Central American Free Trade Agreement

During the duration of the agreement, the United States systematically exported more than it imported. In 2018, the United States exported about $7.5 billion more than imports. By 2019, the United States is on track to export about $6.6 billion more than it imports. CAFTA-DR is the first free trade agreement between the United States and a small group of developing countries. It was created with the aim of creating new and better economic opportunities by opening markets, removing tariffs, removing barriers to services and much more. In 2015, it was estimated that two-way trade resulted in $53 billion. [1] Almost all Central American exports to the United States were already duty-free under the 1984 Caribbean Basin initiative. El Salvador was the first country to formally implement CAFTA to enter into force on March 1, 2006, when the Organization of American States (OAS) received copies of the treaty. Honduras and Nicaragua fully implemented the agreement on 1 April 2006.

On 18 May 2006, the Guatemalan Congress ratified THE CAFTA-DR, which came into force on 1 July 2006. The Dominican Republic implemented the agreement on 1 March 2007. In a referendum on 7 October 2007, Costa Rica supported the free trade agreement to just under 51.6% and voted “yes”; The agreement came into force on 1 January 2009. [6] The intellectual property protection provisions (Chapter 6 and Appendix XIX) include, among other things, trademarks, copyrights, patents and geographical indications, and contain provisions relating to respect for intellectual property rights and cooperation between the parties. They are based on the WTO agreement on trade-related aspects of intellectual property rights (TRIPS) and provide a high level of protection, taking into account the principles of the most favoured nation and national treatment. The parties recognize that economic development, social development and environmental protection are interdependent. In Chapter 9, they reaffirm their commitment to multilateral environmental and labour contracts and principles and commit to imposing their level of protection. There is a separate provision for trade in forest products. Arbitration procedures do not apply to this chapter. Total merchandise trade between the seven countries was about $57.9 billion in 2018, according to figures from the U.S. Census Bureau.

As of October 2019, the figure was about $58.5 billion.