USTR Issues Draft Text of Dominican Republic-Specific CAFTA Textile Provisions, Etc
The Office of the U.S. Trade Representative has posted to its Web site the section of the draft U.S.-Central America Free Trade Agreement (CAFTA) on Dominican Republic-specific textile provisions. In addition, the USTR has issued a side letter concerning the Dominican Republic's potential loss of certain U.S-Caribbean Basin Trade Partnership Act (CBTPA) benefits as a result of CAFTA.
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On April 9, 2004, the USTR released the draft text of the Dominican Republic-specific CAFTA provisions, with the exception of the section specific to textiles. (See ITT's Online Archives or 04/15/04 news, 04041510, for BP summary of the other Dominican Republic CAFTA provisions.)
USTR Side Letter Addresses Dominican Republic's Loss of CBTPA Benefits
On April 12, 2004, the USTR also released a side letter noting concerns that articles produced in the Dominican Republic that are currently eligible for CBTPA benefits would no longer be eligible for these benefits once the Dominican Republic is part of CAFTA.
Representatives of the Dominican Republic expressed concern that, as a result, articles that are co-produced by enterprises in the Dominican Republic and the Republic of Haiti will also become ineligible for CBTPA benefits.
In its side letter, the USTR notes that the U.S. intends to work with Congress to amend the CBTPA to allow articles currently eligible for CBTPA benefits that are co-produced by enterprises in the CAFTA Parties and CBTPA beneficiaries to continue to be eligible for such benefits after CAFTA enters into force.
(The other parties to the CAFTA are Costa Rica, Honduras, El Salvador, Guatemala, and Nicaragua.)
Draft Text of Dominican Republic-Specific Textile Provisions (dated 04/12/04) available at http://www.ustr.gov/new/fta/Dr/text/09-textiles.pdf
USTR Side Letter (dated 04/12/04) available athttp://www.ustr.gov/new/fta/Dr/text/18-letter-haiti.pdf