United States Trade Representative Robert B Zoellick announced on Friday, 23 July the official signing of the Free Trade Agreements recently negotiated with the Dominican Republic and five Central American countries. The signing is scheduled for 5 August in Washington, DC. Zoellick is scheduled to sign the accord for the US, while Industry & Commerce Minister Sonia Guzman will represent the Dominican Republic. Trade ministers from Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua will be on hand to sign on behalf of their respective nations, resulting in an agreement among the seven countries to be known as the United States-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). The new agreement builds on the recently signed United States-Central America Free Trade Agreement (CAFTA).
“Our DR-CAFTA trading partners make up the second-largest market for US exports in Latin America, behind only Mexico,” said Zoellick in the official press release. The combined total trade between the US and the five CAFTA countries accounted for US$23.6 billion in 2003. The addition of the Dominican Republic represents an additional US$8.7 billion in annual two-way trade, for a combined total trade relationship worth US$32 billion.
“The DR-CAFTA will also fulfill a vision of expanded economic opportunity and trade put forward by President Bush, and continues the strong momentum of recent months in advancing our free trade agenda.”
Zoellick notified the US Congress on 4 August 2003 of the administration’s intent to negotiate an FTA with the Dominican Republic. Negotiations were launched in January 2004 and concluded on 15 March. President Bush formally notified Congress of his plan to sign an FTA with the Dominican Republic on 25 March.
The DR-CAFTA is a regional trade agreement among all seven signatories, and will contribute to further regional integration. The administration plans to submit a single legislative package to Congress to implement the new trade agreement with the five Central American countries and the Dominican Republic.
Eighty percent of DR-CAFTA imports already enter the United States duty-free under the Caribbean Basin Initiative, Generalized System of Preferences and Most Favored Nation programs; the DR-CAFTA will provide reciprocal access for US products and services.
The United States has FTAs in force with Israel, Canada and Mexico (NAFTA), Jordan, Chile and Singapore.
For more details, see http://www.ustr.gov
Once the FTA passes in the US Congress, it moves on to the Dominican Congress where approval is also necessary for it to go into effect. Alfredo Pacheco, president of the Chamber of Deputies, commenting in Hoy newspaper today on the Free Trade Agreement said: ?That agreement is not a panacea; it is not good, but to not be there, is worse.? Pacheco speculated the treaty would have a difficult time passing in the US Congress given the presidential election is coming up in November.