Congress recently passed the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), the largest free trade agreement more than a decade. This agreement will immediately eliminate 80% of tariffs on U.S. goods exported to the region and phase out the rest over 10 years, giving American businesses, workers, and farmers greater access to 44 million Central American consumers. The U.S. Chamber of Commerce was part of the Business Coalition for U.S.-Central America Free Trade.

How will CAFTA support American jobs?
     American workers already export $15.7 billion in U.S. products to Central America and the Dominican Republic - more than we sell to India, Indonesia, and Russia combined. Two-way trade surpassed $33 billion in 2004. A U.S. Chamber study of DR-CAFTA's impact on a dozen states projects it will create over 25,000 new jobs in its first year - and over 130,000 new jobs in a decade.

Will the agreement level the playing field for U.S. workers?
     Today, 80% of Central American and Dominican products enter the U.S. market duty free, while our merchandise exports to the six countries face tariffs that average between 7% and 11%. In other words, these countries are enjoying nearly free access to our marketplace while our access to theirs remains limited. DR-CAFTA will fix this imbalance by immediately eliminating all tariffs on 80% of U.S. manufactured goods, with the remainder phased out over a few years.

How will U.S. farmers be affected
     The American Farm Bureau Federation projects that DR-CAFTA will boost U.S. agricultural exports by $1.5 billion annually. Farmers and ranchers can expect an upsurge in exports of corn ($58 million exports), wheat ($62 million), rice ($92 million), soybean meal and oil ($85 million), poultry ($178 million), pork ($108 million) and beef ($47 million).

Beyond tariff cuts, will U.S. companies and workers have new opportunities in the region?
     DR-CAFTA will open services markets such as telecoms, insurance, and express shipments; provide new legal protections for copyrights, patents, and trademarks; and foster transparency and new opportunities to bid on government procurement contracts in the region.

What are some of the other benefits of CAFTA?
     The agreement will lock in democratic reforms, improve labor law enforcement, and boost economic growth throughout the region. A stronger economy will provide governments with additional resources for education, health care, and infrastructure projects.

More information about CAFTA and other issues affecting the business community is available online at www.uschamber.com