The Caribbean Community, or Caricom, is an assembly of Caribbean states, that in 1972 decided to transform the Caribbean Free Trade Association (CARIFTA), into a Common Market, and establish the Caribbean Community, of which a common market would be an integral part. Caricom provided for the free movement of labor and capital, and the coordination of agricultural, industrial, and foreign policies. In 1998, during the first presidency of Leonel Fernandez, the Dominican Republic signed an agreement of free trade, with the nations of Caricom that provided a new market for Dominican goods and likewise opened the Dominican markets to Caribbean products.

The fundamental objective of the Caricom FTA has been to strengthen the commercial and economic relations between the member nations of the DR and Caricom nations through the establishment of a Free Trade Area, the promotion and expansion of the sale of goods originating in the territories of the parties through free access to the markets of the parties, elimination of non-tariff barriers to trade, and the establishment of a system of rules of origin, customs cooperation and the harmonization of technical, sanitary and phytosanitary procedures. Also, the agreement under Caricom provides for the progressive liberalization of trade in services, the liberalization of the movement of capital between the parties, and the promotion and protection of investments aimed at taking advantage of the opportunities offered by the markets of the parties, and the strengthening of their competitiveness.

The agreement also includes the promotion and development of cooperative activities in the following areas: agriculture, mining, industry, construction, tourism, transportation, telecommunications, banking, insurance, capital markets, professional services and science and technology, and discourages anti-competitive business practices between and within the parties. The agreement also addresses the issue of the development of the private, intellectual property rights.

The DR is participating closely with Caricom in the negotiating of a European Economic Partnership Agreement (EPA) with the European Union that has an end of 2007 deadline. The Caribbean Regional Negotiating Machinery is in charge of trade negotiations for Caricom and third parties, such as the European Union. See http://www.crnm.org/

Caricom trade (imports) with the Dominican Republic in 2006 is estimated at US$100 million in propane gas, US$250 million in natural gas, US$40 million in steal, US$20 million in fertilizers and US$10 million other products, according to the Trinidad Chamber of Commerce. Most of the imports were from Trinidad & Tobago. (Updated 10 June 2007)