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Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua

PostPosted: Tue Nov 18, 2008 5:06 am
by bridgat
US-Central American Free Trade Agreement (CAFTA)


Central American Free Trade Agreement (CAFTA-DR)

The CAFTA-DR negotiations are completed and have been signed by the trade ministers of the U.S., the five Central American nations and the Dominican Republic. The Agreement is now subject to internal administrative procedures and subsequent approval by the respective Legislatures. See www.export.com for the full text of the Agreement and other information about CAFTA.

Benefits of an FTA
Under the Caribbean Basin Initiative (CBI) and other U.S. programs, U.S. tariffs on Central American goods are already low, with 74% regional imports entering the U.S. duty-free in 2002. But one-way preference programs must be renewed periodically while an FTA would establish a more stable environment for trade and investment. A free trade agreement would be reciprocal, giving U.S. goods duty-free treatment.