When exploiting its potential with both the United States and Europe, the Dominican Republic's excellent geographic location offers a definite comparative advantage. The DR is the US's principal trading partner in the Caribbean and Central American region. The DR has a reciprocal free trade agreement with the United States and Central America, the DR-CAFTA free trade agreement (Dominican Republic- Central American Free Trade Agreement).
Dominican exports also have duty-free entry to the 320 million affluent consumer market in the European Union (EU), the world's largest consumer market. Under the Economic Partnership Agreement, Dominican products have duty-free access to Europe.
The DR also has a separate free trade agreement with the English-speaking Caribbean (Caricom) and Central America.