Overview of the CAFTA-DR-United States Free Trade Agreement with useful reference links.
Last Published: 10/18/2016
General Information
The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) entered into force for the United States, El Salvador, Guatemala, Honduras, and Nicaragua in 2006, for the Dominican Republic in 2007, and for Costa Rica in 2009. As a result of the FTA, 100 percent of U.S. consumer and industrial goods exports to the CAFTA-DR countries will no longer be subject to tariffs. Tariffs on nearly all U.S. agricultural products will be phased out by 2020. To be eligible for tariff-free treatment under the FTA, products must meet the relevant rules of origin.
Under the Agreement, the Parties are significantly liberalizing trade in goods and services. CAFTA-DR also includes important disciplines relating to: customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, e-commerce, intellectual property rights, transparency, and labor and environmental protection. CAFTA-DR creates new commercial opportunities for the United States while promoting regional stability, economic integration, and economic development for an important group of U.S. neighbors.

The CAFTA-DR region was the 13th largest U.S. export market in the world in 2014, and the third largest in Latin America behind Mexico and Brazil. The United States exported $31.3 billion in goods to the five Central American countries and the Dominican Republic in 2014, almost 86 percent higher than the level in 2005, the year before the Agreement first entered into force.

By Sector
Key U.S. exports that have experienced significant growth to the CAFTA-DR countries since the implementation of the agreement include: petroleum products, machinery, electrical/electronic products, textile fabrics, cotton yarns, cereals (wheat, corn, and rice), plastics, motor vehicles, paper products, and medical instruments.

Additional Information

-  CAFTA-DR Legal Text
-  U.S. Trade Representative Overview
-  USDA Overview
-  U.S. Commercial Office in Costa Rica
-  U.S. Commercial Office in the Dominican Republic
-  U.S. Commercial Office in El Salvador
-  U.S. Commercial Office in Guatemala
-  U.S. Commercial Office in Honduras
-  U.S. Commercial Office in Nicaragua
-  2013 U.S.-CAFTA-DR Trade Review  
-  Congressional Research Service Report on CAFTA-DR
 

Prepared by the International Trade Administration. With its network of 108 offices across the United States and in more than 75 countries, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Central America Dominican Republic CAFTA