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WebGuide
- CAFTA-DR
A
recently passed free-trade
agreement between the United
States, the nations of
Central America, and the
Dominican Republic will help consolidate democratic
reforms in many of the
signatory countries while
also boosting economic
growth for all parties, says
U.S. Commerce Secretary
Carlos Gutierrez.
Responding to questions
May 12 during an online
interactive forum, Gutierrez
described the trade pact --
known as CAFTA-DR, or simply
CAFTA -- as "a
state-of-the-art agreement
that strengthens all of our
regional economies,
strengthens our regional
competitiveness, and
strengthens the young and
fragile democracies in the
region." By
adopting CAFTA, the United
States would open the gates
to free trade with Costa
Rica, El Salvador,
Guatemala, Honduras,
Nicaragua, and the Dominican
Republic, thereby creating
"the second-largest
U.S. export market in Latin
America, behind only
Mexico," he said.
Gutierrez outlined the
anticipated benefits of the
agreement and cited several
reasons why CAFTA's approval
by Congress would serve U.S.
interests. The markets
of Central America and the
Dominican Republic
"provide wonderful
opportunities for U.S.
businesses," he said.
"Since 80 percent of
imports from the CAFTA
region already come into the
U.S. duty-free, CAFTA levels
the playing field" by
reducing and ultimately
eliminating tariffs on U.S.
exports to the region,
thereby reducing costs for
U.S. producers. Under
CAFTA, he explained,
"U.S. manufacturers,
farmers, and service
companies" would have
"broader access"
to the region's valuable
markets.
Michigan
Agriculture Benefits
From CAFTA-DR - Exports
of farm products help
boost Michigan’s farm
prices and income. Such
exports help support
about 13,300 jobs both
on and off the farm in
food processing,
storage, and
transportation. In 2003,
Michigan's farm cash
receipts were $3.8
billion, and
agricultural exports
were estimated at $842
million, putting its
reliance on agricultural
exports at 22 percent.
Michigan
Benefits from CAFTA-DR
- Michigan's export
shipments of merchandise
manufactures and
non-manufactures to the
CAFTADR region (Costa
Rica, the Dominican
Republic, El Salvador,
Guatemala, Honduras and
Nicaragua) totaled $125
million in 2004, more
than double the $61
million worth of goods
the state shipped to
CAFTA-DR markets in
2000.
Costa
Rica - With more than 30,000 US retirees making it an attractive market for
US products.
Dominican Republic - The Dominican
Republic is the largest of the proposed CAFTA Free Trade Pack countries.
El Salvador - El Salvador is one of
the smallest proposed partners of CAFTA-DR.
Guatemala - Guatemala is an influential
member of CAFTA-DR.
Honduras - Honduras is a member of the
CAFTA-DR Trade Agreement
Nicaragua is a member of the
CAFTA-DR Trade Agreement
A
recently passed free-trade
agreement between the United
States, the nations of
Central America, and the
Dominican Republic will help consolidate democratic
reforms in many of the
signatory countries while
also boosting economic
growth for all parties, says
U.S. Commerce Secretary
Carlos Gutierrez.
