DR-CAFTA
US-Central America-Dominican Republic Free Trade Agreement
DR-CAFTA was passed by US Congress in July 2005 and was scheduled to take effect on January 1, 2006. However, the US Trade Representative continues to insist on specific changes to the laws of each country which, in some cases, go beyond the explicit commitments in the agreement,. El Salvador, Honduras and Nicaragua have all met these requirements, allowing it to take effect in those countries in March and April. Guatemala and the Dominican Republic have yet to meet USTR approval, and Costa Rica has not yet ratified the agreement due to strong opposition in that country.
• Agriculture. About 5.5 million Central Americans depend on agriculture for their survival, and one-third of employment in the region is based on agriculture. This agreement is a serious threat to these farmers who produce for the local market. It will open their borders to a flood of imported US rice, corn and other crops, sold below the cost of production, undercutting local farmers and denying them an opportunity to make a decent living.
• Health. Intellectual property rules in DR-CAFTA will limit the ability of Central American governments to make affordable medicines available to their populations. Governments are being forced to impose new, more stringent patent and related protections that will seriously limit or delay the introduction of generic competition and reduce access to new, affordable generic drugs.
• Sustainable development. Governments hope to attract foreign investment, but DR-CAFTA will take away government rights to promote good quality investments that encourage development. DR-CAFTA will discourage laws to protect workers, public health and the environment.