U.S. and Costa Rica Conclude Negotiations To Finalize Costa Rica's Participation in the U.S.-Central America FTA
The Office of the U.S. Trade Representative (USTR) has issued a press release announcing that the U.S. and Costa Rica have concluded negotiations to finalize Costa Rica's participation in the U.S.-Central America Free Trade Agreement (CAFTA).
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The U.S. had concluded its CAFTA negotiations with El Salvador, Guatemala, Honduras, and Nicaragua in December 2003, but not with Costa Rica because Costa Rica had indicated that it needed to undertake further consultations at home. (See ITT's Online Archives or 12/18/03 news, 03121805, for BP summary.)
The USTR adds that the U.S. began negotiations with the Dominican Republic earlier in January 2004 and will seek to bring the Dominican Republic fully into the CAFTA by March 2004.
Highlights of CAFTA
According to the USTR's press release, highlights of the CAFTA include (partial list):
U.S. consumer and industrial products. More than 80% of U.S. exports of consumer and industrial goods will become duty-free in the CAFTA countries, with remaining tariffs phased out over 10 years.
U.S. farm products. More than half of current U.S. farm exports to the CAFTA countries will become duty-free immediately and tariffs on most remaining U.S. farm products will be phased out within 15 years.
Textiles and apparel. Textiles and apparel will be duty-free and quota-free immediately if they meet CAFTA's rule of origin, and CAFTA's benefits for textiles and apparel will be retroactive to January 1, 2004. Another provision will give duty-free benefits to some apparel made in the CAFTA countries that contain certain fabrics from NAFTA partners Mexico and Canada.
Services. The CAFTA countries will accord substantial market access across their entire services regime, offering new access in sectors such as express delivery, telecommunications, computer and related services, transport, etc.
Software, music, text, etc. State-of-the art protections and non-discriminatory treatment are provided for digital products such as U.S. software, music, text, and videos and protections for U.S. patents, trademarks, and trade secrets are strengthened.
Draft Text of CAFTA Expected to be Made Public in January 2004
The USTR press release notes that the draft CAFTA text will be made public before the end of January 2004.
USTR press release (No. 04-03, dated 01/25/04) available at
USTR fact sheet on CAFTA (dated 12/17/03) available at