ISDS Case Map
CAFTA
US - Central America Free Trade Agreement
“The Free Trade Agreement imposed by the United States on Central America and Dominican Republic will have negative consequences for our countries,” said Guatemalan jurist Alfonso Bauer Paiz.
National Merchants and Entrepreneurs Federation president Antonio Cruz assured today that there is generalized disarray throughout the Dominican Republic with initial implementation of the tax reform, and requested the government to reconsider enforcing it as of next July when CAFTA comes into effect.
Guatemala's government - annoyed by the delay in CAFTA's implementation and the U.S. House of Representative's approval of a wall to keep out illegal immigrants - announced Tuesday it would seek to strengthen its relations with the Mercosur trading bloc.
As CAFTA member-nations struggle to comply with the free trade pact's requirements, opponents of the deal say the delays show how unpopular and undemocratic the mandated reforms are.
The Central American Free Trade Agreement, a Bush administration priority passed by the House in July after a bruising political fight, will not take effect New Year's Day, the target date set by the White House.
The Dominican government reiterated today that the country “met the requirements” and “is ready” to enter the Free Trade Agreement with Central America and the United States (DR-CAFTA), but that it decided to postpone entering free trade until next July.
The American Chamber of Commerce (Amcham) reacted yesterday with disbelief to the official announcement that the Dominican Republic postponed entering the Free Trade Agreement till July 2006.
The decision to maintain the exchange commission at a rate of 9% during 2006, plus duty charges to be collected during the first 6 months next year prior to entering the DR-CAFTA would give the Dominican government an extra-budgetary income of approximately RD$9.3 billion.
The United States ratified implementation of the Free Trade Agreement as of January 1st, 2006 with the sole inclusion of El Salvador and Honduras, since these were the only countries that met all requirements by the set deadline.
US Ambassador Hans Hertell affirmed yesterday that there is a good possibility that the Dominican Republic be impeded to integrate this upcoming January onto the Free Trade Agreement known as DR-CAFTA, given that the voluminous documentation that authorities recently sent to the United States is currently under review.
