El Salvador Free Trade Agreement

The Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) includes the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua. Implementation dates are between March 1, 2006 and January 1, 2009, depending on the country. Information for U.S. exporters can be obtained from the Department of Commerce at 2016.export.gov/FTA/index.asp. Most CAFTA-DR goods currently enter the U.S. duty-free and free of charge for goods handling (MPF), and virtually all will be imported free of charge until the agreement is fully implemented on January 1, 2025. On December 15, 2011, the Mexican Senate approved the agreement between Mexico and Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. On January 9, 2012, the Mexican government issued a decree approving the free trade agreement with Central American countries. On the 30th. In November 2012, the Mexican government announced the entry into force of the Mexico-Central America Free Trade Agreement with Honduras. On July 1, 2013, the Free Trade Agreement between Costa Rica and Mexico entered into force. Two months later, the agreement between Guatemala and Mexico entered into force. As an alternative to the model Certificate of Origin, DR-CAFTA producers and exporters, as well as U.S.

importers, may use a free-form certificate if they certify that their goods meet the requirements of the DCFTA-DR. Each publication contains the General Note to the United States Harmonized Tariff Schedule (HTSUS) with the General and Specific Rules of Origin, a list of all goods that have become duty-free at the time of their entry into force, and the phase-out plan for goods that become duty-free over time. CAFTA-DR represents the third largest export market in Latin America for the United States, just behind Brazil and Mexico and the 14th largest export market in the world. The free trade agreement provides new and better market access for U.S. consumer and industrial products, as well as agricultural products. It also offers tariff reduction, protection for U.S. investments in the region, strengthens U.S. patent, trademark and more protection. The Free Trade Agreement between the Dominican Republic, Central America and the United States (CAFTA-DR) entered into force in 2006 for the United States, El Salvador, Guatemala, Honduras and Nicaragua, in 2007 for the Dominican Republic and in 2009 for Costa Rica. As a result of the free trade agreement, 100% of U.S. exports of consumer and industrial goods to DCFTA-DR countries will no longer be subject to tariffs.

Tariffs on almost all U.S. agricultural products will expire by 2020. In order to benefit from duty-free treatment under the FTA, products must comply with the applicable rules of origin. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) is the first free trade agreement between the United States and a group of small developing countries: our Central American neighbors, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. CaFTA-DR promotes stronger trade and investment relations, prosperity and stability throughout the region and along our southern border. The DCFTA-DR strengthens the rights and conditions of workers in the region by upholding the occupational health and safety to which workers are entitled under the countries` national laws. This includes the first industrial action under a free trade agreement to ensure that Guatemalan workers can exercise their rights under Guatemalan law. We remain committed to helping Guatemala achieve this result and reaping the benefits of law enforcement to uphold internationally recognized labour rights. Under the agreement, the parties significantly free trade in goods and services.

THE DCFTA-DR also includes key disciplines related to customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, e-commerce, intellectual property rights, transparency, occupational safety and environmental protection. CAFTA-DR creates new trade opportunities for the United States while promoting regional stability, economic integration, and economic development for a significant group of U.S. neighbors. Decision No. 9 Uniform Rules of the Free Trade Agreement The free trade agreements between Mexico and Central America are: (1) the Mexico-Costa Rica Free Trade Agreement, in force since 1 January 2005, (2) the Mexico-Nicaragua Free Trade Agreement, in force since 1 July 1998, and (3) the Mexico-El Salvador, Guatemala and Honduras Free Trade Agreement, in force since March 15, 2001.Text of THE DCFTA-DR The full text of the agreement is provided by the United States Trade Representative (USTR). The first round of negotiations on the standardization and convergence of existing free trade agreements between Central American countries and Mexico took place in Mexico City in May 2010. The second round took place in August in the city of San Salvador, El Salvador. The third cycle took place on 27 and 30 September 2010 in Mexico City.

The fourth round took place in Guatemala from 31 January to 4 February 2011, and the fifth round of negotiations took place in Mexico City in May 2011. The sixth round of negotiations took place on 15 and 19 August 2011 in San Salvador City, El Salvador. .