.Two main questions are addressed: (i) how to guaranteebetter US market access for CA's agricultural andagro-industrial exports, and (ii) how to promote greateropenness to imports from the US of food products that are"sensitive" in each CAdomestic market.Theauthors analyze the structure of agricultural andagro-industrial exports and patterns of revealed comparativeadvantages in Central America (CA), and tariff andnon-tariff barriers (NTBs) these exports face in the US.The report suggests that the CAFTA negotiations consider (i)lessons from Mexico's entry into NAFTA, (ii) existingprotectionism in the US, and (iii) specific features of eachCA country.It recommends domestic policy reforms toimprove the competitiveness of CA producers of sensitive andnew export goods.