The rush to pass the tax reform is in order to compensate the government for loss of revenue when the exchange commission is removed in order to comply with requirements for the implementation of DR-CAFTA. Now, though, it appears the implementation of the treaty with the United States may take many more months.
Two Central American newspapers reported yesterday that the DR-CAFTA agreement would not come into effect next January as previously announced and that the possible new date would be in April, according to Listin Diario. El Nuevo Diario from Nicaragua quoted economist Alejandro Martinez Cuenca saying that the five signatory countries with the US have not harmonized their legislation with US laws. Only El Salvador has made minimal progress in this aspect whereas the other five nations still have a lot to get done, including the DR, which affects US President George W. Bush’s commitment to his country’s Congress. Laws to be harmonized include intellectual property, labor laws, biodiversity and copyright, among others. La Prensa newspaper, also from Nicaragua, reports that a government official, Dean Garcia, said that a meeting of representatives of the signatory countries is being planned for next 10 December, when a more certain date of application of the treaty would be confirmed. Garcia indicated that none of the countries has deposited the ratification instruments to the Organization of American States (OAS), which is one of the requisites for the agreement to come into effect. For the news story released in Nicaragua on the postponing of DR-CAFTA, see http://www.elnuevodiario.com.ni/2005/11/27/nacionales/6694