Regional Trade Agreements and Implications for US Agriculture: The Case of CAFTA-DR

Abstract

At present the United States is actively engaged in twelve bilateral and five regional trade agreements or initiatives (Table 1). These agreements are designed to provide the United States with additional access to foreign markets and help foster positive relationships with trading partners. Among these is the Dominican Republic–Central American Free Trade Agreement (CAFTA-DR). Given the current debate on CAFTA-DR in the US legislature and the likelihood that the United States will negotiate future similar trade agreements, this paper is intended to provide an overview of CAFTA-DR and discuss its potential implications for US agriculture and agribusiness. The paper will also discuss implications for US imports by focusing on the case of the US sugar industry.