Press Release

Statement by U.S. Commerce Secretary Welcoming Dominican Republic’s Implementation of CAFTA-DR

WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today released the following statement following the White House certifying the Dominican Republic has implemented the CAFTA-DR, opening the way for the agreement to go into force today. The historic agreement will create greater access to the Dominican market for U.S. exporters, level the playing field for American workers and promote democracy in the region.

"I applaud Dominican President Leonel Fernandez and the government of the Dominican Republic for implementing the CAFTA-DR Free Trade Agreement. CAFTA-DR has proven to be an exceptional agreement. I'm very pleased that the Dominican Republic is joining its Central American neighbors in implementing CAFTA-DR. The Dominican Republic is our largest export market among the CAFTA-DR countries with exports totaling $5.3 billion in 2006. We are pleased to be able to advance our long-standing friendship and deepen our trading relations with the Dominican Republic.

"The CAFTA-DR is a landmark agreement that strips away barriers to trade, expands export opportunities and boosts hope and opportunity throughout the region. The U.S. exports to the countries that have implemented CAFTA-DR; El Salvador, Guatemala, Honduras and Nicaragua were $10 billion in 2006--an 18.1 percent increase over 2005.

"Last year we had a $1 billion trade surplus with the CAFTA-DR region, of which the Dominican Republic represented $819 million. This a significant turn around in the market compared to the $1.2 billion deficit in 2005.

"CAFTA-DR and the other free trade agreements in the hemisphere mark another advance toward bringing our nations closer together and securing the benefits of trade for all. Under President Bush's leadership, the United States has offered a positive vision to the region that advances economic freedom and social reform while strengthening democracies and the rule of law."

Background
For more than twenty years, most Dominican exports entered the United States duty-free, primarily as a result of the Caribbean Basin Initiative (CBI). CAFTA-DR moves beyond one-way preferences to full partnership and reciprocal commitments, under which U.S. exports also benefit from duty-free access.

In 2006, two-way trade between the Dominican Republic and the U.S. equaled nearly $10 billion. More than 49 percent of the DR's exports go to the United States. And more than 52 percent of its imports come from the United States.

The Dominican Republic now joins Guatemala, El Salvador, Nicaragua and Honduras as countries that have completed their commitments under the agreement. The United States entered CAFTA-DR with El Salvador on March 1, 2006, with Honduras and Nicaragua on April 1, 2006, and with Guatemala on July 1, 2006. The United States continues to work with Costa Rica to complete this partnership. The Agreement with the Dominican Republic will enter into force March 1, 2007.