Number: RL32110
Title: Agriculture in the U.S.-Dominican Republic-Central American Free Trade Agreement (DR-CAFTA)
Authors: Remy Jurenas, Resources, Science, and Industry Division 
Abstract: On December 30, 2005, the Office of the U.S. Trade Representative (USTR) announced that the United States will implement the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) "on a rolling basis as countries make sufficient progress" in completing their commitments under the agreement. Steps include each country's adoption of relevant new laws and regulations necessary to put DR-CAFTA into effect, and the completion of a final review of implementation details with the United States. To date, USTR has confirmed the completion of these steps for four countries. Accordingly, President Bush issued proclamations to implement U.S. commitments under DR-CAFTA with respect to El Salvador, effective March 1, 2006; Honduras and Nicaragua, effective April 1, 2006; and Guatemala, effective July 1, 2006. Observers expect the Dominican Republic to be added to this list later this year, and Costa Rica likely early in 2007 if its legislature approves the agreement. On July 10, 2006, the U.S. Department of Agriculture (USDA) issued a report examining the economic feasibility of converting sugarcane, sugar beets, raw cane sugar and refined sugar into ethanol. The study concluded that while such conversion would be profitable with current high demand for ethanol and record ethanol prices, it would be unprofitable when compared to ethanol prices projected for mid-2007. This report reflects a USDA commitment made during last summer's DR-CAFTA debate to study alternatives for sugar imported under this and other free trade agreements that could add to U.S. sugar supplies and depress domestic sugar prices.
Pages: 26
Date: July 21, 2006