WT/REG 305/M/1  
 
21 October 2016 
(16-5742) Page: 1/3 
Committee on Regional Trade Agreements  
Eight y-second  Session    
 
 FREE TRADE AGREEMENT  BETWEEN THE DOMINICAN REPUBLIC A ND CENTRAL AMERICA 
(COSTA RICA, EL SALV ADOR, GUATEMALA, HON DURAS AND NICARAGUA) ,  
(GOODS AND SERVICES)  
NOTE ON THE MEETING OF 27 SEPTEMBER 2016  
Chairman: Ambassador Daniel BLOCKERT (Sweden)  
1.1.  The 82nd Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/7 /Rev.1  dated 16 September  2016.  
1.2.  Under Agenda Item B.II of the session, the CRTA considered th e Free Trade Agreement (FTA) 
between  the Dominican Republic and Central America (Costa Rica, El Salvador, Guatemala, 
Honduras and Nicaragua) , goods and services, (hereinafter "the Agreement").  
1.3.  The Chairman  said that the Agreement had entered into force for the Dominican Republic 
with the Cen tral American parties on the following dates: with Costa Rica on 7 March 2002; with 
El Salvador on 4 October 2001; with Guatemala on 15 October 2001; with Honduras on 
19 December 2001; and with Nicaragua on 3 September 2002. It had been notified to the WTO  by 
the Parties on 6 January 2012 under Article XXIV:7(a) of the GATT 1994 and the Understanding on 
the Interpretation of Article XXIV of GATT 1994 as an Agreement establishing a free trade area 
(document WT/REG305/N/1) and under GATS Article V:7(a) as an Agreement providing for the 
liberalization of trade in services within the meaning of Article V of the GATS (document 
S/C/N/614). The text of the Agreement was available, together with its Annexes, on the Parties' 
official websites.  
1.4.  The Factual Presentatio n on the goods and services aspects (document WT/REG305/1 dated 
18 July 2016) had been prepared by the Secretariat on its own responsibility in full consultation 
with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional  
Trade Agreements (document WT/L/671). In addition, written questions and replies on th e 
Agreement had been distributed in document WT/REG305/2 dated 15 September 2016.  
1.5.  He proposed to organize the consideration of the Agreement by first asking the Parties and 
then other Members to give any general comments,  following which the Committee would turn to 
the specifics of the Agreement.  
1.6.  The representative of Honduras , on behalf of Costa Rica, El Salvador, Guatemala, Honduras 
and Nicaragua,  introduce d the FTA between the Dominican Republic and Central America.  He 
thanked  the Secretariat for preparing the Factual Presentation, as well as the European Union, 
Mexico  and Thailand for their questions, to which responses had been provided . 
1.7.  As Members were aware , the rel ationship between the Central American countries and the 
Dominican Republic was very close, since the countries  participate d in several major regional for a, 
such as the Central American Integration System (SICA), the main aim of which was to 
consolidate Ce ntral American integration as a fundamental objective for continuing to build a 
region of peace, freedom, democracy and development.  
1.8.  The Central American Parties  firmly believe d that the FTA with the Dominican Republic ha d 
strengthened economic relations in the region in addition to boosting the competitiveness of 
productive sectors and encouraging the exploitation of trade opportunities. Likewise, it had WT/REG305 /M/1 
 
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  generate d strategic partnerships between entrepreneurs in the region, creating sources of 
employment th rough investment within the countries that were party to it.  
1.9.  With the implementation of the Agreement, bilateral trade (exports and imports) between the 
Dominican Republic and Central America had increased  from US$97  million in 2000, prior to the 
Agreement , to US$680  million in 2015, the equivalent of a 600% increase. Central America was 
the ninth largest destination for the Dominican Republic's exports and the seventh largest source 
of its imports, while the Dominican Republic was the seventh largest desti nation of Central 
America's extra -regional exports and the 36th largest source of its imports from outside the 
region.  
1.10.   The Parties had signed the FTA on 16  April 1998. It was divided into four parts  and 
subdivided into 20 chapters: initial provisions, gene ral definitions, national treatment and market 
access for goods, rules of origin, customs procedures, sanitary and phytosanitary measures, unfair 
trade practices, safeguard measures, investment, trade in services, temporary entry of business 
persons, gover nment procurement, technical barriers to trade, intellectual property, competition 
policy, dispute settlement, exceptions, administration of the Agreement, transparency, and final 
provisions. The objectives of the Agreement were, inter alia , to encourage t he expansion and 
diversification of trade in goods and services, to promote conditions of fair competition, 
to eliminate barriers to trade in goods and services, and to provide more investment opportunities 
in the territories of the Parties. The Parties, a s Members of the WTO, respect ed the balance of 
rights and obligations assumed on their accession to the WTO. 
1.11.   The FTA had strengthened trade ties between the Parties'  economies, and from the reasons 
listed above, it was clear that its implementation ha d had a positive impact on trade in goods and 
services and on the promotion and protection of investments between the Central American 
countries and the Dominican Republic.  As a region, the Central American countries would  continue 
advancing initiatives that pl ayed a role in promoting trade relations with the Dominican Republic, 
so as to further increase trade and investment flows.  
1.12.   The representative of the Dominican Republic  thank ed the Secretariat for its Factual 
Presentation and delegations which ha d shown in terest in and asked questions about the 
Agreement. Her statement would  be brief since the Central American delegation ha d already given 
a detailed  presentation of the Agreement with which the Dominican Republic  fully concur red. 
1.13.   The FTA between the Dominica n Republic and Central America was of particular importance 
for the Dominican Republic in that it ha d helped not only to boost trade between the countries but 
also to deepen regional integration. As remarked by the Central  American delegation, relations 
between the countries were very close and, since 2013, the Dominican Republic ha d been a full 
member of the SICA. 
1.14.   As indicated in the Factual Presentation, trade between the Dominican Republic and 
Central  America had averaged US$763  million per year over t he period 2012 -2014. The 
Agreement also include d a number of standard -setting  areas, such as market access, sanitary and 
phytosanitary  measures, trade remedies, intellectual property, competition, dispute settlement 
and technical  barriers to trade, which, fo llowing implementation by the Parties, ha d also 
contributed to increasing the flow of trade and investment and to achieving further integration 
between the Parties' economies.  The Dominican Republic agreed with its Central American 
colleagues that th e Agreement ha d been beneficial to the Parties'  economies, not only in trade and 
economic terms, but also from the standpoint of economic and human development.  
1.15.   The representative of Thailand  thanked the Parties for the written response to its question 
on the fu nctioning of the Agreement's Committee on Trade and Free Competition policy and 
reserved the right to submit further questions in writing if necessary.  
1.16.   The representative of the European Union  regretted that the Agreement had been  notified 
with a delay of ten years after entry into force by all Parties. The EU had noted that the 
multi-party FTA among six countries in Central America had led to improvements of the general 
business climate in Central American countries , stimulating a series of reforms and str uctural 
market changes and helping to attract FDI. The EU had submitted a list of detailed advance 
questions focusing on SPS, investment, ISDS, promotion of sustainable investment and WT/REG305 /M/1 
 
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  responsible business conduct, and competition policy. She thanked the Pa rties for their replies and 
said the EU had no further questions.  
1.17.   The representative of Mexico  said that the repercussions of the Agreement would be positive 
for the region and Mexico was in favour of it. Mexico was grateful for the answers provided to its  
questions raised on SPS and intellectual property.  
1.18.   The Chairman  said that the consideration of the Goods and Services Aspects of the FTA 
between the Dominican Republic and Central America (Costa Rica, El Salvador, Guatemala, 
Honduras and Nicaragua) ha d allowed the Committee  to clarify a number of questions and it had 
conclude d oral discussion of th e RTA in accordance with paragraph 11 of the Transparency 
Mechanism. If any delegations wish ed to ask follow -up questions they were invited to forward 
submission s in writing to the Secretariat by 4 October 2016 and Parties were asked to submit 
replies in writing by no later than 18 October 2016. In accordance with paragraph  13 of the 
Transparency Mechanism all written submissions, as well as minutes of this meetin g would  be 
circulated promptly, in all WTO  official languages, and made available on the WTO website.  
1.19.   The Committee took note  of the comments made.  
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