Agreement For Trade Free Zones

Agreement for Trade Free Zones

Introduction

This agreement whose name in English is, Dominican Republic-Central América Free Trade Agreement, is known in Spanish, as the Free Trade Agreement between the Dominican Republic, Central America and the United States of America. It is an agreement, which the Dominican Republic could be a participant, thanks to the alarm of the representatives of the Dominican State of that time in the Central American Parliament, since in its participations in its headquarters, in the city of Guatemala, it was They found out of the process and could give the notice, so that the country could act and we would not stay out as part of the region.

Developing

With this treaty, a free trade zone between the signatory countries was created. Making permanent benefits for 80% of the Central American products that are provided in the Initiative of the Caribbean Basin (ICC), covering a commercial volume of thirty billion dollars and leaving the remaining 20%, to be dismantled in a period 10 years, something already done, because the deadline to do it was the year 2015. Established the free zone among the signatory countries, the work began to achieve the main objective, which was to motivate the growth and diversification of the region.

Thus eliminating the obstacles that international trade had until that moment, thus increasing investment opportunities, facilitating the circulation of merchandise and service. The signatory countries were: Dominican Republic, Costa Rica, Honduras, El Salvador, Guatemala, Nicaragua, United States.

I must remind them that this agreement was preceded by the preferential tariff benefits program granted unilaterally by the United States, the countries of Central America and the Caribbean Basin, called, initiative of the Caribbean Basin (ICC), and on August 5 From the year 2004 the document that would make permanent benefits previously provided by the ICC was signed.

The negotiation, signature and ratification of DR-CAFTA were carried out in diversified circumstances, adapting to the particularities of the political and social tenor of each part, entering into force at different dates for each country, as of 2006, being the first of March of March 2007 for the Dominican Republic. This multilateral agreement is composed of twenty -two chapters, each divided into articles and has as fundamental objectives stimulate the expansion and diversification of trade in the region; Eliminate obstacles to trade and facilitate cross -border circulation of goods and services.

Promote conditions of loyal competition in the free trade zone; Substantially increase investment opportunities and enforce intellectual property rights. As these are official objectives, it had to be taken into account that compliance would be subject to various factors such as: the political will of governments; The economic conditions of the countries; The application junctures of the norms arranged by the treaty. Our country had signed free trade agreements with other countries and regions, and this treaty did not enter against those agreements that were previously signed to CAFTA.

Reason why the Central American integration process was not affected, however, all the measures that were subsequently adopted to the signing of this agreement, had to be subject to the provisions of the FTA, which placed the treaty above The new regional provisions regarding integration. DR-CAFTA was negotiated on the basis of fundamental principles previously agreed by the parties. Regardless of the rules of respect, there were three elements to consider: any agreement taken accordingly of CAFTA, it should be fully respectful of the constitutions of each country.

conclusion

Seeking the congruence of its national legal system with the treaty; Central American negotiating countries were considered, as a single negotiating part, pretending to negotiate jointly; It was agreed that CAFTA could only be launched if the negotiations had concluded, so the intermediate agreements would not be valid. As we mentioned at the beginning of the review of this treaty, the DR-CAFTA negotiations were initiated in January 2003 and the first countries to concretize the agreement with their signatures, were El Salvador, Guatemala, Honduras and later with Nicaragua in December 17 of the same year.