Press Release

Secretary Gutierrez to Lead CAFTA-DR Business Development Mission

WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today announced he will lead a business delegation of U.S. exporters on a business development mission to the Dominican Republic, Nicaragua and Costa Rica, Sept. 28-Oct. 4, 2008. The mission will promote U.S. exports and investment and highlight regional opportunities that the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) has created since its implementation in 2006.

“CAFTA-DR is transforming the competitiveness of the Western Hemisphere in the global marketplace,” Gutierrez said. “Since implementation two years ago, the United States has reversed our previous trade deficit to a current trade surplus of $3.7 billion in 2007 with the CAFTA-DR countries. CAFTA-DR has expanded openness and transparency in the region, which has improved the trade and investment climate for U.S. companies. I look forward to leading U.S. exporters on this business development mission to the Dominican Republic, Nicaragua and Costa Rica to capitalize on the opportunities that CAFTA-DR offers to U.S. industry and agriculture.”

This will be Gutierrez’s second business development mission to the region. In October 2005, Gutierrez led his first mission to Honduras, Guatemala and El Salvador following U.S. Congressional approval of CAFTA-DR. This trip will help American businesses initiate or expand exports and investment in Costa Rica, the Dominican Republic and Nicaragua by facilitating business-to-business introductions, open discussions with government officials, and by providing first-hand market access information.

“CAFTA-DR is a top hemispheric achievement for President Bush. The United States and the CAFTA-DR countries are bound by friendship and mutual respect, and now this trade agreement. This is a key part of our economic growth strategy with our neighbors,” Gutierrez said.

The CAFTA-DR region is the third-largest export market in Latin America and the Caribbean, and the fourteenth-largest market in the world for U.S. exports. Last year, U.S. exports to the region surpassed $22 billion, an increase of 14.4 percent over 2006. Nearly half of the region’s imports are from the United States. Costa Rica is the only country yet to implement CAFTA-DR, and is working to implement the agreement as soon as possible to ensure its investors have permanent access to their most important market, the United States.

CAFTA-DR provides substantial new market access for U.S. companies interested and engaged in exporting to the region, as well as helping the United States to maintain its lead role in supplying the region’s goods and services, now free from most tariffs. More than 80 percent of U.S. exports of industrial and consumer products to the CAFTA-DR market became duty free immediately upon entry into force of the Agreement, with the remaining tariffs to be phased out over 10 years.

Free trade agreements (FTAs) have proved to be one of the best ways to open up foreign markets to U.S. exporters. Since NAFTA’s 1994 entry into force, the dismantling of trade barriers and the opening of markets has led to economic growth and rising prosperity in all three countries. U.S. merchandise trade with Canada and Mexico has grown 210 percent ($293.2 billion in 1993 to $909.4 billion in 2007). U.S. exports to Chile in 2007 were 206 percent greater than they were in 2003, the year before the entry into force of the U.S.-Chile FTA. Trade agreements help level the international playing field and encourage foreign governments to adopt open and transparent rulemaking procedures, as well as non-discriminatory laws and regulations. FTAs help strengthen business climates by eliminating or reducing tariff rates, improving intellectual property regulations, opening government procurement opportunities and easing investment rules.

Three FTAs are currently pending in Congress—Colombia, Panama, and South Korea. Combined, they will give U.S. exporters enhanced access to markets of more than $1 trillion and 100 million consumers.

The Dominican Republic-Central America-United States Free Trade agreement (CAFTA-DR) includes seven signatories: the United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.

Businesses interested in participating in the CAFTA-DR Business Development Mission can find additional information at www.export.gov/caftadrmission or contact the Office of Business Liaison at 202-482-1360.