Press Release

Commerce Secretary Praises Guatemala’s Implementation of CAFTA-DR

Gutierrez Says President Bush's Vision and Initiatives Open Markets for American Exporters and Promote Democracy

WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today praised Guatemalan President Oscar Berger and the government of Guatemala for implementing the CAFTA-DR Free Trade Agreement. The historic agreement will open Guatemala's market to U.S. exporters, level the playing field for American workers and promote democracy in the region.

"I'm very pleased that Guatemala is joining its neighbors in implementing CAFTA-DR, a landmark agreement that strips away barriers to trade, expands U.S. export opportunities and boosts hope and opportunity throughout the region," said Secretary Gutierrez. "Under President Bush's bold leadership with initiatives like the CAFTA-DR, 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. Such unprecedented U.S. engagement is vital in the effort to counter the voices of those who want to turn the clock back and undo the advancement of democracy and freedom."

For more than twenty years, most Guatemalan 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.

The CAFTA-DR region represents a substantial market for U.S. exporters. The United States exported nearly $17 billion to these countries in 2005, more than all U.S. exports to Russia, India and Indonesia combined.

Guatemala now joins 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 , and with Honduras and Nicaragua on April 1, 2006. The United States continues to work with the Dominican Republic and Costa Rica to complete this partnership. The Agreement with Guatemala will enter into force July 1, 2006.

Presidential Proclamation Implementing CAFTA-DR