Abstract
ABSTRACT This document analyzes the effects of the Dominican Republic, Central America and United States Free Trade Agreement (DR-CAFTA) over the local consumption of beef in Nicaragua, one of the top five exporting countries of this commodity to U.S. using data before and after the ratification of the DR-CAFTA (1995-2013). The objective of this study was to determine the effect of the agreement on the local consumption of beef, identifying the variables that had caused the decrease or increase on consumption, the assumption of free trade is that; when a country has free access to a new market, it would cause less availability of the product in the exporting country, beef is one of the five agricultural commodities with higher exports and production on Nicaragua. The results found DR-CAFTA has been a positive effect over local consumption of beef (seven tons) with the presence of DR-CAFTA in Nicaragua, comparing with the data before the agreement. Keywords Free Trade Agreements, DR-CAFTA, Exports
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