Question

What economic, political and social objectives drive integration for CAFTA-DR ?

Answer 1

The Dominican Republic-Central America FTA (CAFTA-DR) is the first free trade agreement between the United States and a group of smaller developing economies: our Central American neighbors Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, as well as the Dominican Republic. The CAFTA-DR promotes stronger trade and investment ties, prosperity, and stability throughout the region and along our Southern border.

Combined, the countries in the CAFTA-DR would represent the United States' 18th largest goods trading partner, with $57.4 billion in total (two way) goods trade during in 2018. Exports totaled $32.2 billion while imports totaled $25.2 billion. The U.S. goods trade surplus with CAFTA-DR countries was $7 billion in 2018. According to the Department of Commerce, U.S. goods exports to CAFTA-DR supported an estimated 134 thousand jobs in 2014.

CAFTA-DR and Regional Manufacturing

Trade under CAFTA-DR supports Made-in-America jobs and unlocks opportunities for well-paying work as goods flow across borders and are manufactured into final products. Working together, our region can compete better.

CAFTA-DR and Labor         

CAFTA-DR is strengthening workers’ rights and conditions in the region, through enforcement of labor protections to which its workers are entitled under countries’ national laws. This includes through the first labor dispute under any free trade agreement to ensure Guatemalan workers can exercise their rights under Guatemalan law. We remain committed to helping Guatemala achieve that outcome and earn the benefits that come with enforcing the law to uphold internationally recognized labor rights.

CAFTA-DR and Creating Opportunities in the Region

Trade and economic growth promotes prosperity and stability and opportunities for citizens within their home country. CAFTA-DR requirements for rule of law and transparent and fair procedures in government actions create a better climate for investment and business. A better economic environment builds communities where citizens can thrive and youth have opportunity for a productive future at home.

The Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR) is a free trade agreement signed into existence in 2005. Originally, the agreement (then called the Central America Free Trade Agreement, or CAFTA) encompassed discussions between the US and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. A year before the official signing, the Dominican Republic joined the negotiations, and the agreement was renamed CAFTA-DR.“Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR),

The goal of the agreement is the creation of a free trade area similar to NAFTA. For free trade advocates, the CAFTA-DR is also seen as a stepping stone toward the eventual establishment of the Free Trade Area of the Americas (FTAA)—the more ambitious grouping for a free trade agreement that would encompass all the South American and Caribbean nations as well as those of North and Central America (except Cuba). Canada is currently negotiating a similar treaty called the Canada Central American Free Trade Agreement. It’s likely that any resulting agreements will have to reconcile differences in rules and regulations with NAFTA as well as any other existing agreement