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DOMINICAN REPUBLIC-CENTRAL AMERICA
      FREE TRADE AGREEMENT
     Central American Rural Farmer Perspective
                                                 Kana Matsui
                                                 7 Apr. 2011
OUTLINE
   Background on Central America
   DR-CAFTA and its provisions

   Pre-existing conditions
   Observations since implementation

   Conclusions
AGRICULTURE IN CENTRAL AMERICA
DR-CAFTA: WHICH NATIONS?
   United States
   Dominican Republic
   Guatemala
   Honduras
   El Salvador
   Nicaragua
   Costa Rica

   Exemptions
   Tariff phase out schedules
   Tariff rate quotas
UNITED STATES VS CENTRAL AMERICA
   Economies of scale
       Area
       Capital investment



   Domestic support
       Type of support
       Stage of agricultural development
       Affect international prices
DOMESTIC ISSUES
   Lack of information
   Less institutional support for security
   Lack of environmental regulations
   Difficult to access international market
       Infrastructure
       Intermediaries
       Licensing and other international regulations
OBSERVED EFFECTS
   Decrease in employment
   Increase in cost of agricultural inputs
   Increase in foreign investment
   Increase in migration
CONCLUSION
   General agreement on needs but how?




   Still to be observed, researched, and analyzed

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Dominican republic central america free trade agreement

  • 1. DOMINICAN REPUBLIC-CENTRAL AMERICA FREE TRADE AGREEMENT Central American Rural Farmer Perspective Kana Matsui 7 Apr. 2011
  • 2. OUTLINE  Background on Central America  DR-CAFTA and its provisions  Pre-existing conditions  Observations since implementation  Conclusions
  • 4. DR-CAFTA: WHICH NATIONS?  United States  Dominican Republic  Guatemala  Honduras  El Salvador  Nicaragua  Costa Rica  Exemptions  Tariff phase out schedules  Tariff rate quotas
  • 5. UNITED STATES VS CENTRAL AMERICA  Economies of scale  Area  Capital investment  Domestic support  Type of support  Stage of agricultural development  Affect international prices
  • 6. DOMESTIC ISSUES  Lack of information  Less institutional support for security  Lack of environmental regulations  Difficult to access international market  Infrastructure  Intermediaries  Licensing and other international regulations
  • 7. OBSERVED EFFECTS  Decrease in employment  Increase in cost of agricultural inputs  Increase in foreign investment  Increase in migration
  • 8. CONCLUSION  General agreement on needs but how?  Still to be observed, researched, and analyzed