MANAGUA, Nicaragua – A trade representative from the administration of U.S. President George W. Bush traveled to Managua yesterday to tout the importance of the Central American Free-Trade Agreement with the United States (CAFTA) and to stress the need for the Ortega administration to respect democracy and the free-market.

Christopher Padilla, under secretary for international trade at the U.S. Commerce Department, said that CAFTA is the “common ground” between the United States and Nicaragua, despite ideological differences between the two governments.

“CAFTA is common ground; it is the nucleus of the bilateral relationship” between the United States and Nicaragua, Padilla told a group of investors belonging to the U.S.-Nicaraguan Chamber of Commerce (AMCHAM).

Padilla noted that CAFTA, which on April 1 will complete two years of existence in the United States and Nicaragua, has already resulted in 30% export growth of Nicaraguan products to the U.S. market, compared to 2005. That is the fasting-growing export rate of any Central American country, he noted.

Padilla, however, also warned that the Ortega administration needs to be careful of its rhetoric against private investment.

“Capital is a coward,” Padilla said. “Investors don't go to places where they fear they will lose their money. For this reason, the message of the Nicaraguan government is of utmost importance.”

Padilla further warned, “CAFTA created the conditions for success, but doesn't guarantee success.”

The U.S. trade representative was scheduled to meet with Ortega last night at 9 p.m., after press time. He is scheduled to meet with Costa Rican authorities in San José today.