The Central America Free Trade Agreement (CAFTA) is a trade agreement between the United States and several Central American countries, including Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Established in 2006, its primary goal is to promote trade and economic growth by reducing tariffs and other trade barriers, making it easier for goods and services to flow between the countries involved. CAFTA aims to enhance economic cooperation and strengthen the region's economy by encouraging investment and creating jobs. The agreement also includes provisions for labor rights and environmental protection, ensuring that trade benefits are balanced with social and environmental considerations.