DOMINICAN FREE TRADE AGREEMENT BETWEEN U.S., Central America and the FTA between the United States, Central America and the Dominican Republic
"CAFTA" redirects here. For other meanings see CAFTA (disambiguation).
The Area is made up of CAFTA countries: Costa Rica, El Salvador, United States, Dominican Republic, Guatemala, Honduras and Nicaragua.
DR-CAFTA (Dominican Republic-Central America Free Trade Agreement, in English) or FTA (Free Trade Agreement-Dominican Republic-Central United States, in Castilian) is a treaty that seeks to create of a free trade area between the signatory countries. Makes permanent the benefits for 80% of products offered by Central Basin Initiative (CBI), covering a trade volume of thirty billion consists of twenty dólares.1 chapters, each divided into articles.
The negotiation, signing and ratification of the treaty was carried out in different conditions, tailored to the characteristics and social and political context of each State party, the process began in 2003 for all countries except the Dominican Republic, namely the adoption of the text for all countries involved, in 2004 and came into force on different dates for each country since 2006. On the other hand, considering that the industry is fundamental to the treaty provisions concerning the business deal, it is important to address elements such as tariffs, customs motion, origin of products and rules for domestic freight traffic. As a complement, the CAFTA legislation dealing with aspects of hygienic and environmental protection, respect for intellectual property rights and public and private investment, and any labor law in the States of the CAFTA area. It also specifies the mechanisms to settle disputes and to establish mutually agreed standards.
Despite the approval of the Contracting States, CAFTA has received many critical political and economic, opening a wide debate about the balance between benefits and disadvantages of the treaty provides. Objectives
The CAFTA's main purpose is to encourage expansion and diversification of trade in the region, eliminate obstacles to trade and facilitate cross-border movement of goods and services, promote fair competition in the free trade area, substantially increasing investment opportunities and enforce property rights intelectual.2 Since it is officially stated objectives, it should be noted that compliance is subject to various factors including political will of governments, economic conditions of countries, and joints of implementation of the standards set by the treaty.
The treaty does not enter in violation previous regional agreements, so that the Central American integration process is not affected. However, any action taken as a region should be subject to the provisions of NAFTA, which puts the treaty over the new regional arrangements on
integración.2 negotiations and signing
was negotiated on the basis of principles key agreed upon by the parties. Apart from the rules of respect, there were three main elements to consider, any agreement made as a result of CAFTA, should be fully respectful of the constitutions of each country, seeking consistency of national law with the treaty, it was considered Central American countries merchants, as a single negotiating party, pretending to negotiate jointly, also agreed that it could only be implemented if the CAFTA negotiations had been completed, so that the interim agreements would have no validity alguna.3
Negotiations began in January 2003 and agreement was reached with El Salvador, Guatemala, Honduras and Nicaragua on December 17, 2003, and with Costa Rica on January 25, 2004. That same month, began negotiations with the Dominican Republic. On May 28, 2004, the Ministers of Commerce (Robert Zoellick) and Costa Rica (Alberto Trejos), the Salvadoran economy ministers (Miguel Angel Lacayo) and Guatemala (Marcio Cuevas), the Minister of Industry and Trade of Honduras (Norman Smith) and the Minister of Development, Industry and Trade Nicaraguan (Mario Arana) signed the document in the building of the Organization of Americanos.4 A second ceremony for adopting the text with the Secretary of State for Industry and Commerce of the Dominican Republic, Sonia Guzman, took place on August 5, 2004.5 On the other hand, despite the fact that Panama is a Central American country, not negotiate with the rest of the region of the treaty, making it exclusively with the United States and therefore not included in the content of the treaty
CAFTA.6
The treaty is composed of twenty-two chapters, each divided into articles. Its structure, allows the separate handling of various issues relating to free trade, regulating specialized way each item. Provisions concerning trade
Trade is the cornerstone that underpins economic integration in the case of CAFTA, the agreement deals extensively on issues relating to commercial treatment in all areas involved. Regulations adopted by the countries is based on unifying the criteria for each state, leading to convention rules and procedures that are subject to exporters and importers of various products. The spirit the treaty has been on equal treatment of goods and services originating in the CAFTA region, leaving aside the state protectionism on sectors of the economy.
tariff treatment
Some agricultural products affected by CAFTA.
access to goods is based on a tariff reduction process, ie the goods entering tax-exempt exportación.7 Since Central American countries lack adequate conditions to compete with U.S. producers, the treaty provides for a period grace, which is tax deductible staggered tariffs for some products. As the list of products in this situation is widespread, explanation can be summarized in two points: each product is governed by ad hoc conditions, ie there is no uniform treatment even among signatory countries, so that the Salvadoran sugar sugar treated differently Honduras, for ejemplo.8 addition there is a second consideration in this respect, which is called the Special Agricultural Safeguard (SAE), which can be applied only by Central American countries except for dairy products and peanuts, is the ability to levy additional tariffs on products imported before 2014, exceeding the productive capacity of the Rules of Origin
nacionales.7
The rules of origin are to determine the country to which he attributed the manufacture of a product, with the aim of verifying whether or not the subject of implementation of tariff reduction under the tratado.7 A product is considered as originating the region in the event of goods wholly obtained or produced entirely in the territory of one or more parties, it has been produced from originating materials and inputs or production of goods or inputs from non-originating materials provided it is shown that the product contains at least 45% total originaria.9 Consider that there are exceptions to the rule, allowing imports products such as footwear, pencils and iron without complying with the rules of origin. All products subject to this regime benefit from the elimination of tariffs, as provided in the Customs Administration
tratado.9
The treaty requires signatory states are required to publish its customs laws through legal means and the Internet, making available counseling offices to respecto.10 provides that States are obliged to ensure transparency in customs offices, not with any technical obstacle to the free passage of goods. The treaty requires that customs procedures are simple and fast, removing the ability to perform state inspections mercancías.10 mass to be available all information about the registered goods at customs has confidential, 10 which restricts criminal investigative tools and commercial. In the event of any violations of national laws, the treaty left free to States for administrative or criminal action against those who break the law.10
Technical barriers to trade [edit]
With CAFTA, the state loses to some extent the right to establish rules that restrict the movement of goods across its borders, unable to impose taxes or regulations to stop tax revenues or competitive advantages to producers nacionales.11 In this regard, CAFTA requires states to provide the maximum trade channels.
States parties should appoint a group of verifiers, which permanently ensure that the rules of trade affected not fulfilled. While the resolutions are not binding in this regard, States undertake to establish consensus on the measures adopten.11 The creation of state standards is not limited to national entities or persons, as the treaty requires States to interesados.11 consensual
all sanitary and phytosanitary measures
Cheese is one of the products subject to sanitary and phytosanitary checks.
The treaty guarantees producers on the sanitary quality of products. Verifiable production processes and products rights.12 In the case, conflicts over this issue be settled by a committee of special conflict resolution, consisting of representatives of all parties, joining more than thirty days after entry into force in each country.12 The committee extends its functions to the verification measures, advice and training, advice, mediation and resolution of conflictos.12 Each country is free to appoint their representatives, who have no major requirements meet national requirements. Investment
Chapter on investment is about the treatment that each state party will give investors the other signatories of the treaty. In this regard, the central axis is equal treatment for all investors. The treaty clearly states in Chapter 10 that states are obliged to give such favorable conditions for foreigners and their nacionales.13 In this sense, we can say that the spirit of the treaty is to maintain the homogeneity of competencia.13 On the other hand, requires states to give all investors the minimum conditions under international law, providing security of property and support for their investment. While the treaty does not detail the minimum conditions to be specified customary terms that constrain the behavior of
Estados.13 If there is a dispute, the foreign investor will have exactly the same rights as national depriving any preference, patronage, protection or choice of legal advice by the State of its nationals exclusively. There will be no expropriation of movable or immovable property by foreign investors, except for the cases provided for in the treaty, provided that the same treatment as nationals, in any case, compensation must be expressed and without protestas.13
A point relevant treaty provides that, in any way, investors are required to take national country of destination, in this sense, the treaty in no way guarantees that the increase in investment will be an encouragement to the national employment growth. The differences between the state and investors are mainly settled by arbitration, leaving the courts as a last opción.13
Procurement
In public procurement, ie, services that provide domestic or foreign investors to the State, CAFTA states that are guaranteed to treat foreign businessmen at least as favorable to the offered to citizens. In this regard, a national company has no advantage in a competitive tender, being forced to compete under the same rules to their state counterparts unnatural contratante.14
In this regard, states are required to publish openly calls for tender, making known the rules before the start of the competition. Prohibits any technical condition that is intended to give benefits to domestic entrepreneurs, such as the number of employees nacionales.14
The treaty establishes procedures for public procurement, abolishing all relevant national provisions, the procedures are uniform in region, so that any company will know the rules even if you invest outside the borders of their State of origen.14
The treaty guarantees the confidentiality of corporate information and requires transparency in bureaucratic processes, giving the State the power to suspend the ability to participate in bidding, those companies caught in acts ilegales.14
Intellectual Property Rights Concerning copyright and industrial property, the treaty requires states to accede to or ratify a number of conventions and treaties on the subject, draining discussion. Nothing can be above national treaties to ratify, so that the CAFTA establishes a new unified legal regime for partes.15 article seeks primarily to protect owners of intellectual property of products, provided these are duly recorded. In terms of brands, the treaty provides that the owners of the same will be treated under the same conditions as nationals, which means to exercise their rights on anyone who violates them.
The chapter on the subject, establishes the concept of "test data", which are for the testing and experiments demonstrating the performance and effectiveness of pharmaceuticals and agrochemicals. The law protects the owners thereof for a period of five years to ten years for pharmaceuticals and agrochemicals. In this regard, no drug is patented in itself, so that any laboratory can produce the same, if proven by their own means that the formula complies with the sanitary requirements set by law. States are free to deny the protection of test data in the event that either public domain or in emergency nacional.15 registration marks should be publicly established in each state, giving equal facilities and protections to domestic and foreign. Home products
The pupusas were a product in controversy regarding its patent in the end, the rule was not enforced.
are considered "products of" those whose conditions of production can only occur in a particular country, ensuring No country calidad.15 contracting its CAFTA signed original so any product, so this rule is reserved for when this one case. The scheme provides that the country will have the exclusive right to produce, to ensure quality. Patent
respect, the treaty provides that any local natural CAFTA patentable inventions or discoveries of their own, being protected by the law as if national. You can not patent anything for public use, known prior to the investigation or previously patented by another persona.15 Any violation of copyright can lead to administrative or judicial responsibilities.
Law Provisions
labor requirements CAFTA increases in employment law for Central American countries, forcing them to raise standards for the benefit of workers. It is established that there is no difference in treatment between natural and extranjeros.16 No provisions on compulsory recruitment of national and foreign employees, minimum fee for companies or distinctions between them.
On the other hand, the treaty obliges the state to have enough inspectors, in charge of verifying compliance with international agreements on laboral.16 should be noted that CAFTA does not make provisions for or at the expense of workers, simply requires States to meet regulations and commitments previously.
CAFTA provides that any reduction in industrial action in terms of attracting investment is illegal and subject to provisions
sanción.16 environmental law [
factory polluting the environment, which is regulated by CAFTA.
CAFTA is the first trade agreement which devotes a chapter to the field of environmental protection, 8 and in the workplace, it provides no measures or procedures, but rather is dedicated to compel states to enforce national laws and international centers. 17 The line driver of the chapter is based on strengthening national environmental laws, which are defined in article 17.13 as
law or regulation of a Party, or provisions thereof, the primary purpose of environmental protection or prevention of a danger to life or human health, animal or plant by:
• prevention , reduction or control of the release, discharge or emission of air pollutants;
• control of chemicals, substances, materials and environmentally hazardous or toxic waste and the dissemination of information related thereto, or
• protection and conservation of flora and fauna, including endangered species, habitat and natural areas under special protection. 17.13-CAFTA Art
The treaty establishes procedures for punishing offenders regardless of nationality, sanctions should be attached to international law and comparable to the rest of the CAFTA area. Moreover, CAFTA provides that the State will encourage companies to implement measures to protect the environment that are above de minimis levels deseados.17
The treaty requires states to participate in mutual cooperation in environmental matters, for what parallel to CAFTA, an agreement was established on Environmental Cooperation between the United States, Central America and Dominicana.18 Republic CAFTA provides that any reduction of environmental measures with the aim of attracting investments is illegal and subject to sanciones.17
Dispute
When any dispute arises between States (never between company and State), are recognized methods of good offices, mediation or conciliation. Except in extreme cases of disagreement, to accept the appointment of árbitros.19 is understood that referees will participate only if a prolonged time of no progress in the conflict, ie, the parties should recognize the stalled negotiations and agreed to appoint an arbitration board. The procedure for appointing the arbitration is governed in the CAFTA, which states that the parties must choose three arbitrators, of which there will be a president by common consent in the case of no agreement, be settled by sorteo.19
CAFTA guarantees due process, confidentiality, non-retroactivity and the opportunity to defend and respond. Once an award, the parties must abide by it without protest, to do so, the benefits will be suspended concerning the CAFTA, but not their obligaciones.19
According Ratification of the Vienna Convention on the Law of Treaties, 1969 and in force since 1980, the text of a treaty is adopted when two-thirds of those present at the negotiations agree, in the case of CAFTA, all parties agreed to adopt the texto.20 after adopting the text, the Convention states that must be initialed by the plenipotentiaries of the States, 20 CAFTA was signed by all States businessmen. Following that, the national congresses of each State should ratify the treaty according to the laws and national interests, so that after passing the Foreign Ministry to deal with the case for entry into vigor.20 All signatory countries have ratified the
tratado.21 Costa Ratification Rica [
Main article:
CAFTA in Costa Rica Costa Rica is the only signatory to the treaty which submitted its ratification to a referendum, which was conducted with support of the Court Supreme Elecciones.22 23 referendum was held on October 7, 2007, resulting in a 51.62% in favor and 48.38% against, with binding to exceed 40% of the electorate that brought the face of such results sufragio.24 , CAFTA was ratified.
In this respect, labor groups and groups opposed to the CAFTA developed a campaign to prevent people from voting in the affirmative, including sharing information and mobilizing people to protestas.23 However, there were also groups that supported the ratification of the treaty by massive publicity activities concentración.25
As part of a campaign by opponents of the treaty, were presented unconstitutionality before the Supreme Court of Costa Rica, in parallel with this, opposition MPs called for an inquiry to the highest judicial institution, which issued by the Constitutional Court Resolution 2007-09469 July 3 2007, which states that there are points that violate the Constitution by the adoption of CAFTA.26
necessary implementing laws were passed and the treaty entered into force in Costa Rica on January 1st 2009. Ratification
in El Salvador
Main article: CAFTA in El Salvador
El Salvador was the first state to ratify CAFTA, on the morning of December 17, 2004 in the Blue Room of the Legislative Assembly, 27 with the support of all political forces except the Farabundo Marti National Liberation Front. After ratification, the respective deposit was made at the Organization of American States on 28 February 2006.28
Several trade unions and opposition groups staged street protests dealt with the order to prevent the treaty was ratified, some protests were counted with presence and support of the leaders of some opposition political parties. The balance of the demonstrations was in several episodes of violence that left detainees and wounded. All events were under observation of the Ombudsman for the Defence of Rights Ratification Humanos.29 U.S.
Main article: U.S. CAFTA
Upon notification by President George Bush in compliance with the Trade Act of 2002.30 The United States Senate ratified on June 30, 2005 CAFTA, with fifty-four votes to forty-five against. That ratification was engaged in a debate about the feasibility of implementing the treaty, to consider some senators that it would bring little benefit to the country norteamericano.31
ratification in Guatemala [
Main article: CAFTA in Guatemala Guatemalan Congress ratified
the March 10, 2005 the treaty by the Decree 31 to 2005.32 with one hundred twenty-six and twelve votes against, giving quality of national emergency by holding it a priority issue in the treatment legislativo.33 was the third country ratify, after El Salvador and Honduras. On March 9, the treaty was presented to the Legislature by the chairman of the committee of Economy and Foreign Trade, Mariano Rayo, without having had any discussion or study of the proposal, the treaty was ratified and notified the President of the Republic to their respective publicación.33 The approval was possible by changing the position of the bench of the National Union of Hope, who gave their votes.
Members who voted against ratification, arguing that the deal was negotiated behind
population ... only defends the interests of a small group of businessmen ... and the government has been reluctant to report the true content, purpose and impact Víctor
Sales, deputy of the National Revolutionary Unity party Guatemalteca33
Days before the introduction of the proposal, various organizations and institutions presented their show of rejection of the treaty. Thus, on 1 March, accompanied by an integrated street protest by several unions, the Consejo Superior Universitario de la Universidad de San Carlos issued a statement expressing TV its refusal to ratify the treaty without prior consultation. Two days later, the rector of the university formally asked the House to be a query to include the entire ciudadanía.32 On 6 March, the Episcopal Conference of Guatemala ruled against the treaty.
The day the proposal was submitted to parliament, and the day of the adoption of the same, there were violent protests around the Congress and the U.S. Embassy, \u200b\u200b32 requiring the ratification of the treaty was subject to a referendum, which will dictate popular.34 The balance of the protests was a police officer injured and a man arrested for the crime of Ratification
públicos.33 disorders in Honduras
Main article: CAFTA in Honduras Honduran
's parliament ratified the treaty on March 3, 2005 with the votes of four of the five legislative seats, becoming the second country to ratify the treaty. Following the adoption of the decree, labor groups and opponents of the treaty entered the session hall of the congress, forcing security forces to quell the protesta.1 In general, several organizations took to the streets and protested against what they contend is a step for the impoverishment of the country. Despite the many demonstrations, the police reported no episodes of violencia.35 Ratification
in Nicaragua [
Main article: CAFTA in Nicaragua Nicaraguan
Congress passed the night of October 10, 2005 ratification of CAFTA, with forty-nine votes in favor and thirty-six against, and three abstenciones.36 The legislative proposal was introduced by the minister of trade, Azucena Castillo. The debate among the parliamentary groups was extensive and led to the adoption of the treaty by a simple majority. The fundamental argument of the opposition was that the treaty would lead to "increased the gap between rich and poor" .37 The main leftist party in Nicaragua, the Sandinista National Liberation Front, led multiple protests street in order to halting the ratification of the treaty, arguing that the provisions to take the call favoring only upper-class country. Despite the number of people confronted the police, there were no incidents of violencia.38 With the change of party in the head of state, President Daniel Ortega has spoken out against the decision by his predecessor, strongly criticizing treaty is already in vigor.39
Ratification in the Dominican Republic [
Main article: CAFTA in the Dominican Republic Dominican
Congress sought to bring national laws into operation of CAFTA, waiting to unanimously to ratify that legislation would be compatible. So in 2005, approved a measure would come into force the treaty a year siguiente.40 sectors protests opposing the treaty took place in Santo Domingo, including hunger strikes and stoppage of traffic. Although there were no acts of violence, the authorities seek to arrest the leaders of the protestas.41
Graffiti Reviews
against CAFTA in Costa Rica.
In general, the treaty has generated much political opposition and civil society in the signatory countries. Institutions such as ECLAC indicated that CAFTA does not bring real solutions to the problems of Central America, with only económica.42 tool even in Congress there were serious criticisms for ratification, exceeding the minimum number of votes. Some U.S. lawmakers claim that CAFTA will only serve to increase unemployment and crime in countries centroamericanos.43 The main opponents of CAFTA claim that the Central American companies do not have opportunities to compete with the U.S., since the volumes of capital are heterogeneous, while the CAFTA requires treating them as if they were homogeneous.
is also critical that American products will be severely affected in sales volumes, as they can not compete with U.S. prices and quality, bankrupting many businesses, farmers and small producers. Critics claim that unemployment will grow rapidly approaching to the close of business, considering that the treaty does not guarantee employment or even a favorable environment for foreign investment. They fear damage to the health of the population genetically modified products, the destruction of the environment by excessive industrial production and the lack of drug production rights on the basis of 45
patentes.44 What