Central America – Dominican Republic – United States (CAFTA -DR) Trade Agreement

NameCentral America – Dominican Republic – United States (CAFTA -DR)
MembersCosta Rica – Dominican Republic – El Salvador – Guatemala – Honduras – Nicaragua – United States of America
Type of agreementMultilateral Free Trade Agreement
Date of signatureAugust 1, 2004
Current Status On-going
Key points1. The agreement provides major gains for Iowa farmers. The FTA will lock in the Dominican Republic’s current applied tariff rate at zero for imports of corn and soybeans from the United States.
2. Without the FTA, the Dominican Republic would be able, under its WTO commitments, to raise its duties on U.S. corn to up to 80% and on U.S. soybeans to up to 40%.
3. More than 80% of U.S. exports of consumer and industrial products to Central America will be duty-free immediately upon entry into force of the Agreement, and 85% will be duty free within 5 years. All remaining tariffs will be eliminated within 10 years.

For more details, kindly check the link in references.

1. Central America – Dominican Republic – United States (CAFTA -DR) Trade Agreement, accessed December 2020, https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/archives/2003/december/free-trade-central-america-summary-us-centr

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