What are the main provisions of CAFTA-DR?

The Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) is a trade agreement between the United States and six Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic). The main provisions of CAFTA-DR include:

1. Tariff Reductions: CAFTA-DR aims to eliminate or reduce tariffs on goods and services traded between the member countries. This helps to promote trade by making imported goods more affordable and accessible.

2. Market Access: The agreement provides improved market access for goods and services from the member countries. It eliminates barriers such as import quotas and licensing requirements, allowing for increased trade opportunities.

3. Intellectual Property Rights: CAFTA-DR includes provisions to protect intellectual property rights, such as patents, copyrights, and trademarks. This helps to encourage innovation and creativity by ensuring that creators and inventors are rewarded for their work.

4. Investment Protection: The agreement includes provisions to protect foreign investments in the member countries. It establishes rules and regulations to ensure fair treatment and non-discrimination for investors, providing them with a more secure environment to conduct business.

5. Labor and Environmental Standards: CAFTA-DR includes provisions to promote and enforce labor and environmental standards. This ensures that workers are treated fairly and that environmental regulations are upheld, preventing a race to the bottom in terms of labor and environmental practices.

6. Dispute Settlement Mechanism: The agreement establishes a dispute settlement mechanism to resolve any conflicts or disputes that may arise between the member countries. This helps to ensure that the agreement is effectively implemented and that any issues are addressed in a fair and timely manner.

Overall, CAFTA-DR aims to promote economic growth, increase trade, and enhance cooperation between the United States and the Central American countries by providing a framework for fair and open trade.