ELI5: Explain Like I'm 5

Central America Free Trade Agreement

Central America Free Trade Agreement or CAFTA is a trade agreement between the United States and certain Central American countries. This agreement created an area in which goods, services, and investments can move freely across the borders of these countries without taxes or barriers. This means that goods and services don't cost as much when they come from these countries because they aren't being taxed as heavily. It also helps create more jobs and economic growth in these countries by encouraging companies to invest there. With more investment, these countries can improve things like healthcare and education for their citizens.