bilaterals.org logo
bilaterals.org logo

US-DR-CAFTA

The US-Central America Free Trade Agreement, commonly referred to as “CAFTA,” was signed in December 2003 after twelve short months of negotiation. The negotiations involved the US, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. Costa Rica at first refused to join the agreement, then changed its position in late January 2004. The US separately negotiated a bilateral treaty with the Dominican Republic, with a view to folding the deal, and the country itself, into the US-CAFTA scheme.

The US-CAFTA was signed late May 2004, and the Dominican Republic became an additional party to it in August 2004. Since then, the accord has been officially renamed the “United States-Dominican Republic-Central America Free Trade Agreement” or US-DR-CAFTA. But the overall agreement — which a lot of people continue calling just “CAFTA” — still needs ratification by all parties to go into force.

CAFTA is a wide-ranging agreement covering many areas: agriculture, telecommunications, investment, trade in services (from water distribution to gambling), intellectual property, the environment, etc. It essentially serves US business interests by giving them a concrete and high-level set of rights to operate in Central America. Some US sectors, such as sugar producers, feel threatened by the treaty. But by and large, the threats are mainly against the Central American countries which signed on, as it opens the depths of their economies — public and private — to the interests and power of US companies.

In July 2005, US Congress approved the DR-CAFTA and Bush signed it into law in early August. The Central American parliaments eventually also approved it. For the Dominican Republic, the treaty took effect in 2006.

Costa Rica was the Central American country with the strongest resistance to DR-CAFTA. There were large public demonstrations and information campaigns, and a broad grouping of civil society organizations, from trade unions to small farm organizations, signed on. This coalition successfully pushed for a referendum on ratification, which was held on 7 October 2007. The result: 51.62% in favour and 48.38% opposed. The result was considered binding since more than 40% of the electorate voted. In view of these results, CAFTA was ratified.

On December 23, President Bush issued a proclamation to implement the DR-CAFTA for Costa Rica as of 1 January 2009.

last update: May 2012
Photo: Public Citizen


Opposition to CAFTA will make vote difficult
Senate Finance Committee Chairman Charles Grassley (R-IA) said this week that opposition to the Central American Free Trade Agreement (CAFTA) from Senate Agriculture Chairman Saxby Chambliss (R-GA) has made CAFTA passage “very, very difficult,” and added in a March 29 press conference that another difficulty is stronger-than-usual opposition from the sugar lobby and organized labor.
CAFTA’s profit motive
The fundamental reality of most of the US’ trade accords is that they are designed to maximize corporate profits no matter the cost to the peoples of the signatory nations.
Sandinistas say FTA bad for health
Sandinista National Liberation Front legislators will present a minority report against ratification of the FTA (Free Trade Agreement) with the United States, Nicaraguan Congresswoman Alba Palacio said.
Two die in Guatemala free trade protests
Two people were killed and many injured as violence broke out during protests in Guatemala on Tuesday 15 March when President Oscar Berge ratified the Central America Free Trade Agreement (CAFTA).
Costa Rica rules out immediate ratification of FTA with US
Costa Rica on Wednesday ruled out the possibility of an immediate ratification of the free trade agreement (FTA) between Central America and the United States due to pressure from economic and social sectors.
Guatemalan groups vow to continue protests against FTA
Guatemalan grassroots organizations said on Tuesday that they will not give up protests against the Central America-United States Free Trade Agreement (FTA), ratified last week by the parliament.
Guatemala ratifies free trade pact with United States
Shrugging off rowdy protests in the streets, Guatemala’s Congress voted overwhelmingly on Thursday to ratify a Central American free trade agreement with the United States.
Summary of events of 9 March against the DR-CAFTA in Guatemala
This morning, rural Guatemala spilled more farmers into the streets of the capital for the third day in a row, trying to block the Congress from ratifying the Free Trade Agreement with the United States. Last week 6,000 people protested in the same location for the same reason. More protests are expected.
Guatemala set to quash FTA protests with troops
Protesters blocked access to the legislature to prevent a vote on a trade pact with Washington, and lawmakers who ventured outside were chased for blocks.
Letter to reject environment chapter of CAFTA (Eng/Esp)
We are enclosing a letter in English and Spanish proposed by different Central American and USA organizations to be delivered in our respective Congresses. We are protesting the contents and consecuences that the US-DR-CAFTA will bring in general to the society and the environment, but especially in this case Chapter No. 17 related to environment.