Central America and the Dominican Republic are the second largest U.S. export markets in Latin America, behind only Mexico. On August 2, 2005, President George W. Bush signed into law the act to implement the Dominican Republic- Central America-United States Free Trade Agreement (CAFTA), thereby opening the door to important new opportunities for U.S. companies. The CAFTA countries are: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States. CAFTA is expected to enter into force on January 1, 2006.
Eighty percent of U.S. consumer and industrial exports to the CAFTA countries will be duty-free immediately upon entry into force of the Agreement, including information technology products, agricultural products, construction equipment, paper products, pharmaceuticals, and medical and scientific equipment. Duties on autos and auto parts will be phased out over five years with duties on remaining products phased out over ten years.
