The United States and the Dominican Republic have concluded negotiations to integrate the Dominican Republic into the US Central-American Free Trade Agreement (CAFTA).
Under the terms of the agreement, 80% of US exports of consumer and industrial goods will become duty free in the Dominican Republic, with any remaining tariffs phased out over the next ten years.
The ruling will allow US companies to import assembled footwear uppers into the Dominican Republic duty free. Manufacturers with factories in the country will be able to produce footwear for duty free export back to the US, with the exception of Category 17 plastic shoes. This will reduce production costs, making the footwear more competitively priced in the country.
In addition, more than 50% of US farm exports will become duty free with immediate effect. The Dominican Republic will also join the World Trade Organisation Information Technology Agreement while protection for US patents, trademarks and trade secrets will be strengthened and the closing of loopholes in customs operations will aid express deliveries.
