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. Costa Rica will join the Caricom Central American Trade Pact – among Costa Rica`s free trade agreements, which govern relations between itself and a group of countries, the free trade agreement with CARICOM. CARICOM consists of four nations (Trinity and Tobago, Barbados, Belize and Guyana). The agreement was signed in 2005. As soon as the agreement enters into force, EFTA states lift all tariffs on imports of industrial products, including fish and other seafood originating in Central American countries. Participating Central American states will phase out all tariffs on industrial products, including fish and other seafood, originating in an EFTA state (Annex IV and V).

All of these goods will be duty-free by 2029. “Costa Rica needed a little more time to complete its participation in CAFTA and we are very pleased to have joined its Central American neighbours in this state-of-the-art, modern free trade agreement, which aims to expand trade between friends and neighbours,” zoellick said. “With every Central American nation, we have worked to match market access rules to individual circumstances, and this work is now complete with Costa Rica.” The Dominican Republic, Costa Rica, El Salvador, Guatemala, Nicaragua and Honduras also approved the agreement. You are all current members of CAFTA-DR. Chapter 12 contains the rules and procedures for preventing or resolving disputes between the parties regarding the interpretation or application of the agreement. The objective of Chapter 5 is to improve the legal environment for EFTA investors and Central American countries investing in the other country`s markets. This objective is achieved by granting non-discriminatory establishment and operating rights (“commercial presence”) in economic sectors that are not covered by the trade in services chapter. In some economic areas, the parties have introduced reservations in their national legislation concerning domestic treatment on the basis of restrictions (Annex XVIII). The chapter provides for a regular review of these reserves to increase the obligations of the parties over time. Costa Rica recently concluded the Central American Trade PactWASHINGTON – The United States and Costa Rica today concluded negotiations for Costa Rica`s participation in the Central American Free Trade Agreement (CAFTA), progressive tariffs and other trade barriers and promote regional economic integration and growth. The United States concluded negotiations with El Salvador, Guatemala, Honduras and Nicaragua last month. U.S.

Trade Representative Robert B. Zoellick and Costa Rica`s Commerce Secretary Alberto Trejos announced the agreement in Washington. Costa Rica needed a little more time to complete its participation in CAFTA and we are very pleased to have joined its Central American neighbours in this state-of-the-art and modern free trade agreement that aims to develop trade between friends and neighbours,” zoellick said.