The implementation of the United States-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) will provide U.S. manufacturing companies with improved trade and investment opportunities, according to a new report from Manufacturers Alliance/MAPI.
The findings show U.S. exports will grow rapidly as the region’s tariffs on American products are eliminated and as more stable economies increase their demand for technologically advanced products. The CAFTA-DR immediately eliminates the region’s tariffs on more than 80 percent of U.S. exports of consumer and industrial goods.
Even though only four of the six countries have implemented the agreement, U.S. exports increased 16.8 percent from January to September 2006. Central American countries and the Dominican Republic now represent the 13th largest U.S. export market in the world.
Overall, 99 percent of U.S. exports of electronics and instrumentation receive immediate duty-free access under the CAFTA-DR, which compares to pre-CAFTA-DR average tariffs ranging from 2.1 percent to 5.5 percent.
Capital goods, chemicals, environmental technologies, electrical power generation and distribution equipment, and automotive parts and services equipment will also benefit from the program’s implementation.
More information on the report can be found by clicking here.