WT/REG211/3  
18 July 2016  
(16-3855)  Page: 1/144  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN TH E DOMINICAN REPUBLIC, CENTRAL 
AMERICA (COSTA RICA, EL SALVADOR, GUATEMALA, HONDURAS, AND 
NICARAGUA) AND THE UNITED STATES 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the consideratio n of the Free Trade Agreement between the 
Dominican Republic, Central America (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) and the United States, has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply offi cial endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement by the Secretariat regarding the contents of the Agreement. 
Any technical questions arising from this report may be addressed to Ms. Jo-Ann 
Crawford (tel: +41 22 739 5422). Any statistical questions arising from this report may be addressed to Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG211/3 
 
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TABLE OF CONTENTS 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 5  
1.1   Trade in Servic es and Inve stment ............................................................................... 17 
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 27  
2.1   Background  Information ............................................................................................ 27 
3   NATIONAL TREATMENT AND MARKET  ACCESS PROVISIONS ON TRADE IN 
GOODS ......................................................................................................................... .. 29 
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 29 
3.1.1   Liberalization of  tariff line s and trade ........................................................................ 31 
3.1.1.1   Costa Rica .......................................................................................................... 31 
3.1.1.2   Dominican Republic ............................................................................................. 35 
3.1.1.3   El Salvador ........................................................................................................ 38 
3.1.1.4   Guatem ala ......................................................................................................... 41 
3.1.1.5   Honduras ........................................................................................................... 45 
3.1.1.6   Nicaragua .......................................................................................................... 48 
3.1.1.7   United States ..................................................................................................... 51 
3.1.2   Tariff-rate quotas ................................................................................................... 55 
3.1.2.1   Tariff rate quotas maintained by Costa Rica ............................................................ 55 
3.1.2.2   Tariff rate quotas mainta ined by the Dominican Republic .......................................... 55 
3.1.2.3   Tariff rate quotas maintained by El Salvador ........................................................... 56 
3.1.2.4   Tariff rate quotas  maintained by  Guatemala ............................................................ 56 
3.1.2.5   Tariff rate quotas maintained by Honduras .............................................................. 56 
3.1.2.6   Tariff rate quotas  maintained by  Nicaragua ............................................................. 57 
3.1.2.7   Tariff rate quotas maintained by the United States ................................................... 57 
3.2   Rules of origin .......................................................................................................... 57 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 60 
3.4   Regulatory provisions on trade in goods ....................................................................... 60 
3.4.1   Standards ............................................................................................................. 60 
3.4.1.1   SPS Measures ..................................................................................................... 60 
3.4.1.2   TBT Measures ..................................................................................................... 60 
3.4.2   Safeguard mechanisms ........................................................................................... 61 
3.4.2.1   Safeguard Meas ures among th e Parties .................................................................. 61 
3.4.2.2   Global Sa feguard Measures .................................................................................. 61 
3.4.2.3   Agricultural  Safeguard Measures ........................................................................... 61 
3.4.2.4   Textile Sa feguard Measures .................................................................................. 63 
3.4.3   Anti-dumping and countervailing measures ............................................................... 63 
3.4.4   Subsidie s and State-aid .......................................................................................... 63 
3.4.5   Customs-re lated procedures .................................................................................... 63 WT/REG211/3 
 
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  3.5   Sector-specific provis ions on trad e in goods ................................................................. 64 
3.5.1   Sugar ................................................................................................................... 64 
3.5.2   Chicken ............................................................................................................... . 64 
3.5.3   Textiles and Apparel ............................................................................................... 64 
3.5.4   Distinctive products ................................................................................................ 65 
4   PROVISIONS ON TRADE IN SERVICES AND IN VESTMENT ......................................... 65  
4.1   Scope and definitions ................................................................................................ 65 
4.2   General Provisions on Trade in Services ....................................................................... 65 
4.2.1   Mark et Access ....................................................................................................... 65 
4.2.2   National and MFN Treatment ................................................................................... 66 
4.2.3   Denial of Benefits .................................................................................................. 66 
4.2.4   Non-conforming Measures ....................................................................................... 66 
4.3   Investment .............................................................................................................. 66 
4.4   Movement of  natural persons ..................................................................................... 67 
4.5   Liberalization commitments ........................................................................................ 67 
4.5.1   Co sta Ri ca ............................................................................................................  67 
4.5.2   The Dominican Republic .......................................................................................... 70 
4.5.3   El Salvad or ...........................................................................................................  73 
4.5.4   Guatemala ............................................................................................................ 75 
4.5.5   Honduras .............................................................................................................. 77 
4.5.6   Nicaragua .............................................................................................................  81 
4.5.7   The United States .................................................................................................. 83 
4.6   Regulatory provisions on trade in services .................................................................... 85 
4.6.1   Domestic regulation ............................................................................................... 85 
4.6.2   Mutual Recognition ................................................................................................ 86 
4.7   Liberalization commitme nts in select ed sectors ............................................................. 86 
4.7.1   Telecommunications ............................................................................................... 86 
4.7.2   Express De livery Services ....................................................................................... 87 
4.7.3   Distribution Services .............................................................................................. 88 
4.7.4   Financial Services .................................................................................................. 88 
4.7.4.1   Costa Rica .......................................................................................................... 89 
4.7.4.2   The Domi nican Republic ....................................................................................... 89 
4.7.4.3   El Salvador ........................................................................................................ 90 
4.7.4.4   Guatem ala ......................................................................................................... 90 
4.7.4.5   Honduras ........................................................................................................... 91 
4.7.4.6   Nicaragua .......................................................................................................... 91 
4.7.4.7   The United States ............................................................................................... 92 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 92  
5.1   Tran sparency ........................................................................................................... 92 
5.2   Current payments and capital movements .................................................................... 92 WT/REG211/3 
 
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  5.3   Government  Procurement .......................................................................................... 93 
5.4   Electron ic Commerce ................................................................................................ 96 
5.5   Intellectual Property Rights ........................................................................................ 96 
5.6   Labour .................................................................................................................. .. 97 
5.7   Envi ronment ............................................................................................................ 97 
5.8   Institutio nal Provisions .............................................................................................. 98 
5.8.1   Ex ceptions ............................................................................................................  98 
5.8.2   Accession and Termination ...................................................................................... 98 
5.8.3   Institut ional Framework .......................................................................................... 98 
5.8.4   Dispute Settlement ................................................................................................ 98 
5.8.5   Relationship with other agr eements concluded by  the Parties ..................................... 100  
ANNEX 1 ...................................................................................................................... 104 
(a) Costa Rica ............................................................................................................ 104  
(b) Dominican Republic ............................................................................................... 105  
(c) El Salvador ........................................................................................................... 105  
(d) Guatemal a ........................................................................................................... 106  
(e) Honduras  ............................................................................................................. 108  
(f) Nicaragu a ............................................................................................................ 109  
(g) United States ........................................................................................................ 110  
ANNEX 2 ...................................................................................................................... 124 
(a) Costa Rica ............................................................................................................ 124  
(b) Dominican Republic ............................................................................................... 125  
(c) El Salvador ........................................................................................................... 127  
(d) Guatemal a ........................................................................................................... 128  
(e) Honduras  ............................................................................................................. 129  
(f) Nicaragu a ............................................................................................................ 130  
(g) The United States .................................................................................................. 131  
ANNEX 3 ...................................................................................................................... 135 
(a) Costa Rica ............................................................................................................ 135  
(b) Dominican Republic ............................................................................................... 136  
(c) El Salvador ........................................................................................................... 137  
(d) Guatemal a ........................................................................................................... 138  
(e) Honduras  ............................................................................................................. 139  
(f) Nicaragu a ............................................................................................................ 140  
(g) United States ........................................................................................................ 141  
ANNEX 4 ...................................................................................................................... 143 
 
 
 
   WT/REG211/3 
 
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Key Facts 
Parties to the Agreement: Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua, the Dominican 
Republic and the United States 
Date of signature  5 August 2004 
Date of entry into force: 
 1 January 2009 for Costa Rica; 1 March 
2007 for the Dominican Republic; 1 July 
2006 for Guatemala; 1 April 2006 for 
Honduras and Nicaragua; 1 March 2006 for 
El Salvador and the United States 
Date of notification:  17 March 2006 
Full implementation  
of commitments: 2025 
 
1  TRADE ENVIRONMENT 
1.1.  The Parties to the Free Trade Agreement (FTA) between the Dominican Republic, Central 
America and the United States (hereafter CAFTA-DR or the Agreement) are Costa Rica, the Dominican Republic, El Salvador, Guatemala, Hondur as, Nicaragua, and the United States. The five 
Central American countries are members of the Central American Common Market, in force since 
1961. The five Central American countries and the Dominican Republic are parties to a single FTA
1 
that applies bilaterally between each Central American country and the Dominican Republic.  
1.2.  The ranking of the five Central American countries and the Dominican Republic in global 
merchandise trade as well as their trade to GDP ratios are broadly similar2 as shown in Table 1.1. 
The United States' trade to GDP ratio is considerably smaller than those of the other Parties, reflecting the size of its domestic economy. All CAFTA-DR Parties ran merchandise trade deficits in 
2014. The United States is the largest trading partner in terms of both imports and exports for all 
of the six Parties individually considered. 
Table 1.1 CAFTA-DR Members'  Merchandise Trade Profiles
 
Member Popu-
lation 
(million)  
Merchandise trade - 2014 Rank in world 
trade - 2014 GDP 
US$ 
billion 
(2014) Trade 
to 
GDP 
ratio 
– 
2012-
14 Exports 
US$ 
billion % world 
exports Imports 
US$ 
billion % world 
imports Exports  Imports 
Costa Rica 4.9 11.2 0.06 17.2 0.09 63 60 49.6 66.9 
Dominican 
Republic 10.6 9.9 0.05 17.3 0.09 68 59 64.0 57.9 
El Salvado r 6.4 5.3 0.03 10.5  0.06 83 75 25.2 69.9  
Guatemala 15.9 10.8 0.06 18.3 0.10 65 58 58.7 59.0 
Honduras 8.3 8.1 0.04 11.1  0.06 75 72 19.4 88.9  
Nicaragua 6.2 5.1 0.03 6.9 0.04 85 90 11.8 104.6  
United 
States 319.0 1620.5 8.5 2412.5 12.6 3 1 17419 29.9 
Source: WTO Secretariat Trade Profiles. 
 
1.3.  Developments in recent years in global and intra trade between the Parties are shown in 
Charts 1.1 to 1.7. 
1.4.  Chart 1.1 shows Costa Rica's trade with the world and with CAFTA-DR Parties. Over the 
period surveyed (2000-2014), Costa Rica's figures show a consistent and growing trade deficit on 
                                               
1 In force since 2001 for El Salvador, Guatemala and Honduras and from 2002 for Costa Rica and 
Nicaragua. 
2 Except the trade to GDP ratio of Nicaragua at 104.6. WT/REG211/3 
 
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  a global basis and an increasing trade deficit with CAFTA-DR parties, particularly since 2009 when 
the CAFTA-DR entered into force for Costa Rica. Trade with the United States accounted in 2014 
for 43.3% of Costa Rica's global trade. In the same year, Nicaragua was Costa Rica's second 
largest export partner among CAFTA-DR Parties and Guatemala was its second largest import partner. 
1.5.  Chart 1.2 shows the Dominican Republic's tr ade with the world and with CAFTA-DR Parties. 
Over the period surveyed (2000-2014) the Domini can Republic has run a consistent and growing 
trade deficit on a global basis and with CAFTA-DR Parties. Trade with the United States accounted 
in 2014 for 44% of the Dominican Republic's global trade. Costa Rica is the Dominican Republic's 
second largest CAFTA-DR partner in terms of both imports and exports. Since the CAFTA-DR 
entered into force for the Dominican Republic in 2007 bilateral trade with the CAFTA-DR Parties has grown considerably. 
1.6.  Chart 1.3 shows El Salvador's trade with the world and with CAFTA-DR Parties. Over the 
period surveyed (2000-2014), El Salvador's figure s show a consistent and increasing trade deficit 
on a global basis and with CAFTA-DR Parties. Tr ade with the United States accounted in 2014 for 
43% of El Salvador's global trade. In the same year, Honduras was El Salvador's second largest 
CAFTA-DR trading partner in terms of exports and Guatemala was second in terms of its imports. 
1.7.  Chart 1.4 shows Guatemala's trade with th e world and with CAFTA-DR Parties. Over the 
period surveyed (2000-2014), Guatemala's figures sh ow a consistent and widening trade deficit on 
a global basis and with CAFTA-DR Parties; trade with the United States accounted in 2014 for 39% of Guatemala's global trade. In the same year El Salvador was Guatemala's second largest CAFTA-
DR trading partner in terms of both imports and exports. 
1.8.  Chart 1.5 shows Honduras' trade with the world and with CAFTA-DR Parties. Over the period 
surveyed (2000-2014), Honduras' figures show a consistent and prolonged trade deficit on a global basis and with CAFTA-DR Parties; trade with the United States accounted in 2014 for 42% of 
Honduras' global trade. In the same year, El Salvador was Honduras' second largest CAFTA-DR 
trading partner in terms of exports and Guatemala was second in terms of its imports. 
1.9.  Chart 1.6 shows Nicaragua's trade with th e world and with CAFTA-DR Parties. Over the 
period surveyed (2000-2014), Nicaragua's figures show a consistent trade deficit on a global basis 
which widened up to 2011 but has since narrowed. Since 2012 Nicaragua has run a trade surplus with CAFTA-DR Parties. In 2014 trade with the United States accounted for 31% of Nicaragua's global trade. In the same year, El Salvador was Nicaragua's second largest CAFTA-DR trading 
partner in terms of exports and Costa Rica was second in terms of its imports. 
1.10.  Chart 1.7 shows the United States' trade wi th the world and with CAFTA-DR Parties. Over 
the period surveyed (2000-2014) the United States ' figures show a consistent and widening trade 
deficit on a global basis. Until 2005 the United States ran a trade deficit with CAFTA-DR Parties; 
following the entry into force in 2006 (by El Salvador, Guatemala, Honduras, Nicaragua and the United States), the United States has run a small surplus about half the time. Trade with 
CAFTA-DR Parties accounted in 2014 for 1.5% of the United States' global trade. In the same year, 
the Dominican Republic was the United States' second largest CAFTA-DR trading partner in terms of exports and Costa Rica was second in terms of its imports. WT/REG211/3 
 
- 7 - 
 
  Chart 1.1 Costa Rica: Merchandise trade wi th world and CAFTA-DR Parties, 2000-2014 
05101520
05101520
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USA Nicaragua Honduras Guatemala
El Salvador Dominican Rep. Total exports Total importsUS$ billion US$ billion
 
Source: UNSD, Comtrade database. 
 
Chart 1.2 Dominican Republic: Merchandise trade with world and CAFTA-DR Parties, 
2000-2014 
05101520
05101520
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
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Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USA Nicaragua Honduras Guatemala
El Salvador Costa Rica Total exports Total importsUS$ billion US$ billion
 
Note: Exports to CAFTA-DR Parties for 2000 not available; trade data reflected in the chart is sourced from 
Dominican Republic's import submission (national figures). 
Source: WTO-IDB (2000 imports); IFS (2000 export to world); UNSD, Comtrade database (2001; 2008-
2014); Dominican Republic authorities (2002-2007).  WT/REG211/3 
 
- 8 - 
 
  Chart 1.3 El Salvador: Merchandise trade wi th world and CAFTA-DR Parties, 2000-2014 
05101520
05101520
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USA Nicaragua Honduras Guatemala
Dominican Republic Costa Rica Total exports Total importsUS$ billion US$ billion
 
Source: UNSD, Comtrade database. 
Chart 1.4 Guatemala: Merchandise trade wi th world and CAFTA-DR Parties, 2000-2014 
05101520
05101520
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USA Nicaragua Honduras El Salvador
Dominican Republic Costa Rica Total exports Total importsUS$ billion US$ billion
 
Source: UNSD, Comtrade database. WT/REG211/3 
 
- 9 - 
 
  Chart 1.5 Honduras: Merchandise trade wi th world and CAFTA-DR Parties, 2000-2014 
05101520
05101520
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USA Nicaragua Guatemala El Salvador
Dominican Republic Costa Rica Total exports Total importsUS$ billion US$ billion
 
Source: UNSD, Comtrade database. 
Chart 1.6 Nicaragua: Merchandise trade wi th world and CAFTA-DR Parties, 2000-2014 
05101520
05101520
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USA Honduras Guatemala El Salvador
Dominican Republic Costa Rica Total exports Total importsUS$ billion US$ billion
 
 
Source: UNSD, Comtrade database. WT/REG211/3 
 
- 10 - 
 
  Chart 1.7 USA: Merchandise trade with world and CAFTA-DR Parties, 2000-2014 
020406080100
05001,0001,5002,0002,5003,000
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014US$ billion US$ billion
Left hand scale:Right hand scale:
 
Source: UNSD, Comtrade database. 
 
1.11.  The commodity structure of trade among the Pa rties, as well as of their imports and exports 
to the world in the three year period before the Agreement entered into force for each Party, together with the most recent years (2012-2014) is shown in Charts 1.8-14, on the basis of HS 
section product categories. 
1.12.  Costa Rica's largest global import product categories over the period 2006-2008 were 
machinery, minerals and chemicals and are largely unchanged in the period 2012-2014, 
accounting for half or more of Costa Rica's total global imports. Base metals, vehicles and plastics 
are also important import product categories. Costa Rica's product mix of imports from Guatemala and Nicaragua remains largely the same from 2006-2008 to 2012-2014; over that period import values have about doubled. In the period 2012-2014, Costa Rica's imports of plastics from El 
Salvador grew from 8.7% to 13.8%. Costa Rica's  imports from the Dominican Republic decreased 
from US$47 million in 2006-08 to US$36 million in 2012-14; its imports of minerals from the Dominican Republic which accounted for 48% of its total imports from the Dominican Republic in 
2006-2008 fell to 0.5% in 2012-2014. Over the same period, Costa Rica's imports of mineral 
products from the United States rose from 5.3% to 23.8% of its total imports from the United States.  WT/REG211/3 
 
- 11 - 
 
  Chart 1.8 Costa Rica: product co mposition of merchandise trade 
34
14138823 35
17166620Costa Rica imports from 
Nicaragua17
16
915132824
15
14131222Costa Rica imports from 
El Salvador
43
98762733
2486525Costa Rica imports from 
USA48
3393
24
35
29148311Costa Rica imports from 
Dominican Republic
29
17
8763323
23
1414421Costa Rica imports from 
Honduras
26
18
151272424
18
1413724Costa Rica imports from 
Guatemala
CRISLVGTM
33
229862226
22
1410522Costa Rica global exports
32
13
10972927
13
10 8734Costa Rica global imports
Total: 
2006-08: US$8.6 billion
2012-14: US$ 11.3 billion Total: 
2006-08: US$13 billion
2012-14: US$ 18  billionTotal: 
2006-08: US$ 47 million2012-14: US$ 36 millionTotal: 
2006-08: US$ 112 million2012-14: US$ 234 millionTotal: 
2006-08: US$ 218 million2012-14: US$ 405 millionTotal: 
2006-08: US$ 47 million
2012-14: US$ 130 million
Total: 
2006-08: US$ 75 million
2012-14: US$ 150 millionTotal: 
2006-08: US$ 5.0 billion2012-14: US$ 8.9 billion
Prepared 
foodsVegetablesLive animals
PlasticsChemicalsMinerals
Base metalsTextilesWood pulp
OpticalVehiclesMachinery(IT products and 
medical devices)
Other
 
Annual average: 2006-2008 (inner circ le); 2012-2014 (outer circle). 
Source: UNSD, Comtrade database. 
1.13.  Over the period 2004-2006 the Dominican Republic's largest global import product 
categories were machinery, textiles, vehicles an d chemicals which accounted for 53.8% of its total 
global imports. Over the period 2012-2014 the Dominican Republic's four largest import product 
categories were minerals, machinery, chemicals and plastics accounting for 55.9% of its total 
global imports. The Dominican Republic's import mix is dominated by a couple of products in the case of Guatemala (chemicals, prepared foods), Ho nduras (prepared foods, textiles) and Nicaragua 
(prepared foods, textiles). The Dominican Republic's imports of minerals from the United States 
that accounted for 1.6% of its total imports from the U.S. in 2004-2006 increased to 20% in 2012-2014. Imports from all CAFTA-DR Parties have  increased over the period, doubling or more 
in 2012-14 compared to 2004-2006.  WT/REG211/3 
 
- 12 - 
 
  Chart 1.9 Dominican Republic: product co mposition of merchandise trade, annual 
average 
672373
6027525Dominican Republic 
imports from Nicaragua28
18
15982231
16
1211921Dominican Republic 
imports from El Salvador
21
21
9973320
14
10
10839Dominican Republic  
imports from USA21
19
171591918
18
1613927Dominican Republic 
imports from Costa Rica
41
15139716 34
26146416Dominican Republic 
imports from Honduras
39
3575310
45
2865412Dominican Republic 
imports from Guatemala
CRISLVGTM
32
12
1010102616
15
14
10838Dominican Republic 
global exports
19
15
11
983826
14
87737Dominican Republic 
global imports
Total: 
2004-06: US$6.1 billion
2012-14: US$ 8.4 billion Total: 
2004-06: US$6.6 billion
2012-14: US$ 17.7  billionTotal: 
2004-06: US$ 88 million
2012-14: US$ 242 millionTotal: 
2004-06: US$ 33 million2012-14: US$ 80 millionTotal: 
2004-06: US$ 56 million
2012-14: US$ 128 millionTotal: 
2004-06: US$ 12 million
2012-14: US$ 54 million
Total: 
2004-06: US$ 10 million2012-14: US$ 29 millionTotal: 
2004-06: US$ 3.6 billion
2012-14: US$ 6.9 billion
Vegetable fats 
and oilsVegetablesLive 
animals
ChemicalsMineralsPrepared 
foods
Wood 
pulpArticles of 
woodPlastics
Precious stonesArticles of 
stoneTextiles
VehiclesMachineryBase 
metals
OtherMiscellaneousOptical
 
Annual average: 2004-2006 (inner ci rcle); 2012-2014 (out er circle). 
Source: UNSD, Comtrade database.  
 
1.14.  In the case of El Salvador, its largest global import product categories are machinery, 
minerals, chemicals, and textiles. Its imports from Nicaragua are dominated by live animals, while 
from Honduras imports of textiles accounted for over 40% of its imports in the period 2012-2014. El Salvador's imports from the Dominican Republic have grown from an average of US$4.3 million 
to US$41 million, with imports of minerals a ccounting for 82% of its total imports from the 
Dominican Republic in the period 2012-2014. A half of El Salvador's imports from the United States in 2012-14 were composed of minerals and textiles. WT/REG211/3 
 
- 13 - 
 
  Chart 1.10 El Salvador: product co mposition of merchandise trade 
62 138656
67139326El Salvador imports from 
Nicaragua30
28158613
8264332El Salvador imports from 
Dominican Republic
23
19
8883528
22
136625El Salvador imports from 
USA26
12
11 11112932
14
119828El Salvador imports from 
Costa Rica
20
17
14 1092941
1398623El Salvador imports from 
Honduras
18
17
11973820
15
11
10936El Salvador imports from 
Guatemala
CRISLVGTM 21
9
5
555543
1566524El Salvador global 
exports
13
12
10
965019
15
13
11835El Salvador global 
imports
Total: 
2003-05: US$3,290 million
2012-14: US$ 5,368 million Total: 
2003-05: US$6,297 million
2012-14: US$ 10,5188  millionTotal: 
2003-05: US$ 173 million2012-14: US$ 281 millionTotal: 
2003-05: US$ 4.3 million
2012-14: US$ 41 millionTotal: 
2003-05: US$ 520 million
2012-14: US$ 979 millionTotal: 
2003-05: US$ 158 million
2012-14: US$ 528 million
Total: 
2003-05: US$ 117 million
2012-14: US$ 208 millionTotal: 
2003-05: US$ 1,831 million
2012-14: US$ 4,130 million
VegetablesLive animals
Prepared foodsAnimal or vegetable 
fats and oils
ChemicalsMinerals
Wood and articles of 
woodPlastics
TextilesWood pulp
MachineryBase metals
OtherVehicles
 
Annual average: 2003-2005 (inner ci rcle); 2012-2014 (out er circle). 
Source: UNSD, Comtrade database.   
1.15.  Guatemala's largest global import product categories of minerals, machinery and chemicals 
are largely unchanged over the period surveyed. In the period 2012-2014 its imports of minerals 
from the Dominican Republic, Honduras and the United States accounted respectively for 70%, 31% and 34% of its total imports from these countr ies. Guatemala's main imports from Costa Rica 
are prepared foods and chemicals, from Nicaragu a live animals and prepared foods, and from 
El Salvador prepared foods, base metals and plastics. Import values from all CAFTA-DR Parties 
have increased over the period, in most cases doubling or more.  
 WT/REG211/3 
 
- 14 - 
 
  Chart 1.11 Guatemala: product composition of merchandise trade 
26
17
1615818
43
2565417Guatemala imports from 
Nicaragua49
1994428
70158223Guatemala imports from 
Dominican Republic
20
17
111093434
1766630Guatemala imports from 
USA22
21
121192528
15
1310924Guatemala imports from 
Costa Rica
21
19
9883631
16
129724Guatemala imports from 
Honduras
23
15
12 12102822
13
12
121130Guatemala imports from 
El Salvador
CRISLVGTM25
18
151272323
19
1512923Guatemala global 
exports
16
15
13
1093620
17
137736Guatemala global 
imports
Total: 
2003-05: US$3,649 million
2012-14: US$ 10,360 million Total: 
2003-05: US$8,343 million
2012-14: US$ 17,582  millionTotal: 
2003-05: US$ 293 million
2012-14: US$ 511 millionTotal: 
2003-05: US$ 16 million
2012-14: US$ 97 millionTotal: 
2003-05: US$ 401 million
2012-14: US$ 810 millionTotal: 
2003-05: US$ 108 million
2012-14: US$ 395 million
Total: 
2003-05: US$ 33 million
2012-14: US$ 110 millionTotal: 
2003-05: US$ 3,234 million
2012-14: US$ 6,777 million
VegetablesLive animals
MineralsPrepared 
foods
PlasticsChemicals
TextilesWood pulp
MachineryBase metals
OtherVehicles
 
Annual average: 2003-2005 (inner ci rcle); 2012-2014 (out er circle). 
Source: UNSD, Comtrade database.  
1.16.  Honduras' largest global import product categories of minerals, machinery, chemicals and 
prepared foods are largely unchanged over the period surveyed. The leading product categories that Honduras imports from Guatemala (chemicals, prepared foods and base metals), El Salvador (prepared foods, chemicals and wood pulp), Costa Rica (prepared foods, chemicals and machinery) 
and Nicaragua (live animals, prepared foods, chemicals and vegetables) are largely unchanged 
over the period surveyed. Honduras' imports from  the Dominican Republic and the United States 
were dominated by minerals in the period 2012-2014 accounting for 58% and 48% respectively of 
its total imports from these countries. WT/REG211/3 
 
- 15 - 
 
  Chart 1.12 Honduras: product composition of merchandise trade 
35
281210410 29
2723669Honduras imports from 
Nicaragua32
19 912828
58
208536Honduras imports from 
Dominican Republic
24
22
97732
48
777722Honduras imports from 
USA32
171210919 35
181210619Honduras imports from 
Costa Rica
24
21
17972331
21 139620Honduras imports from 
Guatemala
24
17
161182425
18
16131118Honduras imports from 
El Salvador
CRISLVGTM
42
106663033
10
99732Honduras global exports
19
18
13983425
14
1310631Honduras global imports
Total: 
2003-05: US$1,160 million
2012-14: US$ 4,293 million Total: 
2003-05: US$3,749 million
2012-14: US$ 8,399  millionTotal: 
2003-05: US$ 174 million2012-14: US$ 288 millionTotal: 
2003-05: US$ 7 million
2012-14: US$ 25 millionTotal: 
2003-05: US$ 171 million
2012-14: US$ 358 millionTotal: 
2003-05: US$ 288 million
2012-14: US$ 607 million
Total: 
2003-05: US$ 53 million2012-14: US$ 64 millionTotal: 
2003-05: US$ 1,414 million2012-14: US$ 3,395 million
VegetablesLive animals
Prepared foodsAnimal or vegetable 
fats and oils
ChemicalsMinerals
Wood and articles of 
woodPlastics
Base metalsWood pulp
MiscellaneousMachinery Other
 
Annual average: 2003-2005 (inner ci rcle); 2012-2014 (out er circle). 
Source: UNSD, Comtrade database.§  
1.17.  Nicaragua's largest global import product categories are minerals, machinery and chemicals. 
The leading product categories that Nicaragua imports from the CAFTA-DR Parties are largely 
unchanged over the period surveyed except fo r imports from the Dominican Republic where 
minerals accounted for 45% of its total imports in 2012-2014. Imports from the Dominican 
Republic increased from US$2.8 million in 2003- 2005 to US$18 million in 2012-2014. Its imports 
from other CAFTA-DR Parties also increased but not by the same magnitude.  
 WT/REG211/3 
 
- 16 - 
 
   Chart 1.13 Nicaragua: product composition of merchandise trade 
34
22117422 36
14 1311421Nicaragua imports from 
Honduras35
30983
2845
18171424Nicaragua imports from 
Dominican Rep.
19
18
8664420
18
1010735Nicaragua imports from 
USA21
13
131273427
14
129731Nicaragua imports from 
Costa Rica
32
19 17542330
18
1510423Nicaragua imports from 
Guatemala
21
19
141292520
16
1612927Nicaragua imports from 
El Salvador
CRISLVGTM
37
291461427
19
15121116Nicaragua global 
exports
19
16
16773521
16
15 9732Nicaragua global 
imports
Total: 
2003-05: US$744 million
2012-14: US$ 4,706 million Total: 
2003-05: US$2,230 million
2012-14: US$ 5,758 millionTotal: 
2003-05: US$ 197 million
2012-14: US$ 468 millionTotal: 
2003-05: US$ 2.8 million
2012-14: US$ 18 millionTotal: 
2003-05: US$ 104 million
2012-14: US$ 278 millionTotal: 
2003-05: US$ 152 million
2012-14: US$ 355 million
Total: 
2003-05: US$ 48 million
2012-14: US$ 157 millionTotal: 
2003-05: US$ 511 million
2012-14: US$ 977 million
Animal or vegetable 
fats and oilsVegetablesLive animals
ChemicalsMineralsPrepared foods
Wood pulpWood and articles of 
woodPlastics
Precious stonesArticles of stone, 
plaster, cementTextiles
VehiclesMachineryBase metals Other
 
Annual average: 2003-2005 (inner circ le); 2012-2014 (outer circle). 
Source: UNSD, Comtrade database. 
 
1.18.  The United States' largest global import product categories are machinery, minerals, 
vehicles and chemicals. In most cases, its imports from CAFTA-DR Parties are dominated by one or 
two product categories; for instance, Costa Rica (machinery - IT products, medical devices), El Salvador (textiles), Guatemala (vegetables an d textiles), Honduras (textiles and vegetables) 
and Nicaragua (textiles). Import values have increased from all CAFTA-DR Parties except the 
Dominican Republic where the value of imports fe ll from US$4.6 billion to US$4.5 billion over the 
period surveyed. WT/REG211/3 
 
- 17 - 
 
  Chart 1.14 USA: product composition of merchandise trade 
7385437
57
1312449USA imports from 
Honduras45
109972818
18
1712927USA imports from 
Dominican Rep.
61138856
49
1699710USA imports from 
Nicaragua25
251514417
651310228USA imports from 
Costa Rica
58 24547
40
3011766USA imports from 
Guatemala
85438
769510USA imports from 
El Salvador
CRISLVGTM
33
1511653024
16
10 10534USA global exports
26
15
14763227
17
128531USA global imports
Total: 
2003-05: US$815 billion
2012-14: US$ 1,581 billion Total: 
2003-05: US$1,521 billion
2012-14: US$ 2,357  billionTotal: 
2003-05: US$ 3.6 billion
2012-14: US$ 11.4 billionTotal: 
2003-05: US$ 4.6 billion
2012-14: US$ 4.5 billionTotal: 
2003-05: US$ 2.1 billion2012-14: US$ 2.6 billionTotal: 
2003-05: US$ 3.3 billion2012-14: US$ 4.6 billion
Total: 
2003-05: US$ 3.7 billion2012-14: US$ 4.8 billionTotal: 
2003-05: US$ 1.02 billion2012-14: US$ 2.97 billion
Prepared foodsVegetablesLive animals
PlasticsChemicalsMinerals
Base metalsPrecious stonesTextiles
OpticalVehiclesMachinery Other
 
Annual average: 2003-2005 (inner circ le); 2012-2014 (outer circle). 
Source: UNSD, Comtrade database. 
 
1.1  Trade in Services and Investment 
1.19.  The United States ranks in 2014 as the world's second largest trader in services accounting 
for 13.9% of world exports and 9.4% of imports. The other six CAFTA-DR Parties account in total 
for 0.45% of world services exports and 0.25% of imports. All CAFTA-DR countries except 
Guatemala were net services exporters in 2014. 
Table 1.2 CAFTA-DR Members'  Services Trade Profiles  
Member Services trade - 2014 Rank in world 
trade - 2014 Services 
sectors with 
GATS 
commitments Exports 
US$ 
billion % 
world 
exports Imports 
US$ 
billion % world 
imports Exports Imports 
Costa Rica 6.9 0.14 2.1 0.04 41 85 20 
Dominican 
Republic 6.8 0.14 2.9 0.06 42 70 60 
El Salvador 2.2 0.04 1.4 0.03 77 100 29 
Guatemala 2.6 0.05 3.0 0.06 70 68 20 
Honduras 2.6 0.05 1.7 0.04 71 90 25 
Nicaragua 1.3 0.03 0.9 0.02 96 114 49 
United States 687.6 13.92 451.7 9.44 2 2 110 
Source: WTO Secretariat Trade Profiles. WT/REG211/3 
 
- 18 - 
 
  1.20.  Chart 1.15 shows the breakdown of commercial services trade for Costa Rica, the 
Dominican Republic, El Salvador and Guatemala for the period 2000-2013.3 Costa Rica has run a 
consistent trade surplus in commercial services over the period with exports mainly composed of 
travel services, computer and information services and other business services, and imports of transportation services and travel services. Fr om 2005-2007 the Dominican Republic ran a trade 
deficit in commercial services which turned to a surplus in 2008-2012. The Dominican Republic's 
commercial services exports are dominated by travel services, while travel services and 
transportation services account for the bulk of imports. El Salvador has consistently run a trade 
deficit in commercial services over the period su rveyed. Its main export categories are travel 
services, transportation services and other business services, while imports are mostly travel services and transportation services. Guatemala has for the most part run a trade deficit in commercial services over the period surveyed with  exports composed mostly of travel services, 
transportation services, and communication services, while travel services and transportation 
services account for the bulk of imports. 
                                               
3 Depending on data availability. WT/REG211/3 
 
- 19 - 
 
  Chart 1.15 CAFTA-DR's total trade in commercial services with world, 2000-2013 
(Costa Rica, Dominican Republic, El Salvador and Guatemala) 
Exports ImportsUS$ billionCosta Rica
Dominican Republic
US$ billionUS$ billion
US$ billion
El Salvador
US$ billion
US$ billion
Guatemala
US$ billion
US$ billion0.00.51.01.52.0
2000
20012002
2003
2004200520062007
2008
200920102011
2012
201320140.00.51.01.52.0
2000
2001
20022003
2004
2005
2006
20072008
2009
20102011
2012
20132014
0.00.51.01.52.02.53.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
201220130.00.51.01.52.02.53.0
2000
2001
2002
2003
2004
20052006
2007
2008
2009
20102011
2012
20130.01.02.03.04.05.06.0
2005 2006 2007 2008 2009 2010 2011 20120.01.02.03.04.05.06.0
2005 2006 2007 2008 2009 2010 2011 20120.01.02.03.04.05.06.07.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
20130.01.02.03.04.05.06.07.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
20102011
2012
2013
 
Note: Based on BPM5. Dominican Republic's data for 2011 and 2012 are preliminary. 
Source: WTO Statistics Database; Dominican Republic (2005-2012), Costa Rican authorities (2000-2007) and 
El Salvador authorities (2000-2011). 
 
1.21.  Chart 1.16 shows the breakdown of commerc ial services trade for Honduras, Nicaragua and 
the United States for the period 2000-2013. Honduras has consistently run a trade deficit in 
commercial services over the period surveyed. Expo rts of services are mostly composed of travel 
services and communication services, while the bulk of services imports are transportation services and travel services. Nicaragua has run a trade deficit in commercial services over the period surveyed. Travel services and communicati ons services make up the bulk of services 
exports, with transportation services and travel services accounting for most services imports. The WT/REG211/3 
 
- 20 - 
 
  United States has consistently run a trade surplus in commercial services over the period 
surveyed. Services exports are composed mostly of travel services, royalties and licence fees, 
other business services, and financial services, while the bulk of imports are composed of 
transportation services, travel services, other business services and insurance services. 
Chart 1.16 CAFTA-DR's total trade in commercial services with world, 2000-2013 
(Honduras, Nicaragua and United States) 
Exports ImportsUS$ billionHonduras
Nicaragua
US$ billion US$ billion
US$ billion
United States
US$ billion
US$ billion0.00.51.01.52.0
2000
2001
2002
2003
2004
20052006
2007
20082009
2010
2011
2012
20130.00.51.01.52.0
2000
20012002
2003
20042005
2006
2007
2008
20092010
2011
20122013
0.00.20.40.60.81.0
2000
200120022003
2004
20052006200720082009
2010
2011201220130.00.20.40.60.81.0
2000
20012002
2003
2004
2005
20062007
2008
20092010
2011
2012
2013
0100200300400500600700
2000
2001200220032004200520062007200820092010
2011
201220130100200300400500600700
2000
2001
20022003
2004
20052006
2007
20082009
2010
20112012
2013
 
Note: Based on BPM5. 
Source: WTO Statistics Database and Honduras authorities (2000-2008). 
 
1.22.  Chart 1.17 shows the United States' bilateral commercial services trade with other CAFTA-
DR Parties for 2007. The United States' exports of commercial services are dominated by travel services followed by transportation services. Its imports from CAFTA-DR Parties are mostly made 
up of transportation services and travel services.  
 WT/REG211/3 
 
- 21 - 
 
  Chart 1.17 United States' bilateral commer cial services trade with Costa Rica, 
Dominican Republic, El Salvador, Gu atemala, Honduras and Nicaragua, 2007  
Exports ImportsUS$ billionUS$ billion
0.01.02.03.04.05.0
Costa Rica Dominican
RepublicEl Salvador Guatemala Honduras Nicaragua0.01.02.03.04.05.0
Costa Rica Dominican
RepublicEl Salvador Guatemala Honduras Nicaragua
 
Source: United States authorities. 
 
1.23.  Costa Rica's investment position with CAFTA-DR Parties and the world is shown in 
Chart 1.18. The United States accounted for 49.6% of global FDI flows into Costa Rica in 2007. 
El Salvador accounted for the second largest share of FDI inflows from the other CAFTA-DR Parties. Costa Rica's inward stock of FDI with the world has grown from US$2.5 billion in 2000 to 
US$25 billion in 2014. 
 WT/REG211/3 
 
- 22 - 
 
  Chart 1.18 Costa Rica: FDI stock and flow wi th US, El Salvador, Guatemala, Honduras, 
Nicaragua and world  
051015202530
2000
20012002
2003
2004
2005
20062007
2008
2009
2010
2011
2012
20132014FDI stock with world, 2000-2014
(US$ Billion) 
Outward Inward
-1.00.01.02.03.04.05.0
2000
2001
2002
20032004
2005
200620072008
2009
20102011
2012
20132014FDI flow with world, 2000-2014
(US$ Billion) 
Outward Inward0.0 0.5 1.0 1.5200020012002200320042005200620072008
FDI Inflow (US$ Billions)YearFDI inward flow with CAFTA partners, 2000-2008
(US$ Billion) 
US El Salvador Guatemala Honduras Nicaragua
 
Note: FDI inward flow for 2008 are preliminary estimates. 
Source: Costa Rica authorities (2000-2008 inward  flow with CAFTA Parties) and UNCTAD. 
 
1.24.  The Dominican Republic's FDI stock and flow with the United States and the world is shown 
in Chart 1.19. The Dominican Republic's FDI inward flows with the world have grown from US$1 billion in 2000 to US$2.2 billion in 2014. Its inward FDI stock with the world has experienced constant growth from US$1.7 billion to US$28.8 billion in 2014. WT/REG211/3 
 
- 23 - 
 
  Chart 1.19 Dominican Republic: FDI stock an d flow with United States and world, 
2000-2014  
0.00.10.20.30.40.50.60.70.80.91.0
2000 2001 2002 2003 2004 2005 2006 2007 2008FDI inward flow with the United States
(US$ Billion) 
Inward
-0.50.00.51.01.52.02.53.03.5
2000
20012002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20122013
2014FDI flow with world
(US$ Billion) 
Outward Inward
0.05.010.015.020.025.030.035.0
2000
2001200220032004200520062007200820092010
2011
201220132014FDI stock with world
(US$ Billion) 
Outward Inward
 
Note: FDI inward flows for 2008 are preliminary estimates. Data not available on outward stock with world 
(2006-2008). 
Source: Dominican Republic authorities (2000-2008 inward flow with United States) and UNCTAD. 
1.25.  El Salvador's FDI stock and flow with the United States, central American CAFTA-DR Parties 
and the world is shown in Chart 1.20. FDI inward stock with the world has increased steadily over 
the period while flows have fluctuated. FDI inflows from the United States and central American 
CAFTA-DR Parties has increased over the period, particularly following the entry into force of the Agreement for El Salvador in 2006. 
 WT/REG211/3 
 
- 24 - 
 
  Chart 1.20 El Salvador: FDI stock and flow  with Costa Rica, Guatemala, Honduras, 
Nicaragua, United States and world  
0123456789
2000
20012002
2003
2004
2005
20062007
2008
2009
2010
2011
2012
20132014FDI stock with world, 2000-2014
(US$ Billion) 
Outward Inward
-1.00.01.02.0
2000
2001
2002
20032004
2005
200620072008
2009
20102011
2012
20132014FDI flow with world, 2000-2014
(US$ Billion) 
Outward Inward0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5200020012002200320042005200620072008200920102011201220132014
FDI Inflow (US$ Billions)YearFDI stock with CAFTA partners, 2000-2014
(US$ Billion) 
US Costa Rica Guatemala Honduras Nicaragua
 
Note: Data not available for FDI outward flow (2009) and FDI outward stock (2012). 
 Inward stock with Nicaragua for 2009-2014 are ex pressed in negative figures (US$ million 2009:-
13.3; 2010:13.3; 2011:-12.5; 2012:-14.8; 2013:-15.3; 2014:-5.7) 
Source: El Salvador authorities (bilateral FDI stock with CAFTA Parties for 2000-2014) and UNCTAD. 
1.26.  Guatemala's FDI stock and flow with the world is shown in Chart 1.21. Over the period 
2000-2014 inward FDI stock and flows have increase d. No bilateral FDI data with other CAFTA-DR 
Parties are available. WT/REG211/3 
 
- 25 - 
 
  Chart 1.21 Guatemala: FDI stock and flow with world, 2000-2014  
02468101214
2000
2001
2002
2003200420052006200720082009
2010
2011201220132014FDI Stock with world
(US$ Billion) 
Outward Inward
0.00.20.40.60.81.01.21.41.6
2000
2001200220032004
2005
20062007200820092010
2011
201220132014FDI Flow with world
(US$ Billion) 
Outward Inward
 
Source: UNCTAD. 
 
1.27.  FDI data for Honduras are shown in Chart 1.22. FDI inward stock with the world has 
increased over the period with inflows gradually  increasing except for 2009 when they fell.  
Chart 1.22 Honduras: FDI stock and flow with  US, Costa Rica, El Salvador, Guatemala, 
Nicaragua and world  
051015202530
2000
20012002
2003
2004
2005
20062007
2008
2009
2010
2011
2012
20132014FDI stock with world, 2000-2014
(US$ Billion) 
Outward Inward
-1.00.01.02.03.04.05.0
2000
2001
2002
20032004
2005
200620072008
2009
20102011
2012
20132014FDI flow with world, 2000-2014
(US$ Billion) 
Outward Inward0 100 200 300 400 500200020012002200320042005200620072008
MillionsYearFDI inflow with CAFTA Parties, 2000-2008
(US$ Million) 
US Costa Rica El Salvador Guatemala Nicaragua
 
Note: FDI inward flow for 2006-2008 are preliminary estimates. Data not available for outward stock with 
world (2000-2003). 
Source: Honduras authorities (2000-2008 inward flow with CAFTA-DR Parties) and UNCTAD. WT/REG211/3 
 
- 26 - 
 
  1.28.  Nicaragua's FDI stock and flow with the United States and the world are shown in 
Chart 1.23. Inward FDI stock and flows have in creased constantly over the period surveyed. 
Inward FDI flows from the United States increased in 2006-07 then declined in 2008. 
Chart 1.23 Nicaragua: FDI stock with wo rld and FDI flow with US and world  
-20002004006008001,000
2000
2001
2002
2003200420052006
2007
2008200920102011
2012
20132014FDI Stock with world
2000-2014
(US$ Million)
Outward Inward
01,0002,0003,0004,0005,0006,0007,0008,0009,000
2000
200120022003200420052006200720082009
2010
2011201220132014FDI Flow with world
2000-2014
(US$ Million)
Outward Inward0102030405060708090
2004 2005 2006 2007 2008FDI flow with the United States
2004-2008
(US$ Million)
Inward
 
Note: FDI inward flow from US in 2008 are preliminary estimates. Data not available for outward stock 
(2000-2005) and outward flow (2000-2004). 
Source: Nicaragua authorities (FDI flow with the United States) and UNCTAD. 
1.29.  The United States FDI stock and flow with the world is shown in Chart 1.24. The United 
States is a global exporter of FDI stock. Si nce 2008 outward FDI flows with the world exceed 
inflows. WT/REG211/3 
 
- 27 - 
 
  Chart 1.24 United States: FDI stoc k and flow with world, 2000-2014  
01,0002,0003,0004,0005,0006,0007,000
2000
2001
2002
2003200420052006200720082009
2010
2011201220132014FDI Stock with world
(US$ Billion) 
Outward Inward
050100150200250300350400450
2000
2001200220032004
2005
20062007200820092010
2011
201220132014FDI Flow with world
(US$ Billion) 
Outward Inward
 
Source: UNCTAD. 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The CAFTA-DR was signed by the Parties on 5 August 2004 and entered into force for the 
United States and El Salvador on 1 March 2006; for Honduras and Nicaragua on 1 April 2006; for Guatemala on 1 July 2006; for the Dominican Republic on 1 March 2007; and for Costa Rica on 1 
January 2009. The Agreement was notified by the Parties to the WTO under Article XXIV:7(a) of 
the GATT 1994 and the Understanding on the Interpretation of Article XXIV of GATT 1994 (WT/REG231/N/1) and under Article V:7(a) of the GATS.
4 The text of the Agreement is available, 
together with its Annexes, on the Part ies' official websites as follows:  
http://www.comex.go.cr/tratad os/vigentes/cafta-dr.aspx  (Costa Rica) 
http://www.mic.gob.do/comerci o-exterior/acuerdos-comerciales-vigentes/tratado-rd-
centroamerica-estados-unidos.aspx  (Dominican Republic)  
http://www.minec.gob.sv/textos-de-tlc-vigentes/  (El Salvador) 
http://portaldace.mineco.gob.gt/tratados-y-acuerdos-comerciales  (Guatemala) 
http://www.sic.gob.hn/dgiepc/ (Honduras) 
http://www.mific.gob.ni/INICIO/COMERCIOEXTE RIOR/ACUERDOSCOMERCI ALESVIGENTES/CAFTA
DR/tabid/421/language/en-US/Default.aspx  
(Nicaragua) 
http://www.ustr.gov/trade-agreements/free-trad e-agreements/cafta-dr-dominican-republic-
central-america-fta/final-text  (United States) 
 
2.2.  The Agreement is composed of 22 Chapters as follows: 
Box 2.1: Table of Contents of the Agreement 
Preamble 
Chapter One  Initial Provisions 
Chapter Two  General Provisions 
Annex 2.1       Country-Specific Definitions 
Chapter Three  National Treatm ent and Market Access for Goods 
                                               
4 The respective notification dates and document refe rences are as follows:  for the United States and 
El Salvador, 17 March 2006, document WT/REG211/N/1 an d S/C/N/365;  for Honduras and Nicaragua, 7 April 
2006, document WT/REG211/N/2 and S/C/N/366;  for Guatemala, 11 August 2006, document WT/REG211/N/3 
and S/C/N/372;  for the Dominican Republic, 2 Marc h 2007, document WT/REG211/N/4 and S/C/N/391; and 
for Costa Rica, 19 January 2009, document WT/REG211/N/5 and S/C/N/471. WT/REG211/3 
 
- 28 - 
 
  Annex 3.2   National Treatment and Import and Export Restrictions 
Annex 3.3   Tariff Elimination  
Annex 3.3.4 Implementation of Modifications Approved by the Parties to Accelerate the 
Elimination of Customs Duties 
Annex 3.3.6    
Appendix 3.3.6  Special Rules of Origin 
Appendix 3.3.6.4  Exceptions from  Preferential Tariff Treatment 
Annex 3.11   Export Taxes 
Annex 3.15   Agricultural Safeguard Measures 
Annex 3.22   Elimination of Existing Quantitative Restrictions 
Annex 3.25   Short Supply List 
Annex 3.27   Preferential Tariff Treatment for Wool Apparel Goods Assembled in  
    Costa Rica 
Annex 3.28   Preferential Tariff Treatment for Non-Originating Apparel Goods of  
    N i c a r a g u a  
Annex 3.29   Textile or Apparel Goods not Covered by Section G 
Chapter Four  Rules of Orig in and Origin Procedures 
Annex 4.1   Product Specific Rules of Origin 
Annex 4.6   Exceptions to Article 4.6 
Chapter Five  Customs Administration and Trade Facilitation 
Chapter Six  Sanitary and Phyto-Sanitary Measures  
Annex 6.3   Committee on SPS matters 
Chapter Seven  Technical Barriers to Trade 
Annex 7.8   Committee on Technical Barriers to Trade 
Chapter Eight  Trade Remedies 
Annex 8.3   Administration of Safeguard Proceedings 
Annex 8.7   Country-Specific Definitions 
Chapter Nine  Government Procurement 
Annex 9.1.2(b)(i) 
Annex 9.1.2(b)(ii) 
Annex 9.1.2(b)(iii) 
Chapter Ten  Investment 
Annex 10-A   Public Debt 
Annex 10-B   Customary International Law 
Annex 10-C   Expropriation 
Annex 10-D   Treatment in Case of Strife 
Annex 10-E   Submission of a Claim to Arbitration 
Annex 10-F   Appellate Body or Similar Mechanism 
Annex 10-G   Service of Documents on a Party Under Section B  
Chapter Eleven  Cross-Border Trade in Services 
Annex 11.9   Professional Services 
Annex 11.13  Specific Commitments 
Chapter Twelve       Financial Services 
Annex 12.5.1  Cross-Border Trade 
Annex 12.9.2  Specific Commitments 
Annex 12.9.3  Additional Information Regarding Financial Services Measures 
Annex 12.16.1  Financial Services Committee 
Chapter Thirteen Telecommunications 
Annex 13   Specific Commitments of Costa Rica on Telecommunications Services 
Annex 13.3   Rural Telephone Suppliers 
Annex 13.4.5  Interconnection 
Annex 13.4.8  Access to Rights-of-Way 
Chapter Fourteen Electronic Commerce 
Chapter Fifteen      Intellectual Property Rights 
Annex 15.11 Procedures and Remedies Concerning Broadcast or Cable Transmissions 
or Retransmissions in the Dominican Republic 
Chapter Sixteen       Labour 
Annex 16.5   Labour Cooperation and Capacity Building Mechanism 
Chapter Seventeen Environment 
Annex 17.9    Environmental Cooperation 
Chapter Eighteen Transparency WT/REG211/3 
 
- 29 - 
 
  Chapter Nineteen Administration of th e Agreement and Trade Capacity Building 
Annex 19.1   The Free Trade Commission 
Annex 19.1.4  Implementation of Modifications Approved by the Commission 
Annex 19.2   Free Trade Agreement Coordinators 
Annex 19.3   Remuneration and Payment of Expenses 
Chapter Twenty       Dispute Settlement 
Annex 20.2   Nullification or Impairment 
Annex 20.17  Inflation Adjustment Formula for Monetary Assessments 
Chapter Twenty-One Exceptions 
Annex 21.3   Competent Authorities 
Chapter Twenty-Two  Final Provisions 
 
2.3.  The Agreement contains a number of Annexe s and Appendices many of which are integrated 
into the text of the Agreement; others are appended to the Agreement. Annex I contains the Parties' lists of existing non-conforming measures for trade in services; Annex II contains the 
Parties' lists of future non-conforming measures; Annex III contains the Parties' lists of 
non-conforming measures for financial services; and Annex 4.1 contains product specific rules of origin. 
2.4.  No overall implementation period is exp licitly foreseen in the Agreement. However, the 
Parties' schedules of concessions foresee transition periods of up to 20 years depending on the product. The tariff phase out schedule applies from the year in which the Agreement entered into force by the first group of Parties, i.e. 2006 and t hus is scheduled to be implemented for all Parties 
at the end of the 20 year transition period, i.e. in 2025.
5  
3  NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS 3.1  Import duties and charges,  and quantitative restrictions 
3.1.  Trade in goods amongst the Parties is gove rned by the provisions of Chapter Three which 
sets out in a number of subsections the provisions on national treatment, tariff elimination, special regimes (for instance, in relation to the waiver of customs duties and temporary admission of 
goods), non-tariff measures, other measures (which addresses distinctive products), agriculture, 
textiles and apparel, institutional provisions and definitions.  
3.2.  The Parties agree to accord each other national treatment in goods in accordance with 
Article III of the GATT 1994. National treatment ap plies at both the central and regional level of 
government (Article 3.2). Exceptions are laid out in Annex 3.2. For all Parties these include actions 
authorized by the Dispute Settlement Body of the WTO. In the case of the United States, actions 
authorized by the Agreement on Textiles and Clot hing, and measures under existing provisions of 
the Merchant Marine Act of 1920 and the Passenger Vessel Act are excluded from national 
treatment.  
3.3.  The Parties may not increase any existing customs duty, nor adopt any new customs duty on 
originating goods, except as otherwise provided in the Agreement (Article 3.3). The Parties agree 
to progressively eliminate customs duties on originating goods in accordance with their schedules as outlined in Annex 3.3 which are subject to various staging categories depending on the product. A footnote to Article 3.3 states that except as ot herwise provided in this Agreement, each Central 
American Party and the Dominican Republic shall provide that any originating good is entitled to 
the tariff treatment for the good set out in its Sc hedule to Annex 3.3, regardless of whether the 
good is imported into its territory from the territory of the United States or any other Party. An 
originating good may include a good produced in a Central American Party or the Dominican 
Republic with materials from the United States. A Central American Party may provide identical or more favorable tariff treatment to a good as provided for under the legal instruments of Central 
                                               
5 Thus, the Dominican Republic which entered th e Agreement in 2007 began applying year two 
concessions with all other CAFTA-DR Parties (except Costa Rica) in 2007, while Costa Rica, which joined the 
Agreement in 2009, began to apply year four concessions as of January 2009 with all CAFTA-DR Parties. WT/REG211/3 
 
- 30 - 
 
  American integration, provided that the good meets the rules of origin under those instruments 
(Article 3.3:3).6  
3.4.  Upon request, the Parties shall consult to consider accelerating the elimination of customs 
duties set out in their Schedules to Annex 3.3. If two or more Parties agree to accelerate the 
elimination of customs duties the newly agreed rates will supersede existing rates for those 
Parties.  
3.5.  Annex 3.3.6 provides for an additional set of liberalization modalities which apply between 
each Central American Party and the Dominican Repu blic (but not the United States) whereby they 
agree to grant duty-free treatment to any good imported directly from their territories that meets 
the rules of origin for the good as set out in Chapter Four (Rules of Origin and Origin Procedures). For such goods a separate set of product-specific ru les of origin as set out in Annex 3.3.6 override 
those in Annex 4.1.
7 According to the Parties, the purpose of  Annex 3.3.6 is to incorporate into the 
CAFTA-DR the existing bilateral market access treatment that the Central American countries and 
the Dominican Republic have agreed to provid e each other under the pre-existing Central 
American-Dominican Republic FTA (see paragraph 1.1 of this Report). Thus, an importer in one of 
the Central American countries or the Dominican Republic may elect to make a claim for 
preferential tariff treatment for goods originating in these countries either under Annex 3.3.6 or under a Party's Schedule to Annex 3.3, provided the good meets the applicable rules of origin. 
Exceptions to duty-free treatment in the case of Annex 3.3.6 are listed in that Annex or in 
Appendix 3.3.6.4.  
3.6.  The Parties may not adopt any new waiver of customs duties or expand any existing waiver 
of customs duties based on the fulfilment of a performance requirement. Costa Rica, the 
Dominican Republic, El Salvador and Guatemala may maintain such measures until 31 December 
2009, provided they are in accordance with Arti cle 27.4 of the WTO Agreement on Subsidies and 
Countervailing Measures (SCM).
8 Nicaragua and Honduras may maintain such measures for such 
time as they remain an Annex VII country for the purposes of the SCM Agreement. Thereafter, 
they may maintain such measures in accordance with Article 27.4 of the SCM Agreement. 
3.7.  Article 3.5 provides for the duty-free temp orary admission of goods such as professional 
equipment, goods intended for display or demo nstration, commercial samples and goods admitted 
for sports purposes. Article 3.6 provides for th e waiver of customs duties to goods admitted 
temporarily for repair or alteration. Article 3. 7 provides for the duty-free entry of commercial 
samples of negligible value and printed advertising materials. 
3.8.  As regards non-tariff measures, the Parties may not adopt or maintain any prohibition or 
restriction on imports, except in accordance with  Article XI of the GATT 1994 and its interpretative 
notes, or as otherwise provided for in the Agreement (Article 3.8). In particular, the Agreement 
prohibits the Parties from adopting or maintaining import price requirements, except as permitted 
in the enforcement of countervailing and antidump ing duty orders and undertakings; or import 
licensing conditioned on the fulfilment of a performance requirement, except as provided for in a 
Party's Schedule to Annex 3.3. In the event that a Party adopts or maintains an import restriction 
on a good of a non-Party, the Party may limit or prohibit the import of such a good from the territory of another Party. Annex 3.2 of the Agr eement contains a list of goods for each Party for 
which they may maintain import restrictions. These are detailed in Table 3.1. 
Table 3.1 List of Import Restrictions wh ich may be maintained under the Agreement
 
Country Import Restrictions on 
Costa Rica crude oil, its fuel, derivatives, asphalt, and gasoline 
ethanol and crude rums 
Dominican 
Rep. motor vehicles and motorcycles older than 5 years and vehicles >= 5 tons older than 15 years 
used household appliances 
                                               
6 Article 1.3:2 states that nothing in the Agreement shall prevent the Central American Parties from 
maintaining their existing legal instruments of Central American integration, adopting new legal instruments of integration, or adopting measures to strengthen and deepen these instruments, provided that such 
instruments and measures are not inconsistent with the Agreement. 
7 Further details are provided in the Section on rules of origin. 
8 Costa Rica, Guatemala, El Salvador and the Dominican Republ ic obtained a Decision of the WTO 
General Council (WT/L/691), granting an extension of this period until the end of year 2015. WT/REG211/3 
 
- 31 - 
 
  Country Import Restrictions on 
used clothes 
motor vehicles not suitable for operation 
El 
Salvador arms and ammunition, parts and accessories 
motor vehicles older than 8 years and buses and trucks older than 15 years sacks and bags made of jute and other similar textile  fibres (to be eliminated 10 years after the entry 
into force of the Agreement). 
Guatemala weapons 
Honduras arms and ammunition 
motor vehicles older than 7 years and buses older than 10 years 
Nicaragua motor vehicles older than 7 years 
used retreaded tyres, used pneumatic tyres, used cl othing, rags, scrap twine, cordage, rope, and cable 
(valid for 10 years following the entry into force of the Agreement). 
Source: WTO Secretariat, based on the text of the Agreement. 
 
3.9.  The Parties may not adopt or maintain a measure that is inconsistent with the WTO 
Agreement on Import Licensing (Article 3.9). They  agree to notify each other of any existing 
importing licensing procedures; new procedures or mo difications to existing ones are to be notified 
within 60 days before they take effect. 
3.1.1  Liberalization of tariff lines and trade9 
3.10.  The elimination of tariffs between the Parties is detailed in their corresponding schedules. In 
the case of El Salvador, Guatemala, Honduras, Nicaragua and the United States, tariff elimination 
started in 2006, for the Dominican Republic in 2007 and for Costa Rica in 2009, but as noted above the tariff phaseout schedule applies from  2006 (when the Agreement first entered into 
force) for all Parties; the base rates for tariff reductions were the MFN (2003) applied duties for all 
Parties except Nicaragua for which the MFN (2004) applied duties were used. Subsequent duty reductions take place on 1 January of each year. 
3.11.  The following tables and charts compare tariff elimination commitments under the 
Agreement with MFN rates. However, as pointed out by the Parties this is not reflective of the 
situation on the ground. Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador already benefit from tariff elimination commitments made under the Central American Common Market, 
these five countries have an FTA with the Dominican Republic (in force since 2001), and all six 
countries benefit from preferences offered by the United States under the Generalized System of Preferences or Caribbean Basin Initiative programs.
10 
3.1.1.1  Costa Rica 
3.12.  Costa Rica's tariff elimination under the Agreement is depicted in Table 3.2. Costa Rica 
applies a single tariff schedule to all other CAFTA-DR Parties (with certain exceptions set out in paragraphs 6-8 of Costa Rica's General Notes to its Tariff Schedule in Annex 3.3). 48.7% of Costa 
Rica's tariff lines were already duty-free on an MFN basis in 2009
11 which corresponded to 54.4% 
of its imports from the Dominican Republic, 17.1% from Guatemala, 8.9% from Honduras, 14.1% from Nicaragua, 14.5% from El Salvador and 77% from the United States for the period 2006-
2008.
12 In 2009, the year of entry into force of the Agreement in Costa Rica, a further 23.3% of 
tariff lines became duty free for all CAFTA-DR Part ies immediately and a further 4.5% of tariff lines 
became duty-free in 2010. By 1 January of year 10 of the CAFTA-DR (in 2015), 95.3% of all tariff 
lines were duty free and by the en d of the transition period in 2025, all but five of Costa Rica's 
tariff lines (potatoes and onions) will be duty fr ee for all other CAFTA-DR Parties. The remaining 
tariff lines subject to duties correspond to 0.5% of total imports from Nicaragua for the period 
2006-2008. In the case of imports of potatoes an d onions from the United States, some duty-free 
access is provided for set volumes throug h a tariff rate quota (see Annex 2). 
                                               
9 Unless otherwise specified, all statistics contained in the tables and charts ha ve been prepared on the 
basis of data provided by the Parties. 
10 The Secretariat has not analysed such preferences in this Factual Presentation. 
11 Costa Rica's 2009 tariff is composed of 6,291 tariff lines at the HS 8-digit level, all of which are 
ad valorem  duties. 
12 It is important to clarify that all the Central Amer ican countries were already benefiting from the tariff 
concessions under the Central American Common Market and the Dominican Republic was already benefiting 
from the tariff concessions under their FTA with the Central American countries. WT/REG211/3 
 
- 32 - 
 
  3.13.  The base rates used by Costa Rica for implementing its tariff liberalization scheme already 
provided for 48.7% of its tariff being duty free on an MFN basis before the entry into force of the 
Agreement. Chart 3.1 shows Costa Rica's tariff e limination under the Agreement by year and duty 
range for all other CAFTA-DR Parties. Tariff lines liberalized on entry into force of the Agreement are subject to differing base rates, but mostly up  to 15%. Tariff lines subject to duties of more 
than 40% are mostly liberalized beginning in 2020. 
  
  WT/REG211/3  
 
- 33 - Table 3.2 Costa Rica: Tariff elimination commitments under  the Agreement and corresponding average trade values  
Duty phase-out 
period No. of 
lines % of 
total 
lines in 
Costa 
Rica's 
tariff 
schedule Costa Rica's imports (2006-2008) from 
Dominican 
Republic  Guatemala Honduras Nicaragua El Salvador USA 
Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports 
MFN duty free (2009)  3,063 48.7 26.4 54.4 43.6 17.1 6.7 8.9 12.8 14.1 18.9 14.5 4,037.0 77.0 
2009 1,463 23.3 0.5 1.1 41.8 16.4 29.3 38.9 4.9 5.5 18.5 14.1 494.6 9.4 
2010 282 4.5 0.6 1.1 23.9 9.4 2.6 3.4 5.6 6.2 12.6 9.6 115.7 2.2 
2015 1,181 18.8 20.8 42.7 110.4 43.4 19.9 26.4 23.3 25.7 63.3 48.5 471.1 9.0 
2017 35 0.6 0.1 0.2 14.6 5.8 0.3 0.4 11.5 12.7 8.6 6.6 24.1 0.5 
2020 234 3.7 0.3 0.5 18.8 7.4 15.2 20.1 28.4 31.4 7.8 5.9 46.5 0.9 
2022 2 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
2025 26 0.4 0.0 0.0 1.1 0.4 1.3 1.7 3.5 3.9 0.8 0.6 51.0 1.0 
Remain dutiable 5 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.5 0.0 0.0 0.4 0.0 
Total 6,291 100.0 48.6 100.0 254.2 100.0 75.3 100.0 90.4 100.0 130.5 100.0 5,240.3 100.0 
Note: Based on HS2002 nomenclature at the 8-digit tariff line level; Costa Rica's import data are based on years 2006-2008. 
Source:  WTO estimates based on data provided by Costa Rica.  
 WT/REG211/3 
 
- 34 - 
 
  Chart 3.1 Costa Rica's duty elimination under the Agreement 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,0002009201020152017202020222025
Number of duty free lines (cumulative)Year of duty free treatment
Duty Free <=10 <=20 <=30 <=40 <=50 > 50 MFN is:
 
Source: WTO Secretariat estimates, based on data provided by Costa Rica. 
 
3.14.  Table 3.3 shows Costa Rica's liberalization commitments under the Agreement organized by HS Section product categories for the other CAFTA-DR Parties. The bulk of lines are liberalized upon the entry into force of the Agreement fo llowed by liberalization in 2010, 2015 and 2020. 
Those products subject to progressive liberalizatio n after 2015 until the end of the transition period 
in 2025 are all agricultural products with the exce ption of six tariff lines under HS Section VIII, 
Hides and Skins, which are to be liberalized in 2020. For the five tariff lines where duties remain, 
the preferential duties match the MFN duties.  
Table 3.3 Costa Rica: Tariff elimination under the Agreement, by HS section 
HS section  MFN 
avg. 
% Total 
No. of 
lines 
MFN 
2009 Number of duty-free lines 
Remain 
dutiable Aver
age 
Final 
Tariff 2009 
2010 
2015 
2017 
2020 
2022 
2025 
I  17.2 283 47 142 12 10  50 2 20   
II  9.3 371 111 68 64 74 15 30  4 5 45.0 
III  8.3 53 7 2  1 3 40     
IV  13.1 269 32 45 19 46 17 108  2   
V  2.6 176 113 41 1 21       
VI  1.8 920 738 66 26 90       
VII  4.2 330 142 17 20 151       
VIII  7.8 108 19 4 15 64  6     
IX  7.2 90 25 8 25 32       
X  4.7 285 143 65 21 56       
XI  9.0 914 113 797 1 3       
XII  11.3 63 3 13 10 37       
XIII  5.8 160 75 7 5 73       
XIV  6.5 54 15 16 11 12       
XV  2.9 693 468 17 16 192       
XVI  2.0 901 730 34 21 116       
XVII  5.0 190 100 15 3 72       
XVIII  3.5 245 158 48  39       
XIX  11.9 21  4  17       
XX  9.9 156 24 45 12 75       
XXI  7.2 9  9         
Total 5.8 6,291 3,063 1,463 282 1,181 35 234 2 26 5 45.0 
Note: For tariff lines subject to TRQs only the out-of-quot a duty is included in the tariff-related calculations 
(TRQs only for USA and  the Dominican Republic); Based on HS 2002 nomenclature at the 8-digit tariff line level. 
Source: WTO estimates based on data provided by Costa Rica. WT/REG211/3 
 
- 35 - 
 
  3.1.1.2  Dominican Republic 
3.15.  The Dominican Republic's tariff elimination under the Agreement is depicted in Table 3.4. 
The Dominican Republic applies a single tariff schedule to all the other CAFTA-DR Parties (with 
certain exceptions set out in paragraphs 6-12 of the Dominican Republic's General Notes to its Tariff Schedule in Annex 3.3). 55.1% of the Dominican Republic's tariff lines were already duty-
free on an MFN basis in 2007
13 which corresponded to 25.9% of its imports from Costa Rica14, 
23.6% from El Salvador, 24.3% from Guatemala, 27% from Honduras, 52.5% from Nicaragua and 49.8% from the United States for the period 2004-2006.
15 In 2007, a further 21.5% of tariff lines 
became duty-free for all the other CAFTA-DR Parties (except Costa Rica for which the liberalization 
took place on the Agreement's entry into force in  2009). By January 1 of year 10 of the CAFTA-DR 
(in 2015), 96% of tariff lines were duty-free and by the end of the transition period in 2025, all of 
the Dominican Republic's tariff lines will be duty-free for the other CAFTA-DR Parties. 
                                               
13 The Dominican Republic's 2007 tariff is composed of 6,819 tariff lines at the HS 8-digit level, all of 
which are ad valorem  duties. 
14 MFN (2007) rates were used as a comparison for all Parties. 
15 It is important to clarify that the Dominican Republic was already benefiting from the tariff 
concessions under its FTA with the Central American countries.  
  WT/REG211/3  
 
- 36 - Table 3.4 Dominican Republic: Tariff elimination commitments under the Agreement and corresponding average trade values  
Duty phase-out 
period No. 
of 
lines % of total 
lines in 
Dominican 
Republic's 
tariff 
schedule Dominican Republic's imports (2004-2006) from 
Costa Rica  El Salvador Guatemala Honduras Nicaragua USA 
Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports 
MFN duty free (2007)  3,757 55.1 18.6 25.9 7.5 23.6 12.9 24.3 1.7 27.0 2.4 52.5 1,060.2 49.8 
2007 1,467 21.5 21.0 29.4 4.1 13.1 5.5 10.4 0.3 5.4 0.3 6.2 361.8 17.0 
2009 2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.9 0.0 
2010 400 5.9 6.9 9.7 10.3 32.4 6.8 12.8 0.3 5.3 0.0 0.8 370.0 17.4 
2015 922 13.5 22.9 32.0 4.8 15.0 18.5 34.9 1.7 27.2 0.5 11.5 230.7 10.8 
2016 93 1.4 1.1 1.5 1.5 4.7 0.1 0.3 0.2 2.9 0.0 0.2 39.2 1.8 
2017 29 0.4 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 6.6 0.3 
2020 136 2.0 1.0 1.4 3.5 11.1 9.2 17.4 2.1 32.2 1.3 28.8 36.6 1.7 
2025 13 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 23.0 1.1 
Total 6,819 100.0 71.5 100.0 31.7 100.0 52.9 100.0 6.4 100.0 4.6 100.0 2,129.1 100.0 
Note: Based on HS 2002 nomenclature at the 8-digit tariff line level. 
 A single year (2007) is used as the comparison for all Parties, including Costa Rica. Given the absence of import data for 200 6-2008 from Costa Rica, imports for 
2004-2006 were used. 
Source: WTO estimates based on data provided by the Dominican Republic. WT/REG211/3 
 
- 37 - 
 
  3.16.  The base rates used by the Dominican Republic for implementing its tariff liberalization 
scheme already provided for 55.1% of its tariff be ing duty free on an MFN basis before the entry 
into force of the Agreement. Chart 3.2 shows the Dominican Republic's tariff elimination under the 
Agreement by year and duty range for all the other CAFTA-DR Parties.16 Tariff lines liberalized on 
entry into force of the Agreement are subject to diffe ring base rates, but mostly up to 20%. Tariff 
lines subject to duties of more than 50% are liberalized beginning in 2010. 
Chart 3.2 Dominican Republic's duty  elimination under the Agreement 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,00020072009201020152016201720202025
Number of duty free lines (cumulative)Year of duty free treatment
Duty Free <=10 <=20 <=30 <=40 > 50 MFN is:
 
Source: WTO Secretariat estimates, based on data provided by the Dominican Republic. 
 
3.17.  Table 3.5 shows the Dominican Republic's liberalization commitments under the Agreement 
organized by HS Section product categories for the other CAFTA-DR Parties.17 The bulk of lines are 
liberalized upon the entry into force of the Agreement followed by liberalization in 2010, 2015 and 2020. Those products subject to progressive liberalization after 2016 until the end of the transition period in 2025 are all agricultural products.  
Table 3.5 Dominican Republic: Tariff eliminat ion under the Agreement, by HS section
 
HS 
section  MFN 
avg. 
% Total No. of 
lines MFN 2007 Number of duty-free lines  2007 
2009 
2010 
2015 
2016 
2017 
2020 
2025 
I  17.9 295 71 97 2 25 48  8 35 9 
II  12.7 408 157 132  17 66  4 28 4 
III  6.0 65 42 4  4 5  1 9  
IV  17.3 306 42 65  45 74  16 64  
V  2.2 184 133 2  19 19 11    
VI  2.2 1,085 917 25  30 85 28    
VII  7.5 277 119 35  36 84 3    
VIII  9.4 99 45 36  8 5 5    
IX  4.5 120 78 22  10 8 2    
X  6.2 195 117 22  11 37 8    
XI  8.2 902 499 396  3 4     
XII  16.7 72 8 36  13 15     
XIII  8.9 171 78 19  14 60     
XIV  17.9 57  34  10 13     
XV  5.9 694 398 113  13 136 34    
XVI  3.4 1,052 778 195  24 55     
                                               
16 In the case of Costa Rica, 2009 is th e first year of tariff liberalization. 
17 In the case of Costa Rica, 2009 is th e first year of tariff liberalization. WT/REG211/3 
 
- 38 - 
 
  HS 
section  MFN 
avg. 
% Total No. of 
lines MFN 2007 Number of duty-free lines  2007 
2009 
2010 
2015 
2016 
2017 
2020 
2025 
XVII  8.8 263 61 63  104 34 1    
XVIII  6.1 346 194 124  3 25     
XIX  20.0 32  2   30     
XX  17.0 189 20 45  11 112 1    
XXI  20.0 7     7     
Total 7.5 6,819 3,757 1,467 2 400 922 93 29 136 13 
Note: For tariff lines subject to TRQs only the out-of-quo ta duty is included in the tariff-related calculations 
(TRQs apply to the USA, Costa Rica and Nicaragua). 
 Based on HS 2002 nomenclature at the 8-digit tariff line level. 
Source: WTO estimates based on data provided by the Dominican Republic. 
 
3.1.1.3  El Salvador 
3.18.  El Salvador's tariff elimination under the Agreement is depicted in Table 3.6. El Salvador 
applies a single tariff schedule to all the other CAFTA-DR Parties (with certain exceptions listed in paragraphs 6-8 of El Salvador's General Notes to its Tariff Schedule in Annex 3.3). 46.7% of 
El Salvador's tariff lines were already duty-free on an MFN basis in 2006
18 which corresponded to 
12.6% of its imports from Costa Rica for the period 2006-2008;19 53.5% of its imports from the 
Dominican Republic for the period 2004-2006; and for 9.8% of its imports from Guatemala, 12.1% 
from Honduras, 4.6% from Nicaragua and 53.2% from the United States for the period 2003-
2005.20 The bulk of El Salvador's scheduled tariff libera lization took place on the respective year of 
entry into force of the Agreement resulting in a fu rther 31.3% of tariff lines becoming duty-free for 
all the other CAFTA-DR Parties. By 1 January of year 10 of the CAFTA-DR (in 2015), 97.6% of 
El Salvador's tariff lines were duty-free and by th e end of the transition pe riod in 2025, all but one 
of El Salvador's tariff lines (white corn) will be  duty-free for all the other CAFTA-DR Parties. The 
remaining tariff line subject to duties corresponds to 0.8% of total imports from Honduras and for 
0.4% of all imports from the United States for th e period 2003-2005. In the case of imports of 
white corn from the United States, some duty-free access is provided for set volumes through a tariff rate quota (see Annex 2). 
                                               
18 El Salvador's 2006 tariff is composed of 6,271 tariff lines at the HS 8-digit level, all of which are 
ad valorem  duties. 
19 MFN (2006) rates were used as a comparison for all Parties. 
20 It is important to clarify that all the Central Amer ican countries were already benefiting from the tariff 
concessions under the Central American Common Market and the Dominican Republic was already benefiting 
from the tariff concessions under their FTA with the Central American countries.  
  WT/REG211/3  
 
- 39 - Table 3.6 El Salvador: Tariff elimination commitments und er the Agreement and corresponding average trade values  
Duty 
phase-out 
period No. of 
lines % of total 
lines in El 
Salvador'
s tariff 
schedule El Salvador's imports fromc 
Costa Rica  
(2006-2008) Dominican 
Republic (2004-
2006) Guatemala  
(2003-2005) Honduras  
(2003-2005) Nicaragua  
(2003-2005) USA  
(2003-2005) 
Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value in 
million 
US$ % of 
total 
imports 
MFN duty 
free 
(2006) 2,930 46.7 30.5 12.6 2.2 53.5 49.6 9.8 17.8 12.1 5.3 4.6 798.7 53.2 
2006 1,960 31.3     117.1 23.1 20.1 13.7 18.9 16.3 334.9 22.3 
2007a 1,960 31.3   0.4 10.7         
2009b 1,960 31.3 59.2 24.5           
2010 414 6.6 27.3 11.3 0.7 17.4 77.8 15.3 11.1 7.5 2.5 2.2 90.2 6.0 
2011 1 0.0 0.0 - 0.0 - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2012 2 0.0 0.0 0.0 0.0 - 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
2013 3 0.0 0.0 0.0 0.0 - 0.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
2015 811 12.9 94.5 39.1 0.8 18.4 170.7 33.6 54.5 37.0 12.2 10.5 187.0 12.4 
2017 17 0.3 6.5 2.7 0.0 0.0 49.2 9.7 10.8 7.3 1.9 1.6 2.7 0.2 
2020 54 0.9 3.8 1.6 0.0 - 19.9 3.9 12.5 8.5 7.1 6.1 56.9 3.8 
2021 47 0.7 9.4 3.9 0.0 0.0 20.1 4.0 13.1 8.9 47.7 41.0 2.4 0.2 
2022 1 0.0 0.0 - 0.0 - 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
2023 7 0.1 0.0 0.0 0.0 - 0.6 0.1 0.5 0.3 0.1 0.1 16.3 1.1 
2025 23 0.4 10.6 4.4 0.0 0.0 2.2 0.4 5.8 3.9 20.5 17.6 6.4 0.4 
Remain 
dutiable 1 0.0 0.0 0.0 0.0 - 0.1 0.0 1.1 0.8 0.0 0.0 6.3 0.4 
Total 6,271 100.0 241.8 c 100.0 4.1 c 100.0 507.8 c 100.0 147.2 c 100.0 116.3 c 100.0 1,502.1 c 100.0 
Note: MFN 2006 used as the comparison. All figures based on HS(2002) nomenclature.  
a Trade from Dominican Republic only;  
b  Trade from Costa Rica only;  c  Only trade falling under HS Chapter 1-97 is included. 
Source:  WTO estimates based on data pr ovided by El Salvador and WTO-IDB. WT/REG211/3 
 
- 40 - 
 
  3.19.  The base rates used by El Salvador for implementing its tariff liberalization schemes already 
provided for 46.7% of its tariff being duty free on an MFN basis before the entry into force of the 
Agreement. Chart 3.3 shows El Salvador's tariff e limination under the Agreement by year and duty 
range for all the other CAFTA-DR Parties.21 Tariff lines liberalized on entry into force of the 
Agreement are subject to differing base rates, but mostly up to 30%. None of El Salvador's MFN 
tariff lines exceed 40%. Those subject to rates of between 30% and 40% are mostly liberalized 
beginning in 2020. 
Chart 3.3 El Salvador's duty elimination under the Agreement 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000200620102011201220132015201720202021202220232025
Number of duty free lines (cumulative)Year of duty free treatment
Duty Free <=10 <=20 <=30 <=40 MFN is:
 
Source: WTO Secretariat estimates, base d on data provided by El Salvador. 
 
3.20.  Table 3.7 shows El Salvador's liberalization commitments under the Agreement organized 
by HS Section product categories for the other CAFTA-DR Parties.22 The bulk of lines are liberalized 
upon the entry into force of the Agreement fo llowed by liberalization in 2010 and 2015. Those 
products subject to progressive liberalization af ter 2015 until the end of the transition period in 
2025 are all agricultural products. For the single tariff line where duties remain (white corn), the 
preferential duty matches the MFN duty. 
Table 3.7 El Salvador: Tariff eliminatio n under the Agreement, by HS section  HS section 
MFN 
average% 
Total No. 
of lines 
MFN 2006 
duty-free Number of duty-free lines 
Remain 
dutiabl e 
Average 
Final 
Tariff  2006 
2010 
2011 
2012 
2013 
2015 
2017 
2020 
2021 
2022 
2023 
2025 
I 13.4 283 41 164 13  1  14  18 9  2 21   
II 10.0 371 93 123 78 1  2 42 8 4 14  5  1 20.0 
III 7.4 53 18 6     7 4 5 13      
IV 15.7 269 27 87 22    87 5 27 11 1  2   
V 3.0 176 86 73 1    16         
VI 2.0 920 726 79 43    72         
VII 4.7 330 138 56 55  1  80         
VIII 8.3 108 19 40 49             
IX 7.2 90 26 46 1    17         
                                               
21 The liberalization shown for 2006 only applies in th e case of Guatemala, Honduras, Nicaragua and the 
United States. 
22 In the case of the Dominican Republic and Costa Rica, liberalization begins in 2007 and 2009, 
respectively, rather than 2006. WT/REG211/3 
 
- 41 - 
 
  HS section 
MFN 
average% 
Total No. 
of lines 
MFN 2006 
duty-free Number of duty-free lines 
Remain 
dutiabl e 
Average 
Final 
Tariff  2006 
2010 
2011 
2012 
2013 
2015 
2017 
2020 
2021 
2022 
2023 
2025 
X 5.1 285 143 22 36    84         
XI 17.8 914 109 801     4         
XII 12.9 63 2 26 16    19         
XIII 6.4 160 72 46 9   1 32         
XIV 8.1 54 15 17 10    12         
XV 3.3 693 455 48 35    155         
XVI 2.3 901 713 96 23    69         
XVII 6.2 170 65 57     48         
XVIII 4.1 245 158 87              
XIX 30.0 21  20     1         
XX 10.8 156 24 57 23    52         
XXI 20.0 9  9              
Total 7.4 6,271 2,930 1,960 414 1 2 3 811 17 54 47 1 7 23 1 20.0 
Note: MFN 2006 used as the comparison. For tariff lines subject to TRQs only the out-of-quota duty is 
included in the tariff-related calculations (TRQs apply to USA only).  
Source:  WTO estimates based on data pr ovided by El Salvador and WTO-IDB. 
 
3.1.1.4  Guatemala 
3.21.  Guatemala's tariff elimination under the Agreement is depicted in Table 3.8. Guatemala 
applies a single tariff schedule to all the other CAFTA-DR Parties (with certain exceptions set out in 
paragraphs 6-8 of Guatemala's General Notes to its Tariff Schedule in Annex 3.3). 46.8% of Guatemala's tariff lines were already duty-free on an MFN basis in 2006
23 which corresponded to 
19.2% of its imports from El Salvador, 15.3% from Honduras, 17.4% from Nicaragua and 37.5% 
from the United States for the period 2003-2005; 47.1% of Guatemala's tariff lines were duty-free on an MFN basis in 2007 which corresponded to  10.4% of its imports from the Dominican 
Republic
24; and 47.2% of its tariff lines were duty-free on an MFN basis in 2009 which 
corresponded to 19.3% of its imports from Costa Rica.25 The bulk of Guatemala's scheduled tariff 
liberalization took place on the respective year of entry into force of the Agreement resulting in a further 32% of tariff lines becoming duty-free for all the other CAFTA-DR Parties. By 1 January of 
year 10 of the CAFTA-DR (in 2015), 97.9% of Guatem ala's tariff lines were duty-free and by the 
end of the transition period in 2025, all but one of Guatemala's tariff lines will be duty-free for all 
the CAFTA-DR Parties. This remaining tariff line (w hite corn) subject to duties corresponds to 0.1% 
of total imports from Honduras and the United St ates for the period 2003-2005. In the case of the 
imports of white corn from the United States, some duty-free access is provided for set volumes through a tariff rate quota (see Annex 2). 
 
 
                                               
23 Guatemala's 2006 tariff is composed of 6,564 tariff lines at the HS 8-digit level, all of which are 
ad valorem  duties. 
24 In the case of Guatemala, a comparison was made with MFN(2006) for El Salvador, Honduras, 
Nicaragua and the United States;  with MFN(2007) for the Dominican Republic; and with MFN(2009) for Costa 
Rica. In cases where the preferential rate for the given year of entry into force of the Agreement was greater 
than the MFN rate, the preferential rate for that year was modified to reflect the MFN rate. Guatemala's reductions in its MFN rate for 2007 and 2009 account for the slight differences between liberalization in subsequent years between the Dominican Republic and Costa Rica and its other CAFTA-DR partners. 
25 It is important to clarify that all the Central Amer ican countries were already benefiting from the tariff 
concessions under the Central American Common Market and the Dominican Republic  was already benefiting 
from the tariff concessions under their FTA with the Central American countries.  
  WT/REG211/3  
 
- 42 - Table 3.8 Guatemala's Tariff elimination commitments under  the Agreement and corresponding average trade values  
Duty 
phase-out 
period No. of 
lines % of total 
lines in 
Guatemala's 
tariff 
schedule Guatemala's imports from 
Costa Rica  
(2006-2008) Dominican 
Republic (2004-
2006) El Salvador  
(2003-2005) Honduras  
(2003-2005) Nicaragua  
(2003-2005) USA  
(2003-2005) 
Value in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports  Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value in 
million 
US$ % of 
total 
imports 
MFN duty 
free a 3,069 b 46.8 b     198.6 19.2 73.9 15.3 38.1 17.4 2,346.9 37.5 
 3,089 c 47.1 c   7.7 10.4         
 3,098 d 47.2 d 129.3 19.3           
2006 b 2,121 32.3     205.1 19.8 105.5 21.8 37.1 17.0 2,715.5 43.4 
2007 c 2,108 32.1   10.9 14.8         
2009 d 2,103 32.0 126.6 18.9           
2010 245 3.7 101.2 15.1 17.4 23.6 113.5 11.0 71.0 14.7 35.5 16.2 138.3 2.2 
2015 993 15.1 285.4 42.7 29.3 39.6 428.3 41.3 201.8 41.7 89.8 41.1 756.7 12.1 
2017 4 0.1 0.2 0.0 0.0 0.1 8.7 0.8 0.9 0.2 0.1 0.0 1.7 0.0 
2020 100 1.5 7.0 1.0 8.6 11.6 70.3 6.8 24.1 5.0 15.0 6.9 247.2 4.0 
2023 8 0.1 0.2 0.0 0.0 0.0 1.1 0.1 0.4 0.1 0.1 0.0 33.1 0.5 
2025 23 0.4 18.4 2.8 0.0 0.0 10.3 1.0 5.7 1.2 2.8 1.3 6.3 0.1 
Remain 
dutiable 1 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.4 0.1 0.0 0.0 5.5 0.1 
Total 6,564 100.0 668.4 100.0 74.0 100.0 1,035.9  100.0 483.7 100.0 218.5 100.0 6,251.3 100.0 
Note: a MFN 2006 used as the comparison for El Salvador, Honduras, Nica ragua and the United States; MFN 2007 used as the comparison fo r Dominican Republic and MFN 
2009 used as the comparison for Costa Rica;  
 b El Salvador, Honduras, Nicaragua and USA;  
 c Dominican Republic only;  
 d Costa Rica only.  
 Based on HS 2002 nomenclature for El Salvador, Honduras, Nicaragu a and the United States and based on HS 2007 nomenclature for  the Dominican Republic and 
Costa Rica.  
Source:  WTO estimates based on data provided by Guatemala and WTO-IDB. 
 WT/REG211/3 
 
- 43 - 
 
  3.22.  The base rates used by Guatemala for implementing its tariff liberalization schemes already 
provided for 47% of its tariff being duty free on an MFN basis before the entry into force of the 
Agreement. Chart 3.4 shows Guatemala's tariff elim ination under the Agreement by year and duty 
range for all the other CAFTA-DR Parties.26 Tariff lines liberalized on entry into force of the 
Agreement are subject to differing base rates, bu t mostly up to 20%. None of Guatemala's MFN 
tariff lines exceed 40%. Those subject to rates of between 30% and 40% are mostly liberalized 
beginning in 2015. 
Chart 3.4 Guatemala's duty e limination under the Agreement 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,0002006201020152017202020232025
Number of duty free lines (cumulative)Year of duty free treatment
Duty Free <=10 <=20 <=30 <=40 MFN is:
 
Source: WTO Secretariat estimates, based on data provided by Guatemala. 
 
3.23.  Table 3.9 shows Guatemala's liberalization  commitments under the Agreement organized by 
HS Section product categories for the other CAFTA-DR Parties. The bulk of lines are liberalized upon the entry into force of the Agreement fo llowed by liberalization in 2010 and 2015. Those 
products subject to progressive liberalization af ter 2015 until the end of the transition period in 
2025 are all agricultural products. For the single tariff line (white corn) where duties remain, the 
preferential duty matches the MFN duty. In the ca se of imports of white corn from the United 
States some duty-free access is provided for set volumes through a tariff rate quota (see 
Annex 2). 
                                               
26 The liberalization shown for 2006 only applies in the case of El Salvador, Honduras, Nicaragua and the 
United States. The tariff liberalization schedules for the Do minican Republic and Costa Rica are slightly different 
than that of other Parties (due to di fferent years of entry into force).  Su ch differences are negligible and do 
not show up in the chart.  
  WT/REG211/3  
 
- 44 - Table 3.9 Guatemala: Tariff elimination under the Agreement, by HS section  
HS section MFN average%  Total No. of lines d MFN Number of duty-free lines under the Agreement  
Remain 
dutiable d 
Average Final 
Tariff d 2006 a 
2007 b 
2009 c 
2006 a 
2007 b 
2009 c 
2006 a 
2007 b 
2009 c  
2010 a 
2010 b, c 
2015 a 
2015 b 
2015 c 
2017 d 
2020 d 
2023 d 
2025 d 
I 10.3 10.3  10.3 299 42  42 42 131 131 131 48 48  23 23 23  31 2 22   
II 10.1 9.8 9.7 376 92 102 104 172 164 163 40 40 47 45 44 1 18 5  1 20.0 
III 7.4 7.4  7.4 54 18  18 18 17 17 17   6 6 6  13     
IV 12.6 12.4 12.4 274 31 32 33 95 95 95 24 24 81 80 79 3 38 1 1   
V 2.7 2.7  2.6 178 115  116 116 54 53 53   9 9 9       
VI 2.1 2.1 2.1 961 746 748 748 116 115 115 41 42 58 56 56       
VII 4.6 4.6  4.6 335 141  142 145 40 40 39 17 17  137 136 134       
VIII 8.3 8.3 8.3 108 19 19 19 51 51 51 2 2 36 36 36       
IX 8.6 8.6  8.6 138 26  26 26 31 31 31 23 23  58 58 58       
X 5.1 5.1 5.1 294 149 149 149 16 16 16 43 43 86 86 86       
XI 9.7 9.6  9.6 920 112  116 117 808 804 803            
XII 13.0 13.0 13.0 64 2 2 2 26 26 26   36 36 36       
XIII 6.4 6.4  6.4 176 79  80 80 40 39 39   57 57 57       
XIV 6.9 6.9 6.9 54 15 15 15 39 39 39            
XV 3.1 3.1  3.1 696 468  470 471 79 79 78 5 5  144 142 142       
XVI 2.4 2.5 2.5 974 767 765 766 173 175 174 1 1 33 33 33       
XVII 8.0 8.0  8.0 234 71  71 71 53 53 53   110 110 110       
XVIII 3.9 3.9 3.9 237 150 150 150 87 87 87            
XIX 16.4 16.4  16.4 21    21 21 21            
XX 10.7 10.7 10.7 162 26 26 26 63 63 63 1 1 72 72 72       
XXI 7.8 7.8  7.8 9    9 9 9            
Total 6.0 5.9 5.9 6,564 3,069  3,089  3,098  2,121  2,108  2,103  245 246 993 985 981 4 100 8 23 1 20.0 
Note: All figures based on HS 2007 nomenclature. For tariff lines subj ect to TRQs only the out-of-quota duty is included in the  tariff-related calculations (TRQs for USA only).. 
 a El Salvador, Honduras, Nicara gua and United States only;  
 b  Dominican Republic only;  
 c  Costa Rica only;  d  applies to all Parties. 
Source: WTO estimates based on data provided by Guatemala. 
 WT/REG211/3 
 
- 45 - 
 
  3.1.1.5  Honduras 
3.24.  Honduras' tariff elimination under the Agreement is depicted in Table 3.10. Honduras 
applies a single tariff schedule to all CAFTA-DR Parties (with certain exceptions set out in paragraphs 6-8 of Honduras' General Notes to its Tariff Schedule in Annex 3.3). 46.6% of 
Honduras' tariff lines were already duty-free on an MFN basis in 2006
27 which corresponded to 
16.5% of its imports from El Salvador, 17.1% from Guatemala, 17.7% from Nicaragua and 69.5% from the United States for the period 2003-2005. 46.8% of Honduras' tariff lines were duty-free 
on an MFN basis in 2007 which corresponded to 25% of its imports from the Dominican Republic 
for the period 2004-2006; 47.2% of Honduras' tariff lines were already duty-free on an MFN basis in 2009 which corresponded to 30.3% of its imports from Costa Rica for the period 2006-2008.
28 
The bulk of Honduras' scheduled tariff liberalization took place on the respective year of entry into 
force of the Agreement resulting in a further 26% of tariff lines becoming duty-free for all CAFTA-
DR Parties. By 1 January of year 10 of the CAFTA-DR (in 2015), 97% of Honduras' tariff lines were duty-free and by the end of the transition period in 2025, all but one of Honduras' tariff lines 
(white corn) will be duty-free for all the other CAFTA-DR Parties. This remaining tariff line 
corresponds to 0.4% of total imports from the United States for the period 2003-2005. In the case of imports of white corn from the United States, some duty-free access is provided for set volumes 
through a tariff rate quota (see Annex 2). 
3.25.  The base rates used by Honduras for implem enting its tariff liberalization schemes already 
provided for 46.6% of its tariff schedule being du ty free on an MFN basis before the entry into 
force of the Agreement. Chart 3.5 shows Honduras' tariff elimination under the Agreement by year 
and duty range for all the other CAFTA-DR Parties.
29 Tariff lines liberalized on entry into force of 
the Agreement are subject to differing base rates,  but mostly up to 20%. Tariff lines subject to 
duties of greater than 30% are liberalized beginning in 2020. 
Chart 3.5 – Honduras' duty elimination under the Agreement 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,0002006200720082009201020152016201720182020202120232025
Number of duty free lines (cumulative)Year of duty free treatment
Duty Free <=10 <=20 <=30 <=40 <=50 > 50 Specific MFN is:
 
Source: WTO Secretariat estimates, ba sed on data provided by Honduras. 
                                               
27 Honduras' 2006 tariff is composed of 6,566 tariff lines at the HS 8-digit level, 6,559 are ad valorem  
duties and 7 lines are other duties. 
28 It is important to clarify that all the Central Amer ican countries were already benefiting from the tariff 
concessions under the Central American Common Market and the Dominican Republic was already benefiting 
from the tariff concessions under their FTA with the Central American countries. 
29 The liberalization shown for 2006 only applies in th e case of El Salvador, Guatemala, Nicaragua and 
the United States; liberalization shown in 2007 and 2008 applies to the foregoing and the Dominican Republic.  
  WT/REG211/3  
 
- 46 - Table 3.10 Honduras: Tariff elimination commitments under  the Agreement and corresponding average trade values  
Duty 
phase-out 
period No. of 
lines % of total 
lines in 
Guatemala's 
tariff 
schedule Honduras' imports from 
Costa Rica  
(2006-2008) Dominican 
Republic  
(2004-2006) El Salvador  
(2003-2005) Guatemala  
(2003-2005) Nicaragua  
(2003-2005) USA  
(2003-2005) 
Value in 
million 
US$ % of 
total 
imports Value in 
million 
US$ % of 
total 
imports Value in 
million 
US$ % of 
total 
imports Value in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value in 
million 
US$ % of 
total 
imports 
MFN duty 
free a 3,061 b 46.6      28.6 16.5 49.8 17.1 21.7 17.7 1,052.4 69.5 
 3,074 c 46.8   2.0 25.0         
 3,097 d 47.2 85.3 30.3           
2006 b 1,745 26.6     17.8 10.3 36.8 12.7 23.9 19.6 156.2 10.3 
2007 b  3 0.0     0.2 0.1 0.5 0.2 0.2 0.1 0.2 0.0 
2007 c 1,735 26.4   1.0 11.8         
2008 b,c 4 0.1   0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2009 b,c 4 0.1   0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 
2009 d 1,721 26.2 53.1 18.8           
2010 b,c 432 6.6   0.1 1.5 22.7 13.1 37.9 13.1 10.4 8.5 42.9 2.8 
2010 d 431 6.6 30.1 10.7           
2015 e 1,124 17.1 92.7 32.9 4.5 55.9 82.6 47.6 147.8 50.9 51.5 42.2 190.7 12.6 
2016 e  1 0.0 0.2 0.1 0.0 0.0 0.5 0.3 0.3 0.1 0.3 0.3 0.0 0.0 
2017 e 10 0.2 2.9 1.0 0.0 0.0 0.7 0.4 0.7 0.3 1.9 1.6 2.9 0.2 
2018 e 5 0.1 0.2 0.1 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 3.9 0.3 
2020 e 138 2.1 7.4 2.6 0.5 5.8 16.9 9.8 13.7 4.7 7.0 5.7 48.7 3.2 
2021 e 5 0.1 1.3 0.4 0.0 0.0 0.0 0.0 1.1 0.4 2.7 2.2 0.5 0.0 
2023 e 9 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.0 1.7 0.1 
2025 e 24 0.4 8.8 3.1 0.0 0.0 3.3 1.9 1.6 0.6 2.4 2.0 7.2 0.5 
Remain 
dutiable e 1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.3 0.4 
Total 6,566 100.0 282.1 100.0 8.1 100.0 173. 6 100.0 290.4 100.0 122.1 100.0 1,514.0 100.0 
Note: a  MFN 2006 used as the comparison for El Salvador, Hondur as, Nicaragua and the United States; MFN 2007 used as the compa rison for Dominican Republic and 
MFN 2009 used as the comparison for Costa Rica. All figures based on HS 2007 nomenclature.  
 b El Salvador, Guatemala, Nica ragua and United States only;  
 c  Dominican Republic only;   d  Costa Rica only.  e applies to all partners Source:  WTO estimates based on data provided by Honduras and WTO-IDB.  
  WT/REG211/3  
 
- 47 - Table 3.11 Honduras: Tariff elimination under the Agreement, by HS section  HS section MFN 
average % 
Total 
No. of 
lines d MFN Number of duty-free lines under the Agreement 
Remain dutiable d 
Average Final 
Tariff d 2006 
2007 
2009 
2006 
2007 
2009 
2006 a 
2007 a 
2007 b 
2008 a,b 
2009 a,b  
2009 c 
2010 a,b 
2010 c 
2015 d 
2017 d 
2018 d 
2020 d 
2021 d 
2023 a,b 
2023 c 
2025 d 
I 11.9 14.0 14.0 299 42 42 42 137  137   137 42 42 19  5 23 5 4 4 22   
II 10.0 10.0 9.8 376 93 100 105 123 2 117 2 1 115 52 52 69 1  28  4 5  1 45.0 
III 8.2 8.1 8.1 54 8 9 9 6  5   5   1 3  36       
IV 11.5 12.2 12.2 274 32 32 33 82  82   81 21 21 79 6  51  1 1 2   
V 3.0 2.9 2.9 178 111 113 113 49  47   47 1 1 17          
VI 1.9 1.9 1.9 961 775 775 776 78  78   78 49 48 59          
VII 4.6 4.6 4.5 335 143 143 148 64  64 2 2 63 33 33 91          
VIII 8.3 8.3 8.3 108 19 19 19 12  12   12 49 49 28          
IX 8.6 8.6 8.6 138 26 26 26 14  14   14 21 21 77          
X 5.1 5.1 5.1 296 149 150 150 62  61   61 21 21 64          
XI 9.7 9.7 9.6 920 111 112 117 809  808   803             
XII 12.7 12.7 12.7 64 2 2 2 11  11   11 19 19 32          
XIII 6.4 6.4 6.4 176 79 79 79 17  17   17 12 12 68          
XIV 6.9 6.9 6.9 54 15 15 15 18  18   18 10 10 11          
XV 3.2 3.2 3.1 696 464 465 466 51 1 51   50 32 32 148          
XVI 2.4 2.4 2.4 974 769 769 770 43  43   42 51 51 111          
XVII 7.8 7.8 6.1 234 48 48 51 69  69  1 67 2 2 114          
XVIII 3.9 3.9 3.9 237 150 150 150 41  41   41 6 6 40          
XIX 12.6 12.6 12.6 21    5  5   5   16          
XX 10.7 10.7 10.6 162 25 25 26 45  45   44 11 11 81          
XXI 7.8 7.8 7.8  9    9  9   9             
Total 5.9 6.1 6.0 6,566 3,061 3,074  3,097  1,745  3 1,734  4 4 1,720  432 431 1,125  10 5 138 5 9 10 24 1 45.0 
Note: All figures based on HS 2007 nomenclature. 
 a El Salvador, Guatemala, Nica ragua and United States only;  
 b  Dominican Republic only;   c  Costa Rica only;  d  applies to all Parties  For tariff lines subject to TRQs, only the out-of-quota duty is  included in the tariff-related calculations (TRQs for USA only ). 
Source: WT0 estimates based on data provided by Honduras. WT/REG211/3 
 
- 48 - 
 
  3.26.  Table 3.11 shows Honduras' liberalization commitments under the Agreement organized by 
HS Section product categories for the other CAFTA-DR Parties.30 The bulk of lines are liberalized 
upon the entry into force of the Agreement fo llowed by liberalization in 2010 and 2015. Those 
products subject to progressive liberalization af ter 2015 until the end of the transition period in 
2025 are all agricultural products. For the single tariff line (white maize) where duties remain, 
Honduras applies a price-band mechanism on an MFN basis.31  
3.1.1.6  Nicaragua 
3.27.  Nicaragua's tariff elimination under the Agreement is depicted in Table 3.12. Nicaragua 
applies a single tariff schedule to all CAFTA-DR Parties (with certain exceptions set out in paragraphs 6-8 of Nicaragua's General Notes to its Tariff Schedule in Annex 3.3). 46.5% of Nicaragua's tariff lines were already duty-free on an MFN basis in 2006
32 which corresponded to 
23.1% of its imports from Costa Rica for the period 2006-2008;33 79.9% of its imports from the 
Dominican Republic for the period 2004-2006; and for 18.5% of its imports from El Salvador, 19.7% from Guatemala, 12.4% from Honduras and 63.5% from the United States for the period 
2003-2005.
34 The bulk of Nicaragua's scheduled tariff liberalization took place on the respective 
year of entry into force of the Agreement resulting in a further 25% of tariff lines becoming duty-free for all CAFTA-DR Parties. By 1 January of year 10 of the CAFTA-DR (in 2015), 96.5% of 
Nicaragua's tariff lines will be duty-free and by the end of the transition period in 2025, all but one 
of Nicaragua's tariff lines (white corn) will be du ty-free for all CAFTA-DR Parties. This remaining 
tariff line subject to duties corresponds to 0.1% of  total imports from Honduras and for 0.2% of all 
imports from the United States for the period 2003-2005. In the case of imports of white corn 
from the United States, some duty-free access is provided for set volumes through a tariff rate 
quota (see Annex 2). 
 
                                               
30 In the case of the Dominican Republic and Costa Rica, liberalization begins in 2007 and 2009, 
respectively, rather than 2006. 
31 Honduras' Price Band System is applied to the following products: yellow corn (1005.90.20), white 
corn (1005.90.30), other corn (1007.90.00), corn flou r (1102.20.00), semolina (1103.13.10) and other pap 
and semolina of corn (1103.13.90). The Price Band System is revised annually. 
32 Nicaragua's 2006 tariff is composed of 6,623 tariff lines at the HS 10-digit level, all of which are 
ad valorem  duties. 
33 MFN (2006) rates were used as a comparison for all Parties. 
34 It is important to clarify that all the Central Amer ican countries were already benefiting from the tariff 
concessions under the Central American Common Market and the Dominican Republic was already benefiting 
from the tariff concessions under their FTA with the Central American countries.  
  WT/REG211/3  
 
- 49 - Table 3.12 Nicaragua: Tariff eliminatio n commitments under the Agreement an d corresponding average trade values  
Duty phase-out 
period No. 
of 
lines % of total 
lines in 
Nicaragua's 
tariff 
schedule Nicaragua's imports from 
Costa Rica  
(2006-2008) Dominican 
Republic (2004-
2006) El Salvador 
(2003-2005) Guatemala  
(2003-2005) Honduras  
(2003-2005) USA  
(2003-2005) 
Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports 
MFN duty free 
(2006) 3,083 46.5 69.6 23.1 3.2 79.9 19.3 18.5 30.0 19.7 6.0 12.4 295.6 63.5 
2006 1,659 25.0     22.5 21.5 17.3 11.4 2.6 5.3 76.4 16.4 
2007a     0 . 4  9 . 8          
2009b   46.9 15.6           
2010 551 8.3 25.3 8.4 0.1 3.6 11.1 10.6 22.2 14.6 1.7 3.5 23.6 5.1 
2015 1,105 16.7 103.3 34.3 0.3 6.6 43.9 42.0 63.4 41.7 20.4 42.4 47.2 10.1 
2017 26 0.4 21.8 7.2 0.0 0.0 3.3 3.1 3.9 2.6 0.0 0.1 1.6 0.4 
2020 153 2.3 24.8 8.2 0.0 0.0 2.9 2.8 14.1 9.2 17.4 36.2 9.0 1.9 
2021 5 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2023 4 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.2 
2024 4 0.1 0.6 0.2 0.0 0.0 0.2 0.2 0.1 0.1 0.0 0.1 2.3 0.5 
2025 32 0.5 8.6 2.8 0.0 0.0 1.4 1.4 1.3 0.8 0.0 0.0 8.1 1.7 
Remain dutiable 1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 1.1 0.2 
Total 6,623 100.0 301.0c 100.0 4.1c 100.0 104.6c 100.0 152.1c 100.0 48.3c 100.0 465.9c 100.0 
Note: MFN 2006 used as the comparison. All figures based on HS(2002) nomenclature.  
a Dominican Republic only;  b  Costa Rica only;  c  Only trade falling under HS Chapter 1-97 is included. Source:  WTO estimates based on data provided by Nicaragua and WTO-IDB. WT/REG211/3 
 
- 50 - 
 
  3.28.  The base rates used by Nicaragua for implem enting its tariff liberalization schemes already 
provided for 46.5% of its tariff schedule being du ty free on an MFN basis before the entry into 
force of the Agreement. Chart 3.6 shows Nicara gua's tariff elimination under the Agreement by 
year and duty range for all other CAFTA-DR Parties.35 Tariff lines liberalized on entry into force of 
the Agreement are subject to differing base rates,  but mostly up to 30%. Tariff lines subject to 
duties of greater than 30% are liberalized beginning in 2020. 
Chart 3.6 Nicaragua's duty e limination under the Agreement 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000200620102015201720202021202320242025
Number of duty free lines (cumulative)Year of duty free treatment
Duty Free <=10 <=20 <=30 <=40 <=50 > 50 Specific MFN is:
 
Source:  WTO Secretariat estimates, based on data provided by Nicaragua. 
 
3.29.  Table 3.13 shows Nicaragua's liberalization commitments under the Agreement organized 
by HS Section product categories for the other CAFTA-DR Parties.36 The bulk of lines are liberalized 
upon the entry into force of the Agreement fo llowed by liberalization in 2010 and 2015. Those 
products subject to progressive liberalization af ter 2015 until the end of the transition period in 
2025 are all agricultural products. For the single tariff line where duties remain (white corn), the 
preferential duty is 10% compared to an MFN rate of 15%. 
Table 3.13 Nicaragua: Tariff elimination under the Agreement, by HS section  HS section 
MFN 
average% Total 
No. of 
lines MFN 
2006 
duty-
free Number of duty-free lines under the Agreement 
Remain 
dutiable 
Average 
Final Tariff 2006 
2010 
2015 
2017 
2020 
2021 
2023 
2024 
2025 
I 13.3 320 40 94 99 21 4 33  2  27   
II 10.2 395 95 114 66 82 7 25  1 4  1 10.0 
III 9.5 75 10 5 1 15 8 36       
IV 12.7 320 32 99 24 88 7 59 5 1  5   
V 2.8 186 114 46 2 24         
VI 2.2 973 768 56 67 82         
VII 4.7 354 142 75 59 78         
VIII 8.1 111 22 23 40 26         
IX 7.3 92 26 8 11 47         
                                               
35 The liberalization shown for 2006 only applies in th e case of El Salvador, Guatemala, Honduras and 
the United States. 
36 In the case of the Dominican Republic and Costa Rica, liberalization begins in 2007 and 2009, 
respectively, rather than 2006. WT/REG211/3 
 
- 51 - 
 
  
HS section 
MFN 
average% Total 
No. of 
lines MFN 
2006 
duty-
free Number of duty-free lines under the Agreement 
Remain 
dutiable 
Average 
Final Tariff 2006 
2010 
2015 
2017 
2020 
2021 
2023 
2024 
2025 
X 5.0 308 160 81  67         
XI 9.7 920 109 811           
XII 12.4 63 2 14 11 36         
XIII 6.3 161 72 8 31 50         
XIV 6.9 54 15 16 11 12         
XV 2.9 706 480 41 45 140         
XVI 2.6 919 716 64 50 89         
XVII 5.5 212 74 38 3 97         
XVIII 3.6 254 167 41 6 40         
XIX 12.6 21  4  17         
XX 9.8 170 39 12 25 94         
XXI 7.8 9   9           
Total 6.1 6,623 3,083 1,659 551 1,105 26 153 5 4 4 32 1 10.0 
 MFN 2006 used as the comparison.  
 Based on HS 2002 nomenclature.  
 For tariff lines subject to TRQs only the out-of-quota  duty is included in the tariff-related calculations 
 (TRQs for the Dominican Republic and USA only). 
Source: WTO estimates based on data provided by Nicaragua. 
 
3.1.1.7  United States 
3.30.  The United States' tariff elimination under the Agreement is depicted in Table 3.14. 36.4% 
of U.S. tariff lines were already duty-free on an MFN basis in 200637 which corresponded to 56.8% 
of its imports from Costa Rica for the period 2006-2008;38 29% of its imports from the Dominican 
Republic for the period 2004-2006;39 and for 6.5% of its imports from El Salvador, 21.1% from 
Guatemala, 14.6% from Honduras and 18.7% from Nicaragua for the period 2003-2005. The bulk of U.S. scheduled tariff liberalization took place on the respective year of entry into force of the Agreement resulting in a further 61% of tariff lines becoming duty-free for the other CAFTA-DR 
Parties. By January 1 of year 10 of the CAFTA-DR  (in 2015), 98.1% of U.S. tariff lines will be 
duty-free and by the end of the tr ansition period in 2025, over 99% of U.S. tariff lines will be 
duty-free for all the other CAFTA-DR Parties. 47 lines will remain dutiable at the end of the 
transition period.
                                               
37 The United States' 2006 tariff is composed of 10,253 tariff lines at the HS 8-digit level; 89.3% of this 
tariff is ad valorem, 6.2% relates to lines with specific duties;  3% relates to compound tariff lines; 5 tariff 
lines are subject to mixed duties and 1.4% to others. For compound and mixed lines, only the ad valorem  
component is taken into account in the calculation of averages. 
38 For liberalization with Costa Rica, MFN (2009) rate s were used as a comparison. The United States' 
2009 tariff is composed of 10,259 tariff lines at the HS 8-digit level; 89.3% of this tariff is ad valorem, 6.3% 
relates to lines with specific duties; 3% relates to compound tariff lines;  0.1% are subject to mixed duties and 1.3% to others. 
39 For liberalization with the Dominican Republic, the MFN (2007) rates (which are the same as the 2006 
rates) were used as a comparison.  
  WT/REG211/3  
 
- 52 - Table 3.14 USA: Tariff elimination commitments under the Agreement and corresponding average trade values  
Duty 
phase-out 
period No. of 
lines % of total 
lines in 
USA's 
tariff 
schedule USA's imports from 
Costa Rica  
(2006-2008) Dominican 
Republic (2004-
2006) El Salvador  
(2003-2005) Guatemala 
(2003-2005) Honduras  
(2003-2005) Nicaragua  
(2003-2005) 
Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports  Value in 
million 
US$ % of 
total 
imports Value 
in 
million 
US$ % of 
total 
imports 
MFN duty 
free a 3,731 b 36.4  2,095.5 56.8 1,255.9 29.0 125.4 6.5 633.1 21.1 509.9 14.6 169.9 18.7 
 3,731 c 36.4             
 3,732 d 36.4              
2006 b 6,298 61.4     1,806.8 93.5 2,369.5 78.9 2,986.9 85.4 737.5 81.3 
2007 c 6,298 61.4   3,075.3 70.9         
2009 d 6,297 61.3 1,594.1 43.2           
2010e 6 0.1             
2015 e 29 0.3 0.8 0.0 4.9 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2020 e 24 0.2         0.0 0.0 0.0 0.0 
2025 e 118 1.2 0.1 0.0 0.3 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
Remain 
dutiable e 47 0.5 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Total 10,253 100.0 3,690.6 100.0 4,336.4 100.0 1,932.5 100.0 3,002.6 100.0 3,496.9 100.0 907.5 100.0 
Note: Based on HS 2007 nomenclature. 
 Tariff lines subject to MFN in qu otas are excluded from the count. 
a  MFN 2006 used as the comparison for El Salvador, Guatemala, Honduras and Nicaragua; MFN 2007 used as the comparison for Domi nican Republic and MFN 2009 used 
as the comparison for Costa Rica. 
b  El Salvador, Guatemala, Honduras and Nicaragua only; c  Dominican Republic only;  d  Costa Rica only.  e  applies to all Parties. 
Source:  WTO estimates based on data prov ided by the United States and WTO-IDB. 
 
 WT/REG211/3 
 
- 53 - 
 
  3.31.  The base rates used by the United States for implementing its tariff liberalization schemes 
already provided for 36.4% of its tariff lines being duty free on an MFN basis before the entry into 
force of the Agreement. Chart 3.7 shows the U.S. tariff elimination under the Agreement by year 
and duty range for all the other CAFTA-DR Parties.40 Tariff lines with a base rate of up to 20% and 
with rates of between 30% and 40% are mostly lib eralized on entry into force of the Agreement 
with the remainder liberalized in 2015; those with a base rate of between 20% and 30% are 
mostly liberalized upon entry into force of the Agreement and in 2015 and 2020; tariff lines with a base rate of between 40% and 50% are liberalized  upon entry into force of the Agreement; and 
tariff lines with a base rate greater than 50% are liberalized in 2020. 
Chart 3.7 United States' duty e limination under the Agreement  
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,00020062010201520202025
Number of duty free lines (cumulative)Year of duty free treatment
Duty Free <=10 <=20 <=30 <=40 <=50 > 50 Specific MFN is:
 
Source: WTO Secretariat estimates, based on data provided by USA. 
 
3.32.  Table 3.15 shows U.S. liberalization commitments under the Agreement organized by HS Section product categories for the other CAFTA-DR Parties.
41 The bulk of lines are liberalized 
upon the entry into force of the Agreement. Thos e subject to progressive liberalization until the 
end of the transition period in 2025 are mostly agri cultural products, with some textiles, footwear 
and miscellaneous manufactured articles. In the ca se of imports of sugar and sugar containing 
products (47 tariff lines) from the United States' CAFTA-DR Parties, some duty-free access is 
provided for set volumes through a tariff rate quota (see Annex 2). The CAFTA-DR Parties also 
receive from the United States duty-free tariff treatment for in-quota volumes imported under WTO TRQs which have distinct tariff li nes from out-of-quota tariff lines. 
                                               
40 The tariff liberalization schedule for Costa Rica is slig htly different than  that of other Parties, but such 
differences are negligible and do  not show up on the chart. 
41 In the case of the Dominican Republic, liberalizat ion begins in 2007 rather than 2006; the MFN (2007) 
rates and lines subject to liberalizatio n in that year are the same as those presented for CAFTA-DR Parties in 
2006. WT/REG211/3 
 
- 54 - 
 
  Table 3.15 United States: Tariff eliminatio n under the Agreement, by HS section HS Section 
MFN avg.% 
Total No. of 
lines MFN  Number of duty-free lines under the 
Agreement 
Remain 
dutiable d 
Avg. Final 
Tariff 2006 a 
2007 b 
2009 c Entry into force 
2010 d 
2015 d 
2020 d 
2025 d 2006 a 
2007 b 
2009 c 
I 9.2 437 158 158 158 195 195 195  1 6 77   
II 4.0 499 126 126 126 371 371 371   2    
III 3.7 66 17 17 17 48 48 48    1   
IV 11.9 646 132 132 132 411 411 411 4 2 10 40 47 22.1e 
V 0.6 201 152 152 152 49 49 49       
VI 3.5 1,710 527 527 528 1,183 1,183 1,182       
VII 3.7 375 86 86 86 289 289 289       
VIII 4.3 220 42 42 42 178 178 178       
IX 2.4 239 137 137 137 102 102 102       
X 0.0 279 279 279 279          
XI 9.0 1,594 211 211 211 1,372 1,372 1,372 2 3 6    
XII 13.9 174 35 35 35 119 119 119  20     
XIII 5.2 298 99 99 99 199 199 199       
XIV 3.0 105 48 48 48 57 57 57       
XV 1.9 992 536 536 536 456 456 456       
XVI 1.7 1,341 693 693 693 648 648 648       
XVII 2.4 253 132 132 132 121 121 121       
XVIII 3.0 514 172 172 172 342 342 342       
XIX 1.6 39 24 24 24 15 15 15       
XX 3.3 264 118 118 118 143 143 143  3     
XXI 0.0 7 7 7 7          
Total 4.8 10,253 3,731 3,731 3,732 6,298  6,298 6,297 6 29 24 118 47 22.1 
a  El Salvador, Guatemala, Honduras and Nica ragua only (entry into force year is 2006). 
b Dominican Republic only (entry into force year is 2007). c  Costa Rica only (entry into force is 2009). d all Parties. e Combination of compound and specific duties with AVEs. 
Note: For tariff lines subject to TRQs only the out-of-quo ta duty is included in the tariff-related calculations 
(TRQs applied to all Parties);  
 Calculation of MFN averages includes AVEs provided by USA authorities; for preferential tariffs with 
non ad valorem  components, only the ad valorem  part of the rate was included in the calculation of 
the tariff averages. 
Source: WTO estimates based on data provided by USA. 
3.33.  Chart 3.8 compares the average dutiable rates by HS Chapter faced by CAFTA-DR Parties in 
the U.S. market at the end of the implementation  period with the applicable MFN rates. For the 
four HS Chapters where duties remain, the preferen tial duties match the MFN duties applicable for 
those tariff lines for HS Chapters 17 (sugar), 18 (sugar-containing cocoa products), 19 (sugar-containing preparations of cereals) and 21 (sugar-containing preparations of vegetables, fruits and 
nuts) indicating no reduction in the applied tariff rate on these lines.  WT/REG211/3 
 
- 55 - 
 
  Chart 3.8 United States: Average of rema ining dutiable rates, by HS Chapter 
0 5 10 15 20 25 3021191817
Average rate of duty (%)HS Chapter
MFN Preferential
 
Note: Calculation of MFN averages includes AVEs provided by USA authorities. 
Source:  WTO Secretariat estimates based on data provided by USA. 
 
3.1.2  Tariff-rate quotas 
3.34.  The Parties undertake to implement and administer their tariff rate quotas for agricultural 
goods set out in Appendices I-III of their Schedules to Annex 3.3 in a transparent and 
non-discriminatory manner, in accordance with Article XIII of GATT 1994 and the WTO Agreement 
on Import Licensing Procedures (Article 3.13). The administration of these tariff rate quotas is 
specified in the Appendices to the General Notes attached to the Tariff Schedules of each Party of 
the Agreement. Details of the TRQs maintained by  the Parties are contained in Annex 2 of this 
report. 
3.1.2.1  Tariff rate quotas maintained by Costa Rica 
3.35.  Under the Agreement, Costa Rica has opened a number of tariff-rate quotas that apply 
exclusively to U.S. and Dominican Republic suppl iers. In the case of imports from the United 
States, these cover pork, chicken leg quarters, milk powder, butter, cheese, ice cream, other dairy 
products, rough rice, milled rice, fresh potatoes, fr esh onions and frozen french fries. In general, 
the Agreement provides for duty-free in-quota rate s as of entry into force, the gradual expansion 
of the within-quota volume and the elimination of the quota over 5-20 years, and the progressive 
reduction and elimination of the out-of-quota rate. For fresh potatoes and onions, the in-quota 
quantity increases by 6 metric tonnes annually af ter 2021, but the quota is not removed and the 
MFN rate applies to out-of-quota volumes.  
3.36.  For imports from the Dominican Republic, Costa Rica applies TRQs to chicken breasts and 
milk powder. For chicken breasts, the in-quota quan tity and rate are fixed, while the out-of-quota 
rate is subject to progressive elimination of duties by 2025, starting in 2016 (unless negotiations are concluded otherwise). There is no provision for the elimination of the in-quota rate on imports 
of chicken breasts from the Dominican Republic. For milk powder, the in-quota rate becomes duty-
free in 2013, while the out-of-quota rate is to be progressively eliminated by 2025, starting in 2016 (unless negotiations are concluded otherwise).  
3.1.2.2  Tariff rate quotas maintained by the Dominican Republic 
3.37.  Under the Agreement, the Dominican Republic has opened a number of tariff-rate quotas 
that apply exclusively to U.S., Costa Rican and Nicaraguan suppliers. In the case of imports from WT/REG211/3 
 
- 56 - 
 
  the United States, these cover prime and choice b eef, beef trimmings, pork cuts, bacon, chicken 
leg quarters, mechanically de-boned chicken meat, turkey meat, liquid milk, milk powder, butter, 
mozzarella cheese, cheddar cheese, other cheeses, ice cream, yoghurt, brown rice, milled rice, 
beans, glucose and pig fat. In general, the Agreem ent provides for duty-free in-quota rates as of 
entry into force, the gradual expansion of the within-quota volume and the elimination of the 
quota over 10-20 years, and the progressive reduction and elimination of the out-of-quota rate. 
3.38.  For imports from Costa Rica, the Dominican Republic applies TRQs to chicken breasts and 
milk powder. For chicken breasts, the in-quota quan tity and rate are fixed, while the out-of-quota 
rate is to be progressively eliminated by 2025, starting in 2016 (unless negotiations are concluded 
otherwise). There is no provision for the elimination of the in-quota rate on imports of chicken breasts from Costa Rica. For milk powder, the in-quota rate becomes duty-free in 2013, while the out-of-quota rate is to be progressively eliminated by 2025, starting in 2016 (unless negotiations 
are concluded otherwise).  
3.39.  For imports from Nicaragua, the Dominican Republic applies TRQs to chicken breasts, onions 
and shallots, and beans. For chicken breasts, and onions and shallots, the in-quota quantities and 
rates are fixed, while the out-of-quota rates are to be progressively eliminated by 2025, starting in 
2016 (unless negotiations are concluded otherwise). There is no provision for the elimination of the in-quota rate on imports of these products. Fo r beans, the in-quota rate becomes duty-free in 
2008 or 2010, while the out-of-quota rate is to be progressively eliminated by 2025, starting in 
2016 (unless negotiations are concluded otherwise).  
3.1.2.3  Tariff rate quotas maintained by El Salvador 3.40.  Under the Agreement, El Salvador has opened a number of tariff-rate quotas that apply 
exclusively to U.S. suppliers. These cover beef, pork , liquid dairy, milk powder, buttermilk, curdled 
cream and yogurt, butter, cheese, ice cream, other dairy products, yellow corn, white corn, sorghum, chicken leg quarters, rough rice and milled rice. In general, the Agreement provides for 
duty-free in-quota rates as of entry into force, the gradual expansion of the within-quota volume 
and the elimination of the quota over 15-20 years, and the progressive reduction and elimination of the out-of-quota rate. In the case of white corn, the in-quota quantity increases by 700 metric 
tonnes annually beginning in 2021, but the quota is  not removed and the MFN rate applies to out-
of-quota volumes. 
3.1.2.4  Tariff rate quotas maintained by Guatemala 3.41.  Under the Agreement, Guatemala has opened a number of tariff-rate quotas that apply 
exclusively to U.S. suppliers. These cover beef, cheese, milk powder, butter, ice cream, other dairy 
products, pork, yellow corn, white corn, rough ri ce, milled rice, and chicken leg quarters. In 
general, the Agreement provides for duty-free in-q uota rates as of entry into force, the gradual 
expansion of the within-quota volume and the elim ination of the quota over 10-20 years, and the 
progressive reduction and elimination of the out-of-quota rate. For white corn, the in-quota quantity increases by 400 metric tonnes annually beginning in 2021, but the quota is not removed 
and the MFN rate applies to out-of-quota volumes.  For chicken leg quarters, the in-quota quantity 
decreases by 1,316 metric tons annually as the TRQ volumes in other CAFTA-DR Parties' in-quota quantities increase until 2018 when consultations will determine the in-quota quantities; as of 2023, imports are not subject to TRQs. 
3.1.2.5  Tariff rate quotas  maintained by Honduras 
3.42.  Under the Agreement, Honduras has opened a number of tariff-rate quotas that apply 
exclusively to U.S. suppliers. These cover cheese, milk powder, butter, ice cream, other dairy 
products, pork, yellow corn, white corn, rough ri ce, milled rice, and chicken leg quarters. In 
general, the Agreement provides for duty-free in-q uota rates as of entry into force, the gradual 
expansion of the within-quota volume and the elim ination of the quota over 15-20 years, and the 
progressive reduction and elimination of the out-of-quota rate. For white corn, the in-quota 
quantity increases by 460 metric tonnes annually beginning in 2026, but the quota is not removed and the MFN rate applies to out-of-quota volumes.  WT/REG211/3 
 
- 57 - 
 
  3.1.2.6  Tariff rate quotas maintained by Nicaragua 
3.43.  Under the Agreement, Nicaragua has open ed a number of tariff-rate quotas that apply 
exclusively to U.S. and Dominican Republic suppl iers. In the case of imports from the United 
States, these cover cheese, milk powder, butter, ice cream, other dairy products, pork, yellow corn, white corn, rough rice, milled rice, and chicken leg quarters. In general, the Agreement 
provides for duty-free in-quota rates as of en try into force, the gradual expansion of the 
within-quota volume and the elimination of the quota over 15-20 years, and the progressive reduction and elimination of the out-of-quota rate. For white corn, the quota is not removed and 
the MFN rate applies to out-of-quota volumes.  
3.44.  For imports from the Dominican Republic, Nicaragua applies TRQs to chicken breasts, onions 
and shallots, and beans. For chicken breasts, and onions and shallots, the in-quota quantity and rate are fixed, while the out-of-quota rate is subj ect to progressive elimination by 2025, starting in 
2016 (unless negotiations are concluded otherwise). There is no provision for the elimination of 
the in-quota rate on imports of these products. Fo r beans, the in-quota rate becomes duty-free in 
2008 or 2010, while the out-of-quota rate is subject to progressive elimination by 2025, starting in 
2016 (unless negotiations are concluded otherwise).  
3.1.2.7  Tariff rate quotas maintained by the United States 3.45.  Under the Agreement, the United States has opened a number of tariff-rate quotas which 
cover beef, sugar, peanuts, peanut butter, cheese, milk powder, butter, ice cream, fluid fresh milk 
and cream and sour cream, other dairy products and ethyl alcohol which apply to CAFTA-DR Parties. The TRQ quantities and annual increases differ by CAFTA-DR Party. In general, the Agreement provides for duty-free in-quota rates as  of entry into force, the gradual expansion of 
the within-quota volume and the elimination of the quota over 15-20 years, and the progressive 
reduction and elimination of the out-of-quota  rate. For certain sugar products and sugar-
containing products, the in-quota quantity increases as specified in the Agreement for years 1-15 
and by 160 to 940 metric tonnes annually beginn ing in 2021 depending on the Party, but the 
quota is not removed and the MFN rate applies to out-of-quota volumes. TRQs for ethyl alcohol grow every year.  
3.2  Rules of origin 
3.46.  Disciplines regarding rules of origin and customs procedures are set out in Chapter 4. 
Articles 4.1-4.14 deal with the rules of origin themselves, while Articles 4.15-4.21 cover origin procedures. Article 4.22 contains definitions relating  to rules of origin. In addition, a number of 
different rules applicable to textiles and clothing are laid down in Article 3.25, including its Annex 
3.25 known as the Short Supply List. 
3.47.  The general requirements for a good to be considered an originating good of a Party 
(Article 4.1) are:  
a. the good is wholly obtained or produced entirely in the territory or one or more of the 
Parties;  
b. the good is produced entirely in the territory of one or more of the Parties and 
i. each of the non-originating materials used in its production undergoes an applicable 
change in tariff classification specified in Annex 4.1, or  
ii. the good otherwise satisfies any applicable regional value content or other 
requirements specified in Annex 4.1; or 
c. the good is produced entirely in the territory  of one or more of the Parties exclusively 
from originating materials. 
3.48.  Full cumulation between the Parties is allowed under the Agreement (Article 4.5); both in 
terms of materials and production processes among the Parties. Article 4.12 (Transit and Transhipment) allows originating goods to transit through the territory of a non-Party provided WT/REG211/3 
 
- 58 - 
 
  that no further processing takes place in the non-Party other than preservation, unloading, or 
reloading, and that the originating goods remain under customs control in the territory of the 
non-Party. The Agreement does not allow outward processing.  
3.49.  The Agreement contains two sets of product specific rules relating to rules of origin which 
are contained in Annex 4.1 and Appendix 3.3.6.42 For trade between any of the Parties, the 
product specific rules in Annex 4.1 apply. However, in the case of goods imported directly between 
a Central American Party and the Dominican Repu blic, importers may elect to make a claim for 
preferential treatment under Annex 3.3.6 (in whic h case the product specific rules of Appendix 
3.3.6 apply)43 or under a Party's Schedule to Annex 3.3 for which the rules in Annex 4.1 apply.  
3.50.  Annex 4.1 sets out specific criteria for non-originating materials to meet in order for the 
good to acquire originating status. In the case of agricultural products, the specific rules in Annex 4.1 call for the most part for a change of  HS chapter; or for a change in HS chapter, 
heading (4-digits) or subheading (6-digits) for coffee and tea, maté and spices (Chapter 9), 
products of the milling industry (Chapter 11), anim al or vegetable fats (Chapter 15), preparations 
of meat or fish (Chapter 16), sugar (Chapter 17), cocoa (Chapter 18), preparations of cereals 
(Chapter 19), preparations of vegetables (Cha pter 20), miscellaneous edible preparations 
(Chapter 21), beverages, spirits and vinegar (Cha pter 22), residues and wastes (Chapter 23) and 
tobacco (Chapter 24). In the case of certain processed and packaged fruit in HS Chapters 19-22, 
the product is only considered originating if the fresh fruit was itself wholly obtained or produced in 
one or more of the Parties. For prepared foodstuffs containing dairy products additional requirements sometimes apply depending on the product's fat content. For carburant ethanol (HS heading 2207) a change in heading is required for products within quota; a change in chapter 
(subject to certain exceptions) is re quired for products out of quota. 
3.51.  The specific rules under Appendix 3.3.6 for agricultural products for HS Chapters 1-2, 4, 
6-10, and 12-14 confer originating status for the most part where, for example, the animal was 
"born and raised" or the plant was "grown and the product obtained". In the case of HS Chapters 
5, 11, and 15-24 a change in HS chapter or heading is the norm. 
3.52.  In the case of industrial products, the chan ge in tariff classification (CTC) criterion can be 
considered the regime-wide rule of origin in Annex 4.1 since it is applied either as a standalone 
rule or in combination with other criteria. The CTC criterion may require a change of HS Chapter (CC); HS Heading (CTH); or HS Subheading (CTSH). A regional value content (RVC) test which establishes the minimum value of originating materials needed in the final product for it to be 
granted originating status, expressed as a percen tage of the overall FOB value of the product 
using either a "build-down" or build-up" method (Article 4.2) is used for products such as plastics, footwear, base metals, machinery, vehicles, optical products, arms and ammunition, and 
miscellaneous products. The RVC test is used either as an alternative rule to the CTC criterion or a 
supplement to it; in a few cases the RVC test applies as a standalone rule. The RVC percentage on a "build-down" basis is generally 45%, but it ranges from 30% (miscellaneous products) to 55% 
(footwear); the RVC percentage on a "build up" basis ranges from 25% to 55%. For certain 
HS Chapters (minerals, chemicals, plastics, raw hides and skins, textiles, and base metals) a technical requirement (TR) is sometimes applied together with the CTC criterion. 
3.53.  Under Appendix 3.3.6, the CTC is the dominant criterion to determine origin in the case of 
industrial goods. Sometimes the CTC is supplemente d by a technical requirement. The RVC test is 
not used for the purposes of this Appendix. For certain textile products, bilateral rules of origin apply between each of the five Central American Parties and the Dominican Republic. These rules 
of origin affect products in HS Chapters 52, 61, 62 and 63 and are detailed in Part III of 
Appendix 3.3.6. 
                                               
42 The provisions of Annex 4.1 on textiles have been  amended and can be viewed at the following link:  
http://www.ustr.gov/sites/default/files/uploads/agreements/cafta/asset_upload_file286_13391.pdf 
43 Paragraph 5 of Annex 3.3.6 states that an importing Party may deny the preferential tariff treatment 
provided for in Annex 3.3.6 if the good is produced in a duty-free zone or under another special tax or customs 
regime in the territory of a Central American Party or the Dominican Republic, provided however that the 
importing Party provides to any such good tariff treatment that is no less favorable than the tariff treatment it 
applies to the good when produced in its own duty- free zones or other special tax or customs regimes and 
entered into its territory. WT/REG211/3 
 
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  3.54.  The Parties agree to consult one year afte r the Agreement's entry into force to evaluate 
whether to modify the specific rules of origin for certain tariff items under HS Chapter 64 of 
Annex 4.1, footwear.44 
3.55.  Appendix 4.1-B of Annex 4.1 provides for materials used in the production of textile 
products in HS Chapter 62 that are produced in Canada or Mexico to be considered as having been 
produced in the territory of a Party, subject to  the amendment of each FTA between Canada or 
Mexico, as the case may be, and the Central American Parties, and the exchange of written notifications of amendment of laws between the Un ited States and the Central American Parties. 
Since March 2012, operations performed in the Dominican Republic are considered as if the 
operations were performed in the territory of a non-Party because the Dominican Republic has not concluded an FTA with Mexico (in the case of materials produced in Mexico) or Canada (in the case of materials produced in Canada) and provided the requisite notifications. Such treatment is 
limited to 125 million square metre equivalents (SME) in the year in which the Agreement enters 
into force and may increase up to a maximum of 250 million SME thereafter. Further requirements are detailed in the Appendix. 
3.56.  Appendix 4.1.D contains transitional  rules of origin which apply between the 
Dominican Republic and the United States for a pe riod of two years after the date of entry into 
force of the Agreement between these two Part ies, i.e. until March 2009. These rules are in 
addition to the rules provided for in Annex 4.1 and apply to certain products in HS Chapters 27 
(mineral fuels), 39 (plastics) and 72 (iron and steel).  
3.57.  A comparison of the product specific rule s in Annex 4.1 and Appendix 3.3.6 is shown in 
A n n e x  4  o f  t h i s  r e p o r t .  I n  f i v e  H S  c h a p t e r s  -  5  ( p r o d u c t s  o f  a n i m a l  o r i g i n ) ,  3 6  ( e x p l o s i v e s ) ,  
49 (printed books), 66 (umbrellas), and 69 (ceramic products) - the product specific rules are 
identical. In all others they differ, sometimes si gnificantly so. For instance, in HS Sections XV 
(base metals), XVI (machinery), XVII (vehicles,  aircraft and vessels), XVIII (optical) and XX 
(miscellaneous products) a CTC rule is the norm in Appendix 3.3.6, whereas Annex 4.1 employs 
C T C ,  R V C  a n d  T R  r u l e s ,  o f t e n  i n  c o m b i n a t i o n  o r  a s  a l t e r n a t i v e s  t o  e a c h  o t h e r .  I n  t h e  c a s e  o f  textiles and apparel, Annex 4.1 contains detailed pr ovisions based on the "yarn forward" rule of 
origin: for a final product to be considered as originating, and thus benefit from tariff liberalization, 
a triple transformation must take place in the Parties: from the fibre to the yarn; from the yarn to the fabric; and from the fabric to the final textiles of the clothing product. A Short Supply List in Annex 3.25 of the Agreement contains a list of fabrics and yarn which may be used in the 
production of textiles even if non-originating. In Appendix 3.3.6, in contrast, rules of origin for 
textiles are based on CTC rules. 
Box 3.1 Rules of Origin: Basic Features at a Glance 
 No single rule of origin methodology 
 Two sets of products specific rules apply (Annex 4.1 which can be used by any of the Parties 
and Annex 3.3.6 for use only for goods imported directly between a Central American Party 
and the Dominican Republic) 
 Origin criteria: 
 Wholly obtained or produced entirely in the territory of one or more of the Parties 
 Produced entirely in the territory of one or more of the Parties exclusively from originating 
materials which fulfil conditions of Annex 4.1 or Appendix 3.3.6 
 In general, CTC at the chapter,  heading, or subheading level 
 The RVC test figures as a standalone rule, as an alternative rule to CTC or in addition to 
CTC; the standard RVC is 45% 
 Diagonal cumulation among the Parties.  
 Cumulation also with Canada and Mexico for certain apparel products (HS Ch. 62) 
 de minimis principle: value of non-originating materials can represent a maximum of 10% of 
the value of the good for industrial products except textiles and apparel: 
- HS Chapters 1-24, only if non –originating material is classified under a different 
subheading than the good (exceptions listed in Annex 4.6);  
- 10% of the weight of the good (HS Chapters 50 through 63)  
Source: WTO Secretariat. 
                                               
44 According to the Parties such consultations have not taken place. WT/REG211/3 
 
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  3.3  Export duties and charges,  and quantitative restrictions 
3.58.  As regards non-tariff measures, the Parties may not adopt or maintain any prohibition or 
restriction on exports, except in accordance with Article XI of the GATT 1994 or as otherwise 
provided for in the Agreement (Article 3.8). In the event that a Party adopts or maintains an export restriction on a good to a non-Party, it may require as a condition of export of such a good 
to another Party that the good not be re-exported to the non-Party, either directly or indirectly. 
Annex 3.2 of the Agreement contains a list of goods for the Parties for which they may maintain export restrictions as detailed in Table 3.16. 
Table 3.16 List of Products for which the Parties may maintain export restrictions
 
Country Export Restrictions on 
Costa Rica wood in logs and boards from forests 
hydrocarbons coffee ethanol and crude rums minimum export price for bananas 
Guatemala timber in round logs or worked logs and sawn timber > 11 cm in thickness 
coffee 
Honduras wood from broadleaved forests 
Nicaragua basic foodstuffs which include the following: beans, brown sugar, chicken meat, coffee, corn, 
corn flour, corn tortillas, powdered milk, rice, salt, vegetable oil, provided such controls are 
u s e d  t o  t e m p o r a r i l y  ( u p  t o  o n e  y e a r  o r  l o n g e r  if the US and Nicaragua agree) alleviate a 
critical shortage 
United 
States logs of all species 
Source: WTO Secretariat, based on the text of the Agreement. 
 
3.59.  Article 3.11 prohibits the Parties from adopting or maintaining any duty, tax or other charge 
on the export of any good unless such charges are applied when exported to the territories of all 
other Parties and when destined for domestic consumption. Exceptions to this rule are laid out in Annex 3.11 which provides that Costa Rica may maintain its existing export taxes on bananas, 
coffee and meat. 
3.4  Regulatory provisions on trade in goods 3.4.1  Standards 
3.4.1.1  SPS Measures 
3.60.  Chapter Six of the CAFTA-DR Agreement contains provisions relating to SPS measures. The 
Parties affirm their existing rights and obligatio ns with respect to each other under the WTO SPS 
Agreement (Article 6.1) and agree to establish a Committee on SPS matters not later than 30 days 
following the date of entry into force of the Agreement. The Committee meets at least once a year unless agreed otherwise. The objectives of the Committee are to help the Parties implement the WTO SPS Agreement, assist them to protect human, animal, or plant life or health, enhance 
consultation and cooperation between them on SPS matters, and facilitate trade between them. 
The Parties do not have recourse to dispute settlement under the Agreement for any SPS matter (Article 6.2). 
3.4.1.2  TBT Measures 
3.61.  Chapter Seven of the CAFTA-DR Agreement contains provisions relating to TBT measures. 
The Parties affirm their existing rights and obligations with respect to each other under the WTO 
TBT Agreement (Article 7.1) and agree to intensif y their joint work in the field of standards, 
technical regulations, and conformity assessment procedures with a view to facilitating trade between them. They agree to accredit, approve,  license or otherwise recognize conformity 
assessment bodies of the other Parties on terms no less favourable than those accorded to 
domestic conformity assessment bodies. With regard to transparency, the Agreement provides for 
the electronic transmission of proposed technica l regulations or conformity assessment procedures 
and a comment period of at least 60 days following the transmission of a proposal. The 
Agreement's provisions on transparency of TBT measures are to be implemented as soon as WT/REG211/3 
 
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  practicable and no later than five years following entry into force. A Committee on TBT measures 
is established under the Agreement. It meets at least once a year unless agreed otherwise.  
3.4.2  Safeguard mechanisms 
3.4.2.1  Safeguard Measures among the Parties 3.62.  If as a result of duty reduction or elimin ation under the Agreement, an originating good is 
imported into a Party's territory in such increased quantities, in absolute terms or relative to 
domestic production, and under such conditions as to constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the 
Party concerned may impose a safeguard measure (Article 8.1). Such measures may be imposed 
during the transition period only.
45 The safeguard measure may consist of the suspension of the 
further reduction of duty provided for in the Agr eement or the increase of duty to a level not to 
exceed the lesser of the MFN applied duty in effect  at the time the measure is applied and the MFN 
rate applied on the day immediately preceding the entry into force of the Agreement. Imports of 
goods from a Party which have been subject to duty-free treatment for a period of three years 
prior to the Agreement's date of entry into forc e may be excluded from the application of the 
safeguard measure. A safeguard measure cannot be applied against another Party whose share of 
imports does not exceed 3%, provided that Part ies with less than 3% import share collectively 
account for not more than 9% of total imports of such goods.  
3.63.  A Party may apply a safeguard measure, including extensions, for no longer than four years 
(compared with eight years under the Agreement on Safeguards). All safeguard measures, regardless of their duration, are to be terminated at the end of the transition period. A safeguard measure may not be applied more than once on the same good. On termination of the safeguard 
measure, the rate of duty is to be no higher than that which would have been in effect one year 
after the imposition of the measure. Determinations  of serious injury or threat thereof are to be 
entrusted to a competent investigating authority, subject to review by judicial administrative 
tribunals, to the extent provided by the Parties' domestic law. Safeguard measures are subject to 
prompt written notification. A Party applying a sa feguard measure is obliged to provide mutually 
agreed trade liberalizing compensation. 
3.64.  Annex 8.3 contains the provisions relating to the administration of safeguard proceedings 
including institution of a petition or complaint, contents of petitions and complaints, public hearings, confidentiality, evidence of injury, and causation and deliberation and reports. The petition or complaint filed by an entity representative of a domestic industry should include 
inter alia  import data for the five most recent full years for the good concerned; domestic 
production data on the like or directly competitiv e good for the five most recent full years; data 
showing injury including changes in the level of prices and market share; and an enumeration and 
description of the alleged causes of the injury or threat thereof, and a summary of the basis for 
the assertion that increased imports are causing or threatening to cause serious injury supported by pertinent data. 
3.4.2.2  Global Safeguard Measures 
3.65.  The Parties retain their rights and obli gations under Article XIX of the GATT 1994 and the 
Safeguards Agreement (Article 8.6). A Party taking such an action may exclude imports of an originating good of another Party if such imports are not a substantial cause of serious injury or 
threat thereof. The Parties may not apply a safeguard measure under the CAFTA-DR Agreement 
and a measure under Article XIX of the GATT 1994 and the Safeguards Agreement at the same time on the same good. 
3.4.2.3  Agricultural Safeguard Measures 
3.66.  The Agreement provides for the use of quan tity-based agricultural safeguards on certain 
products, as agreed by the Parties. Article 3.15 sets out the disciplines related to agricultural 
safeguard measures that a Party may apply in the form of an additional customs duty on 
                                               
45 The transition period is defined as the 10 year period beginning on  the date of entry into force of the 
Agreement, except for those goods subject to a longer li beralization period in a given Party's schedule in which 
case the transition period refers to the tariff elimination period of that good. WT/REG211/3 
 
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  agricultural goods listed in Annex 3.15 to the Ag reement. The sum of any additional import duty 
and any other customs duty on such good shall no t exceed the lesser of the prevailing MFN applied 
rate of duty; or the MFN applied rate of duty in  effect on the day immediately preceding the date 
of entry into force of the Agreement. A Party may apply an agricultural safeguard measure during any calendar year if the quantity of imports of th e good during that year exceeds the trigger level 
for that good as set out in its Schedule to Annex 3.15. An agricultural safeguard measure may not 
be applied or maintained at the same time as a safeguard measure under the CAFTA-DR Agreement or under Article XIX of the GATT 1994 and the WTO Safeguards Agreement with 
respect to the same good. No Party may apply or maintain an agricultural safeguard measure on 
or after the date that a good becomes duty-fre e under the Agreement or that increases the in-
quota duty on a good subject to a TRQ. Agricult ural safeguard measures may be maintained only 
until the end of the calendar year in which the Party applies the measure, must be notified by the 
implementing Party within 60 days of their application and are subject to consultations upon 
request. The Commission and the Committee on Agricultural Trade may review the implementation and operation of agricultural safeguard measures.  
3.67.  The Central American Parties and the Dominican Republic may apply agricultural safeguard 
measures on imports of United States goods as defined in Annex 3.15. In addition, the Agreement 
makes provision for Costa Rica and Nicaragua to negotiate with the Dominican Republic on the 
mutual application of agricultural safeguard measures for certain products.
46 The United States 
may apply agricultural safeguard measures on imports of Central America or Dominican Republic goods as defined in Annex 3.15. A summary of the products subject to agricultural safeguard measures under the Agreement can be found in Table 3.17. Details of trigger levels, trigger growth 
rates and additional import duties imposed under the Agreement are in Annex 3 of this Report. 
Table 3.17 Products and numbe r of tariff lines covered by Agricultural Safeguard 
Measures under the Agreement
 
Country No. of 8-digit 
tariff lines Products covered 
Costa Rica 60 beef, pork, chicken leg quarters, liquid dairy, milk powder, butter and dairy 
spreads, cheese, ice cream, other dairy products, tomatoes, carrots, sweet peppers, potatoes, beans, wh ite corn, rough rice, mill ed rice, vegetable oil, 
high fructose corn syrup 
Dominican 
Republic 46 pork cuts, chicken leg quarters, turk ey, milk powder, mozzarella cheese, 
cheddar cheese, other cheeses, beans, fresh potatoes, onions, garlic, rough 
and broken rice, brown rice , milled rice, glucose, ve getable oil, high fructose 
corn syrup 
El Salvador 55  
(see note a) chicken leg quarters, liquid dairy, mi lk powder, buttermilk, curdled cream 
and yoghurt, butter, cheese, ice crea m, other dairy products, pork, rough 
rice, milled rice, parboiled rice, beans,  sorghum, vegetable oil, canned meat, 
high fructose corn syrup 
Guatemala 48 chicken leg quarters, liquid dairy, ch eese, milk powder, butter, ice cream, 
other dairy products, pork, rough rice , milled rice, whole beans, vegetable 
oil, pimientos, fresh tomatoes, high fructose corn syrup, fresh potatoes, 
onions 
Honduras 50 pork, chicken leg quarters, liquid dairy, milk powder, butter, cheese, ice 
cream, other dairy products, rough rice , milled rice, onions, wheat flour, 
vegetable oil, processed meat , high fructose corn syrup 
Nicaragua 51 beef, chicken leg quarters, liquid dairy, milk powder, butter, cheese, ice 
cream, other dairy products, onions, be ans, yellow corn, rough rice, milled 
rice, sorghum, high fructose corn syrup 
United States 115 cheese, butter, ice cream, fluid fresh and sour cream, other dairy, peanut 
butter, peanuts 
Note:  
a: El Salvador has also  scheduled a safeguard on parboiled rice (1006) at the HS-4 digit level. 
Source: WTO Secretariat, based on the text of the Agreement. 
                                               
46 See paragraphs 3b, 4b, 5b and 6b of Annex 3.15 of the Agreement. According to the Parties these 
negotiations have not taken place. WT/REG211/3 
 
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  3.4.2.4  Textile Safeguard Measures 
3.68.  The Agreement provides for the implementa tion of safeguard measures on textiles during 
the transition period47 which consist of an increase in duties not to exceed the lesser of the MFN 
rate in effect at the time the measure was applied and the MFN rate applied on the date of entry into force of the Agreement (Article 3.23). Textile safeguard measures are subject to investigation 
by a Party's competent authority, written notice and consultations. Such measures may not be 
imposed for a period exceeding three years, may not be applied to the same good of another Party more than once, and may not be maintained beyond  the transition period. Upon termination of the 
textile safeguard measure, the Party applies the relevant rate of duty in its schedule as if the 
measure had never been applied. The Party applying the textile safeguard measure must provide mutually agreed trade liberalizing compensation to the Party against whose good the measure is taken in the form of concessions having substantia lly equivalent trade effects or equivalent to the 
value of the additional duties expected to result  from the textile safeguard measure. In 2008 the 
United States applied a textile safeguard measure on imports of socks of Honduras. The Central American Parties and the Dominican Republic have not applied textile safeguard measures. 
3.4.3  Anti-dumping and countervailing measures 
3.69.  The Parties retain their rights and obliga tions under the WTO Agreement with regard to the 
application of antidumping and countervailing duties (Article 8.8). Antidumping and CVD measures 
are not subject to the dispute settlement pr ovisions of the CAFTA-DR Agreement.  
3.4.4  Subsidies and State-aid 3.70.  The Parties may not introduce or apply export subsidies on any agricultural good destined 
for the territory of another Party (Article 3.14). If a non-Party is subsidizing agricultural exports to 
another Party, the Parties will consult with a view to agreeing on specific measures that the 
importing Party may adopt to counter the effect of subsidized imports. If such measures are adopted, the exporting Party shall not apply subsid ies to its exports of agricultural goods. If 
measures are not agreed upon, the exporting Part y may subsidize its exports of the good to the 
importing Party only to the extent necessary to counter the trade distorting effect of subsidized exports of the good from the non-Party. 
3.4.5  Customs-related procedures 
3.71.  Chapter 5 - Customs Administration and Trade Facilitation - contains disciplines relating to 
customs procedures. In particular, the Parties commit to publish their respective laws, regulations, and general administrative procedures on the Internet, and maintain inquiry points concerning 
customs matters. Each Party shall maintain or adopt simplified customs procedures for the efficient 
release of goods (Article 5.2). Other provisions dealing with confidentiality, express shipments and penalties are dealt with in Articles 5.6, 5.7 and 5.9 respectively. The Chapter also contains 
provisions to enhance automation of customs procedures, and develop risk management systems 
and cooperation among the Parties. Upon reques t by the importer, the Parties must issue an 
advance ruling within 150 days after a request on issu es such as the good's tariff classification, or 
the application of customs valuation criteria, the application of duty drawback, and whether a good 
is originating in accordance with the rules of origin of Chapter 4 (Article 5.10). 
3.72.  Specific customs cooperation provisions regarding trade in textiles and apparel are 
contained in Article 3.24, in particular with regard to verification procedures to be followed to 
determine origin claims or compliance with applicable customs laws. Such verification procedures 
do not apply between the Central American Parties or between any Central American Party and the Dominican Republic. 
                                               
47 In the case of textile safeguard measures, the transi tion period is defined as five years beginning on 
the date of entry into force of the Agreement (Article 3.29).  WT/REG211/3 
 
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  3.5  Sector-specific provisions on trade in goods 
3.5.1  Sugar 
3.73.  Article 3.16 provides for the United States to apply a mechanism that results in 
compensation to a Party's exporters of sugar good s in lieu of according duty-free treatment to 
some or all of the duty-free quantity of sugar good s established for that Party in its schedule. Such 
compensation is to be equivalent to the estimated economic rents that the Party's exporters would 
have obtained on exports to the United States of any such amounts of sugar goods and is to be provided within 30 days after the United States exer cises this option. The United States is required 
to provide 90 days' notice before exercising this option and to enter into consultations upon 
request.
48  
3.5.2  Chicken 3.74.  Article 3.17 provides for the Parties to consult on and review the implementation and 
operation of the Agreement with regard to trade in chicken in 2014.  
3.5.3  Textiles and Apparel 3.75.  Article 3.20 provides upon request for th e refund of any excess customs duties paid in 
connection with the imports of any originating textile or apparel good between 1 January 2004 and 
the date of entry into force of the Agreement for a given Party, thus providing in effect for the advance application of preferential treatment on such goods. Such treatment shall not apply if a 
Party provides 90 days written notice before the entry into force of the Agreement that it will not 
comply with this provision. Equivalent benefits may be provided instead of the refund of excess customs duties if a Party so provides.
49  
3.76.  Article 3.22 provides for the United States to eliminate the existing quotas it maintains 
under the Agreement on Textiles and Clothing as set out in Annex 3.22 no later than the date of 
entry into force of the Agreement. Such quotas apply to Costa Rica, the Dominican Republic, El 
Salvador, and Guatemala. 
3.77.  Annex 3.27 sets out the preferential tariff treatment for wool apparel goods, including 
jackets, skirts, suits, shorts, trousers and breech es assembled in Costa Rica and imported into the 
United States. Such items are subject to 50% of the MFN duty rate if they satisfy the rules of 
origin of the Agreement and are both cut and sewn or otherwise assembled in Costa Rica, 
regardless of the origin of the fabric used to make the goods. Such treatment is limited to a quantity of 500,000 square meter equivalent (SME) in  each of the first two years after the date of 
entry into force of the Agreement, i.e. in 2009 and 2010. Costa Rica and the United States agree 
to consult 18 months after the date of entry into  force of the Agreement regarding the operation of 
these provisions and the availability of wool fabric in the region.
 Annex 3.27 has since been 
amended.50 
3.78.  Annex 3.28 sets out the preferential tariff treatment for non-originating cotton and man-
made fibre apparel goods (HS Chapters 61 and 62) of Nicaragua imported into the United States. Such items are subject to the applicable rate of duty as set out in the United States' schedule to 
Annex 3.3, if they meet the applicable conditions  for preferential tariff treatment other than the 
condition that they be originating goods, and are both cut or knit to shape, and sewn or otherwise assembled, in Nicaragua. Such treatment is gran ted for the first five years after the Agreement's 
                                               
48 The Parties indicated in September 2011 that this provision had not been used. 
49 According to the Parties, all Parties (except the Domi nican Republic) agreed to refund excess duties or 
provide an equivalent benefit for the period between 1 January 2004 and the date the Agreement entered into 
force. 
50 The amendment can be viewed at the following link: 
https://ustr.gov/sites/default/files/uploads/agreements/cafta/asset_upload_file286_13391.pdf  WT/REG211/3 
 
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  entry into force up to a quantity of 100m SME in ea ch year; thereafter in years 6-9, the quantity is 
reduced by 20m SME; as of 2015 such provisions cease to apply.51 
3.5.4  Distinctive products 
3.79.  The Central American Parties and the Dominican Republic agree to recognize Bourbon 
Whiskey and Tennessee Whiskey as distinctive products of the United States (Article 3.12). At the 
request of a Party, the Committee on Trade in Goods shall consider whether to recommend that 
the Parties amend the Agreement to designate a good as a distinctive product. 
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
4.1  Scope and definitions 
4.1.  Chapter 11 contains the provisions relating to cross-border trade in services. It applies to 
measures affecting cross-border trade in services taken by central, regional or local authorities of the Parties (Article 11.1). Cross-border trade in services is defined to include modes 1, 2 and 4 of 
the GATS (Article 11.14). Although the definitions of cross-border trade in services contained in 
Article 11.14 do not include mode 3, Article 11.1:3 stipulates that market access, domestic regulation, and transparency provisions also apply to measures by a Party affecting the supply of a 
service in its territory by an investor or a covered investment. The market access, domestic 
regulation, and transparency provisions as well as  the cross-border trade in services chapter are 
not subject to the Investor-State Dispute Resolution pursuant to Section B of Chapter 10 
(Investment).
52 
4.2.  A "service supplier of a Party" is given the same meaning as in the GATS; an enterprise 
means any entity "constituted or organized under applicable law, whether or not for profit, and 
whether privately-owned or governmentally-owned, including any corporation, trust, partnership, 
sole proprietorship, joint venture, or other association"; and a person of a Party means a "national 
or enterprise of a Party" (Article 11.14). In turn, the Agreement defines a national as a natural person who has the nationality of a Party accordin g to Annex 2.1, or a permanent resident of a 
Party (Article 2.1). An "enterprise of a Party" means an enterprise constituted or organized under 
the law of a Party, and a branch located in th e territory of a Party and carrying out business 
activities there (Article 10.28). The Agreement al so liberalizes investment by an "investor of a 
Party" (Article 10.28), defined as a "Party or state en terprise thereof, or a national or an enterprise 
o f  a  P a r t y ,  t h a t  a t t e m p t s  t o  m a k e ,  i s  m a k i n g ,  o r  h a s  m a d e  a n  i n v e s t m e n t  i n  t h e  t e r r i t o r y  o f  another Party". For the purposes of the investment chapter, a national means a natural person who has the nationality of a Party according to Annex 2.1 (Article 10.28). Article 10.28 does not 
exclude permanent residents. 
4.3.  The Agreement follows a "negative list" appr oach: therefore, all sectors or sub-sectors are 
covered by the Agreement's obligations, including in terms of market access and national 
treatment, unless expressly excluded from the Agreement or otherwise specified in Annexes I, II 
and III which contain a list of non-conforming measures.  
4.2  General Provisions on Trade in Services 
4.2.1  Market Access 
4.4.  Article 11.4 on market access precludes, eith er on the basis of a regional subdivision or on 
the basis of a Party's entire territory, measures that (a) impose limitations on: (i) the number of service suppliers, whether in the form of nu merical quotas, monopolies, exclusive service 
suppliers, or the requirement of an economic needs test; (ii) the total value of service transactions 
or assets in the form of numerical quotas or th e requirement of an economic needs test; (iii) the 
total number of service operations or the total quan tity of services output expressed in terms of 
designated numerical units in the form of quotas or the requirement of an economic needs test; or 
(iv) the total number of natural persons that may be employed in a particular service sector or 
                                               
51 In 2007 the Free Trade Commission of the CAFTA-DR  agreed to amend Annex 3.28. This amendment 
consisted of maintaining the quota of 100 SMEs applicable since the Agreement's entry into force until year 9.  
As of year 10 this preference no longer applies. 
52 Footnote 1 of Article 11.1:3. WT/REG211/3 
 
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  that a service supplier may employ and who are ne cessary for, and directly related to, the supply 
of a specific service in the form of numerical quot as or the requirement of an economic needs test; 
or (b) restrict or require specific types of legal entity or joint venture through which a service 
supplier may supply a service. Article 11.4 does not mention limitations on the participation of foreign capital contained in GATS Article XVI, although Article 10.3 of the Investment Chapter 
requires inter alia  that the Parties accord national treatment in the establishment, acquisition, 
expansion, management, conduct, operation, and sale or other disposition of investments in its territory. 
4.2.2  National and MFN Treatment 
4.5.  Under Article 11.2, each Party accords to (cross-border) service suppliers of the other Parties 
treatment no less favourable than that it accords, in like circumstances, to its own service suppliers.
53 Article 11.3 on the Most Favoured Nation (MFN) principle requires that each Party 
accord to service suppliers of the other Party treatment no less favourable than that it accords, in 
like circumstances, to service suppliers of a non-Party.54 Reflecting the negative list approach 
followed in the Agreement, all sectors are covere d by the national and MFN treatment obligations, 
unless expressly excluded from the Agreement or otherwise specified in the Annexes.  
4.2.3  Denial of Benefits 4.6.  Under Articles 10.12 and 11.12, a Party may deny the benefits of the relevant chapters to a 
service supplier or investor of another Party if that person is an enterprise owned or controlled by 
persons of a non-Party and the denying Party (i) do es not maintain diplomatic relations with the 
non-Party or (ii) adopts or maintains measures with respect to the non-Party or person of the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the 
benefits of that chapter were accorded to it. In  addition, the benefits of both Chapters may be 
denied by a Party to a service supplier or investor (of another Party) if the supplier or investor is owned or controlled by non-parties or the denying Party and if it has no substantial business 
operations in the territory of that other Party.  
4.2.4  Non-conforming Measures 4.7.  Under the Agreement, exemptions for non-conforming measures with respect to cross-border 
trade in services (Chapter 11) can be specified with respect to the obligations of national and MFN 
treatment, market access, and local presence, and, in the case of investment (Chapter 10), with 
respect to the obligations of national and MFN treatment, performance requirements and senior management and boards of directors. Non-conforming measures are set out in Annexes I-III of the 
Agreement (Annex III, which contains non-conforming  measures with respect to financial services, 
is described below in the section on Financial Services). The Parties' non-conforming measures are summarized in Tables 4.1–4.14 and are included in the section on liberalization commitments.  
4.3  Investment 
4.8.  Chapter 10 – Investment applies to measures  adopted or maintained by a Party relating to 
investors of another Party; and to their investments in its territory ("covered investments"). A 
Party's obligations under the Investment Chapter apply to state enterprises or other persons 
exercising any regulatory, administrative or other governmental authority delegated to it. Measures falling under mode 3 under the GATS are covered by Chapter 10 (and by the chapters on telecommunications and financial services). Chapter 10 requires each Party to afford 
MFN (Article 10.4) and national treatment (Article 10.3) to investors of the other Parties and their 
investments, with respect to the establishment,  acquisition, expansion, management, conduct, 
operation, and sale or other disposition of investments in its territory. The commitments in 
Chapter 10 on national and MFN treatment and seni or management and boards of directors do not 
apply to procurement or subsidies (Article 10.13:5).  
4.9.  Although no market access provisions are specified in Chapter 10, Article 11.1 stipulates that 
market access, domestic regulation, and transparency provisions specified for cross-border trade 
                                               
53 Services suppliers include nationals of the Parties and permanent residents. 
54 For the purposes of Articles 11.2 and 11.3, the term "service suppliers" has the same meaning as 
"services and service suppliers" in the GATS. WT/REG211/3 
 
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  in services also apply to measures by a Party affecting the supply of a service in its territory by a 
covered investment. 
4.10.  Article 10.5 requires Parties to accord covered investments the customary international law 
minimum standard of treatment.55 Article 10.6 contains provisions regarding treatment in case of 
strife, particularly relating to losses suffered by investments owing to armed conflict or civil strife. 
Article 10.7 contains provisions regarding expropri ation and compensation, whilst transfers are the 
subject of Article 10.8. The Chapter's provis ions relating to performance requirements 
(Article 10.9) and to environmental concerns (Article 10.11) apply to all investments in the 
territory of a Party irrespective of nationality of ownership. Article 10.9 lists a number of prohibited 
performance requirements. The Parties exclude from certain of these disciplines, however, qualification requirements for services related to export promotion and foreign aid programmes; and to government procurement. The Parties clarif y that the performance requirements obligations 
do not prevent them from conditioning the granting of advantages on compliance with 
requirements to locate production, supply a service,  train or employ workers, construct or expand 
particular facilities, or carry out research and development, in their territory. Also, they clarify that 
the performance requirements obligations should not be construed to prevent a Party from 
adopting or maintaining environmental and other measures necessary to protect human, animal, or plant life or health, or to assure the conservati on of exhaustible natural resources, provided that 
such measures are not applied in an arbitrary or unjustifiable manner, or constitute a disguised 
restriction on investment or international trade. 
4.11.  Article 10.10 contains a general prohibition on restrictions concerning the nationality of 
senior managers in the case of a covered in vestment. However, a Pa rty may require that a 
majority of the board of directors be of a particular nationality or have residency in the territory of 
the Party, provided that the requirement does not materially impair the ability of the investor to 
exercise control over its investment.  
4.12.  Section B of Chapter 10 contains provisio ns on investor-state dispute settlement, which 
provide investors of a Party with the ability to submit to arbitration a claim that the other Party has breached obligations under Section A of Ch apter 10, an investment authorization or an 
investment agreement (Article 10.16). Nothing in the Chapter on cross-border trade in services is 
subject to the investor-state dispute settlement pr ovisions of Chapter 10 (Article 11.1:3). Where a 
tribunal makes a final award against a respondent, the tribunal may award, separately or in combination, only: monetary damages and applicable interest; and restitution of property, in 
which case the award shall provide that the respondent may pay monetary damages and 
applicable interest, in lieu of restitution. A tribunal is not authorized to award punitive damages (Article 10.26). 
4.13.  Annexes 10-A to 10-G deal with various aspects of investment including rescheduling of 
public debt, customary international law, expropriation, treatment in case of strife, submission of a claim to arbitration, appellate body and the service of documents on a party. 
4.4  Movement of natural persons 
4.14.  The Agreement does not contain a separate chapter on the movement of natural persons. 
An Understanding regarding Immigration Measures clarifies that no provision of the Agreement shall be construed to impose any obligation on a Party regarding its immigration measures.  
4.5  Liberalization commitments 
4.15.  The liberalization commitments taken by the Parties are described below.
56 
4.5.1  Costa Rica 
4.16.  Costa Rica's commitments under the Agreement go significantly beyond its commitments 
under the GATS, which are limited to 5 of th e 11 sector groups and about 20 of the 155-odd 
                                               
55 In Annex 10-B, the Parties st ate their understanding of "customary international law". 
56 Liberalization commitments taken by the Parties in financial services and telecommunications are 
described in separate sectio ns of this report below. WT/REG211/3 
 
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  sub-sectors in the W/120 classification. Costa Rica's  existing non-conforming measures and future 
non-conforming measures are summarized in Tables 4.1 and 4.2. 
Table 4.1 Non-conforming measures listed by Costa Rica in Annex I  
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
Irrigation services MA CBTS Number of concessions limited 
Solid waste treatment 
services MA CBTS Number of concessions limited 
Maritime and specialty air 
services MA CBTS Number of concessions limited 
Professional services NT/MFN/LP CBTS/I Reciprocity and residency requirements 
Maritime land zone NT/LP/MA CBTS/I Concession based on residency, domicile, incorporation 
and equity requirements 
Land transportation services – 
transportation of passengers NT/MFN/MA CBTS/I Number of concessions limited, preferences for domestic 
companies. Reciprocity requirement. State monopoly for 
supply of railroad transportation 
Land transportation services – freight transportation NT/MFN/SMBD/M
A CBTS/I Nationality requirements, concessions limited  
Water transportation services NT/MA/LP CBTS/I Number of concessions limited. Nationality requirement 
Specialty air services NT/MFN/LP CBTS Equity, reciprocity and establishment requirements 
Air transportation services NT/MFN/SMBD I Nationality, equity, residency and reciprocity 
requirements 
Tourist guides NT CBTS Nationality requirement 
Travel agencies and tourism MA CBTS Number of travel agencies may be limited 
Transportation services – 
customs brokers, assistant customs brokers, custom transportation agents NT/LP CBTS Establishment and nationality requirements 
Telecommunications related 
services – radio and television NT/MFN/SMBD/M
A CBTS/I Concession, equity, reciprocity, and nationality 
requirements. State monopoly 
Wholesale and retail 
distribution – crude oil and its derivatives MA CBTS State monopoly. Concessions for retail distributors of 
crude oil and its derivatives limited. 
Services incidental to mining 
– hydrocarbon exploration LP CBTS Establishment requirement 
Mining and services incidental to mining – ores other than hydrocarbons MA/NT/LP CBTS/I State monopoly or concession required. Establishment 
requirements. 
Scientific and research 
services LP CBTS Legal representative resident in Costa Rica required 
Free zones PR I 25% limit on total sales in goods or 50% limit on 
services that can be introduced into Costa Rica by a company established in the Free Zone. 
Services incidental to 
agriculture and forestry NT CBTS Licensing requirement. Non-resident foreigners pay a 
higher fee to obtain a license.  
Fisheries and services incidental to fishing NT/PR I Exclusive sovereignty and nationality requirements.  
Electric energy MA/LP/NT CBTS/I Concessions limited. Nationality requirements 
Higher education services NT/SMBD CBTS/I Nationality and establishment requirements. 
Human health service 
professionals  NT CBTS Priority to Costa Rican nationals in fulfilling mandatory 
social services requirement 
Audiovisuals – advertising, 
services of cinema, radio, 
television and other shows PR/LP/NT/MFN/M
A CBTS/I Establishment, domestic content requirements  
News agency services NT/LP CBTS Residency requirement 
Sports and other 
entertainment services MA/NT/LP CBTS/I Establishment requirement 
Railroads, ports and airports MA/LP CBTS State ownership and control. Establishment and domicile 
requirements 
Wireless services MA/NT/MFN CBTS/I State monopoly, establishment requirements 
On premise supply of liquors 
for consumption MA CBTS Number of establishments limited 
Lottery sale services MA CBTS Domestic monopoly 
Note: CBTS:  Cross-border trade in services; I: Investment; LP: Local presence requirements; MFN: 
Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restriction;  PR: Performance requirements. 
Source: Text of the CAFTA-DR Agreement. 
 WT/REG211/3 
 
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  Table 4.2 Non-conforming measures listed by Costa Rica in Annex II  
Sector/Subsector Obligations  Mode  Description/Reduction of Restriction 
All sectors MFN CBTS/I Any measure according preferential treatment as a result of a 
prior agreement (in force or signed) vis-à-vis  the United States 
and the Dominican Republic. Any measure according differential treatment in an existing or future agreement for sectors of aviation, fisheries or maritime matters. 
Cultural industries MFN CBTS/I Any measures according differential treatment under existing or 
future agreements with resp ect to cultural industries. 
Social services NT/MFN/LP
/PR/SMBD/MA CBTS/I Any measure with respect to law enforcement and correctional 
services and the following sectors if maintained for public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, child care, public sewa ge services, and water supply 
services. 
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restrictio n; PR: Performance  requirements. 
Source: Text of the CAFTA-DR Agreement. 
4.17.  Regarding business services, the Agreement provides for commitments under professional 
services for which Costa Rica has no commitments under its GATS schedule. Costa Rica has 
scheduled, in the Agreement, exemptions relating to reciprocity requirements in relation to 
membership in professional associations and to a mandatory social service requirement for such professionals as physicians, nurses, surgeons, or pharmacists. A certain number of exemptions are listed for remaining areas under business services, for example in relation to services incidental to 
mining, agriculture, forestry, fishing, and electricity. Regarding computer-related services, the 
Agreement provides for full commitments whereas its GATS schedule provides for partial commitments. 
4.18.  On communication services, for which Cost a Rica has no GATS commitments, Costa Rica did 
not assume obligations on universal postal services as it is a service supplied in the exercise of governmental authority (Article 11.1:6). Measures  affecting express delivery services are subject 
to the Agreement (Article 11.13:1(b)). Regarding audiovisual services, Costa Rica maintains 
certain restrictions for existing non-conforming measures in relation to radio and television. For example, only a Costa Rican national or an enterp rise with at least 65% of its capital owned by 
nationals may obtain a license to operate radio, private broadcasting stations, or a free over-the-
air broadcast television channel for signals that originate in Costa Rica. Further, with respect to 
mass media and advertising services, Costa Rica maintained requirements in relation to local presence, the type of legal entity, and certain lo cal content requirements for radio and television 
programmes and commercials.  
4.19.  Costa Rica has no commitments in distributi on services in the GATS whilst this sector is 
almost fully liberalized in the Agreement, which pr ovides that the wholesale distribution of crude 
oil and its derivatives is subject to a state monopoly, and that the number of concessions for the 
retailing of such products can be limited. There is  also an exemption regarding the sale of liquor. 
The Agreement contains no sector specific exemption for construction services, which are uncommitted under the GATS. For environmental services, also uncommitted under the GATS, the 
Agreement contains certain exemptions under both Annexes I and II. For example, Costa Rica 
maintains the right to limit the number of concessions for the supply of solid waste treatment services. While recreational services are not sched uled in its GATS schedule, they are the subject 
of certain exemptions in Annex I of the Agreement, relating to news agency services, lottery sales 
services, and sporting services. 
4.20.  With respect to education and health and social services, which are partially committed 
under the GATS, the Agreement contains an exempt ion in Annex II providing for the right to take 
or maintain any measure with respect to such matters as public education, public training or health, to the extent they are social services established or maintained for a public purpose. In addition, Costa Rica maintains a requirement that at least 85% of certain staff of a private 
institute of higher education must be Costa Rican nationals.  WT/REG211/3 
 
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  4.21.  Costa Rica has liberalized tourism and travel-related services under the Agreement, with the 
exception of a limitation on the number of travel  agencies, a nationality requirement for tourist 
guides, and a limitation on the number of establishments selling liquor for consumption on the 
premises. This improves upon its GATS commitments, which are often unbound, for example as regards hotel services under mode 3 or tr avel agency services under mode 1.  
4.22.  With respect to transport services, for which Costa Rica has no GATS commitments, 
Costa Rica has taken several exemptions in the An nexes of the Agreement. On maritime transport, 
Annex I contains exemptions providing, for ex ample, for the right to limit the number of 
concessions for the supply of maritime services in national ports or for the provision of water 
transportation services. Cabotage can only be performed by enterprises organized under Costa Rican law and with 60% of the capital owned by nationals. A number of existing non-conforming measures also relate to air transport services, ro ad transport of freight and passengers, and to the 
maintenance of a monopoly on railroad transportation.  
4.23.  Costa Rica has scheduled some horizontal or cross-sectoral exemptions relating to such 
issues as concessions in coastal zones and free zones. Costa Rica has also taken some sector-
specific MFN exemptions, including for cultural industries, as well as a more general one for 
existing and future international agreements. The latter allows Costa Rica to 1) act inconsistently with MFN for any future agreement involving aviation, fisheries or maritime matters and, 2) act 
inconsistently with MFN vis-à-vis  the United States and the Dominican Republic in relation to any 
prior international agreement. 
4.5.2  The Dominican Republic 4.24.  The Dominican Republic has scheduled various commitments under the Agreement which go 
beyond its GATS commitments, both in terms of  new and improved sectoral commitments. Its 
commitments under the GATS cover 7 of the 11 se ctor groups and 60 of the 155-odd sub-sectors 
in the W/120 classification. The Dominican Republic's existing non-conforming measures and 
future non-conforming measures are summarized in Tables 4.3 and 4.4. 
Table 4.3 Non-conforming measures listed by the Dominican Republic in Annex I 
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
All sectors NT I Nationality requirement to perform activities related to 
the disposal of toxic, hazardous, or dangerous or radioactive waste. 
Professional Services – 
legal services NT/MA CBTS Nationality requirement to practise law. 
Professional services – architectural and engineering services NT/MFN/LP CBTS Membership in Dominican professional association 
required to practise as an engineer, architect and land surveyor; reciprocity requirement. 
Professional services – 
accounting, auditing, and 
bookkeeping services NT/LP/MA CBTS Nationality requirement. Foreign public accountants, 
auditors, or bookkeepers must associate with a 
Dominican accountant. 
Professional services – health services and related professions NT/MFN/LP CBTS Reciprocity and residency requirements. 
Energy related services NT/MA CBTS Electricity distribution is limited to three joint ventures on 
an exclusive basis. 
Mining NT I Foreign mining enterpri ses only allowed to operate with 
prior approval and if justified. 
Communications – audio 
visual services PR/NT/MFN CBTS/I Nationality requirement for radio or TV announcers and 
sports narrators. Authorizat ion required for foreign 
nationals to operate. Conten t requirements for radio and 
TV programmes. 
Communications – 
advertising services NT CBTS Nationality requirement ap plies to 75% of participants in 
advertisement for use in ci nemas; 25% if produced 
abroad. 
Communications – news 
agency services SMBD I Nationality requirement for senior managers of 
newspapers and periodicals produced in the Dominican 
Republic. 
Communications - 
broadcasting NT/MA/LP CBTS/I Legal domicile, incorporation and nationality 
requirements to install and operate broadcast networks and provide broadcast services. WT/REG211/3 
 
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  Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
Communications  MA/LP CBTS Legal domicile and incorporatio n requirements in order to 
install and operate telecomm unications networks and 
provide telecommunications services. 
Distribution, trade, and 
commission agent services MA/LP/PR CBTS/I Establishment requ irement for operation as deposit 
warehouses. Coffee for export must be packed in locally manufactured sacks. Domestic  monopoly for distribution 
of domestically produced sugar and marine unrefined 
salt. 
Tourism and services 
related to tourism NT/LP CBTS Authorization requirement for foreign travel agencies and 
tour operators. Nationality requirement for casino and 
game employees. Nationality or residency requirements 
for drivers for land transport of tourists. 
Recreational and cultural 
services NT CBTS One Dominican artist for each foreign artist in variety 
shows offered to audiences in theatres, nightclubs and other entertainment venues. 
Transportation – maritime 
transportation NT/SMBD/
LP CBTS/I Nationality requirements fo r vessels used for towing, 
passenger or freight transportation, cabotage. Fees for 
foreign flag vessels and tour ist yachts. Foreign equity 
limitations for enterprises administering Dominican flag 
vessels and maritime commercial passenger and/or 
freight transportation. 
Air Transportation  NT/SMBD I National ity requirement for aircraft cabotage. 
Air transportation – 
specialty air services and 
maintenance and repair of 
aircraft NT/MFN CBTS Nationality requirement fo r aerial advertising and 
publicity, agricultural wo rks, fumigation, fishing 
prospects, air taxis, f ilming, photography, and 
surveyance. 
Free Zones PR I Free zone enterprise s may not introduce more than 20% 
of their total sales of goods and services in the Dominican Republic (expires 31 December 2009). 
Oil exploitation and 
exploration services NT I Exploration and exploitation of oil and other 
hydrocarbons not grante d to sovereign foreign 
governments. 
Fishing NT I Nationality, residency, establishment and authorization 
requirements. 
Educational services MA/LP CBTS Residency requirement. 
Cooperative associations NT I Residency requirement 
Lotteries MA CBTS State monopoly 
Retail distribution of pharmaceutical products MA CBTS Distance requirements 
Assorted sectors MA CBTS May impose limitations on the number of services 
suppliers in the form of numerical quotas, monopolies or 
exclusive service suppliers, or require supply through a 
joint venture. Applies to mi ning, hydro-electric plant 
construction and management, electricity transmission, 
marketing and distribution se rvices, public  irrigation 
services, management and operation of water 
distribution and waste manage ment services, airport and 
port construction, operation and management services 
and operation of lotteries. 
Note: CBTS: Cross-border trade in  services; I: Investment; LP: Local presence requirements; MFN: 
Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restriction;  PR: Performance requirements. 
Source: Text of the CAFTA-DR Agreement. 
4.25.  Table 4.4 contains the non-conforming measures listed by the Dominican Republic in its 
Annex II. The Dominican Republic reserves the right to accord differential treatment to other 
countries pursuant to international agreements sign ed or in force prior to the entry into force of 
the Agreement and for any measure according differential treatment in existing or future agreements for the following sectors: aviation, fisheries or maritime affairs. The Dominican 
Republic has scheduled a national treatment limitation on six sectors including ownership or 
control of land within 20 km of the border, initial disposal of existing state enterprises, and the acquisition by foreigners of government debt. The Dominican Republic has scheduled MFN 
limitations with regard to measures involving the sharing of the radio spectrum and with regard to 
a number of social services.  WT/REG211/3 
 
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  Table 4.4 Non-conforming measures listed by the Dominican Republic in Annex II  
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
All sectors NT I Any measure relating to the ownership or control of land 
within 20 km of the Dominican border. 
All sectors NT/SMBD I Nationality requirement with regard to initial disposal of 
existing state enterprises. Any measure relating to 
nationality of senior management and board members in 
privatized state enterprises.  
All sectors MFN CBTS/I Any measure according preferential treatment as a result 
of a prior agreement (in force or signed). Any measure according differential treatment in an existing or future agreement for sectors of aviation, fisheries or maritime matters. 
Communications MFN CBTS/I Any measure according diffe rential treatment due to 
application of reciprocity measures or agreements 
involving sharing of the radio spectrum, one-way satellite 
transmission of direct-to-ho me and direct broadcasting 
satellite television services  and digital audio services. 
Government Finances NT I Any measure relating to the re striction of the acquisition 
by foreign nationals of bonds,  treasury securities, fixed-
term instruments, or other instruments of public debt issued by the Central Bank or Government of the Dominican Republic. 
Services related to craft 
industry NT/MA CBTS Any measure relating to the distribution, retailing, or 
exhibition of handicrafts identified as handicrafts of the 
Dominican Republic. 
Social services NT/MFN/LP/
PR/SMBD CBTS/I Any measure with respect to law enforcement and 
correctional services and the following sectors if maintained for public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care. 
Socially and 
economically 
disadvantaged groups NT/LP/PR/S
MBD CBTS/I Any measure according rights or preferences to socially or 
economically disadvantaged groups. 
Note: CBTS: Cross-border trade in  services; I: Investment; LP: Local presence requirements; MFN: 
Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restriction;  PR: Performance requirements. 
Source: Text of the CAFTA-DR Agreement. 
 
4.26.  For business services, the Agreement cont ains a number of exemptions (e.g., nationality 
and reciprocity conditions) in relation to various professional services, e.g., legal services, 
architectural and engineering services, accounting, auditing and bookkeeping services as well as 
health services and related professions. The Do minican Republic's GATS commitments cover some 
professional services, but were often unbound fo r national treatment. For computer services, 
which are largely unbound in its GATS schedule, the Agreement provides for full commitments, 
i.e., without sector-specific exemptions. The Agr eement also contains some other exemptions for 
remaining business services activities, for example in  relation to certain energy-related services.  
4.27.  On communication services, the Agreement fully liberalizes postal and courier services, 
which are not scheduled in the GATS. For audiovisual services, the Agreement contains various existing non-conforming measures, including domestic content quotas in relation to radio programming, soap operas, and advertisements for use in cinemas, radio and television.  
4.28.  For health and social services and education services, the Dominican Republic has, like 
some other Parties, scheduled an exemption under Annex II, thereby reserving the right to adopt and maintain measures in a wide variety of social services with a public purpose. In addition, 
education is the subject of an exemption under Annex I providing that basic public education can 
only be provided by national teachers, that the creation of educational institutions are subject to economic needs, and that foreign institutions are reserved to specific areas such as school 
languages. Education is not included in its GATS schedule, while health services are partially 
committed.  
4.29.  For construction services, which are pa rtially committed under the GATS, the Agreement 
provides for full commitments. The Agreement also provides for significant commitments on WT/REG211/3 
 
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  environmental services, distribution services, an d recreational services, which are all uncommitted 
under the GATS. These are subject to specific  exemptions under the Agreement, except 
environmental services where full commitments are undertaken. For tourism and travel related 
services, which are partially committed in the GATS, the Dominican Republic maintains such measures as requirements that foreign travel agen cies and tour operators must be represented by 
a local agency and that tour guide licences for foreigners are only issued in exceptional 
circumstances.  
4.30.  With respect to transport services, the Agreement contains a number of existing non-
conforming measures in relation to air transpor t (e.g., cabotage reserved to aircrafts owned by 
Dominican persons; 51% national ownership requir ement; and specialty air services reserved to 
Dominican persons) and maritime and inland wa terways transport (e.g., cabotage reserved to 
national flagged vessels; and discriminatory fees when loading and unloading merchandise and 
passengers). Other areas of transport services ar e not subject to any exemptions. The Dominican 
Republic's GATS schedule provides for full commit ments in auxiliary transport services, and also 
covers some services under road, rail and air transport.  
4.31.  The Dominican Republic also undertook some horizontal or cross-sectoral exemptions 
relating to such issues as border lands, the tr ansfer or disposal of interests held in state 
enterprises, and socially and economically disadv antaged groups. The Dominican Republic has also 
taken some sector-specific MFN exemptions, as well as a more general one for existing and future 
international agreements. The latter allows it to 1) act inconsistently with MFN for any future agreement involving aviation, fisheries or maritime matters and, 2) act inconsistently with MFN in relation to any prior international agreement. 
4.5.3  El Salvador 
4.32.  The commitments of El Salvador under the Agreement go well beyond its GATS 
commitments, which cover 6 of the 11 sector grou ps in the W/120, or 28 of the 155-odd sub-
sectors. El Salvador's existing non-conforming measures and future non-conforming measures are 
summarized in Tables 4.5 and 4.6. 
Table 4.5 Non-conforming measures listed by El Salvador in Annex I
 
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
All sectors NT/MFN I Foreign owners hip of rural properties requires 
reciprocity for Salvadorians, except when land is for industrial establishments. 
All sectors NT/MFN  I Only Salvadoran nationals born in El Salvador and 
nationals of Central American Parties may engage in 
small scale commerce, industry and the supply of 
services in El Salvador.  
Energy MA CBTS Gas service stations  subject to distance requirements 
Cooperative production 
societies NT I At least 75% of total number of partners must be 
Salvadoran persons. 
Duty-free commercial 
centres and 
establishments NT I Only Salvadoran nationals born in El Salvador and 
enterprises organized under Salvadoran law can apply 
for a permit to establish du ty-free commercial centres 
or establishments in El  Salvador's seaports. 
Public accounting and 
public auditing MFN/NT CBTS/I Nationality requirement fo r public accountants and 
external auditors.  
Professional services – 
architectural, engineering, integrated engineering, urban planning and landscaping services NT/LP CBTS Registration, residenc y and nationalit y requirements. 
Professional services – 
health services MFN/NT/LP CBTS Permit required. Permanent permits subject to 
nationality or residency requirement. Reciprocity 
requirement. 
Professional services – 
legal services (notary public) MFN/NT/LP CBTS Authorization, nationality and reciprocity requirements.  WT/REG211/3 
 
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  Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
Professional services - 
teachers NT CBTS Nationality requirement 
Professional services – 
customs agents MFN/NT CBTS/I Nationality of Central American Parties required in 
order to work as a customs agent. 
Audiovisual services – 
advertisement and 
promotional services for 
radio and TV  MFN/NT CBTS Production of commercial ad vertisements using public 
communications require 90% of national elements; 
advertisements produced or recorded under the laws of 
other Central American pa rties may be used if 
reciprocated. Otherwise such services are subject to a 
one-time fee. 
Audiovisual services – TV 
and radio broadcasting services NT I Concessions and lice nces for free reception 
broadcasting services su bject to nationality and 
establishment requirements.  
Construction and related 
engineering services MFN/NT/LP CBTS/I Contractual association with Salvadoran enterprise 
required in order to partic ipate in construction and 
related engineering services . Investment and staffing 
requirements for engineering or architectural projects. 
Recreational, cultural and 
sporting services - performing arts NT CBTS Advance authorization an d payment, or security deposit 
for the right of performance required. Performance by foreign artists or groups is limited to 30 days per year. 
Recreational, cultural and 
sporting services - 
circuses NT CBTS Payment for a right to perform required, including a 
deposit. Performance by foreign circuses in San 
Salvador is limited to 30 days per year. 
Recreational, cultural and 
sporting services - circuses NT CBTS 20% minimum participation by Salvadorans in public 
performances. 
Transport services – road 
transport services NT CBTS/I Permit, licensing and equity requirements.  
Air transport - specialty air services MFN/NT CBTS Prior authorization required, subject to reciprocity and 
national air transport policy. 
Air transport – aircraft 
repair and maintenance 
services NT/MFN CBTS Reciprocity requirements for recognition or validation of 
licenses. 
Transport services – land transport  MA CBTS Public passenger land  transportation concessions 
subject to technical studies of existing demand. 
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; PR: Performance 
requirements. 
Source: Text of the CAFTA-DR Agreement.  
Table 4.6 Non-conforming measures listed by El Salvador in Annex II  
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
All sectors MFN CBTS/I Any measure according preferential treatment as a 
result of a prior agreement (in force or signed) vis-
à-vis the United States and the Dominican 
Republic. Any measure according differential treatment in an existing or future agreement for 
sectors of aviation, fisheries or maritime matters. 
Social services NT/MFN/LP/PR/SMBD CBTS/I Any measure with respect to law enforcement and 
correctional services and the following sectors if 
maintained for public purp ose: income security or 
insurance, social security or insurance, social 
welfare, public education, public training, health, 
and child care. 
Minority affairs NT/LP/PR/SMBD CBTS/I Any measure according rights or preferences to 
socially or economically disadvantaged minorities. 
Road transport services NT/MFN/LP CBTS Any measure restricting the transportation of 
goods by road (applies to the United States and 
the Dominican Republic). 
Note: CBTS: Cross-border trade in  services; I: Investment; LP: Local presence requirements; MFN: 
Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restriction;  PR: Performance requirements. 
Source: Text of the CAFTA-DR Agreement. 
 WT/REG211/3 
 
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  4.33.   With respect to business services, El Sa lvador improves upon its GATS commitments in 
professional services, which do not cover all sub-sectors and which, for those committed, has 
modes 1, 2 and/or 4 unbound. That said, the Agreement allows for a number of limitations in this 
area, e.g. only a Salvadoran national may be authorized as a public accountant; a residency requirement for architect and engineers for certain projects; and a residency/nationality 
requirement for health professions. On computer services, El Salvador undertakes full 
commitments across the board, therefore expandin g upon its GATS commitments in this area, 
which were limited to data processing services. It also expands the scope and level of its 
commitments in remaining business services activities.  
4.34.  As regards communication services, El Sa lvador undertakes full commitments - i.e., without 
any sector-specific exemptions - for postal and courier services, which are uncommitted under GATS. For audiovisual services, El Salvador ma intains a few exemptions under the Agreement, 
relating to a content requirement for commercial advertisements for over-the-air television and 
radio broadcasts and to a nationality requir ement and foreign requirement limitation for 
concessions and licenses for free reception broadcasting services. Under the GATS, El Salvador had 
no commitments on services relating to motion picture and sound recording, while those on 
television and radio were partial and unbound under mode 1.  
4.35.  The Agreement provides for commitments under  construction services, distribution services, 
education services, health services, and recreati onal services, five sector groups uncommitted 
under GATS. For construction, El Salvador maintains a number of restrictions, including a requirement that enterprises majority owned by foreigners must be contractually associated with a local company, unless the foreign enterprise determ ines that a relevant Salvadoran company is not 
available. In addition, enterprises organized under Salvadoran law must have an investment in the 
project equal to at least 20 percent of the value of the project. As for distribution services, 
El Salvador reserved the right to maintain a measure providing that only nationals and enterprises 
majority-owned by nationals may establish duty-free commercial centres in the country's seaports. 
For education and health services, El Salvador, like  others has an Annex II exemption allowing it to 
adopt or maintain any measure with respect to such services as public education, public training, 
health, and child care, to the extent that they are social services established or maintained for a 
public purpose.  
4.36.  With respect to transport services, El Sa lvador undertook commitments going significantly 
beyond its GATS commitments in the sector, which are limited to maintenance and repair services 
for aircraft. Existing non-conforming measures relate to a limitation on the number of concessions 
for public passenger land transportation routes, nationality and foreign equity limitations for road transport, reciprocity requirements for permits and licenses of certain air transport staff, and 
reciprocity requirements for the provision of specialty air services. The only exemption for future 
non-conforming measures concerns road transport, where El Salvador reserves, vis-à-vis  the US 
and the Dominican Republic, the right to adopt or maintain any measure restricting the 
transportation of goods by road. The Agreement prov ides for the liberalization of such services as 
maritime transport or auxiliary transport services, since no sector-specific exemptions are undertaken. 
4.37.  El Salvador also undertook some horizontal or cross-sectoral exemptions relating to such 
issues as minority affairs and rural land. Further,  El Salvador took an exemption providing that 
only Salvadoran nationals born in El Salvador, as well as to nationals of Central American Parties, can engage in small scale commerce, industry and the supply of services in El Salvador. The 
Agreement defines a small scale enterprise as an enterprise with a capitalization not greater than 
US$200,000.  
4.38.  El Salvador has also taken some sector-specific MFN exemptions, as well as a more general 
one for existing and future international agreements. The latter allows El Salvador to 1) act 
inconsistently with MFN treatment for any future agreement involving aviation, fisheries or maritime matters and, 2) act inconsistently with MFN treatment vis-à-vis  the United States and 
the Dominican Republic in relation to any prior international agreement. 
4.5.4  Guatemala 
4.39.  Guatemala's GATS schedule covers only 5 of the 11 sector groups in the Services Sectoral 
Classification List (W/120), and, when assessed at the sub-sector level, only 20 of the 155-odd WT/REG211/3 
 
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  sub-sectors used in the List. Guatemala undertakes commitments in the Agreement in various 
sectors that are uncommitted under the GATS, and al so provides for better levels of treatment in 
the Agreement for sectors already bound under th e GATS. Guatemala's existing non-conforming 
measures and future non-conforming measures are summarized in Tables 4.7 and 4.8. 
Table 4.7 Non-conforming measures  listed by Guatemala in Annex I 
Sector Obligations  Mode Description/Reduction of Restriction 
All NT I Limitation on property rights over land in a given region for 
foreigners and foreign companies. 
All NT I Ownership of real estate reserved for Guatemala's 
nationals; for juridical persons, a majority must be of 
Guatemalan nationals. 
All NT I Authorization requirem ent for foreign ownership of 
property for real estate in urban areas and certain areas located close to oceans, rivers, lakes or water sources. 
All NT I Only Guatemalan nationals or companies may own real 
estate within 15 km from the country's borders, with the 
exception of urban goods and rights predating 1.3.1956. 
All NT I Right of establishment for foreign companies requires a 
minimum deposit.  
Forestry  NT I Exploitation and renovation of  forestry resources reserved 
for natural or juridical persons of Guatemala. 
Professional services - 
notary services NT/LP CBTS Nationality by birt h and domicile requirements.  
Professional services NT I Foreign companies cannot provide professional services for 
which a legally recognized gr ade, title or diploma is 
required.  
Recreational, cultural 
and sporting services – performing arts NT/LP CBTS Hiring of foreign artists requires advance authorization 
from the Direction of Entertai nment. Preference given to 
nationals.  
Tour guides NT/LP CBTS Nationality or resi dency requirements. 
Air transport services – 
speciality air services MFN CBTS Recognition of foreign pilot licences based on international 
rules and agreements  and reciprocity. 
Air transport services – 
speciality air services NT CBTS Nationality requirement (exceptions for foreign nationals 
for a period not to exceed three months if authorized).  
Air Transport services  NT/SMBD I Nationality requirement to operate commercial air 
transportation services. Majority of management must be nationals or permanent residents. 
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restrictio n; PR: Performance  requirements. 
Source: Text of the CAFTA-DR Agreement. 
Table 4.8 Non-conforming measures  listed by Guatemala in Annex II  
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
All sectors MFN CBTS/I Any measure according preferential treatment as a 
result of a prior agreem ent (in force or signed) 
vis-à-vis  the United States and the Dominican 
Republic. Any measure according differential treatment in an existing or future agreement for sectors of aviation, fisheries or maritime matters. 
Maritime transportation NT/MFN/LP/PR/SMBD CBTS/I Any measure related to the provision of maritime 
transportation services. 
Matters related to disadvantaged minorities and indigenous peoples NT/LP/PR/SMBD CBTS/I Any measure granting rights or preferences to 
socially or economically disadvantaged minorities and indigenous peoples. 
Road transport services NT/MFN/LP CBTS Any measure restricting the transportation of 
goods by road (applies to the United States and 
the Dominican Republic). 
Note: CBTS: Cross-border trade in  services; I: Investment; LP: Local presence requirements; MFN: 
Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restriction;  PR: Performance requirements. 
Source: Text of the CAFTA-DR Agreement. WT/REG211/3 
 
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  4.40.  For example, under business services, the Agreement provides for commitments under 
professional services, an area unscheduled in  the GATS. Guatemala has scheduled exemptions 
relating to a requirement that foreign suppliers can only supply such services in Guatemala 
through a contract or other relationship with an enterprise established in Guatemala. On computer services, the Agreement provides for full commitm ents across the whole sector, in comparison 
with the GATS, where the sector is partly co mmitted. Other areas under business services 
(e.g., rental-leasing, real estate services, and other business services), which are uncommitted at 
the WTO, are fully committed under the Agreement.  
4.41.  Guatemala's commitments on communication services go significantly beyond those in its 
GATS schedule. Postal and courier services, as well as audiovisual services, which are uncommitted under the GATS, are fully liberalized under the Agreement. In addition, as noted above, Article XX of the Chapter contains additional disciplines in relation to express delivery 
services.  
4.42.  For the sectors of construction, distribution , education, environmental, and health services, 
which are all uncommitted under the GATS, the Agreement provides for full commitments, 
i.e., without any sector-specific exemptions. For recreational services, another sector for which 
Guatemala has no commitments under the GATS, the Agreement provides for commitments across the board, except for an exemption in relation to performing arts, whereby prior authorization is 
required as well as a consent letter from artist unions of Guatemala. 
4.43.  Regarding tourism and travel related services, Guatemala has liberalized the whole sector 
under the Agreement, except for a residency/nationality requirement for tour guides. Under the GATS, only certain hotel services were the subject of commitments. 
4.44.  With respect to transport services, Guatemala has taken a broad exemption in Annex II 
reserving the right to maintain or adopt any measure related to the provision of maritime transportation services. On air transport, whic h is the subject of commitments under the GATS, 
the Agreement provides for certain improvements, in particular through the investment chapter, 
which covers all air transport services, in contrast to the more specific scope under Chapter 11, which excludes everything but specialty air services and certain maintenance/repair services. 
Guatemala lodged an investment exemption specif ying that only Guatemalans or enterprises 
organized under the law of Guatemala may operate commercial air transportation services in the country, provided their principal place of business is in Guatemala and a majority of its managers 
and directors are nationals or residents. It also took a national treatment exemption in relation to 
specialty air services. Guatemala has lodged no other exemptions under the Agreement and 
therefore fully liberalized other transport services (e.g., road, rail, and auxiliary transport services), which were all uncommitted under the GATS.  
4.45.  Annexes I and II also provide for a number of horizontal or cross-sectoral exemptions 
relating to such issues as state-owned lands, real estate, capital requirements, and minorities and indigenous peoples. Not all these exemptions figure in Guatemala's horizontal commitments in its 
GATS schedule.  
4.46.  Guatemala has also taken MFN exemptions, in relation to specialty air services, maritime 
transport, and for existing and future international agreements. The latter allows Guatemala to 1) act inconsistently with MFN treatment for any future agreement involving aviation, fisheries or 
maritime matters and, 2) act inconsistently with MFN treatment vis-à-vis  the United States and 
the Dominican Republic in relation to any prior international agreement. 
4.5.5  Honduras 
4.47.  Honduras' commitments under the Agreement go significantly beyond its commitments 
under the GATS, which are limited to 4 of th e 11 sector groups and about 25 of the 155-odd 
sub-sectors in the W/120. Honduras' existing non-conforming measures and future non-
conforming measures are summarized in Tables 4.9 and 4.10. WT/REG211/3 
 
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  Table 4.9 Non-conforming measures listed by Honduras in Annex I  
Sector Obligations  Mode Description/Reduction of Restriction 
All NT I Ownership of land in given regions restricted to 
Hondurans by birth, enterprises fully owned by Honduran nationals and by state institutions.  
All NT/MFN I Small-scale industry and trade reserved to Hondurans. 
Reciprocity requirement and maximum threshold 
applies.  
All NT/MFN I Advance authorization required for foreign cooperatives 
to operate in Honduras. Reciprocity requirement  
Agricultural services  NT I Beneficiaries of land refo rm must be Hondurans by 
birth and must be natural persons, peasant 
cooperatives or peasant associations. 
Agricultural engineering 
and agronomy NT/MFN CBTS Higher fees for foreign agricultural engineers and 
agronomists. 
Electricity MA CBTS Domestic monopoly for electricity transmission and 
operation. 
Electrical energy services MA CBTS Requ irement to be organized as a commercial 
corporation with nominative stock in order to supply electrical energy di stribution services. 
Forestry engineers NT/LP CBTS Requirement to hire Honduran nationals. 
Fishery services NT I Nationality requirement to engage in commercial 
fishing in territorial wate rs, rivers and lakes in 
Honduras and for captain of commercial fishing vessels. Only Honduran flag vessels can perform commercial fishing in Honduras.  
Communications services 
- mail MA CBTS Domestic monopoly. 
Communication – mobile telephony  MA CBTS No additional mobile  telephony operators may be 
authorized until December 2005. At least one additional operator will be authorized after that date. 
Communication – public 
telecommunication 
services  NT CBTS Foreign governments cannot participate directly in the 
supply of public telecommunication services. 
Communication services NT I/CBTS Exclusivity for HONDUTEL until 24.12.2005, after which 
it is discontinued.  
Communication – radio, 
TV and newspaper 
services SMBD I Nationality requirement. 
Construction and engineering services – civil engineering NT/MFN/MA/
LP I/CBTS Consulting and construction enterprises must be 
organized under Honduran law to perform civil engineering projects in Honduras. Higher membership fees apply to foreign-owned enterprises. Authorization 
requirement for foreign workers.  
Distribution services – 
weapons, munitions and 
other related item MA CBTS Domestic monopoly for wholes ale and retail distribution 
of certain weapons.  
Distribution services – 
petroleum products NT/LP I/CBTS Nationality requirement to sell petroleum products. 
Enterprises must be at least 51% owned by Honduran nationals.  
Educational services – 
private preschool, 
primary, and secondary 
educational services NT/MFN/LP/S
MBD I/CBTS Nationality requirement for school directors or 
supervisors. Nationality an d reciprocity requirements 
for teachers.  
Professional services NT/MFN/LP CBTS Authori zation for professional practice granted based 
on principles of reciprocity.  
Recreational, cultural and 
sporting services – music 
entertainers NT I/CBTS Performance by foreign ar tists requires advance 
deposit; simultaneous hiring of Honduran artists, for 
the same performance; and advance authorization.  
Recreational, cultural and 
sporting services – football  NT/MFN/LP CBTS Residency requirement for national soccer league. 
Preferences for Central American players.  
Recreational, cultural and 
sporting services – 
lotteries MA CBTS Monopoly for national lottery. 
Recreational, cultural and sporting services – casinos and gambling NT/LP CBTS/I Nationality requirement for operation of casinos. WT/REG211/3 
 
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  Sector Obligations  Mode Description/Reduction of Restriction 
Professional services - 
customs agents and 
agencies NT I/CBTS Nationality requirement. 
Professional services - 
veterinarians NT/MFN/LP CBTS Foreign enterprises must be organized under Honduran 
law. Higher fees for foreign veterinarians. 
Professional services – 
microbiologist and 
clinicians NT CBTS Higher registration fees  for microbiologists and 
clinicians. 
Professional services - 
notaries NT CBTS Nationality requirement. 
Professional services – 
public accountants LP CBTS Organization under Honduran law required in order to 
supply public accountancy services. 
Professional services - 
architects LP CBTS Foreign enterprises must nominate a Honduran 
representative prior to registering. 
Environmental services MA CBTS State monopoly for provision of public water 
distribution, waste disposal, and sanitation and hygiene 
services. 
Business services - 
warehousing services MA CBTS Nationality requirement for provision of warehousing 
services. 
Business services - 
investigation and security 
services NT/ SMBD I Foreign companies have to associate themselves with 
Honduran companies and the manager must be 
Honduran by birth. 
Business consulting services NT/MFN/MA CBTS Confirmation of contract required. Partnership with 
Honduran firms required. High er registration fees for 
foreigners. 
Economic consulting 
services LP CBTS Economic consulting enterprises organized under 
foreign must be represen ted by Honduran member. 
Maritime transport – 
coastal navigation NT/MFN/LP I/CBTS Coastal navigation  for commercial purposes reserved 
for Honduran merchant vessels.  
Air transport services NT/SMBD I Nationality requirement in or der to supply domestic and 
international commercial public air transportation 
services. 
Air transport – specialty 
air services  NT/MFN/LP CBTS Nationality requirem ent in order to provide private 
specialty air transportation services. 
Railway transport services NT/SMBD I Private investment restricted to Hondurans. The 
manager of the State company must be Honduran by 
birth.  
Land transportation services  NT/MFNMA//
LP I/CBTS Nationality an d reciprocity requirement for provision of 
public domestic  land passenger and cargo 
transportation services.  
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restrictio n; PR: Performance  requirements. 
Source: Text of the CAFTA-DR Agreement. 
 
Table 4.10 Non-conforming measures listed by Honduras in Annex II  
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
Communications services - telecommunications NT/MA CBTS/I Right to adopt, maintain or modify the level of 
participation in ownership of state telecommunications monopoly and its subsidiaries. 
All sectors MFN CBTS/I Any measure according preferential treatment as a 
result of a prior agreem ent (in force or signed) vis-à-vis  
the United States and the Dominican Republic. Any 
measure according differential treatment in an existing 
or future agreement for sectors of aviation, fisheries or 
maritime matters. 
Agronomists NT/MFN/LP CBTS Any measure that pertains to obligatory membership in 
a professional association of agronomists. 
Social workers NT CBTS Any measure that pertains to obligatory membership in 
a professional association of social workers. 
Chemists and pharmacists NT/MFN/LP CBTS Any measure that pertains to obligatory membership in 
a professional association of chemists or pharmacists WT/REG211/3 
 
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  Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
Social services NT/MFN/MA/LP/
SMBD CBTS/I Any measure with respect to law enforcement and 
correctional services and the following sectors if 
maintained for public purpose: income security or 
insurance, social security or insurance, social welfare, 
public education, public training, health, and child care. 
Minority affairs NT/LP/PR/SMB
D CBTS/I Any measure according rights or preferences to socially 
or economically disa dvantaged minorities. 
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restrictio n; PR: Performance  requirements. 
Source: Text of the CAFTA-DR Agreement. 
 
4.48.  In business services, Honduras undertakes commitments in the Agreement in relation to 
areas that are uncommitted in its GATS schedule, such as professional services, research and 
development services, real estate services, rental/leasing services, as well as many activities under other business services. A number of these services are subject to limitations pursuant to 
Annex I and/or II of the Agreement, especially a number of professional services, which can be 
subject, for example, to local presence requir ements (veterinary services, public accountancy 
services, architectural services), discriminatory registration fees (agricultural engineers and 
agronomists), or nationality requirements (notaries). In addition, Honduras has taken an 
exemption for professional services providing that authorizations for professional practice will be 
granted on principles of reciprocity. It specifies that if a jurisdiction in the United States allows Honduran nationals to apply for and receive a license or certificate for the provision of a 
professional service, then Honduras would allow U.S. nationals to apply for and receive an 
equivalent license or certificate. Honduras also takes commitments beyond those in its GATS schedule on computer services since the Agreement provides for full liberalization across the 
sector, in contrast to the GATS where not all sub-sectors were committed.  
4.49.  Regarding communication services, which is uncommitted under the GATS, the Agreement 
provides for commitments with limitations in telecoms, postal-courier services, and audiovisual 
services. On postal-courier, the only sector-specific limitation is found in Annex I, which specifies 
that the operation of the mail system is reserved exclusively to the Empresa Hondureña de 
Correos , but specifies that this exclusivity does not apply to the supply of express delivery 
services.  
4.50.  With respect to audiovisual services, the Agreement provides for full liberalization, except 
for an investment exemption providing that only Honduran nationals by birth may exercise senior management of free over-the-air broadcast news media (radio or television).  
4.51.  In construction and distribution servic es - both uncommitted under the GATS - Honduras 
has taken commitments with few limitations under the Agreement. Exemptions in relation to distribution relate to the sale of petroleum products and arms, and as regards construction an 
exemption permits discriminatory fees and a registration requirement.  
4.52.  The Agreement also provides for commitments in other sector groups that are uncommitted 
under the GATS, namely education services, health  and social services, environmental services 
and recreational services, but with relatively more sector-specific exemptions. For recreational 
services, these concern such matters as lotteries, casinos and gambling, or music entertainers. For 
environmental services, the Agreement specifies that only the State may provide public water 
distribution, waste disposal, and sanitation and hygiene services. For education and health-social 
services, an exemption under Annex II reserves Ho nduras' right to adopt or maintain any measure 
with respect to such services as public education, public training, health, and child care, to the extent that they are social services established or maintained for a public purpose. In addition, 
certain nationality requirements can be applied in relation to private preschool, primary and 
secondary educational services.  
4.53.  As regards tourism services, the Agreement provides for full commitments, in contrast with 
the GATS schedule, where commitments were limited to hotels and restaurants. Regarding 
transport services, the Agreement provides for commitments across all areas of the sector - only 
air transport was committed under the GATS - although with some limitations on air, maritime, railway and road transport. For example, the on ly exemption pertaining to maritime transport WT/REG211/3 
 
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  specifies that coastal navigation is reserved to  Honduran merchant vessels (i.e. 51% owned by 
nationals and with the company domiciled in Honduras); if these are not available, foreign vessels 
may be authorized, but preference would be given to Central American flag vessels.  
4.54.  Annexes I and II also provide for a number of horizontal or cross-sectoral exemptions 
relating to such issues as minority affairs, state-owned lands, border and coastal lands, and 
reciprocity requirements for the establishment of cooperatives. Honduras also reserves small-scale 
industry and trade to nationals, unless reciprocity is granted. In contrast, Honduras' horizontal commitments under the GATS include an economic n eeds test that conditions the establishment of 
a commercial presence on such issues as its impact on national economic activity.  
4.55.  Honduras has also taken some sector-speci fic MFN exemptions, as well as a more general 
one for existing and future international agreements. The latter allows Honduras to 1) act inconsistently with MFN treatment for any future agreement involving aviation, fisheries or 
maritime matters and, 2) act inconsistently with MFN treatment vis-à-vis  the United States and 
the Dominican Republic in relation to any prior international agreement. 
4.5.6  Nicaragua 
4.56.  The commitments of Nicaragua under the Agreement go significantly beyond its GATS 
commitments, both in terms of sector coverage and level of commitment. Indeed, its GATS commitments cover 4 of the 11 sector groups in th e W/120, or 49 of the universe of sub-sectors, 
and levels of treatment bound for sectors scheduled is often unbound for one or two modes of 
supply. Nicaragua's existing non-conforming measures and future non-conforming measures are summarized in Tables 4.11 and 4.12. 
Table 4.11 Non-conforming measures listed by Nicaragua in Annex I
 
Sector Obligations  Mode Description/Reduction of Restriction 
Musicians and artists NT/MFN CBTS Prior co ntract and participation of Nicaraguan 
artists required. Reci procity requirement 
Tourism – hotels, restaurants, 
tour guides, car rental and 
other tourism related activities NT/LP CBTS Establishment and residency requirements 
Services related to construction NT/LP CBTS Residency requirement 
Distribution of fireworks, 
firearms and munitions NT/LP CBTS Establishment and residency requirements 
Private security services NT/LP CBTS Establishment and nationality requirements 
Radio broadcast, free television 
reception NT CBTS/I Nationality requirement 
Communications – professional 
radio and televi sion broadcast 
services NT/MFN CBTS Nationality and reciprocity requirement 
Electricity distribution LP CBTS Establishment requirement 
Services incidental to mining - 
hydrocarbons LP CBTS Establishment requirement. Legal representative 
domiciled in Nicaragua required. 
Services incidental to mining – 
metallic and non-metallic 
minerals LP CBTS Establishment requirement. Non residents must 
appoint a legal representative domiciled in 
Managua. 
Fisheries and services incidental to fishing NT/PR/LP CBTS/I Establishment, licensing and nationality 
requirements 
Land transportation NT/MFN/LP CBTS Establishment and reci procity requirements 
Maritime transportation NT CBTS Nationality and establishment requirements 
Ports MA CBTS State monopoly 
Air Transportation – repair and 
maintenance services, specialty air services NT/MFN/LP CBTS Authorization, nationality, licensing requirements 
Air transportation NT/SMBD I Establishment, equity and nationality 
requirements 
Professional services NT/MFN/LP CBTS Reciprocity requirement 
Public accounting and auditing NT/LP CBTS Exercise of the profession through an authorized 
Nicaraguan public accounti ng firm or association 
Professional services – notary 
publics NT/MFN CBTS Nationality requir ement. Preference for Central 
American nationals. 
Customs brokers NT/MFN/LP CBTS Nationality, reciprocity and establishment 
requirements WT/REG211/3 
 
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  Sector Obligations  Mode Description/Reduction of Restriction 
Scientific research services LP CBTS Legal representative in Nicaragua required 
Regime on free zones and 
regime on active improvement PR I Companies operating in free zones may introduce 
up to 40% of their production into Nicaragua. 
Telecommunications MA/NT CBTS State monopoly 
Development of maps MA CBTS State monopoly 
Potable water, sanitary sewer 
systems, and sewage collection and disposal MA CBTS State monopoly 
Airports MA CBTS State monopoly 
Energy services MA CBTS State monopoly 
Administration of lotteries MA CBTS State monopoly 
Public communications services MA CBTS State monopoly 
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management 
and Boards of Directors restriction; PR: Perfo rmance requ irements. 
Source: Text of the CAFTA-DR Agreement. 
Table 4.12 Non-conforming measures listed by Nicaragua in Annex II  
Sector/Subsector Obligations Mode  Description/Reduction of Restriction 
All sectors NT/SMBD I Nationality requirement with regard to initial disposal of 
existing state enterprises. Any measure relating to nationality of senior manage ment and board members in 
privatized state enterprises.  
Minority affairs NTMFN//LP/P
R/SMBD CBTS/I Any measure granting rights or  preferences to socially or 
economically disadvantaged minorities and indigenous 
peoples. 
Communications MFN CBTS/I Any measure according differential treatment due to 
application of reciprocity measures or agreements 
involving sharing of the radio spectrum, one-way satellite transmission of direct-to-ho me and direct broadcasting 
satellite television services  and digital audio services. 
All sectors MFN CBTS/I Any measure according preferential treatment as a result 
of a prior agreement (in force or signed) vis-à-vis  the 
United States and the Dominican Republic. Any measure 
according differential treatment in an existing or future 
agreement for sectors of avia tion, fisheries or maritime 
matters. 
Coastal land, islands 
and river banks NT I Any measure with respect to coastal lands, islands and 
river banks under the poss ession of Nicaragua. 
Social services NT/MFN/LP/P
R/SMBD CBTS/I Any measure with respect to law enforcement and 
correctional services and the following sectors if 
maintained for public purpose: income security or 
insurance, social security or insurance, social welfare, 
public education, public training, health, and child care. 
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management and Boards of Directors restrictio n; PR: Performance  requirements. 
Source: Text of the CAFTA-DR Agreement.  
4.57.  In business services, Nicaragua took commitm ents in various professional services, where it 
had no GATS commitments. Like some other Parties to the Agreement, it has taken an exemption 
for professional services providing that authorizatio ns for professional practice will be granted on 
principles of reciprocity. It specifies that if a jurisdiction in the US allows Nicaraguan nationals to apply for and receive a license or certificate for the provision of a professional service, then Nicaragua would allow U.S. nationals to apply for and receive an equivalent license or certificate. 
Further, public notaries must be nationals, and foreign suppliers of accounting and auditing 
services have to exercise their profession through a Nicaraguan firm or association. The Agreement also provides for commitments beyond those taken in its GATS schedule in other areas 
of business services, including on computer serv ices, where full commitments were taken, in 
comparison with GATS commitments that are unbound in most modes of supply.  
4.58.  In communication services, Nicaragua takes commitments in postal-courier, which are 
uncommitted under GATS, and improves upon its GATS commitments in telecoms and audiovisual WT/REG211/3 
 
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  services. As regards postal-courier, the Agreemen t has no exemption, other than providing that 
the issuance, finance and marketing of postal stamps, as well as the usage of franking machines, 
are under monopoly. For audiovisual services, where GATS commitments cover production and 
distribution of motion pictures/videos, the Agreement provides, in addition, full commitments on sound recording services, as well as partial commitments on TV- and radio-related services. 
Indeed, Annex I exemptions provide that only Nicaraguan natural persons or enterprises majority 
owned by nationals can operate free over-the-air te levision and radio broadcast services, and also 
include a nationality requirement for certain TV and radio announcers, which has to be waived in 
relation to nationals of another Party that does not impose similar requirements.  
4.59.  With respect to construction services, distribution services, education services, 
environmental services, health services, and re creational services, which are all uncommitted 
under the GATS, the Agreement provides for commi tments with certain exemptions. For example, 
as per Annex II Nicaragua, like some other Partie s, reserves the right to adopt or maintain any 
measure with respect to such services as public education, public training, health, and child care, to the extent that they are social services esta blished or maintained for a public purpose. For 
construction, the only exemption provides that an  enterprise must be organized under Nicaraguan 
law and that a foreign national must either reside in Nicaragua or appoint a legal representative in Nicaragua. For distribution, an exemption concerns  a local presence and residency requirement for 
the sale of fireworks, firearms and munitions. For environmental services, a state entity has 
exclusive rights as regards the establishment, co nstruction, and development of public works for 
the supply of drinking water, and collecting and disposing of waste water. For tourism services, which was already committed under GATS, an exemption providing for certain local presence, 
residency and nationality (for tour guides) requirements has been listed.  
4.60.  Transport services are the subject of a number of exemptions under the Agreement. GATS 
commitments in this area are limited to air and rail transport. The Agreement contains an 
exemption providing that land transport is subject to a number of restrictions, including 
conditioning the capacity of foreign suppliers of international land transportation of cargo and passengers to the existence of a bilateral agreemen t providing reciprocal treatment to Nicaraguan 
firms. For maritime transport, an Annex I exemption specifies a number of national treatment 
limitations for cross-border trade (i.e., not suppl y through mode 3). For example, cabotage is 
reserved to enterprises established in Nicaragua, and only a Nicaraguan national or enterprise established in Nicaragua can obtain a route concession to engage in maritime transportation. The 
Agreement also provides for restrictions to air transport, and maintains exclusive rights with 
respect to the administration of existing ports of national interest and regarding international airports in Nicaragua.  
4.61.  Nicaragua also undertook, in Annex II, some horizontal or cross-sectoral exemptions under 
the Agreement relating to such issues as the transfer or disposal of interests held in state enterprises, minority affairs and indigenous peoples, the ownership of coastal lands, islands and 
river banks. In contrast, Nicaragua's horizontal commitments under the GATS include an economic 
needs test that conditions the establishment of a commercial presence on issues such as its concordance with national economic development objectives. 
4.62.  Nicaragua has also taken some sector-specific MFN exemptions, as well as a more general 
one for existing and future international agreements. The latter allows Nicaragua to 1) act 
inconsistently with MFN treatment for any future agreement involving aviation, fisheries or maritime matters and, 2) act inconsistently with MFN treatment vis-à-vis  the United States and 
the Dominican Republic in relation to any prior international agreement. 
4.5.7  The United States 4.63.  The commitments of the United States under the Agreement go beyond its GATS 
commitments, although to a lesser extent than other Parties to the Agreement given that the 
schedule of commitments of the United States under  the GATS covers a larger array of services 
sectors, and also because the United States has an exemption to market access (Article 11.4) 
under Annex II providing that it can adopt or maintain any measure that is not inconsistent with 
its obligations under Article XVI of the GATS.  
4.64.  The United States' existing non-conforming  measures and future non-conforming measures 
are summarized in Tables 4.13 and 4.14. WT/REG211/3 
 
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  Table 4.13 Non-conforming measures liste d by the United States in Annex I  
Sector Obligations Mode Description 
Atomic energy NT I Nationality requirements 
Business services - 
export conduct NT/LP CBTS Residency requirements  
Business services - 
exports of controlled products NT/LP CBTS Nationality/Re sidency requirements  
Mining MFN/NT I Residency requirements; reciprocity clause 
All sectors MFN/NT I OPIC guarantees not available to certain foreigners 
Air transport  NT/MFN/SMBD I Nationality and other requirements; 
Specialty air services  MFN/NT/SMBD
/LP CBTS/I For Cross Border Services authorization for the provision 
of specialty air services is required. Persons of CAFTA-DR Parties can be eligible to receive such authorization.  
Customs brokers NT/LP CBTS/I Nationality requirements 
All sectors NT/MFN I "Longer informatio n" requirements fo r small business 
registrations of foreign securities (except Canada) 
Radio communications NT I Nationality requirem ents for ownership of certain radio 
licences 
Practice before the 
Patent and Trademark Office NT/MFN/LP CBTS Nationality, reside ncy and reciprocity requirements 
All sectors 
 NT/MFN/LP/PR
/SMBD CBTS/I All non-conforming measures at state level and in the 
District of Columbia and Puerto Rico. 
Note: CBTS: Cross-border trade in services; I: Investment; LP: Local presence requirement; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; PR: Performance requirements; SMBD: Restrictio ns affecting senior manageme nt and board of directors. 
Source: Text of the CAFTA-DR Agreement. 
Table 4.14 Non-conforming measures liste d by the United States in Annex II  
Sector  Obligations Mode Description 
Communications 
 MFN CBTS/I Any measure taken un der reciprocity measures or 
international agreements pertaining to direct-to-home and direct broadcasting satellite television services and digital 
audio services. 
Cable Television NT/MFN/SMBD I Any measure that accords equivalent treatment to persons 
of any country that limits ownership by U.S. persons in an 
enterprise engaged in the operation of a cable television 
system. 
Social services: law enforcement 
and correctional 
services  MA/NT/LP/MFN/
SMBD/PR CBTS/I Any measure pertaining to law enforcement and correctional 
services, and the following social services established or 
maintained for a public purpose: income security or 
insurance, social security or insurance, social welfare, public education, public training, health, and child care. 
All sectors 
(minority affairs) NT/LP/SMBD/PR CBTS/I Any measures in favour of socially or economically 
disadvantaged minorities. 
Maritime transport NT/LP/MFN/PR/
SMBD CBTS/I Any measure relating to the provision of maritime transport 
services and the operation of U.S.-flag vessels. Reciprocity provisions for landside as pects of port  activities. 
All sectors  MA CBTS Any measure that is not inconsistent with U.S. obligations 
under Article XVI of the GATS. 
Aviation; 
fisheries; or maritime matters including salvage MFN CBTS/I Any measure according preferential treatment in any sector 
as a result of a prior agre ement, and any such measure 
pursuant to future international agreements in the three specified sectors. 
Note: CBTS: Cross-border trade in services; I:  Investment; LP: Local presence requirements; 
MFN: Restriction to MFN treatment; NT: National treatment restriction; SMBD: Senior management 
and Boards of Directors restrictio n; PR: Performance  requirements. 
Source: Text of the CAFTA-DR Agreement.  
4.65.  Under business services, the United Stat es took an exemption for the issuance of 
certificates of review with respect to export  conduct. The export and re-export of certain 
commodities, software and technology is subject to a license requirement. Under professional 
services, the U.S. has no commitments in its GATS schedule for medical and dental services, WT/REG211/3 
 
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  veterinary services, services provided by midwives, nurses, physiotherapists and para-medical 
personnel; these services are subject to commitments in the Agreement. However, specific non-
conforming measures provided for in Annexes I and II of the Agreement, including the exemption 
for future measures as regards health services established or maintained for a public purpose, as well as the exemption for any existing non-conforming measures at state or regional level may 
limit the scope of these commitments.  
4.66.  For audiovisual services, the United States reserved the right (in Annex I) to restrict 
ownership of certain radio licenses. In its Annex II, the United States has a MFN exemption to 
allow for reciprocity or other preferential treatment with respect to the one-way satellite 
transmission of direct-to-home (DTH) and direct broadcasting satellite (DBS) television services and digital audio services. It has also taken an exemption to ensure equivalent treatment with regard to ownership of cable television systems. 
4.67.  The United States has taken no specific ex emptions in the Agreement on postal and courier 
services, construction, distribution, educational, environmental, tourism, and recreational services. In addition, it has taken no exemptions under the Agreement regarding rail transport services 
which is partially committed under the GATS. Likewise, road transport, pipeline transport and 
services auxiliary to all modes of transport are subject to no exemptions under the Agreement. 
While maritime transport services are covered by the Agreement, the United States has an 
exemption under Annex II which allows it to adopt or maintain any measure relating to the 
provision of maritime transport services and the operation of U.S.-flagged vessels. The exemption specifies that vessel construction and repair is not included in the scope of the exemption, and that the treatment granted to another Party for a number of auxiliary maritime activities, including 
loading/unloading of vessels, ship cleaning, mari ne cargo handling, or operating and maintenance 
of piers, is conditional on reciprocity.  
4.68.  The United States has bound cross-border trade in specialty air services under the 
Agreement. Authorization from the U.S. Department of Transportation is required for the provision 
of these services in the territory of the United  States, and such authorization is subject to 
conditions specified in the United States’ Annex I. For air transportation, cabotage and the 
provision of international scheduled and non-scheduled  air service as a U.S. carrier is reserved for 
air carriers that are citizens of the United States. Indirect air transport activities (air freight forwarding and passenger charter activities other th an as actual operators of the aircraft) may be 
carried out by non-U.S. citizens, subject to obtaining authority from the U.S. Department of 
Transportation, which may be granted based on, among other factors, effective reciprocity. 
4.6  Regulatory provisions on trade in services 4.6.1  Domestic regulation 
4.69.  Chapter 11 contains provisions on domestic regulation (Article 11.8) and transparency 
(Article 11.7) that are also applicable to investments in services by virtue of Article 11.1.3. Article 11.8 contains rules governing the treatment of applications for authorization, along the 
lines of the corresponding GATS provisions (Article VI:3).
57 In addition, it contains a best 
endeavours clause in order to avoid that measur es relating to qualification requirements and 
procedures, technical standards, and licensing requirements constitute unnecessary barriers to trade. The relevant criteria for such measures are the same as those stipulated in the negotiating 
mandate under Article VI:4 of the GATS which, in turn, are implemented on a provisional basis, in 
the form of a qualified standstill, under GATS Ar ticle VI:5. Referring to the negotiations at the 
multilateral level, Article 11.8.3. provides for an amendment to the Agreement to implement the 
results of negotiations under GATS Article VI:4 (or similar negotiations undertaken in other 
multilateral fora in which the Parties participate), after consultations between the Parties. The Parties are also committed to coordinating on such negotiations, as appropriate. Chapters 12 and 
13 also provide some sector-specific disciplines on domestic regulation for telecommunications 
services and financial services (see below). 
                                               
57 Paragraph 1 of Article 11.8, analogous to GATS  Article VI:3, does not apply to authorization 
requirements that are within the scope of any non-co nforming measures the Parties have listed in their 
schedules to Annex II. WT/REG211/3 
 
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  4.6.2  Mutual Recognition 
4.70.  In line with GATS Article VII, Article 11.9 allows Parties to recognize the education or 
experience obtained, requirements met, or licenses or certifications granted in a particular country, 
for the purpose of meeting a Party's standards for the authorization, licensing, or certification of services suppliers. Such recognition, which may be achieved through harmonization or otherwise, 
may be based on an agreement or arrangement with a Party or may be accorded autonomously. A 
Party that is a party to an agreement or arrangement on mutual recognition, whether existing or future, shall afford adequate opportunity for anothe r Party, if that other Party is interested, to 
negotiate its accession to such an agreement or arrangement or to negotiate one comparable with 
it. Where a Party accords recognition autonomously, it shall afford another Party adequate opportunity to demonstrate that education, experience, licenses, or certifications obtained or requirements met in that other Party's territory should be recognized. A Party shall not accord 
recognition in a manner which would constitute a means of discrimination between countries in the 
application of its standards or criteria for the authorization, licensing, or certification of services suppliers, or a disguised restriction on trade in services.  
4.71.  Annex 11.9 contains provisions on the development of professional standards and 
temporary licensing for professional services. Each Party shall encourage the relevant bodies in its territory to develop mutually acceptable standards and criteria for licensing and certification of 
professional service suppliers, and provide recommendations to the Commission. The Annex 
includes a list of topics on which standards and criteria may be developed, e.g. accreditation of schools or academic programs, length and nature of experience required for licensing, and qualifying examinations for licensing. Where th ey agree, the Parties shall also encourage the 
relevant bodies in their territories to develop procedures for temporary licensing of professionals of 
another Party. The Commission is charged with reviewing the implementation of the Annex on 
Professional Services at least once every three years.  
4.7  Liberalization commitments in selected sectors  
4.72.  The sectors described below are subject to specific provisions, defined either in sector-
related chapters, or in terms of measures specified in the Agreement's annexes.  
4.7.1  Telecommunications 
4.73.  Chapter 13 on Telecommunications contains the regulatory undertakings relating to 
telecommunications services and covers all measures affecting trade in telecommunications services. It applies to all Parties except Costa Rica.
58 Of the Parties, only the Dominican Republic, 
El Salvador, Guatemala, Honduras and the United States have taken commitments under the 
GATS as regards the Reference Paper. The Chapter reiterates and expands upon the Parties' 
obligations under the GATS Telecommunications Annex and introduces commitments for those 
countries not already party to the GATS Reference Paper. For example, Chapter 13 imposes an 
obligation to interconnect on all suppliers of public telecommunications rather than only on "major suppliers". The latter are defined as suppliers that have the ability to materially affect the terms of 
participation (having regard to price and supply) in the relevant market for public 
telecommunications services, as a result of control over essential facilities or use of its position in the market. The chapter's obligations on interconnection, resale, number portability and dialing parity (Article 13.3) relating to major suppliers of public telecommunications services do not apply 
to suppliers of commercial mobile services. Likewise the additional obligations relating to major 
suppliers of public telecommunications services outlined in Article 13.4 do not apply to suppliers of commercial mobile services, or to rural telephone suppliers of the United States (Annex 13.3).
59  
4.74.  A provision on leased circuits provided by major suppliers to other public 
telecommunications suppliers requires the regulator to have the authority to prescribe "flat rate, cost-oriented" rates, rather than only "r easonable" rates as required by the GATS 
                                               
58 In place of the obligations of Chapter 13, Costa Rica undertakes the specific commitments set out in 
Annex 13. 
59 El Salvador, Guatemala, Hond uras and Nicaragua may designate and exempt a rural telephone 
company in its territory from certain obligations, such as resale, number portability an d dialling parity as well 
as the additional obligations relating to major suppliers of public telecommunications services in Article 13.4, subject to certain conditions. WT/REG211/3 
 
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  Telecommunications Annex. Also, major suppliers mu st provide access to poles, ducts, conduits 
and rights of way under their control on terms and conditions that are reasonable and non-
discriminatory. Flexibility in suppliers' choice of technology is made explicit in the Agreement 
(Article 13.14). 
4.75.  Chapter 13 also contains provisions on number portability and dialling parity for fixed 
telephone services, landing rights for subm arine cables, unbundling of network elements 
(i.e. local-loop unbundling), co-location obligations, and precludes suppliers from imposing restrictions on resale (which must be offered at reasonable rates). Other novel provisions relate to 
conditions for the facilitated supply of informatio n services, ensuring the enforcement powers of 
regulators, and regulatory forbearance as a recognized and effective means of implementing regulatory requirements.  
4.76.  Chapter 13 does not apply to measures that a Party adopts or maintains relating to 
broadcast or cable distribution of radio or te levision programming, except to ensure that 
enterprises providing these services have continued access to, and use of, public telecommunications services. 
4.77.   In Annex 13 to Chapter 13, Costa Rica ta kes certain regulatory commitments as regards its 
future framework on telecommunication services. Costa Rica will gradually liberalize and allow telecommunications suppliers of other Parties to supply the following services on a non-
discriminatory basis: private network services (no later than 1 January 2006); internet services 
(no later than 1 January 2006); and mobile wireless services (no later than 1 January 2007).  
4.78.  In the case of the Dominican Republic, th e Agreement provides for full liberalization of 
telecommunications services, with the exceptio n of a requirement of local presence and a 
limitation on the type of legal entity. In its GATS schedule, this sector is only covered in part, and 
often unbound. El Salvador undertakes full commitments for telecommunication services, 
improving upon partial commitments under the GA TS. For Guatemala, the Agreement provides for 
commitments beyond those in its GATS schedul e on telecommunication services. For basic 
telecommunications services, which are already committed under the GATS, the Agreement contains no exemption, in contrast to the routing restriction maintained under mode 1 in the GATS 
schedule. The Agreement also provides for full access for all value-added telecommunications 
services, which were not subject to commitments under the GATS.  
4.79.  In the case of Honduras, the Agreement provides that, starting on 25 December 2005, 
Hondutel  shall no longer have the exclusive right to provide national and international 
telecommunication services, e.g., telephone, carri er, and telex services. Honduras also committed 
to at least one additional operator of mobile telephony after December 2005. The only other exemptions specific to that sector specify that foreign governments may not directly participate in 
the provision of public telecommunications services, and gives Honduras the right to adopt or 
modify the level of participation in Hondutel . For Nicaragua, the Agreement improves upon GATS 
commitments, most notably through the inclusion of commitments on fixed line telephony 
services. The commitment in this area provided for the end of monopoly by 13 April 2005. In the 
case of the United States, in general, the Agreement mirrors the extensive commitments on telecommunications that the United States had already scheduled under the GATS.  
4.7.2  Express Delivery Services 
4.80.  Express delivery services are subject to the Agreement like other services sectors, but are 
also subject to additional provisions under Article 11.13.1. These services are defined as the collection, transport and delivery of documents, pr inted matter, parcels, goods, or other items on 
an expedited basis, while tracking and maintainin g control of these items throughout the supply of 
the service. The Parties have agreed that express delivery services do not include (1) air transport services, (2) services supplied in the exercise of governmental authority, or  (3) maritime transport 
services.  
4.81.  The Parties agree to maintain the level of market opening existing on the date of signature 
of the Agreement. Neither a Central American Party nor the Dominican Republic may adopt or 
maintain any restriction on express delivery services that is not in existence on the date of 
signature of the Agreement. Each such Party confir ms that it does not intend to direct revenues 
from its postal monopoly to benefit express deliver y services. In addition, each Party ensures that, WT/REG211/3 
 
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  where its monopoly supplier of postal services competes, either directly or through an affiliated 
company, in the supply of express delivery servic es outside the scope of its monopoly rights, such 
a supplier does not abuse its monopoly position to act in its territory in a manner inconsistent with 
the Party's national treatment, MFN and market access obligations. 
4.7.3  Distribution Services 
4.82.  Article 11.13.2 provides for certain additional 'specific commitments' which are set out in 
Annex 11.13 for Costa Rica, the Dominican Republic, El Salvador, Guatemala, and Honduras. Such specific commitments aim to change dealer protection regimes and loosen restrictions that bound 
firms into exclusive distributor arrangements. 
4.7.4  Financial Services 4.83.  Chapter 12 on financial services governs all aspects of trade in financial services. 
Liberalization commitments aside, the Chapter includ es GATS plus obligations on such matters as 
transparency, as well as provisions along the lines of those found in the WTO Understanding on 
Commitments in Financial Services, such as new financial services and cross-border trade.  
4.84.  Annex 12.9.3 sets out, solely for transparency purposes, supplementary information 
regarding certain aspects of financial services measures of a Party that the Party considers are not 
inconsistent with its obligations under the Financial Services chapter. The obligations on regulatory transparency laid out in Article 12.11 oblige the Part ies, to the extent practicable, to publish draft 
regulations of general application in advance, and to provide interested persons and the other 
Parties a reasonable opportunity to comment on such proposed regulations.  
4.85.  Article 12.1.4 provides for a two-year transi tion period in the case of the Central American 
Parties and the Dominican Republic for the application of certain measures. Thus, during this 
period, the provisions of the financial services chapter do not apply to measures adopted or 
maintained by the Dominican Republic relating to financial institutions of Costa Rica, El Salvador, Honduras or Nicaragua to the extent they supply banking services; investors and investments in 
such financial institutions in the territory of the Dominican Republic; or cross-border trade in 
banking services between the Dominican Republic and Costa Rica, El Salvador, Honduras or Nicaragua.
60 In the case of the Dominican Republic and Guatemala the restriction is not limited to 
banking services, but extends to financial services. During the two year transition period, the 
Dominican Republic and each Central American Party shall seek to agree on the non-conforming measures which are to be reflected in their respective schedules. 
4.86.  The Chapter on Financial Services does not apply to measures adopted or maintained by a 
Party relating to activities or services forming part of a public retirement plan or statutory system 
of social security; or activities or services conducted for the account or with the guarantee or using the financial resources of the Party, including its public entities except where a Party allows any of 
such activities or services to be conducted by its financial institutions in competition with a public 
entity or a financial institution (Article 12.1.3). 
4.87.  Cross-border trade in financial services is  subject to an approach similar to that of the 
WTO Understanding on Commitments in Financial Services. As such, each Party is obligated, on 
the one hand, to permit persons located in its territory, and its nationals wherever located, to purchase financial services from cross-border financial service suppliers of another Party located in the territory of that other Party or of any other Party; and, on the other hand, to permit, under 
terms and conditions that accord national treatment, cross-border financial service suppliers of 
another Party to supply the services "positively" listed in Annex 12.5.1 to the Agreement (akin to mode 1 of the GATS). Cross-border supply of financial services does not include the supply of a 
financial service in the territory of a Party by an investment in that territory (Article 12.20). The 
Parties accord national and MFN treatment to investors and financial institutions of another Party, and investments of investors in financial institutions (Articles 12.2 – 12.3). They also agree to 
grant national treatment to cross-border financial service suppliers who supply the services 
specified in Annex 12.5.1. Article 12.4 contains provisions on market access for financial institutions modelled on GATS Article XVI. 
                                               
60 The same applies to measures adopted or mainta ined by Costa Rica, El Salvador, Honduras or 
Nicaragua. WT/REG211/3 
 
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  4.88.  In Annex 12.9.2 the Parties agree to allow a financial institution (other than a trust 
company) organized outside their territories to provide investment advice and portfolio 
management services, excluding (a) custodial services, (b) trustee services, and (c) execution 
services that are not related to managing a collective investment scheme, to a collective investment scheme located in their territories. The Dominican Republic and El Salvador, which did 
not have legislation regulating collective investment schemes, are granted four years from the 
date of entry into force of the Agreement to implement laws regulating collective investment 
schemes. In the case of Nicaragua, which did not have legislation establishing collective 
investment schemes, no deadline is specified for the adoption of legislation. 
4.89.  Financial institutions of another Party are permitted to supply any new financial service that 
a Party would permit its own financial institutions, in like circumstances, to supply without additional legislative action by the Party (Article 12.6). A Party may determine the institutional and 
juridical form through which the new financial service may be supplied and may require 
authorization for the supply of the service. Where authorization is required to supply a new financial service, the decision shall be made within a reasonable time and authorization may only 
be refused for prudential reasons. 
4.90.  The Parties agree to establish a Financial Services Committee (Article 12.16). A Party may 
request consultations with another Party regarding any matter arising under the Agreement that 
affects financial services. The settlement of disputes relating to financial services is subject to the 
provisions laid out in Articles 12.18 and 12.19.  
4.91.  The liberalization commitments taken by the Parties in financial services are described 
below: 
4.7.4.1  Costa Rica 
4.92.  Costa Rica's commitments under the Agreement go significantly beyond its GATS 
commitments, which, for example, do not cover insurance-related services. Costa Rica's existing 
non-conforming measures under Annex III of the Agreement concern such matters as reserve 
requirements for certain private banks, and requirements for certain cooperative organizations and solidarity associations to operate a cooperative bank and a solidarity bank, respectively. Further, 
Costa Rica agreed to liberalize some insurance and reinsurance services, which were formerly 
under state monopoly. It committed to allow insurance services suppliers of any Party to establish and effectively compete to supply directly to the consumer any kind of insurance except for compulsory automobile and occupational risk insurance by 1 January 2008, and all lines of 
insurance without exception by 1 January 2011. Costa Rica's only exemption in Annex III for 
future non-conforming measures concerns the right to adopt or maintain measures requiring the incorporation into the country of foreign financial institutions not seeking to operate as banks or 
insurance companies.  
4.93.  As regards cross-border trade, Costa Rica's national treatment commitments relate to the 
transfer of financial information and financial data processing, as well as advisory and other 
auxiliary services (excluding intermediation). As per Section H of Annex 12.9.2, it also agreed to 
gradually liberalize cross-border trade in insurance services. By no later than the date of entry into 
force of the Agreement, i.e. 1 January 2009, and pursuant to Article 12.5.2, Costa Rica shall 
permit persons located in its territory, and its nati onals wherever located, to purchase any and all 
lines of insurance (except compulsory automobile insurance and occupational risk insurance) from 
cross-border insurance service suppliers of another Party located in the territory of that other Party or of another Party. For mode 1, it permits, as of the entry into force of the Agreement, the cross-
border supply of certain insurance-related services, e.g., certain risk insurance, retrocession and 
reinsurance, and insurance intermediation. It also agreed to permit, by 1 July 2007, the 
establishment of representative offices and the cr oss-border supply of auxiliary insurance services, 
insurance intermediation, and surplus lines.  
4.7.4.2  The Dominican Republic 4.94.  The Dominican Republic's commitments under the Agreement go significantly beyond its 
GATS commitments, which do not cover insurance-re lated services and are often unbound or with 
foreign equity limitations for committed services. Under the Agreement, the Dominican Republic's 
Annex III existing non-conforming measures concern such matters as, for example, type of legal WT/REG211/3 
 
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  entity, capital requirements, nationality/residency requirements, or reciprocity conditions for 
insurance services. Annex III also provides that the country will permit the establishment of 
branches by foreign insurance companies four years after the date of entry into force of the 
Agreement. The Dominican Republic's only exemption in Annex III for future non-conforming measures concerns the right to adopt or maintain measures requiring the incorporation into the 
country of foreign financial institutions not seeking to operate as banks or insurance companies.  
4.95.  With respect to cross-border trade, the Dominican Republic's national treatment 
commitments on insurance services are limited to modes 1 and 4, and to the following activities: 
insurance of risk relating to transport and goods in international transit; reinsurance and 
retrocession; brokerage of certain insurance risks;  and consultancy, risk assessment, actuarial and 
claims settlement services. For banking and other financial services, commitments on cross-border trade cover solely the provision and transfer of financial information and financial data processing, 
as well as advisory and other auxiliar y services (excluding intermediation). 
4.96.  In addition, as per Annex 12.9.2, the Dominican Republic undertook certain specific 
commitments for financial services. These provide, for example, that it shall allow a financial 
institution organized outside its territory to provide certain investment advice and portfolio 
management services.  
4.7.4.3  El Salvador 
4.97.  El Salvador's commitments under the Ag reement are broader than its GATS commitments, 
which cover various banking and other financial services - but not insurance-related ones - and are largely unbound. El Salvador's existing non-conforming measures under Annex III relate to such matters as foreign equity limitations for insurance companies and banks, and nationality and/or 
residency requirements for foreign exchange offices and institutions managing pension funds. The 
Agreement also provides that El Salvador will undertake future liberalization by permitting foreign insurance companies to establish branches three ye ars after the date of entry into force of the 
Agreement. El Salvador's only exemption in Annex III for future non-conforming measures 
concerns the right to adopt or maintain measures requiring the incorporation into the country of foreign financial institutions not wishing to operate as banks or insurance companies.  
4.98.  As regards cross-border trade, El Salvador's national treatment commitments on insurance 
services are limited to modes 1 and 4, and to the fo llowing activities: insurance of risk relating to 
transport and goods in international transit; reinsurance and retrocession; insurance intermediation; and services auxiliary to insurance. For banking and other financial services, 
commitments on cross-border trade cover solely the provision and transfer of financial information 
and financial data processing, as well as advisory and other auxiliary services (excluding intermediation). 
4.99.  In addition, as per Annex 12.9.2, El Salvador undertook certain specific commitments for 
financial services. These provide, for example, that it shall allow a financial institution organized outside its territory to provide certain investment advice and portfolio management services.  
4.7.4.4  Guatemala 
4.100.  Guatemala's commitments under the Agreement go beyond its GATS commitments, which 
are limited to three sub-sectors, and largely unb ound under national treatment. Guatemala has 
scheduled six exemptions under Annex III, five of  which are existing non-conforming measures. 
Some of these exemptions relate, among other th ings, to the type of legal entity for banks. 
Annex III also specifies that the establishment and operation of agencies and branches of foreign insurance companies, as well as the consumption abroad of certain insurance services are 
prohibited. However, Guatemala commits to allow foreign insurers to establish as branches within 
four years of entry into force of the Agreemen t. Guatemala also reserves the right to adopt 
measures requiring incorporation in Guatemala of foreign financial institutions other than those 
seeking to operate as banks or insurance companies.  
4.101.  As regards cross-border trade, Guatemala's national treatment commitments on insurance 
services are limited to modes 1 and 4, and to the fo llowing activities: insurance of risk relating to 
transport and goods in international transit; reinsurance and retrocession; insurance 
intermediation; and services auxiliary to insurance. For banking and other financial services, WT/REG211/3 
 
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  commitments on cross-border trade cover solely the provision and transfer of financial information 
and financial data processing, as well as advisory and other auxiliary services (excluding 
intermediation). 
4.102.  In addition, as per Annex 12.9.2, Guatemala undertook certain specific commitments for 
financial services. These provide, for example, that it shall allow a financial institution organized 
outside its territory to provide certain investment advice and portfolio management services.  
4.7.4.5  Honduras 4.103.  Honduras' commitments under the Agreement go significantly beyond its GATS 
commitments. The latter cover various financial activities but are unbound in modes 1, 2 and 4 
and include such limitations as economic needs te sts in mode 3. Under the Agreement, Honduras 
has taken a number of exemptions under Annex III,  most relating to existing non-conforming 
measures. These relate, among other things, to restrictions on the type of legal entity, reciprocity 
conditions for the establishment of bank branches, and nationality/residency requirements for 
insurance brokers and agents. As regards future non-conforming measures (Section B of Annex III), Honduras reserves the right to adopt or maintain any restriction with respect to the 
supply of services by Savings and Loan Cooperatives, as well as with respect to the incorporation 
in Honduras of foreign financial institutions other than those seeking to operate as banks or insurance companies. 
4.104.  As regards cross-border trade, Honduras' national treatment commitments on insurance 
services are limited to modes 1 and 4, and to the fo llowing activities: insurance of risk relating to 
transport and goods in international transit; reinsurance and retrocession; insurance intermediation; and services auxiliary to insurance. For banking and other financial services, 
commitments on cross-border trade cover solely the provision and transfer of financial information 
and financial data processing, as well as advisory and other auxiliary services (excluding intermediation). 
4.105.  In addition, as per Annex 12.9.2, Honduras undertook certain specific commitments for 
financial services. These provide, for example, that it shall allow a financial institution organized outside its territory to provide certain investment advice and portfolio management services.  
4.7.4.6  Nicaragua 
4.106.  Nicaragua's commitments under the Agreement go beyond its GATS commitments, which 
cover various financial activities but are unbound in modes 1 and 2 and include a number of limitations in mode 3. Under the Agreement, Nicaragua's existing non-conforming measures in 
Annex III relate, among other things, to capital requirements for branches of foreign banks and 
financial institutions, restrictions on the type of legal entity for insurance, and reinsurance and pension fund management. As regards future non- conforming measures (Section B of Annex III), 
Nicaragua reserves the right to adopt or maintain measures requiring the incorporation into 
Nicaragua of foreign financial institutions not wishing to operate as banks or insurance companies. It also reserved the right to accord benefits to financial institutions wholly or majority owned by 
the State that are established for a public purpose, e.g. agriculture production finance, and 
housing credit for low income families. 
4.107.  As regards cross-border trade, Nicaragu a's national treatment commitments on insurance 
services are limited to modes 1 and 4, and to the fo llowing activities: insurance of risk relating to 
transport and goods in international transit; reinsurance and retrocession; insurance 
intermediation; and services auxiliary to insurance. For banking and other financial services, commitments on cross-border trade cover solely the provision and transfer of financial information 
and financial data processing, as well as advisory and other auxiliary services (excluding 
intermediation). 
4.108.  In addition, as per Annex 12.9.2, Nicaragua undertook certain specific commitments for 
financial services. These provide, for example, that it shall allow a financial institution - other than 
a trust company - organized outside its territory to provide certain investment advice and portfolio management services. It also provides that, four years after the entry into force of the Agreement, WT/REG211/3 
 
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  i.e. in April 2010, Nicaragua will allow U.S. insurance suppliers to establish in its territory through 
branches.61 
4.7.4.7  The United States 
4.109.  The commitments taken by the United States under the Agreement largely reflect those in 
its GATS schedule Under the Agreement, the United States has taken a number of exemptions 
under Annex III, in the form of nationality requirements, establishment requirements for branches 
of foreign banks and financial institutions, and reciprocity tests. With respect to market access for financial institutions in the insurance sector, the United States reserves the right to adopt or 
maintain any measure that is not inconsistent with its obligations under Article XVI of the GATS.  
4.110.  As regards cross-border trade, the United States' national treatment commitments on 
insurance services are limited to modes 1 and 4, and to the following activities: insurance of risk relating to transport and goods in international transit; reinsurance and retrocession; insurance 
intermediation; and services auxiliary to insurance. For banking and other financial services, 
commitments on cross-border trade cover solely the provision and transfer of financial information and financial data processing, as well as advisory and other auxiliary services (excluding 
intermediation). The commitment by the United States to allow the cross-border supply of 
intermediation services constitutes an additional U.S. financial services commitment under the Agreement relative to its GATS undertakings. 
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 5.1.  Article 18.2 requires the Parties to promptly  publish or make publicly available their laws, 
regulations, procedures, and administrative rulings  of general application. The Parties must also, 
to the extent possible, notify each other of any proposed or actual measure that might materially 
affect the operation of the Agreement or substantially affect the interests of another Party (Article 18.3). Each Party shall establish or maintain judicial, quasi-judicial or administrative 
tribunals or procedures for the purpose of the prompt review and, where warranted, correction of 
final administrative actions regarding matters covered by the Agreement (Article 18.5).  Within 60 
days of the Agreement's entry into force each Party shall designate a contact point to facilitate 
communications between the Parties (Article 18.1) 
5.2.  In Article 18.7 the Parties affirm their resolve to eliminate bribery and corruption in 
international trade and investment and in Article 18.9 commit to jointly pursue this aim in relevant international fora. At the domestic level, they will adopt or maintain the necessary legislative or 
other measures to establish criminal offences against bribery and corruption affecting international 
trade or investment (Article 18.8).  
5.3.  Article 11.7 specifies rules on transparency that go beyond the requirements of Article III of 
the GATS, by requiring the parties to establish mechanisms to respond to enquiries from any 
interested persons regarding regulations relating to Chapter 11 and by requiring parties to address in writing comments received on their draft regulations. 
5.4.  In the financial services sector, transpar ency shall be granted to the extent practicable 
through publication in advance of any regulations and through the possibility for any person to comment on such regulations. The time-frame for the adoption of administrative decisions on a completed application relating to the supply of financial services shall not be more than 120 days, 
where practicable (Article 12.11).  
5.2  Current payments and capital movements 5.5.  Under Article 11.10, each Party shall perm it all transfers and payments relating to the 
c r o s s - b o r d e r  s u p p l y  o f  s e r v i c e s  t o  b e  m a d e  f r e e l y ,  i n  u s a b l e  c u r r e n c y  a t  t h e  m a r k e t  r a t e  o f  
exchange prevailing at the time of transfer and without delay into and out of its territory. A Party 
may, however, deny a transfer or payment in case  of: (i) bankruptcy, insolvency, or the protection 
                                               
61 La Ley General de Seguros, Reaseguros y Finanzas, Ley No. 733, approved 15 June 2010 and 
published in Gazettes no. 162, 163 and 164, dated 25, 26 and 27 August 2010. WT/REG211/3 
 
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  of the rights of creditors; (ii) issuing, trading,  or dealing in securities, futures, options, or 
derivatives; (iii) financial reporting or record k eeping of transfers when necessary to assist law 
enforcement or financial regulatory authorities; (iv) criminal or penal offences; or (v) compliance 
with orders or judgments in judicial or administrative proceedings.  
5.3  Government Procurement 
5.6.  Chapter 9 of the Agreement contains detailed obligations with respect to government 
procurement. The United States is the only CAFTA-DR member which is a member of the WTO Agreement on Government Procurement (GPA). The other CAFTA-DR countries are neither 
members nor observers of the GPA and thus have no rights or obligations under the GPA.  
5.7.  Chapter 9 of the Agreement covers the pr ocurement of goods, services or both by any 
contractual means, including purchase, rental, or lease with or without option to buy, build-operate-transfer contracts, and public works concession contracts applied between the 
United States and each other Party; between the Central American Parties; and between each 
Central American Party and the Dominican Republic, subject to the conditions specified in Annexes 9.1.2(b)(i)-(iii), respectively. The Chapte r on government procurement does not apply to 
certain types of procurement such as non-contractual agreements or any form of assistance that a 
Party or a state enterprise provides to persons or to state, regional, or local governments and purchases for the purpose of providing foreign assistance. Purchases funded by loans or grants 
made to a Party, the acquisition of fiscal agen cy or depository services, and the hiring of 
government employees and related employment meas ures are also excluded from the scope of the 
Agreement. The Chapter's core principles ar e national treatment, non-discrimination and 
transparency of government procurement measures (Articles 9.2-9.4). Other general principles 
include the prohibition of offsets and non-disclosure of information (Article 9.2:4 and 9.12).  
5.8.  The Agreement provides for detailed time limits for the tendering process and for the 
provision of tender documentation (Articles 9.5- 6). Contracts are awarded on the basis of open 
tendering procedures though a procuring entity may award contracts by other means in certain 
circumstances (Article 9.9:2). Annexes 9.1.2(b)(i )-(iii) set out the central, sub-central and other 
government entities that are covered by the Chap ter, the thresholds that are applied, and the 
specific types of procurement and procurement a rrangements that each Party has exempted from 
the application of the Chapter. Table 5.1 lists the number of entities covered by each Party under the Agreement. 
Table 5.1 Number of Covered Entities under  the Agreement's Government Procurement 
Provisions, by Party
 
Party Number of Covered Entities 
Central Level Sub-Central Level Other : List A Other : List B 
Costa Rica 22 81 11 2 
Dominican Rep. 22 31 15 0 
El Salvador 11 25 55 3 
Guatemala 35 30 19 0 
Honduras 16 142 10 0 
Nicaragua 15 88 32 0 
United States 79 23a 6 1 
a In the case of Honduras, 17 sub-central entities of the United States are covered. 
Source: WTO Secretariat, based on the text of the Agreement. 
5.9.  Thresholds vary for different groups of en tities and according to the nature of purchases 
(goods, services, or construction services); they ar e adjustable for inflation, and in the case of 
construction services, for changes in the U.S. doll ar exchange rate with the Special Drawing Right 
(SDR).62 The general thresholds for goods, services and construction services are laid down in 
Table 5.2. As can be seen from the Table, th e U.S. thresholds for procurement of goods and 
services under the Agreement are lower than U.S. thresholds under the GPA, particularly in the 
                                               
62 Section H of Annex 9.1.2(b)(i). WT/REG211/3 
 
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  case of purchases by central government enterp rises, conferring upon its CAFTA-DR Parties a 
market access advantage over GPA Members.63  
Table 5.2 Threshold Values for government  procurement of goods, services and 
construction services, US$ 
Classification Goods and Services Construction Services 
WTO GPA CAFTA-DR WTO 
GPA CAFTA-DR 
2006-07  
(US only) United 
States  
 Central 
American 
Parties & 
Dominican 
Republic  
2006-2009 2006-07 
(US 
only) United 
States 
 Central 
American 
Parties & 
Dominican 
Republic  
2006-2009 
Section A – Central 
government entities 193,000  58,550 117,100 7,407,000 6,725,000 8,000,000 
Section B – Sub-
central government 
entities  526,000  477,000 650,000 7,407,000 6,725,000 8,000,000 
Section C –Other 
covered entities: 593,000    7,407,000   
 List A 250,000 250,000 6,725,000 8,000,000 
 List B 538,000 538,000 6,725,000 8,000,000 
Source: WTO Secretariat, based on the text of the Agreement. 
5.10.  All goods and services are covered unless specifically excluded. No general exclusions on 
goods have been scheduled by the Parties. However, the Parties have excluded certain goods for specific entities as laid out in Annex 9.1.2(b)(i); the exclusions relating to services are contained in Box 5.1. Section I of Annex 9.1.2(b)(i) provides for a transition mechanism for the implementation 
of the obligations listed in the schedule of each Pa rty, with the exception of the United States. Two 
years after the Agreement's entry into force the Parties must comply fully with the obligations in their respective Schedules. A transition mechanism for the coverage of construction services is 
granted to the Dominican Republic under Section J. 
5.11.  Government procurement among the Central Am erican Parties is governed by the provisions 
of Annex 9.1.2(b)(ii). These provisions apply to procurement by all entities listed in 
Annex 9.1.2(b)(i) as well as those not listed. All goods, services and construction services are 
covered as in Annex 9.1.2(b)(i), subject to  the General Notes listed in Section E of 
Annex 9.1.2(b)(ii). Government Procurement between each Central American Party and the Dominican Republic is governed by the provisions of Annex 9.1.2(b)(iii), subject to the exemptions 
scheduled in the Annex. 
Box 5.1 Services excluded from Governme nt procurement liberalization under the 
Agreement 
Schedule of Costa Rica 
 Research and development services 
 Management of government-owned facilities 
 Gambling and Betting services 
 Electricity distribution services; gas and water distribution services through mains 
 Public administration and other services to the community as a whole; compulsory social 
security services 
 Education services (public education) 
 Health and social services 
                                               
63 Threshold values for the United States under the GPA for 2006-2007 can be found in WTO document 
GPA/W/295/Add.2, 14 December 2005. Updated thresh old values may be found at GPA/W/299/Add.1 
(2008-09); GPA/W/309/Add.1 (2010-11); GPA/W/314/Add.2 (2012-13); and GPA/W/325/Add.1 (2014-15). WT/REG211/3 
 
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   Sewage and Refuse disposal, sanitation an d other environmental protection services 
Schedule of the Dominican Republic 
 Research and development services 
 Advertising services 
 Management of government-owned facilities 
 Electricity distribution services; gas and water distribution services through mains 
 Administrative services of compulsory social security schemes 
 Education services 
 Land Transport services 
 Water Transport services 
 Air Transport Services 
Schedule of Guatemala 
 Electricity distribution services; gas and water distribution services through mains 
 Public administration and other services to the community as a whole; compulsory social 
security services 
 Education services (public education) 
 Health and social services 
 Sewage and Refuse disposal, sanitation an d other environmental protection services 
 Individual professional services 
Schedule of Honduras 
 Land Transport services 
 Air Transport services 
 Electricity distribution services; gas and water distribution services through mains 
Schedule of Nicaragua 
 Operation of government-owned facilities 
 Electricity distribution services; gas and water distribution services through mains 
 Public administration and other services to the community as a whole; compulsory social 
security services 
 Education services (public education) 
 Health and social services 
 Sewage and Refuse disposal, sanitation an d other environmental protection services 
 Individual professional services 
Schedule of the United States 
 Research and development 
 ADP telecommunications and transmission services, except those classified as "enhanced 
or value-added services" 
 ADP teleprocessing and timesharing services 
 Telecommunications network management services WT/REG211/3 
 
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   Automated news services, data services or other information services 
 Other ADP and telecommunications services 
 Maintenance, repair, modification, rebuilding and installation of equipment related to ships 
 Non-nuclear ship repair 
 All facilities operated by the Department of Defence, Department of Energy, and the 
National Aeronautics and Space Administration; and for all entities: research and 
development facilities 
 All classes of utilities 
 All classes or transportation, travel and relocation services except travel agent services 
 Any service in support of military forces overseas 
Source: The CAFTA-DR Agreement. 
 
5.4  Electronic Commerce 
5.12.  Chapter 14 contains specific provisions regarding electronic commerce. The Agreement 
recognizes the economic growth and opportun ity that electronic commerce provides, the 
importance of avoiding barriers to its use and de velopment, and the applicability of WTO rules to 
measures affecting electronic commerce. The Parties affirm in Article 14.2 that if a service is 
delivered electronically and falls within the scope of the obligations contained in the Agreement's 
relevant provisions governing investment, cross-border trade in services and financial services, it is subject to any exceptions or non-conforming measures as set out in the Agreement.  
5.13.  Digital products (which include computer programs, text, video, images, sound recordings, 
and other products digitally encoded, but not digitized representations of financial instruments) 
transmitted electronically may not be subject to cu stoms duties (Article 14.3). The Parties are also 
required to afford non-discriminatory treatment to digital products transmitted electronically. The 
Parties agree to publish or otherwise make available to the public their laws, regulations, and other 
measures of general application that pertain to electronic commerce (Article 14.4). Article 14.5 addresses the issue of cooperation, affirming th e importance of working together to overcome 
obstacles, sharing information and experience on laws, working to maintain cross-border flows of 
information, encouraging the private sector to adopt self-regulation, and actively participating in hemispheric and multilateral fora to promot e the development of electronic commerce. 
5.5  Intellectual Property Rights 
5.14.  Intellectual property rights are the subjec t of Chapter 15 of the Agreement. The Parties 
affirm their existing rights and obligations under the TRIPS Agreement and other intellectual property agreements concluded or administered under the auspices of the World Intellectual 
Property Organization and to which they are party. The general provisions of the Chapter 
(Article 15.1) include national treatment and tr ansparency obligations. The Agreement does not 
cover acts that occurred before the Agreement's entry into force.  
5.15.  Chapter 15 details the nature of protection that Parties should provide with respect to 
trademarks and geographical indications, as well as various procedural requirements that apply in these fields of intellectual property rights (Articles 15.2 and 15.3).  
5.16.  Provisions with respect to copyright and re lated rights (Articles 15.5, 15.6 and 15.7) include 
a requirement to provide copyright protection for the life of the author plus 70 years (for works 
measured by a person's life). The Chapter also contains provisions for the protection of rights management information, anti-circumvention of technological protection measures, and the 
liability, and limitations thereon, for Internet service providers in connection with copyright 
infringements that take place over their networks.  
5.17.  With respect to patents (Article 15.9), the Chapter includes provisions through which the 
Parties agree to make patents available for any invention, subject to exclusions as set out in 
Articles 27.2 and 27.3 of the TRIPS Agreement.  Notwithstanding this, the Parties agree to 
undertake "all reasonable efforts" to provide patent protection for plants. Any Party that provides WT/REG211/3 
 
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  patent protection for plants or animals on or afte r the date of entry into force of the Agreement is 
obliged to maintain it.  
5.18.  The Chapter includes further provisions relating to domain names (Article 15.4); protection 
of encrypted programme-carrying satellite sign als (Article 15.8); submission of data and 
information related to the approval for marketing of certain products (Article 15.10); and 
enforcement of intellectual property rights (Article 15.11).  
5.19.  Article 15.12 provides for transition periods ranging from six months to four years from the 
date of the Agreement's entry into force for the five Central American Parties and the Dominican 
Republic to implement certain provisions of Chapter 15. 
5.20.  In an Understanding Regarding Certain Public Health Measures, the Parties confirm that the 
obligations of the Chapter do not affect the abilit y of the Parties to take necessary measures to 
protect public health by promoting access to medi cines for all. The Understanding also confirms 
that the Parties shall immediately consult in order to adapt the Chapter, as appropriate, to an 
amendment of the TRIPS Agreement implementing th e Decision of the WTO General Council of 30 
August 2003. 
5.21.  Annex 15.11, which is applicable between the Dominican Republic and the United States, 
contains the procedures and remedies concerning broadcast or cable transmissions or retransmissions in the Dominican Republic. 
5.6  Labour 
5.22.  Chapter 16 establishes provisions relating to the protection of internationally recognized 
labour rights. The Parties reaffirm their obligations as members of the International Labour Organization (ILO), and commit to strive to ensure that their laws provide for labour standards 
consistent with internationally recognized labour rights. The Parties recognize that it is 
inappropriate to weaken or reduce domestic labour protections to encourage trade or investment. Each Party is required to effectively enforce its labour laws, and this obligation is subject to dispute 
settlement under the Agreement. Procedural guar antees in the Chapter require the Parties to 
provide appropriate access for workers and employ ers to fair, equitable and transparent labour 
tribunals or courts. Article 16.5 includes a cooperative mechanism to advance commitments 
regarding labour matters, including the principles embodied in the ILO Declaration on Fundamental 
Principles and Rights at Work and ILO Conventi on 182 on the Worst Forms of Child Labour. In 
Annex 16.5, Labour Cooperation and Capacity Building Mechanism, the Parties agree to coordinate their activities and cooperate to establish priorities, develop specific cooperative and capacity 
building activities, exchange information on labour laws and practices and seek support, as 
appropriate, from international organizations regarding labour matters. 
5.7  Environment 
5.23.  Chapter 17 sets out the Parties’ commitments regarding environmental protection. The 
Parties commit not to fail to effectively enforce their environmental laws through a sustained or recurring course of inaction in a manner affectin g trade between the Partie s, after the date of 
entry into force of the Agreement. Where a Party claims that a dispute arises under Chapter 17 a 
panel shall be composed (Article 17.11.3). Each Party must ensure that its environmental laws and policies provide for high levels of environmental protection and shall strive to continue to improve those laws and policies. Each Party also must strive not to waive or derogate from its 
environmental laws to encourage trade or investment in its territory. In Chapter 17 each Party also 
commits to ensure that it has in place judicial, quasi-judicial or administrative proceedings to sanction or remedy violations of its environmental laws and to provide procedural guarantees that 
ensure fair, equitable and transparent proceedings for the administration and enforcement of those 
environmental laws. In Article 17.5, the Parties establish an Environmental Affairs Council to oversee the implementation of and review progress under Chapter 17 and to consider the status of 
cooperation activities developed under the Dominican Republic – Central America – United States 
Environmental Cooperation Agreement (ECA). 
5.24.  Chapter 17 also includes procedures for any person of a Party to file a submission asserting 
that a Party is failing to effectively enforce its environmental laws. Such submissions are filed with 
a secretariat designated by the Parties which ma y, under appropriate circumstances, develop a WT/REG211/3 
 
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  factual record containing relevant information about the alleged failure to effectively enforce and 
that factual record may be made public. Chapter 17 also includes provisions: recognizing the 
importance of voluntary mechanisms to enhance environmental performance, opportunities for 
public participation in the implementation of the Chapter through both the receipt and consideration of written communication and through national consultative or advisory committees; 
recognizing the importance of environmental coop eration among the Parties to strengthen their 
capacity to protect the environment; and establishing a mechanism for collaboration among the Parties on matters arising under the Chapter. In Annex 17.9 on environmental cooperation the 
Parties recognize the importance of protecting the environment, underscore the importance of 
promoting all possible forms of cooperation, and id entify priorities for environmental cooperation 
activities.  
5.8  Institutional Provisions 
5.8.1  Exceptions 
5.25.  Exceptions are laid down in Chapter 21. Article 21.1 stipulates that, for the purposes of 
Chapters 3-7, Article XX (general exceptions) of the GATT 1994 is incorporated into and made part 
of the Agreement mutatis mutandis  and that Article XIV of GATS is incorporated into the 
Agreement for the purposes of Chapters 11, 13 and 14. Article 21.2 provides, inter alia , for a Party 
to apply measures that it considers necessary for its own essential security interests. The Chapter 
also includes exceptions for taxation (Article 21.3), balance of payment measures on trade in 
goods (Article 21.4) and general provisions for disclosure of information (Article 21.5).  
5.8.2  Accession and Termination 5.26.  The Agreement is open to accession by an y country or group of countries on terms to be 
agreed between the Parties and the countries concerned (Article 22.6). Any Party may withdraw 
from the Agreement by providing written notice of withdrawal. A withdrawal shall take effect six months after a Party provides written notice (Article 22.7). 
5.8.3  Institutional Framework 
5.27.  Chapters 18-22 of the Agreement deal respec tively with Transparency, Administration of the 
Agreement and Trade Capacity Building, Dispute Settlement, Exceptions, and Final Provisions. 
Each Party shall designate a contact point to facilitate communications between the Parties on any 
matter covered by the Agreement within 60 days of the entry into force of the Agreement. 
Provisions for the transparent administration of laws and regulations include the publication of 
laws, regulations, procedures, and administrative  rulings relating to matters covered by the 
Agreement (Article 18.2); notification and provision of information (Article 18.3); administrative 
proceedings (Article 18.4); and review and appeal (Article 18.5). In Article 18.8, the Parties undertake to adopt or maintain the necessary legislative or other measures to eliminate bribery 
and corruption in international trade and investment.  
5.28.  Chapter 19 establishes a Free Trade Commission to supervise the implementation of the 
Agreement, oversee its further elaboration, seek to resolve disputes that may arise regarding the 
interpretation or application of the Agreement, and consider any other matter that may affect the 
operation of the Agreement. In Article 19.4 the Parties agree to the establishment of a Committee on Trade Capacity Building to further the Parties' ongoing trade capacity building efforts and to assist the Central American Parties and the Dominican Republic to implement the Agreement.  
5.8.4  Dispute Settlement 
5.29.  Chapter 20 sets out the procedures and institutional arrangements that apply to the 
avoidance or settlement of all disputes between the Parties regarding questions of interpretation or 
application of the Agreement; wherever a Party considers an actual or proposed measure of 
another Party is or would be inconsistent with the obligations of the Agreement or that another Party has otherwise failed to carry out its obligations under the Agreement; or wherever a Party 
considers that an actual or proposed measure of another Party causes or would cause nullification 
or impairment under seven chapters of the Agr eement, namely: Chapters 3 (National Treatment 
and Market Access for Goods); 7 (Technical Barriers to Trade); 9 (Government Procurement); WT/REG211/3 
 
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  11 (Cross-Border Trade in Services); and 15 (Intellectual Property Rights). Chapter 20 does not 
apply to matters arising under Chapter 6 (SPS) and certain provisions of Chapters 8 (Trade 
Remedies), 16 (Labour) and 17 (Environment).64 The dispute settlement processes of Chapter 20 
are limited to the Parties, but private investors have a direct right of action under the investor-state arbitration procedure under Chapter 10 of the Agreement (see above).  
5.30.  Article 20.3 provides for a choice of forum and forum exclusion clauses for matters falling 
under the Agreement, the WTO Agreement and any other free trade agreement to which the disputing Parties are party. Accordingly, a Party shall be considered to have selected a forum when 
it has requested the establishment of a dispute settlement panel. 
5.31.  The Free Trade Commission comprising cabinet-level representatives of the Parties 
supervises the implementation of the Agreement and issues interpretations of the Agreement as 
required. The Agreement provides for detailed steps in the process for dispute resolution which are 
described in (Table 5.3).  
5.32.  The dispute settlement process is to be open and transparent and the oral hearings, written 
submissions and final panel reports are to be made available to the public, subject to the 
requirement to protect confidential information. Unless the disputing Parties otherwise agree, the 
panel shall conduct its proceedings in accordance with the Model Rules of Procedures which have been negotiated and are in force. Article 20.7 prov ides for the Parties to establish and maintain a 
roster of up to 70 individuals who are willing and able to serve as panelists. There is no 
mechanism for appellate review of panel decisions in the Agreement. However, Annex 10-F provides for the possibility of establishing an appellate body or a similar mechanism to review 
awards rendered under Article 10.25 in relation to investor-state disputes. In case of non-
implementation of panel findings, the Agreement prov ides either for the suspension of benefits or 
a monetary assessment (Articles 20.16 and 20.17). The Commission agrees to review the operation and effectiveness of the provisions on non-implementation and suspension of benefits 
not later than five years after the Agreement enters into force, or within six months after benefits 
have been suspended or monetary assessments have been imposed in five proceedings initiated under the Chapter, whichever occurs first (Article 20.19). 
5.33.  Section B of Chapter 20 contains provisions relating to domestic proceedings and private 
commercial dispute settlement in the event that an issue or interpretation or application of the 
Agreement arises in any domestic judicial or administrative proceeding of a Party. 
5.34.  Some special procedures apply for disputes which arise under either the labour or 
environment chapters of the Agreement (Article 20. 17), such as in relation to consultations and 
the selection of panellists with relevant expertise. The Agreement also mandates that any monetary payments due as a result of a Party's non-implementation of panel findings in a given 
labour or environmental dispute, which cannot exceed US$15 million (adjusted for inflation), are to 
be paid into a trust fund and used for appropriate labour or environmental initiatives. 
                                               
64 Except in relation to effectively enforcing its labour or environmental laws. WT/REG211/3 
 
- 100 - 
 
  Chart 5.1 Synopsis of the Agreement's dispute settlement provisions  
 
Source: WTO Secretariat, based on the test of the Agreement. 
 
5.8.5  Relationship with other ag reements concluded by the Parties 
5.35.  The Agreement's relationship with other agreements concluded by the Parties is defined in 
Article 1.3, where the Parties reaffirm their rights and obligations under the WTO Agreement and other agreements to which such Parties are parties. Article 1.3:2 allows the Central American 
Parties to maintain their existing legal instruments of Central American integration, adopt new 
legal instruments of Central American integration, or adopt measures to strengthen and deepen these instruments, provided that these instruments and measures are not inconsistent with the 
CAFTA-DR. Referral to the Free Trade Commission 
(consisting of representatives of the 
consulting Parties)  
(Art. 20.5) Consultations  
(Art. 20.4) 
60 or 15 days  
(perishable goods) 
30 days  
Written request for  
establishin g a Panel  
Panel Selection  (Art. 20.9) 
Rules of procedure  (Art. 20.10 ) 
 30 days for composition 
Panel examination   
(Art. 20.10 ) 
120 or 180 days 
Panel initial report to be sent 
to the parties (Art. 20.13) 
30 days 
Panel final report   
(Art. 20.14) 
15 days  
Report becomes public   
(Art. 20.14)  Implementation 
In agreement by the parties  
(Art. 20.15) 
45 days from receipt of final 
report failure to reach agreement 
Non-implementation 
Negotiations on mutually acceptable 
compensation (Art. 20.16 ) No retaliation  Retaliation (Art. 20.16.3) 
- 30 days after retaliation notice; or - a
fter panel determination (See below ) 
30 days from retaliation notice 
Panel reconvenes 
upon request from losing party  
(Art. 20.16.3) 
90 or 120 days from  
panel reconvention 
Panel determination  (Art. 20.16.3) 
Monetary assessment  
(Art. 20.16.6) upon notice from the 
losing Party within: - 30 days from 
notice of retaliation; or - 20 days from 
panel determination 
Failure to pay monetary assessment  Notice of retaliation (Art. 20.16.2) 
If no agreement on compensation (30 days);  or failure by non-conforming Party to observe  
agreed compensation or resolution WT/REG211/3 
 
- 101 - 
 
  5.36.  Table 5.3 lists all other regional trade agr eements (RTAs) notified and not notified to the 
GATT/WTO and in force to which Costa Rica, the Dominican Republic, El Salvador, Guatemala, 
Honduras, Nicaragua and the United States are party. 
Table 5.3 CAFTA-DR Parties: Participation in  other RTAs (notified and non-notified in 
force), as of 29 April 2016  
RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
Dominican Republic 
Panama - Dominican Republic 08-Jun-87 Goods 2016 Enabling Clause 
European Union - CARIFORUM States 
EPA 01-Nov-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America 04-Oct-01* Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
CARICOM - Dominican Republic n.a.  Goods Not notified 
Costa Rica 
EFTA - Central America  
(Costa Rica and Panama) 19-Aug-14** Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
European Union - Central America 01-Oct-13*** Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Costa Rica - Singapore 01-Jul-13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Costa Rica - Peru 01-Jun-13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Mexico - Central America 01-Jul-13 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
China - Costa Rica 01-Aug-11 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Panama - Costa Rica  
(Panama - Central America) 23-Nov-08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Canada - Costa Rica 01-Nov-02 Goods 2003 GATT Art. XXIV 
Chile - Costa Rica  
(Chile - Central America) 15-Feb-02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America 07-Mar-02 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM n.a. Services Not notified 
CACM - Accession of Panama  06-May-13 Goods Not notified 
Costa Rica - CARICOM  15-Nov-05 Goods Not notified 
Costa Rica - Venezuela [LAIA, 
AAP.A25TM N°26]  27-Jul-94 Goods Not notified 
El Salvador 
European Union - Central America 01-Oct-13*** Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Mexico - Central America 01-Sep-12 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
El Salvador - Cuba 01-Aug-12 Goods 2013 Enabling Clause 
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras) 01-Feb-10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
El Salvador- Honduras - Chinese Taipei 01-Mar-08 G oods & Services 2010 GATT Art. XXIV & GATS Art. V 
Panama - El Salvador  
(Panama - Central America) 11-Apr-03 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Chile - El Salvador  
(Chile - Central America) 01-Jun-02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America 04-Oct-01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM n.a. Services Not notified 
CACM - Accession of Panama  06-May-13 Goods Not notified 
Venezuela - El Salvador [LAIA, 
AAP.A25TM N°27]  09-Jul-86 Goods Not notified 
Guatemala 
European Union - Central America 01-Dec-13*** Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Mexico - Central America 01-Sep-13 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
Chile - Guatemala  
(Chile - Central America) 23-Mar-10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras) 12-Nov-09 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Panama - Guatemala  
(Panama - Central America) 20-Jun-09 Goods & Services 2013 GATT Art. XXIV & GATS Art. V WT/REG211/3 
 
- 102 - 
 
  RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
Guatemala - Chinese Taipei 01-Jul-06 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America 15-Oct-01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM n.a. Services Not notified 
CACM - Accession of Panama  06-May-13 Goods Not notified 
Ecuador - Guatemala [LAIA, AAP.A25TM 
N°42] 19-Feb-13 Goods Not notified 
Belize - Guatemala 04-Ap r-10 Goods Not notified 
Guatemala - Cuba [LAIA, AAP.A25TM 
N°36] 18-May-01 Goods Not notified 
Guatemala - Venezuela [LAIA, 
AAP.A25TM N°23]  10-Apr-86 Goods Not notified 
Honduras 
Canada - Honduras 01-Oct-14 Goods & Services 2015 GATT Art. XXIV & GATS Art. V 
European Union - Central America 01-Aug-13*** Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Mexico - Central America 01-Jan-13 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras) 27-Mar-10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Panama - Honduras  
(Panama - Central America ) 09-Jan-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Chile - Honduras  
(Chile - Central America) 19-Jul-08 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
El Salvador- Honduras - Chinese Taipei 15-Jul-08 G oods & Services 2010 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America 19-Dec-01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM n.a. Services Not notified 
CACM - Accession of Panama  06-May-13 Goods Not notified 
Honduras - Venezuela [LAIA, 
AAP.A25TM N°16]  22-Sep-86 Goods Not notified 
Nicaragua 
European Union - Central America 01-Aug-13*** Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Chile - Nicaragua  
(Chile - Central America) 19-Oct-12 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Mexico - Central America 01-Sep-12 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
Panama - Nicaragua (Panama - Central 
America) 21-Nov-09 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Nicaragua - Chinese Taipei 01-Jan-08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America 03-Sep-02 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Global System of Trade Preferences 
among Developing Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM n.a. Services Not notified 
CACM - Accession of Panama  06-May-13 Goods Not notified 
Nicaragua - Venezuela [LAIA, 
AAP.A25TM N°25]  18-Jan-74 Goods Not notified 
United States 
United States - Panama 31-Oct-12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
United States - Colombia 15-May-12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Republic of Korea - United States 15-Mar-12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
United States - Peru 01-Feb-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
United States - Oman 01-Jan-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
United States - Bahrain 01-Aug-06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
United States - Morocco 01-Jan-06 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
United States - Australia 01-Jan-05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States - Singapore 01-Jan-04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
United States - Chile 01-Jan-04 Goods & Se rvices 2003 GATT Art. XXIV & GATS Art. V 
United States - Jordan 17-Dec-01 Goods & Services 2002 GATT Art. XXIV & GATS Art. V WT/REG211/3 
 
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  RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
North American Free Trade Agreement 
(NAFTA) 01-Jan-94 Goods & Services 1993 
1995 GATT Art. XXIV & GATS Art. V 
United States - Israel 19-Aug-85 Goods 1985 GATT Art. XXIV 
*Dominican Republic - El Salvador: 04-Oct-01; Guatemala: 15-Oct-01; Honduras: 19-Dec-01; Costa Rica: 
07-Mar-02; Nicaragua: 03-Sept-02. 
** Dates of entry into force: For Costa Rica, Panama  and Norway: 19-Aug-14; For Costa Rica, Panama, 
Liechtenstein and Switzerland: 29-Aug-14; For Costa Rica, Panama and Iceland: 5-Sept-14. 
*** The notifications made in February 2013 (see WT/REG332/N/1 and S/C/N/680) stated that: "Provisional 
application of the Agreement by all si gnatory parties is expected in the course of the second quarter 2013"; 
Further notifications to confirm the dates of entry into force between the EU and Central American countries are awaited. 
n.a. Not available. 
 
Source: WTO Secretariat. 
 
 WT/REG211/3 
 
- 104 - 
 
  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE CAFTA-DR AGREEMENT 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them to MFN imports is shown in Tables A1.1 – A1.7 below, 
by agricultural (WTO definition), non-agricultural and total products.  
(a) Costa Rica 
2. Costa Rica has a variable MFN tariff structure. Its (unweighted) average MFN rate (2009), 
the year the Agreement entered into force, was 5. 8% on all goods, with the average tariff applied 
to agricultural goods more than double that app lied to non-agricultural products. 48.7% of Costa 
Rica's tariff lines were duty-free at an MFN level in 2009, the year of entry into force of the Agreement for Costa Rica (Table A1.1).  
3. On entry into force of the Agreement, all CAFT A-DR exporters enjoyed a relative margin of 
preference of 66% on non-agricultural products vis-à-vis  the prevailing average MFN tariff in 2009 
and a relative margin of preference of 42.1% in ag ricultural goods. By 1 January of year 10 of the 
CAFTA-DR (in 2015), the share of duty-free lines  was 95.2% and by the end of the transition 
period in 2025, the share of duty-free lines on al l products is expected to increase to 99.9%.  
Table A1.1 Costa Rica: Indicators of MFN tari ff rates and preferential rates for imports 
from CAFTA-DR Parties
 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2009 5.8 11.2 48.7 12.1 16.3 25.5 4.7 9.9 52.7 
 2014 5.9 11.7 49.4 12.9 18.4 29.8 4.7 10.0 52.8 
CAFTA-
DR 2009 2.4 8.6 71.9 7.0 12.1 42.0 1.6 7.1 77.2 
 2010 2.1 8.9 76.4 6.2 12.8 51.4 1.4 7.1 80.8 
 2011 1.8 7.8 76.4 5.7 11.8 51.4 1.2 6.1 80.8 
 2012 1.5 6.4 76.4 5.2 10.6 51.4 0.9 4.6 80.8 
 2013 1.2 5.0 76.4 4.6 9.5 51.4 0.6 3.1 80.8 
 2014 0.8 3.6 76.4 4.1 8.4 51.4 0.3 1.5 80.8 
 2015 0.5 10.7 95.2 3.5 10.7 67.3 0.0 0.0 100.0 
 2016 0.4 9.3 95.2 3.1 9.3 67.2 0.0 0.0 100.0 
 2017 0.4 8.7 95.7 2.5 8.7 71.0 0.0 0.0 100.0 
 2018 0.3 7.1 95.7 2.1 7.1 71.0 0.0 0.0 100.0 
 2019 0.2 5.4 95.7 1.6 5.4 71.0 0.0 0.0 100.0 
 2020 0.2 30.1 99.5 1.1 30.1 96.3 0.0 0.0 100.0 
 2021 0.1 25.1 99.5 0.9 25.1 96.3 0.0 0.0 100.0 
 2022 0.1 21.4 99.5 0.7 21.4 96.5 0.0 0.0 100.0 
 2023 0.1 16.6 99.5 0.6 16.6 96.5 0.0 0.0 100.0 
 2024 0.1 11.8 99.5 0.4 11.8 96.5 0.0 0.0 100.0 
 2025 0.0 45.0 99.9 0.2 45.0 99.5 0.0 0.0 100.0 
a WTO Definition. 
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations.  
 MFN 2014 is based on HS 2012 nomenclature, the rest of the figures are based on HS 2002 
nomenclature at the 8-di git tariff line level. 
Source: WTO Secretariat estimates based on data provided by Costa Rica.  WT/REG211/3 
 
- 105 - 
 
  (b) Dominican Republic 
4. The Dominican Republic has a variable MFN ta riff structure. Its (unweighted) average MFN 
rate (2007) was 7.5% on all goods, with the average tariff applied to agricultural goods more than 
double that applied to non-agricultural products. 55.1% of the Dominican Republic's tariff lines were duty-free at an MFN level in 2007 (Table A1.2).  
5. On entry into force of the Agreement in 2007, all CAFTA-DR exporters (except Costa Rica for 
whom the Agreement entered into force in 2009) enjo yed a relative margin of preference of 62.5% 
on non-agricultural products vis-à-vis  the prevailing average MFN tariff in 2007 and a relative 
margin of preference of 42.8% in agricultural  goods. By 2009 when Costa Rica ratified the 
Agreement these figures had risen to 73.4% and 55 .8%, respectively. By 1 January of year 10 of 
the CAFTA-DR (in 2015) the share of duty-free tariff lines was 96% and by the end of the 
transition period in 2025, the share of duty-free lin es on all products is expected to increase to 
100%. 
Table A1.2 Dominican Republic: Indicators of MFN tariff rates and preferential rates for 
imports from CAFTA-DR Parties
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2007 7.5 16.6 55.1 13.8 21.3 34.8 6.4 15.4 58.7 
 2014 7.5 16.3 53.6 12.9 18.9 31.9 6.5 15.5 57.7 
CAFTA-DR 2007 3.2 13.7 76.6 7.9 18.0 56.5 2.4 12.1 80.2 
 2008 2.8 11.9 76.6 7.0 16.1 56.5 2.0 10.3 80.2 
 2009 2.4 10.1 76.6 6.1 14.2 56.7 1.7 8.5 80.2 
 2010 1.9 11.0 82.5 5.3 14.5 63.4 1.3 9.5 85.9 
 2011 1.7 9.4 82.5 4.7 12.8 63.4 1.1 7.9 85.9 
 2012 1.3 7.5 82.5 4.0 11.0 63.4 0.8 6.0 85.9 
 2013 1.0 5.6 82.5 3.4 9.2 63.4 0.6 4.0 85.9 
 2014 0.6 3.7 82.5 2.7 7.5 63.4 0.3 2.0 85.9 
 2015 0.3 7.8 96.0 2.1 11.9 82.4 0.0 0.0 98.5 
 2016 0.3 9.8 97.4 1.7 9.8 82.4 0.0 0.0 100.0 
 2017 0.2 9.2 97.8 1.3 9.2 85.3 0.0 0.0 100.0 
 2018 0.2 7.0 97.8 1.0 7.0 85.3 0.0 0.0 100.0 
 2019 0.1 4.8 97.8 0.7 4.8 85.3 0.0 0.0 100.0 
 2020 0.1 30.2 99.8 0.4 30.2 98.7 0.0 0.0 100.0 
 2021 0.0 24.1 99.8 0.3 24.1 98.7 0.0 0.0 100.0 
 2022 0.0 18.1 99.8 0.2 18.1 98.7 0.0 0.0 100.0 
 2023 0.0 12.1 99.8 0.2 12.1 98.7 0.0 0.0 100.0 
 2024 0.0 6.0 99.8 0.1 6.0 98.7 0.0 0.0 100.0 
 2025 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a WTO Definition. 
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations. 
 MFN 2014 is based on HS 2012 nomenclature, the rest of the figures are based on HS 2002 
nomenclature at the 8-di git tariff line level. 
Source: WTO Secretariat estimates based on data pr ovided by the Dominican Republic and WTO-IDB. 
 
(c) El Salvador 
6. El Salvador has a variable MFN tariff structure. Its (unweighted) average MFN rate (2006) 
was 7.4% on all goods, with the average tariff applied to agricultural goods slightly less than double that applied to non-agricultural products. 46.7% of El Salvador's ta riff lines were duty-free 
at an MFN level in 2006 (Table A1.3).  
7. On entry into force of the Agreement in  2006, all CAFTA-DR exporters (except the 
Dominican Republic and Costa Rica) enjoyed a relative margin of preference of 73.8% on WT/REG211/3 
 
- 106 - 
 
  non-agricultural products vis-à-vis  the prevailing average MFN tariff in 2006 and a relative margin 
of preference of 39.3% in agricultural goods.  In 2007 when the Agreement entered into force 
between El Salvador and the Dominican Republic, these figures were 77.1% and 45.7%, 
respectively. In 2009 when the Agreement entered in to force between El Salvador and Costa Rica, 
these figures were 84.3% and 58.6%, respectively. By 1 January of year 10 of the CAFTA-DR (in 
2015), the share of duty-free lines was 97.6% and by  the end of the transition period in 2025, the 
share of duty-free lines on all products is expected to increase to 100%.  
Table A1.3 El Salvador: Indicators of MFN ta riff rates and preferential rates for imports 
from CAFTA-DR Parties  
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2006 7.4 13.9 46.7 11.9 15.5 23.4 6.6 13.6 51.0 
 2015 6.3 12.0 47.8 12.5 17.2 27.7 5.2 10.7 51.3 
CAFTA-
DR 2006 2.6 11.6 78.0 7.2 15.6 53.6 1.7 9.8 82.2 
 2007 2.3 10.2 78.0 6.4 13.9 53.6 1.5 8.6 82.2 
 2008 1.9 8.8 78.0 5.7 12.3 53.6 1.3 7.2 82.2 
 2009 1.6 7.3 78.0 4.9 10.6 53.6 1.0 5.8 82.2 
 2010 1.3 8.4 84.6 4.2 12.6 67.1 0.8 6.5 87.7 
 2011 1.1 7.2 84.6 3.7 11.4 67.2 0.7 5.4 87.7 
 2012 0.9 5.9 84.6 3.3 10.0 67.2 0.5 4.0 87.7 
 2013 0.7 4.6 84.7 2.9 8.8 67.4 0.3 2.7 87.7 
 2014 0.5 3.2 84.7 2.4 7.3 67.4 0.2 1.3 87.7 
 2015 0.3 12.0 97.6 1.9 12.0 83.8 0.0 0.0 100.0 
 2016 0.2 10.2 97.6 1.7 10.2 83.8 0.0 0.0 100.0 
 2017 0.2 9.4 97.9 1.4 9.4 85.6 0.0 0.0 100.0 
 2018 0.2 7.6 97.9 1.1 7.6 85.6 0.0 0.0 100.0 
 2019 0.1 5.7 97.9 0.8 5.7 85.6 0.0 0.0 100.0 
 2020 0.1 6.2 98.7 0.5 6.2 91.4 0.0 0.0 100.0 
 2021 0.1 11.4 99.5 0.4 11.4 96.5 0.0 0.0 100.0 
 2022 0.0 8.3 99.5 0.3 8.3 96.6 0.0 0.0 100.0 
 2023 0.0 6.4 99.6 0.2 6.4 97.4 0.0 0.0 100.0 
 2024 0.0 3.6 99.6 0.1 3.6 97.4 0.0 0.0 100.0 
 2025 0.0 20.0 100.0 0.0 20.0 99.9 0.0 0.0 100.0 
a WTO Definition. 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations.  
 MFN 2015 is based on HS 2012 nomenclature, the rest of the figures are based on HS 2002 
nomenclature at the 8-di git tariff line level. 
Source: WTO Secretariat estimates based on data provided by El Salvador to WTO-RTA, WTO-TPR and WTO-
IDB. 
 
(d) Guatemala 
8. Guatemala has a variable MFN tariff structure. Its (unweighted) average MFN rate (2006) is 
6.0% on all goods, with the average tariff applied to agricultural goods slightly less than double 
that applied to non-agricultural products. 46.8% of  Guatemala's tariff lines were duty-free at an 
MFN level in 2006 (Table A1.4).  
9. On entry into force of the Agreement in  2006, all CAFTA-DR exporters (except the 
Dominican Republic and Costa Rica) enjoyed a relative margin of preference of 58.8% on 
non-agricultural products vis-à-vis  the prevailing average MFN tariff in 2006 and a relative margin 
of preference of 36.3% in agricultural goods.  In 2007 when the Agreement entered into force 
between Guatemala and the Dominican Republic, these figures were 64.7% and 42.5%, 
respectively. In 2009 when the Agreement entered into force between Guatemala and Costa Rica, 
these figures were 76.5% and 54.9%, respectively. By 1 January of year 10 of the CAFTA-DR (in WT/REG211/3 
 
- 107 - 
 
  2015), the share of duty-free lines was 97.9% and by  the end of the transition period in 2025, the 
share of duty-free lines on all products is expected to increase to 100%.  
Table A1.4 Guatemala: Indicators of MFN ta riff rates and preferential rates for imports 
from CAFTA-DR Parties   
Origin  
of goods Year ALL PRODUCTS  Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2006 6.0  11.2 46.8  10.1 13.1 23.2 5.3 10.7  50.6 
 2007 5.9 11.2 47.1 9.9 13.1 24.4 5.3 10.7 50.8 
 2009 5.9  11.2 47.2  9.9 13.1 24.7 5.3 10.7  50.9 
 2015 5.7 11.2 49.5 9.6 13.2 27.9 5.0 10.7 53.2 
CAFTA-DR* 2006 2.3  10.8 79.1  5.2 13.3 61.0 1.8 9.9  82.0 
 2007 2.0 9.6 79.1 4.6 11.8 61.0 1.6 8.7 82.0 
 2008 1.7  8.3 79.1  4.0 10.3 61.0 1.4 7.5  82.0 
 2009 1.5 7.0 79.1 3.5 8.9 61.0 1.1 6.3 82.0 
 2010 1.2  6.9 82.8  2.9 9.2 68.7 0.9 6.1  85.1 
 2011 1.0 5.8 82.8 2.5 8.1 68.7 0.7 5.0 85.1 
 2012 0.8  4.6 82.8  2.2 6.9 68.7 0.6 3.8  85.1 
 2013 0.6 3.4 82.8 1.8 5.8 68.7 0.4 2.5 85.1 
 2014 0.4  2.1 82.8  1.5 4.7 68.7 0.2 1.3  85.1 
 2015 0.2 7.7 97.9 1.1 7.7 85.5 0.0 0.0 100.0  
 2016 0.1  6.5 97.9  0.9 6.5 85.5 0.0 0.0  100.0  
 2017 0.1 5.6 98.0 0.8 5.6 85.9 0.0 0.0 100.0  
 2018 0.1  4.4 98.0  0.6 4.4 85.9 0.0 0.0  100.0  
 2019 0.1 3.3 98.0 0.5 3.3 85.9 0.0 0.0 100.0  
 2020 0.0  8.5 99.5  0.3 8.5 96.6 0.0 0.0  100.0  
 2021 0.0 6.6 99.5 0.2 6.6 96.6 0.0 0.0 100.0  
 2022 0.0  4.7 99.5  0.2 4.7 96.6 0.0 0.0  100.0  
 2023 0.0 3.7 99.6 0.1 3.7 97.4 0.0 0.0 100.0  
 2024 0.0  2.3 99.6  0.1 2.3 97.4 0.0 0.0  100.0  
 2025 0.0 20.0 100.0  0.0 20.0 99.9 0.0 0.0 100.0  
Dominican 2007 2.0  9.5 79.2  4.5 11.7 61.3 1.6 8.7  82.1 
Republic 2008 1.7 8.2 79.2 3.9 10.2 61.3 1.3 7.5 82.1 
 2009 1.4  6.9 79.2  3.4 8.7 61.3 1.1 6.3  82.1 
 2010 1.2 6.9 82.9 2.8 9.0 69.0 0.9 6.1 85.2 
 2011 1.0  5.8 82.9  2.5 7.9 69.0 0.7 5.0  85.2 
 2012 0.8 4.6 82.9 2.1 6.8 69.0 0.6 3.8 85.2 
 2013 0.6  3.3 82.9  1.8 5.7 69.0 0.4 2.5  85.2 
 2014 0.4 2.1 82.9 1.4 4.6 69.0 0.2 1.3 85.2 
 2015 0.2  7.5 97.9  1.1 7.5 85.5 0.0 0.0  100.0  
 2016 0.1 6.4 97.9 0.9 6.4 85.5 0.0 0.0 100.0  
 2017 0.1  5.4 98.0  0.8 5.4 85.9 0.0 0.0  100.0  
 2018 0.1 4.3 98.0 0.6 4.3 85.9 0.0 0.0 100.0  
 2019 0.1  3.2 98.0  0.4 3.2 85.9 0.0 0.0  100.0  
 2020 0.0 8.2 99.5 0.3 8.2 96.6 0.0 0.0 100.0  
 2021 0.0  6.4 99.5  0.2 6.4 96.6 0.0 0.0  100.0  
 2022 0.0 4.6 99.5 0.2 4.6 96.6 0.0 0.0 100.0  
 2023 0.0  3.7 99.6  0.1 3.7 97.4 0.0 0.0  100.0  
 2024 0.0 2.3 99.6 0.1 2.3 97.4 0.0 0.0 100.0  
 2025 0.0  20.0 100.0  0.0 20.0 99.9 0.0 0.0  100.0  
Costa Rica 2009 1.4 6.9 79.2 3.4 8.7 61.6 1.1 6.3 82.1 
 2010 1.2  6.9 83.0  2.8 9.0 69.2 0.9 6.1  85.2 
 2011 1.0 5.8 83.0 2.4 8.0 69.2 0.7 5.0 85.2 
 2012 0.8  4.6 83.0  2.1 6.8 69.2 0.6 3.8  85.2 
 2013 0.6 3.3 83.0 1.8 5.7 69.2 0.4 2.5 85.2 
 2014 0.4  2.1 83.0  1.4 4.6 69.2 0.2 1.3  85.2 
 2015 0.2 7.5 97.9 1.1 7.5 85.5 0.0 0.0 100.0  
 2016 0.1  6.4 97.9  0.9 6.4 85.5 0.0 0.0  100.0  
 2017 0.1 5.4 98.0 0.8 5.4 85.9 0.0 0.0 100.0  
 2018 0.1  4.3 98.0  0.6 4.3 85.9 0.0 0.0  100.0  
 2019 0.1 3.2 98.0 0.4 3.2 85.9 0.0 0.0 100.0  
 2020 0.0  8.2 99.5  0.3 8.2 96.6 0.0 0.0  100.0  
 2021 0.0 6.4 99.5 0.2 6.4 96.6 0.0 0.0 100.0  
 2022 0.0  4.6 99.5  0.2 4.6 96.6 0.0 0.0  100.0  
 2023 0.0 3.7 99.6 0.1 3.7 97.4 0.0 0.0 100.0  
 2024 0.0  2.3 99.6  0.1 2.3 97.4 0.0 0.0  100.0  
 2025 0.0 20.0 100.0  0.0 20.0 99.9 0.0 0.0 100.0  
a WTO Definition. 
* Excluding Costa Rica an d the Dominican Republic. WT/REG211/3 
 
- 108 - 
 
  Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 MFN 2015 is based on HS 2012 nomenclature, the rest of the figures are based on HS 2007 
nomenclature at the 8-di git tariff line level. 
Source: WTO Secretariat estimates based on data provided by Guatemala to WTO-RTA and WTO-TPR 
databases. 
 
(e) Honduras 
10. Honduras has a variable MFN tariff structure. Its (unweighted) average MFN rate (2006) was 
5.9% on all goods, with the average tariff applied to agricultural goods almost double that applied 
to non-agricultural products. 46.6% of Honduras' tariff lines were duty-free at an MFN level in 
2006 (Table A1.5).  
11. On entry into force of the Agreement in  2006, all CAFTA-DR exporters (except the 
Dominican Republic and Costa Rica) enjoyed a relative margin of preference of 53.8% on 
non-agricultural products vis-à-vis  the prevailing average MFN tariff in 2006 and a relative margin 
of preference of 37.3% in agricultural goods.  In 2007 when the Agreement entered into force 
between Honduras and the Dominican Republic, these figures were 59.6% and 42.3%, 
respectively. In 2009 when the Agreement entered into force between Honduras and Costa Rica, 
these figures were 72.5% and 54.1%, respectively. By 1 January of year 10 of the CAFTA-DR (2015), the share of duty-free lines was 97.1% an d by the end of the transition period in 2025, 
the share of duty-free lines on all products is expected to increase to 100%.  
Table A1.5 Honduras: Indicators of MFN tari ff rates and preferential rates for imports 
from CAFTA-DR Parties
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2006 5.9 11.1 46.6 10.2 13.2 22.5 5.2 10.6 50.6 
 2007 6.1 11.4 46.8 11.1 14.5 23.3 5.2 10.6 50.7 
 2009 6.0 11.3 47.2 11.1 14.6 24.0 5.1 10.5 51.0 
 2014 5.9 11.4 48.0 10.7 14.7 27.1 5.1 10.6 51.6 
CAFTA-DR* 2006 3.0 11.0 73.2 6.4 12.9 50.4 2.4 10.4 77.0 
 2007 2.6 9.7 73.2 5.7 11.5 50.6 2.1 9.0 77.0 
 2008 2.2 8.3 73.3 5.0 10.2 50.8 1.8 7.7 77.1 
 2009 1.8 6.8 73.4 4.3 8.9 50.9 1.4 6.0 77.1 
 2010 1.4 7.2 79.9 3.7 9.4 60.8 1.1 6.3 83.1 
 2011 1.2 6.0 79.9 3.3 8.4 60.8 0.9 5.1 83.1 
 2012 1.0 4.8 79.9 2.9 7.3 60.8 0.7 3.9 83.1 
 2013 0.7 3.6 79.9 2.4 6.2 60.8 0.4 2.6 83.1 
 2014 0.5 2.4 79.9 2.0 5.1 60.8 0.2 1.3 83.1 
 2015 0.2 7.8 97.1 1.6 7.8 79.6 0.0 0.0 100.0 
 2016 0.2 6.6 97.1 1.4 6.6 79.6 0.0 0.0 100.0 
 2017 0.2 5.8 97.2 1.1 5.8 80.6 0.0 0.0 100.0 
 2018 0.1 4.8 97.3 0.9 4.8 81.2 0.0 0.0 100.0 
 2019 0.1 3.7 97.3 0.7 3.7 81.2 0.0 0.0 100.0 
 2020 0.1 10.8 99.4 0.4 10.8 95.8 0.0 0.0 100.0 
 2021 0.0 9.3 99.5 0.3 9.3 96.4 0.0 0.0 100.0 
 2022 0.0 6.4 99.5 0.2 6.4 96.4 0.0 0.0 100.0 
 2023 0.0 4.6 99.6 0.1 4.6 97.3 0.0 0.0 100.0 
 2024 0.0 3.2 99.6 0.1 3.2 97.3 0.0 0.0 100.0 
 2025 0.0 45.0 100.0 0.0 45.0 99.9 0.0 0.0 100.0 
Dominican  2007 2.7 10.1 73.2 6.4 12.9 50.5 2.1 9.0 77.0 
Republic 2008 2.3 8.7 73.3 5.7 11.6 50.7 1.8 7.7 77.1 
 2009 1.9 7.1 73.3 5.1 10.3 50.8 1.4 6.0 77.1 
 2010 1.5 7.7 79.9 4.4 11.2 60.7 1.1 6.3 83.1 
 2011 1.3 6.5 79.9 4.0 10.2 60.7 0.9 5.1 83.1 
 2012 1.1 5.3 79.9 3.6 9.1 60.7 0.7 3.9 83.1 
 2013 0.8 4.1 79.9 3.1 8.0 60.7 0.4 2.6 83.1 WT/REG211/3 
 
- 109 - 
 
  Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
 2014 0.6 2.9 79.9 2.7 6.9 60.7 0.2 1.3 83.1 
 2015 0.3 11.2 97.1 2.3 11.2 79.4 0.0 0.0 100.0 
 2016 0.3 9.8 97.1 2.0 9.8 79.4 0.0 0.0 100.0 
 2017 0.2 8.8 97.2 1.7 8.8 80.5 0.0 0.0 100.0 
 2018 0.2 7.6 97.3 1.4 7.6 81.0 0.0 0.0 100.0 
 2019 0.2 6.1 97.3 1.2 6.1 81.0 0.0 0.0 100.0 
 2020 0.1 18.8 99.4 0.8 18.8 95.7 0.0 0.0 100.0 
 2021 0.1 15.3 99.5 0.6 15.3 96.3 0.0 0.0 100.0 
 2022 0.0 9.3 99.5 0.3 9.3 96.3 0.0 0.0 100.0 
 2023 0.0 4.6 99.6 0.1 4.6 97.3 0.0 0.0 100.0 
 2024 0.0 3.2 99.6 0.1 3.2 97.3 0.0 0.0 100.0 
 2025 0.0 45.0 100.0 0.0 45.0 99.9 0.0 0.0 100.0 
Costa Rica 2009 1.9 7.2 73.4 5.1 10.3 50.8 1.4 6.0 77.1 
 2010 1.5 7.7 79.9 4.4 11.2 60.7 1.1 6.3 83.1 
 2011 1.3 6.5 79.9 4.0 10.2 60.7 0.9 5.1 83.1 
 2012 1.1 5.3 79.9 3.6 9.1 60.7 0.7 3.9 83.1 
 2013 0.8 4.1 79.9 3.1 8.0 60.7 0.4 2.6 83.1 
 2014 0.6 2.9 79.9 2.7 6.9 60.7 0.2 1.3 83.1 
 2015 0.3 11.2 97.1 2.3 11.2 79.4 0.0 0.0 100.0 
 2016 0.3 9.8 97.1 2.0 9.8 79.4 0.0 0.0 100.0 
 2017 0.2 8.8 97.2 1.7 8.8 80.5 0.0 0.0 100.0 
 2018 0.2 7.6 97.3 1.4 7.6 81.0 0.0 0.0 100.0 
 2019 0.2 6.1 97.3 1.2 6.1 81.0 0.0 0.0 100.0 
 2020 0.1 18.8 99.4 0.8 18.8 95.7 0.0 0.0 100.0 
 2021 0.1 15.3 99.5 0.6 15.3 96.3 0.0 0.0 100.0 
 2022 0.0 9.3 99.5 0.3 9.3 96.3 0.0 0.0 100.0 
 2023 0.0 4.6 99.6 0.1 4.6 97.3 0.0 0.0 100.0 
 2024 0.0 3.2 99.6 0.1 3.2 97.3 0.0 0.0 100.0 
 2025 0.0 45.0 100.0 0.0 45.0 99.9 0.0 0.0 100.0 
a WTO Definition. 
* Excluding Costa Rica and Dominican Republic. Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on HS 2007 nomenclature at the 8-digit tariff line level. 
Source: WTO Secretariat estimates base d on data provided by Honduras. 
 
(f) Nicaragua 
12. Nicaragua has a variable MFN tariff structure. Its (unweighted) average MFN rate (2006) 
was 6.1% on all goods, with the average tariff a pplied to agricultural goods slightly more than 
double that applied to non-agricultural products . 46.5% of Nicaragua's tariff lines were duty-free 
at an MFN level in 2006 (Table A1.6).  
13. On entry into force of the Agreement in  2006, all CAFTA-DR exporters (except the 
Dominican Republic and Costa Rica) enjoyed a relative margin of preference of 58.8% on non-
agricultural products vis-à-vis  the prevailing average MFN tariff in 2006 and a relative margin of 
preference of 36.3% in agricultural goods. In 2007 when the Agreement entered into force 
between Nicaragua and the Dominican Republic, these figures were 64.7% and 42.5%, 
respectively. In 2009 when the Agreement entered into force between Nicaragua and Costa Rica, 
these figures were 76.5% and 54.9%, respectively. By 1 January of year 10 of the CAFTA-DR (in 2015) the share of duty-free lines was 96.6% and by  the end of the transition period in 2025, the 
share of duty-free lines on all products is expected to increase to 100%.  WT/REG211/3 
 
- 110 - 
 
  Table A1.6 Nicaragua: Indicators of MFN ta riff rates and preferential rates for imports 
from CAFTA-DR Parties  
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2006 6.1 11.3 46.5 11.3 14.1 20.3 5.1 10.5 51.5 
 2015 6.2 11.7 46.9 11.8 15.5 23.7 5.1 10.5 51.3 
CAFTA-DR 2006 2.9 10.2 71.6 7.2 13.8 47.6 2.1 8.7 76.3 
 2007 2.6 9.0 71.6 6.5 12.5 47.6 1.8 7.6 76.3 
 2008 2.2 7.7 71.6 5.8 11.2 47.6 1.5 6.3 76.3 
 2009 1.8 6.5 71.6 5.1 9.8 47.6 1.2 5.1 76.3 
 2010 1.5 7.4 79.9 4.4 10.7 58.6 0.9 5.8 84.1 
 2011 1.3 6.3 79.9 4.0 9.6 58.6 0.8 4.7 84.1 
 2012 1.0 5.2 79.9 3.5 8.6 58.6 0.6 3.6 84.1 
 2013 0.8 4.0 79.9 3.1 7.5 58.6 0.4 2.4 84.1 
 2014 0.6 2.9 79.9 2.6 6.4 58.6 0.2 1.2 84.1 
 2015 0.3 10.3 96.6 2.2 10.3 78.7 0.0 0.0 100.0 
 2016 0.3 8.8 96.6 1.9 8.8 78.7 0.0 0.0 100.0 
 2017 0.2 8.2 97.0 1.5 8.2 81.2 0.0 0.0 100.0 
 2018 0.2 6.7 97.0 1.3 6.7 81.2 0.0 0.0 100.0 
 2019 0.2 5.1 97.0 1.0 5.1 81.2 0.0 0.0 100.0 
 2020 0.1 14.6 99.3 0.6 14.6 95.6 0.0 0.0 100.0 
 2021 0.1 12.6 99.4 0.5 12.6 96.1 0.0 0.0 100.0 
 2022 0.1 8.8 99.4 0.3 8.8 96.1 0.0 0.0 100.0 
 2023 0.0 5.6 99.4 0.2 5.6 96.5 0.0 0.0 100.0 
 2024 0.0 3.3 99.5 0.1 3.3 96.9 0.0 0.0 100.0 
 2025 0.0 10.0 100.0 0.0 10.0 99.9 0.0 0.0 100.0 
a WTO Definition. 
Note: For tariff lines subject to TRQs, only the out- of-quota duty is included in the tariff-related 
calculations. 
 MFN 2015 is based on HS 2012 nomenclature, rest of the figures are based on HS 2002 
nomenclature at the 10-di git tariff line level. 
Source: WTO Secretariat estimates based on data provided by Nicaragua and WTO-IDB. 
 
(g) United States 
14. The United States has a variable MFN tariff structure. Its (unweighted) average MFN rate 
(2006 and 2009) was 4.8% on all goods, with the average tariff applied to agricultural goods 
slightly more than double that applied to non-agricultural products. 36.4% of U.S. tariff lines were 
duty-free at an MFN level in 2006 (Table A1.7).  
15. On entry into force of the Agreement, CAFTA-DR exporters enjoyed a relative margin of 
preference of 100% on non-agricultural products vis-à-vis  the prevailing average MFN tariff and a 
relative margin of preference of 64.8% in agricultural goods in the U.S. market (69% for 
Costa Rica).1 By 1 January of year 10 of CAFTA-DR (in 2015), the share of duty-free lines was 
98.1% and by the end of the transition period in 2025, the share of duty-free lines on all products 
is expected to increase to 99.5%.  
                                               
1 Liberalization in the case of the Dominican Republic began in 2007 at the same rates as those faced by 
other CAFTA-DR Parties in that  year (except Costa Rica). WT/REG211/3 
 
- 111 - 
 
  Table A1.7 USA: Indicators of MFN tariff ra tes and preferential rates for imports from 
CAFTA-DR Parties 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2006 4.8 7.5 36.4 8.8 11.3 22.3 4.0 6.6 39.0 
 2007 4.8 7.5 36.4 8.8 11.3 22.3 4.0 6.6 39.0 
 2009 4.8 7.5 36.4 8.8 11.3 22.3 4.0 6.6 39.0 
 2014 4.8 7.6 36.8 9.0 11.7 22.8 4.0 6.6 39.4 
CAFTA-
DR* 2006 0.5 34.0 97.8 3.0 40.2 87.5 0.0 5.7 99.7 
 2007 0.4 32.6 97.8 2.9 38.6 87.5 0.0 5.5 99.7 
 2008 0.4 31.2 97.8 2.8 36.9 87.5 0.0 5.0 99.7 
 2009 0.4 29.8 97.8 2.7 35.3 87.5 0.0 4.5 99.7 
 2010 0.4 28.8 97.9 2.5 34.3 87.9 0.0 4.0 99.7 
 2011 0.4 27.3 97.9 2.4 32.6 87.9 0.0 3.5 99.7 
 2012 0.3 25.5 97.9 2.3 30.6 87.9 0.0 2.6 99.7 
 2013 0.3 23.6 97.9 2.1 28.5 87.9 0.0 1.7 99.7 
 2014 0.3 21.8 97.9 2.0 26.5 87.9 0.0 0.9 99.7 
 2015 0.3 25.1 98.2 1.8 25.1 88.2 0.0 0.0 100.0 
 2016 0.2 22.3 98.2 1.6 22.3 88.2 0.0 0.0 100.0 
 2017 0.2 19.6 98.2 1.4 19.6 88.2 0.0 0.0 100.0 
 2018 0.2 16.8 98.2 1.2 16.8 88.2 0.0 0.0 100.0 
 2019 0.2 14.1 98.2 1.0 14.1 88.2 0.0 0.0 100.0 
 2020 0.1 13.6 98.4 0.8 13.6 89.7 0.0 0.0 100.0 
 2021 0.1 13.2 98.4 0.8 13.2 89.7 0.0 0.0 100.0 
 2022 0.1 12.7 98.4 0.8 12.7 89.7 0.0 0.0 100.0 
 2023 0.1 12.3 98.4 0.7 12.3 89.7 0.0 0.0 100.0 
 2024 0.1 11.8 98.4 0.7 11.8 89.7 0.0 0.0 100.0 
 2025 0.1 22.1 99.5 0.7 22.1 97.1 0.0 0.0 100.0 
a WTO Definition. 
* Entry into force year for the Dominican Republic is 2007 and 2009 for Costa Rica. Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations;  
 Calculation of MFN averages includes AVEs provided by USA authorities; for preferential tariffs with 
non ad valorem  components, only the ad valorem  part of the rate was included in the calculation of 
the tariff averages. 
 MFN 2014 is based on HS 2012 nomenclature, the rest of the figures are based on HS 2007 
nomenclature at the 8-di git tariff line level. 
Source: WTO Secretariat estimates based on data provided by USA to WTO-RTA/TPR databases. 
 
16. Tables A1.8 – A1.14 show the market access opportunities for each CAFTA-DR Party in other 
CAFTA-DR markets for its top 25 exports, based on the average top export products for the three 
year period prior to entry into force of the Agreement (either 2003-05, 2004-06 or 2006-08). The 
tables show at which year all HS tariff lines corresp onding to the product definition (i.e. applying to 
the 6-digit HS code used to capture the volume of trade) will become duty-free in each of the other CAFTA-DR Parties' markets 
17. Table A1.8 shows the market access opportunities in CAFTA-DR markets for Costa Rica's top 
25 exports, which in 2006-2008 accounted on averag e for 61.8% of Costa Rica's global exports. 
The MFN average rates faced by Costa Rica's exporters in the other CAFTA-DR Parties' markets in 
2009 ranges from duty-free to 20%. Seven of Co sta Rica's top 25 exports, accounting for 24.7% 
of its average global exports already benefited from zero MFN duties in all six other CAFTA-DR Parties' markets: one product is granted duty-free access in all Parties' markets in 2009. Products 
subject to liberalization in 2020 or after are all agricultural products. One product – other food 
preparations (sugar containing) – is not fully liberalized and remains subject to duties in the U.S. market.  WT/REG211/3 
 
- 112 - 
 
  18. Table A1.9 shows the market access opportunities in CAFTA-DR markets for the Dominican 
Republic's top 25 exports, which in 2004-2006 accounted on average for 79.2% of its global 
exports. The MFN average rates faced by the Dominican Republic's exporters in the other CAFTA-
DR Parties' markets in 2007 ranges from duty-free to 55%. Three of the Dominican Republic's top 
25 exports, accounting for 33.1% of its average global exports already benefited from zero MFN 
duties in all six other CAFTA-DR Parties' markets. Products subject to liberalization in 2020 or after 
are all agricultural products. Two products – cane sugar and other food preparations (sugar containing) – are not fully liberalized and remain subject to duties in the U.S. market.  
19. Table A1.10 shows the market access opportunities in CAFTA-DR markets for El Salvador's 
top 25 exports, which in 2003-2005 accounted on average for 48.4% of El Salvador's global exports. The MFN average rates faced by El Salvador's exporters in the other CAFTA-DR Parties' markets in 2006 range from duty-free to 85%.
2 One of El Salvador's top 25 exports, accounting for 
1.0% of its average global exports already benefited from zero MFN duties in all six other CAFTA-
DR Parties' markets: three products are granted duty-free access in all Parties' markets in the respective year of entry into force. Products subject to liberalization in 2020 or after are all 
agricultural products. Two products – cane sugar and other food preparations (sugar containing) – 
are not fully liberalized and remain subject to duties in the U.S. market. 
20. Table A1.11 shows the market access opportunities in CAFTA-DR markets for Guatemala's 
top 25 exports, which in 2003-2005 accounted on average for 52.7% of Guatemala's global 
exports. The MFN average rates faced by Guatemal a's exporters in the other CAFTA-DR Parties' 
markets in 2006 ranges from duty-free to 85%.
3 One of Guatemala's top 25 exports, accounting 
for 0.6% of its average global exports already benefited from zero MFN duties in all other CAFTA-
DR Parties' markets: five products are granted duty-free access in all Parties' markets in the 
respective year of entry into force. Products subject to liberalization in 2020 or after are all agricultural products. One product – cane sugar – is not fully liberalized and remains subject to 
duties in the U.S. market. 
                                               
2 The MFN rates shown for Costa Rica and the Dominican Republic are for 2009 and 2007, respectively. 
3 The MFN rates shown for Costa Rica and the Dominican Republic are 2009 and 2007, respectively.  
  WT/REG211/3  
 
- 113 - Table A1.8 Costa Rica's Market Access Oppo rtunities under the Agreement in other CAFTA-DR Parties' markets for its top 25 produ cts 
Costa Rica's top export products (2006-
2008) MFN average (2009) Duty-free 
(2009) Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports DR ES GU HO NI US 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
854231* Processors and 
controllers 9.9 0.0  0.0 0.0 0.0 0.0 0.0 D, E, G, H, 
N, U         
847330 Parts and accessories of 
machines of 
heading 84.71 8.6 0.0 0.0 0.0 0.0 0.0 0.0 D, E, G, H, 
N, U         
080300 Bananas, including 
plantains, fresh or dried. 7.9 20.0 15.0 15.0 15.0 15.0 0.5  E, G, H, N, U     D   
080430 Pineapples 5.8 20.0 15.0 15.0 15.0 15.0 1.1  H, U G E  N D   
901839 Syringes, other 5.4 3.0 0.0 0.0 0.0 0.0 0.0 D, E, G, H, 
N, U         
090111 Coffee, not decaffeinated 3.2 14.0 13.8 13.8 13.8 13.8 0.0 D, U      G, H, 
N E  
300490 Medicaments, other 2.6 0.5 5.0 5.0 0.0 0.0 0.0 H, N, U  G D, E      
210690 Food preparations, other 1.7 6.0 8.1 6.5 6.5 8.3 14.0    D, G, H, 
N, E     U 
901890 Other instruments and 
appliances 1.7 0.0 0.0 0.0 0.0 0.0 0.0 D, E, G, H, 
N, U         
854233* Amplifiers 1.4 0.0  0.0 0.0 0.0  0.0 0.0 D, E, G, H, 
N, U         
854449 Insulated wire, other 1.3 14.0  15.0 11.7 11.7  0.0 3.2 N D, E, U  G, H      
902190 Orthopaedic appliances, 
other 1.2 0.0 0.0 0.0 0.0 0.0 0.0 D, E, G, H, 
N, U         
854239* Electronic integrated 
circuits, other 1.2 0.0  0.0 0.0 0.0 0.0 0.0 D, E, G, H, 
N, U         
854232* Memories 1.1 1.0  0.0 0.0 0.0 0.0 0.0 E, G, H, N, 
U  D       
401110 New pneumatic tyres  1.1 20.0 15.0 15.0 15.0 5.0 3.7  E, G, H, N, U  D      
151110 Crude oil 0.9 0.0 5.0 5.0 5.0 0.0 0.0 D, N, U   G   H, E   
080719 Melons, other 0.9 20.0 15.0 15.0 15.0 15.0 14.0  E, G, H, N, U  D      
852990 Parts suitable for use with 
85.25 to 85.28, other 0.9 17.0  7.5 7.5 7.5  7.5 2.3  D, G, U  E, H, N      
610821 Women's or girls' slips, of 
cotton 0.8 20.0 25.0 15.0 15.0 15.0 7.6  D, E, G, H, 
N, U        
851770* Facsimile machines, parts 0.7 0.0  0.0 0.0 0.0 0.0 0.0 D, E, G, H, 
N, U         
401693 Gaskets, washers and 
other seals 0.7 0.0 5.0 5.0 5.0 5.0 2.5 D G, H, E, US N       
481840 Sanitary towels and 
tampons 0.7 16.7 7.5 7.5 7.5 10.0 0.0 U G, N H, E D      
620711 Men's or boys' singlets, of 
cotton 0.7 20.0 25.0 15.0 15.0 15.0 6.1  D, E, G, H, 
N, U        
060491 Foliage, branches and 
other parts of plants  0.7 20.0 15.0 15.0 15.0 15.0 0.0 U D, E, G, H, N         
  WT/REG211/3  
 
- 114 - Costa Rica's top export products (2006-
2008) MFN average (2009) Duty-free 
(2009) Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports DR ES GU HO NI US 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
271019 Petroleum oils, other 0.6 10.3 4.6 3.5 4.6 3.7 1.9  G, U  H, N, E D     
  Total 61.8                 
Note:  D/DR= Dominican Republic; E/ES= El Salvador; G/GU=Guatemala; H/HO=Honduras; N/NI=Nicaragua; U/US=United States. 
Based on HS(2007) nomenclature.  
* Aligned with HS 2002 equivalent in the case of Nicaragua, El Salvador and the Dominican Republic. Source:  WTO Secretariat, based on data supplied from the Parties and UNSD COMTRADE. 
 
Table A1.9 The Dominican Republic's Market  Access Opportunities in other CAFTA-DR Pa rties' markets under the Agreement for its top 
25 products   
Dominican Rep.'s top export products 
(2004-2006) MFN average (2006)* Duty-free 
(2007)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR ES GU HO NI US 
2007 
2009 
2010 
2015 
2017 
2020 
2021 
2025 
720260 Ferro-nickel 31.4 0.0 0.0 0.0 0.0 0.0 0.0 C, E, G, H, 
N, U          
170111 Cane sugar 5.4 45.0 40.0 20.0 40.0 55.0 20.8       C, E,G, H, 
N   U 
271099 Waste oils, other 4.8 14.0 15.0 15.0 15.0 15.0 4.4  G, U   C, E, H, N       
271011 Light oils and 
preparations 4.8 4.3 4.7 0.7 7.1 2.3 1.6  G, U   C, E, H, N      
271091 Waste oils 4.8 14.0 15.0 15.0 15.0 15.0 0.1  G, U   C, E, H, N       
271019 Petroleum oils, other 4.8 3.9 4.6 3.5 4.6 3.7 1.9  G, U   C, E, H, N      
721420 Other bars and rods of 
iron  3.8 14.0 15.0 15.0 15.0 0.0 0.0 N, U    C, E, G, H      
180100 Cocoa beans, whole or 
broken, raw or roasted. 3.0 5.0 5.0 5.0 5.0 5.0 0.0 U G   C, E, H, N      
080300 Bananas, including 
plantains 2.9 14.0 15.0 15.0 15.0 15.0 0.5  E, G, H, 
N, U C        
220840 Rum and tafia 1.8 14.0 35.0 35.0 15.0 23.3 15.9  U   E   C, G, H, N    
240210 Cigars, cheroots and 
cigarillos 1.7 14.0 15.0 15.0 15.0 15.0 5.4  U     C, G, H, N E   
210690 Food preparations, 
other 1.3 5.9 8.1 6.5 7.5 8.3 14.4     G, H, N  C   E U 
220300 Beer made from malt 1.2 14.0 20.0 40.0 15.0 15.0 0.0 U      C, E, G, 
H, N    
392410 Tableware and 
kitchenware 1.0 9.5 10.0 10.0 10.0 10.0 4.7  U  E C, G, H, N      
293212 2-Furaldehyde 
(furfuraldehyde) 0.9 0.0 0.0 0.0 0.0 0.0 0.0 C, E, G, H, 
N, U          
720430 Waste and scrap of 
tinned iron or steel 0.8 0.0 0.0 0.0 0.0 0.0 0.0 C, E, G, H, 
N, U           
  WT/REG211/3  
 
- 115 - Dominican Rep.'s top export products 
(2004-2006) MFN average (2006)* Duty-free 
(2007)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR ES GU HO NI US 
2007 
2009 
2010 
2015 
2017 
2020 
2021 
2025 
080440 Avocados 0.8 14.0 15.0 15.0 15.0 15.0 10.0  H, U   C, E N G    
170310 Cane molasses 0.7 14.0 15.0 15.0 15.0 15.0 0.5  U   G  C, H, N E   
080111 Coconuts, dessicated  0.6 9.0 10.0 10.0 10.0 10.0 0.0 U E, G, H, 
N  C       
691010 Ceramic sinks, of 
porcelain or china 0.5 14.0 15.0 15.0 15.0 15.0 5.8  U  E C, G, H, N      
252329 Portland cement, other 0.5 9.0 10.0 10.0 10.0 10.0 0.0 U    C, E, G, 
H, N      
110100 Wheat or meslin flour 0.5 5.0 10.0 10.0 10.0 10.0 0.8  U    C, E, 
G, H, 
N     
391729 Tubes, pipes and 
hoses, of other plastics 0.5 2.5 5.0 5.0 5.0 5.0 3.1  U   C, E, G, 
H, N      
090111 Coffee, not 
decaffeinated 0.4 12.8 13.8 13.8 13.8 13.8 0.0 U      C, G, H, N E   
040700 Birds' eggs, in shell, 
fresh, preserved or cooked. 0.5 7.7 8.3 8.3 8.3 8.3 2.8 
cents/doz.  U     C, G, H, N E   
 Total 79.2                 
Note:  C/CR= Costa Rica; E/ES= El Salvador; G/GU=Guatemala; H/HO=Honduras; N/NI=Nicaragua; U/US=United States. 
Based on HS(2007) nomenclature.  
*  In the case of Costa Rica, the MFN rate shown is that for 2009. Source:  WTO Secretariat, based on data supplied from the Parties and UNSD COMTRADE. 
 
Table A1.10 El Salvador's Market Access O pportunities in other CAFTA-DR Parties' markets under the Agreement for its top 25 pro ducts  
El Salvador's top export products  
(2003-2005) MFN average (2006)* Duty-
free 
(2006)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR GU HO NI US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
2025 
090111 Coffee, not 
decaffeinated 8.9 12.8 14.0 13.8 13.8 13.8 0.0 U  D      C, G, 
H, N    
271019 Petroleum oils, other 3.5 3.9 10.3 3.5 4.6 3.7 1.9  G, U    C, H, N D      
170111 Cane sugar 3.4 45.0 85.0 20.0 40.0 55.0 20.8         C, D, 
G, H N  U 
300490 Medicaments, other 3.1 2.5 0.5 5.0 0.0 0.0 0.0 H, N, U    G C, D       
481810 Toilet paper 2.7 14.0 20.0 15.0 15.0 15.0 0.0 U     C, D, G, 
H, N       
340220 Preparations put up 
for retail sale 2.0 14.0 20.0 15.0 15.0 15.0 2.0  U    C, D, G, 
H, N       
160414 Tunas, skipjack and 
bonito (Sarda spp.) 2.0 14.0 20.0 15.0 15.0 15.0 10.1  H D  C, 
G, N U        
  WT/REG211/3  
 
- 116 - El Salvador's top export products  
(2003-2005) MFN average (2006)* Duty-
free 
(2006)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR GU HO NI US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
2025 
210690 Food preparations, 
other 1.8 5.9 6.0 7.5 7.5 8.3 14.4      D, G, H, 
N   C   U 
610910 T-shirts, of cotton 1.8 14.0 20.0 15.0 15.0 15.0 16.5  G, H, 
N, U D C         
190410 Prepared foods 
obtained by swelling 
or roasting of cereals  1.6 7.0 20.0 7.5 15.0 10.0 1.1  N, U D  H G  C     
392330 Carboys, bottles, 
flasks  1.6 5.5 10.3 7.0 7.0 6.4 3.0  U    C, G, H, N D      
190490 Prepared foods 
obtained by swelling 
or roasting of cereals  1.5 14.0 20.0 15.0 15.0 15.0 14.0  U       C, D, 
G, H, 
N    
630260 Toilet linen and 
kitchen linen 1.4 14.0 20.0 15.0 15.0 15.0 9.1  G, H, 
N, U D C         
481910 Cartons, boxes and 
cases 1.4 9.0 14.0 10.0 10.0 10.0 0.0 U    G,  C, D, H, N       
481920 Folding cartons, boxes 
and cases 1.3 6.0 14.0 6.7 6.7 6.7 0.0 U    G C, D, H, N       
220290 Waters, other 1.3 11.5 20.0 12.5 12.5 13.3 11.6      G   D  C, H, 
N, U  
721420 Other bars and rods 
of iron 1.1 14.0 20.0 15.0 15.0 0.0 0.0 N, U     C, D, E, H       
850710 Lead-acid, of a kind 
used for starting 
piston engines 1.1 14.0 14.0 15.0 15.0 15.0 3.5  U   D C, G, H, N       
611020 Jerseys, pullovers, of 
cotton 1.1 14.0 20.0 15.0 15.0 15.0 10.8  G, H, 
N, U D C         
220710 Undenatured ethyl 
alcohol  1.1 11.5 14.0 40.0 15.0 40.0 10.3  U   D    C, G, 
H, N    
300420 Medicaments, 
containing other antibiotics 1.0 2.5 0.0 5.0 0.0 0.0 0.0 D, H, N, 
U    G C       
720917 Flat-rolled products of 
iron, of a thickness of 
0.5 mm or more but 
not exceeding 1 mm 1.0 0.0 0.0 0.0 0.0 0.0 0.0 C, D, G, 
H, N, U            
220210 Waters, including 
mineral waters and 
aerated waters 1.0 14.0 20.0 15.0 15.0 15.0 0.1  U    H  C,
N D, G    
392410 Tableware and 
kitchenware 1.0 9.5 20.0 10.0 10.0 10.0 4.7  U   D C, G, H, N       
190590 Bread, other 0.9 14.0 20.0 15.0 15.0 15.0 2.3  U   G H, N   C, D    
  Total 48.4                   
Note:  D/DR= Dominican Republic; C/CR= Costa Rica; G/GU=Guatemala; H/HO=Hondura s; N/NI=Nicaragua; U/US=United States. 
Based on HS(2007) nomenclature.  
* In the case of Costa Rica and the Dominican Republic, the MFN rates shown are that for 2009 and 2007, respectively. 
Source:  WTO Secretariat, based on data supplied from the Parties and UNSD COMTRADE. WT/REG211/3 
 
- 117 - 
 
  21. Table A1.12 shows the market access opportunities in CAFTA-DR markets for Honduras' top 
25 exports, which in 2003-2005 accounted on averag e for 69.5% of Honduras' global exports. The 
MFN average rates faced by Honduras' exporters in the other CAFTA-DR Parties' markets in 2006 
ranges from duty-free to 85%.4 One of Honduras' top 25 exports, accounting for 1.5% of its 
average global exports already benefited from ze ro MFN duties in all other CAFTA-DR Parties' 
markets: four products are granted duty-free access  in all Parties' markets in the respective year 
of entry into force. Products subject to liberaliza tion in 2020 or after are all agricultural products. 
One product – cane sugar – is not fully liberalized and remains subject to duties in the U.S. 
market. 
22. Table A1.13 shows the market access opportunities in CAFTA-DR markets for Nicaragua's 
top 25 exports, which in 2003-2005 accounted on  average for 76.4% of Nicaragua's global 
exports. The MFN average rates faced by Nicaragu a's exporters in the other CAFTA-DR Parties' 
markets in 2006 ranges from duty-free to 89%.5 None of Nicaragua's top 25 exports was duty-free 
on an MFN basis in all six other CAFTA-DR Parties' markets on the year of the Agreement's entry into force: one product is granted duty-free access in all Parties' markets in the respective year of 
entry into force. Products subject to liberalization in 2020 or after are all agricultural products. Two 
products – cane sugar, and other cane or beet su gar – are not fully liberalized and remain subject 
to duties in the U.S. market. 
23. Table A1.14 shows the market access oppo rtunities in CAFTA-DR markets for the 
United States' top 25 exports, which in 2003-2005 accounted on average for 25.7% of the United States' global exports. The MFN average rates faced by U.S. exporters in the other CAFTA-DR Parties' markets in 2006 ranges from duty-free to 40%.
6 Eleven of the U.S.' top 25 exports were 
duty-free on an MFN basis in the other CAFTA-DR Parties' markets in the year of the Agreement's 
entry into force: one product is granted duty-free access in all other Parties' markets in the respective year of entry into force. The product su bject to liberalization in 2020 is an agricultural 
product. One product – maize (white corn) – is no t fully liberalized and remains subject to duties 
in El Salvador's, Guatemala's, Honduras' and Nicaragua's market. 
                                               
4 The MFN rates shown for Costa Rica and the Dominican Republic are 2009 and 2007, respectively. 
5 The MFN rates shown for Costa Rica and the Dominican Republic are 2009 and 2007, respectively. 
6 The MFN rates shown for Costa Rica and the Dominican Republic are 2009 and 2007, respectively.  
  WT/REG211/3  
 
- 118 - Table A1.11 Guatemala's Market Access Opport unities in other CAFTA-DR Parties' markets under the Agreement for its top 25 produ cts 
Guatemala's top export products 
(2003-2005) MFN average (2006)* Duty-
free 
(2006) * Year of Liberalization 
Remain 
dutiable HS code and description Share in 
global 
exports CR DR ES HO NI US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
090111 Coffee, not 
decaffeinated 10.0 12.8 14.0 13.8 13.8 13.8 0.0 U  D      C, H, 
N E  
080300 Bananas, including 
plantains 6.8 14.0 20.0 15.0 15.0 15.0 0.5  E, H, 
N, U  C  D      
170111 Cane sugar 5.8 45.0 85.0 40.0 40.0 55.0 20.8         C, D, 
E, H N U 
270900 Petroleum oils and 
oils obtained from 
bituminous minerals 5.3 0.0 0.0 1.0 0.0 0.0 0.1 C, D, H, N E, U          
610610 Women's or girls' 
blouses, of cotton 5.0 14.0 20.0 25.0 15.0 15.0 19.7  E, H, 
N, U D R        
300490 Medicaments, other 2.3 2.5 0.5 5.0 0.0 0.0 0.0 H, N, U     C, D, E      
090830 Cardamoms 2.0 11.5 10.0 12.5 12.5 12.5 0.0 U  D  C, E, H, 
N       
620342 Men's trousers, of 
cotton 1.6 14.0 20.0 25.0 15.0 15.0 9.0  E, H, 
N, U D C        
620462 Women's trousers, of 
cotton 1.6 14.0 20.0 25.0 15.0 15.0 8.2  E, H, 
N, U D C        
400122 Technically specified 
natural rubber  1.0 5.0 8.0 5.0 5.0 5.0 0.0 U E, H, 
N  C D       
610510 Men's or boys' shirts, 
of cotton 1.0 14.0 20.0 25.0 15.0 15.0 19.7  E, H, 
N, U D C        
220210 Waters, including 
mineral waters and 
aerated waters 0.9 14.0 20.0 15.0 15.0 15.0 0.1  U    H  C, 
E, N D   
850610 Manganese dioxide 0.9 9.3 16.0 10.0 10.0 10.0 2.7  U    C, D, E, 
H, N      
380850a Insecticides 0.9  
7.3  0.0 7.8 6.9 7.5 5.5 D U   E C, H, N      
190410 Prepared foods 
obtained by swelling or roasting of cereals  0.8 7.0 20.0 7.5 15.0 10.0 1.1  N, U D  H E  C    
330610 Dentifrices 0.8 14.0 20.0 15.0 15.0 15.0 0.0 US   C E, H, N D      
620463 Trousers, of synthetic 
fibres 0.8 14.0 20.0 25.0 15.0 15.0 11.8  E, H, 
N, U D C        
300450 Other medicaments 
containing vitamins  0.8 2.5 0.0 5.0 0.0 0.0 0.0 D, H, N, 
U   C E       
210410 Soups and broths and 
preparations therefor 0.8 14.0 20.0 15.0 15.0 15.0 3.2  H, U   C, E, N    D   
151110 Crude oil 0.7 5.0 0.0 5.0 5.0 0.0 0.0 D, N, U        C, E, 
H   
721041 Flat rolled products of 
iron, zinc plated 0.6 9.5 20.0 2.5 10.0 5.0 0.0 U     C, D, E, 
H, N      
271019 Petroleum oils, other 0.6 3.9 10.3 4.6 4.6 3.7 1.9  U    C, E, H, 
N D     
080719 Melons, other 0.6 14.0 20.0 15.0 15.0 15.0 14.0  E, H, 
N, U  C  D       
  WT/REG211/3  
 
- 119 - Guatemala's top export products 
(2003-2005) MFN average (2006)* Duty-
free 
(2006) * Year of Liberalization 
Remain 
dutiable HS code and description Share in 
global 
exports CR DR ES HO NI US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
120740 Sesamum seeds 0.6 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, 
H, N, U           
400110 Natural rubber latex 0.6 5.00 8.0 5.0 5.0 5.00 0.0 U E, H, 
N  C D       
  Total 52.7                  
Note:  D/DR= Dominican Republic; E/ES= El Salvador; C/CR=Costa Rica; H/HO=Honduras; N/NI=Nicaragua; U/US=United States. 
Based on HS(2007) nomenclature.  
a  aligned with HS 2002 equivalent in the case of Cost a Rica, Nicaragua, El Salvador and Dominican Republic. 
* In the case of Costa Rica and the Dominican Republic, the MFN rate shown is that for 2009 and 2007, respectively. Source:  WTO Secretariat, based on data supplied from the Parties and UNSD COMTRADE. 
Table A1.12 Honduras' Market Access Opportun ities in other CAFTA-DR Parties' markets under the Agreement for its top 25 product s 
Honduras' top export products (2003-
2005) MFN average (2006)* Duty-
free 
(2006)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR ES GU NI US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
090111 Coffee, not 
decaffeinated 22.1 12.8 14.0 13.8 13.8 13.8 0.0 U  D      C, G, 
N E  
080300 Bananas, including 
plantains 11.2 14.0 20.0 15.0 15.0 15.0 0.5  E, G, N, U  C     D   
340119 Soap, organic 
surface-active products, other 3.4 14.0 20.0 15.0 15.0 15.0 0.0 U    D C, E, 
G, N     
 
151110 Crude oil 3.3 5.0 0.0 5.0 5.0 0.0 0.0 D, N, U     G   C, E   
261690 Precious metal ores 
and concentrates 3.2 5.0 0.0 5.0 5.0 5.0 b D E, G, N, U  C        
030611 Rock lobster and 
other sea crawfish  2.9 9.0 20.0 10.0 10.0 10.0 0.0 U E  C D, G, N       
710812 Gold, other 
unwrought forms 2.7 5.0 14.0 5.0 5.0 5.0 2.1  E, G, N, U D C        
080719 Melons, other 2.7 14.0 20.0 15.0 15.0 15.0 14.0  E, G, N, U  C  D      
080430 Pineapples 1.7 14.0 20.0 15.0 15.0 15.0 1.1  U   C, G E  N D   
440710 Wood sawn or 
chipped  1.6 5.0 0.0 5.0 5.0 5.0 0.0 D, U E, N   G CR      
260800 Zinc ores and 
concentrates. 1.5 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, 
G, N, U           
170111 Cane sugar 1.4 45.0 85.0 40.0 20.0 55.0 20.8         C, D, 
E, G N U 
240220 Cigarettes 
containing tobacco 1.4 40.0 20.0 30.0 20.0 15.0 8.8  U       C, D, 
E, G, 
N    
  WT/REG211/3  
 
- 120 - Honduras' top export products (2003-
2005) MFN average (2006)* Duty-
free 
(2006)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR ES GU NI US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
151190 Palm oil and its 
fractions, other 1.4 17.5 20.0 10.0 10.0 11.7 0.0 U        C, D, 
G, N E  
611020 Jerseys, pullovers, 
of cotton 1.1 14.0 20.0 25.0 15.0 15.0 10.8  E, G, N, U D C        
190590 Bread, pastry, 
cakes, other 1.1 14.0 20.0 15.0 15.0 15.0 2.3  U   G E, N   C, DR   
240210 Cigars, cheroots and 
cigarillos 1.0 14.0 20.0 15.0 15.0 15.0 5.4  U   D    C, G, 
N E  
481910 Cartons, boxes and 
cases 0.9 9.0 14.0 10.0 10.0 10.0 0.0 U    E, G C, D, N      
620630 Women's or girls' 
blouses, of cotton 0.9 14.0 20.0 25.0 15.0 15.0 9.3  E, G, N, U D C        
030613 Shrimps and prawns 0.8 9.0 20.0 10.0 10.0 10.0 0.0 U E, G, N  C  D      
441700 Tools, tool bodies, 
tool handles 0.8 9.0 4.0 0.0 10.0 10.0 1.3 E U  C D G, N      
854449 Insulated wire, other 0.7 0.0 14.0 10.0 11.7 5.0 3.2 C N, U D   E, G      
721420 Other bars and rods 
of iron  0.6 14.0 20.0 15.0 15.0 0.0 0.0 N, U     C, D, 
E, G      
392330 Carboys, bottles, 
flasks  0.6 5.5 10.3 7.5 7.0 6.4 3.0  U    C, E, 
G, N D     
071190 Other vegetables; 
mixtures of vegetables 0.6 14.0 20.0 15.0 10.0 15.0 5.2  U    C, D, 
E, G, N     
 
 Total 69.5                  
Note:  D/DR=Dominican Republic; E/ES= El Salvador; G/GU=Guatemala; C/CR=Costa Rica; N/NI=Nicaragua; U/US=United States. 
Based on HS(2007) nomenclature.  
a  aligned with HS 2002 equivalent in the case of Cost a Rica, Nicaragua, El Salvador and Dominican Republic. 
b  1.7 cents/kg on lead content. *  In the case of Costa Rica and the Dominican Republic, the MFN rate shown is that for 2009 and 2007, respectively. Source:  WTO Secretariat, based on data supplied from the Parties and UNSD COMTRADE. 
Table A1.13 Nicaragua's Market Access Opportunities in other CAFT A-DR Parties' markets under the Agreement for its top 25 produ cts 
Nicaragua's top export products 
(2003-2005) MFN average (2006)* Duty
-free 
(200
6)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR ES GU HO US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
2025 
090111 Coffee, not 
decaffeinated 15.2 12.8 14.0 13.8 13.8  13.8 0.0 U  D      C, G, H E   
020130 Meat of bovine 
animals, fresh, 
boneless 5.9 14.0 40.0 30.0 15.0  15.0 10.5      G   C, D, U E, H    
  WT/REG211/3  
 
- 121 - Nicaragua's top export products 
(2003-2005) MFN average (2006)* Duty
-free 
(200
6)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR ES GU HO US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
2025 
020230 Meat of bovine 
animals, frozen, boneless 5.8 14.0 23.3 30.0 15.0 
 15.0 10.4      G   C, D, U E, H   
030613 Shrimps and 
prawns 5.7 9.0 20.0 10.0 10.0  10.0 0.0 U E, G, H  C  D       
710812 Gold, other 
unwrought forms 5.7 5.0 14.0 5.0  5.0  5.0 2.1  ES G, 
H, U D  C          
030611 Rock lobster and 
other sea crawfish  5.1 9.0 20.0 10.0 10.0  10.0 0.0 U E, H  C D, G        
120220 Groundnuts, 
shelled 5.0 0.0 0.0 5.0  5.0  5.0 67.6 C, D     E, G, 
H   U    
010290 Live bovine 
animals, other 4.7 9.0 0.0 10.0 10.0  10.0 0.2 D E, H, U    G   C    
170111 Cane sugar 4.2 45.0 85.0 40.0 20.0  40.0 20.8         C, D, E, 
G, H   U 
071332 Small red (Adzuki) 
beans  2.4 14.0 89.0 30.0 30.0  30.0 1.0  G, U       C, D, H E   
020110 Carcasses and 
half-carcasses 2.1 14.0 40.0 30.0 15.0  15.0 14.5         C, D, G, 
H, U E   
040690 Other cheese 1.7 50.0 20.0 40.0 15.0  15.0 18.6         D  C, E, 
G, H, 
U  
080300 Bananas, including 
plantains 1.7 14.0 20.0 15.0  
15.0  15.0 0.5  E, G, H, 
U  C      D     
170199 Cane or beet 
sugar, other 1.3 45.0 85.0 40.0  
20.0  15.0 36.6         C, D, E, 
G, H   U 
240210 Cigars, cheroots 
and cigarillos 1.2 14.0 20.0 15.0  
15.0  15.0 5.4  U   D    C, G, H E   
110100 Wheat or meslin 
flour. 1.1 5.0 14.0 10.0  
10.0  10.0 0.8  U      C, E, 
G, H D    
040630 Processed cheese 1.1 65.0 20.0 40.0  
15.0  15.0 26.7      D     C, E, 
G, H,U  
220710 Undenatured ethyl 
alcohol  0.9 11.5 14.0 40.0  
40.0  15.0 10.3  U   D    C, E, G, 
H    
271011 Light oils and 
preparations 0.9 4.3 3.5 4.7  0.7  7.1 1.6  G, U    C, E, 
H D      
150810 Crude oil 0.9 5.0 0.0 0.0  0.0  5.0 4.6 D, E, 
G U       C, H    
691010 Ceramic sinks, of 
porcelain or china 0.8 14.0 20.0 15.0  
15.0  15.0 5.8  U   E C, D, 
G, H       
410419 Tanned or crust 
hides, other 0.8 4.7 0.0 5.0  5.0  5.0 2.6 D U   E, H C, G       
240110 Tobacco, not 
stemmed/stripped 0.8 3.8 14.0 3.8  3.8  3.8 44.5  E, G, H    C, D   U    
210111 Extracts, essences 
and concentrates 0.7 14.0 20.0 15.0  
15.0  15.0 0.0 U       H C, D, G E   
190590 Bread, cakes, 
other 0.7 14.0 20.0 15.0  
15.0  15.0 2.3  U   G E H   C, D     
  WT/REG211/3  
 
- 122 - Nicaragua's top export products 
(2003-2005) MFN average (2006)* Duty
-free 
(200
6)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR ES GU HO US 
2006 
2007 
2009 
2010 
2015 
2016 
2017 
2020 
2021 
2025 
  Total 76.4                   
Note:  D/DR= Dominican Republic; E/ES= El Salvador; G/GU=Guatemala; H/HO=Honduras; C/CR=Costa Rica; U/US=United States. 
 Based on HS(2007) nomenclature.  * In the case of Costa Rica and the Dominican Republic, the MFN rates shown are that for 2009 and 2007, respectively. 
Source:  WTO Secretariat, based on data supplied from the Parties and UNSD COMTRADE. 
 
Table A1.14 United States' Market Access O pportunities in other CAFTA-DR Parties' ma rkets under the Agreement for its top 25 pr oducts  
United States' top export products (2003-
2005) MFN average (2006)* Duty-free 
(2006)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR ES GU HO NI 
2006 
2007 
2009 
2010 
2015 
2016 
2020 
880240 Aeroplanes and other aircraft, 
of an unladen weight exceeding 15,000 kg 2.8 0.0 3.0 0.0 0.0 0.0 0.0 C, E, G, H, 
N  D       
880330 Other parts of aeroplanes or 
helicopters 1.7 0.0 3.0 0.0 0.0 0.0 0.0 C, E, G, H, 
N  D       
870323 Motor cars, of a cylinder 
capacity exceeding 1,500 cc but not exceeding 3,000 cc 1.6 9.3 15.2 20.3 15.0 15.0 8.8     D C, E, G, H, 
N    
870324 Motor cars, of a cylinder 
capacity exceeding 3,000 cc 1.3 9.3 15.2 18.7 15.0 15.0 8.8     D C, E, G, H, 
N    
854231a Processors and controllers 1.2 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
854239a Electronic integrated circuits, 
other 1.2 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
854232* Memories 1.2 0.0 20.0 0.0 0.0 0.0 0.0 C, E, G, H, 
N    D     
854233a Amplifiers 1.2 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
300490 Medicaments, other 1.1 2.5 0.5 5.0 5.0 0.0 0.0 H, N    G C, D, E    
851770a Other apparatus for 
transmission or reception of 
voice 1.1 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
870829 Parts and accessories of motor 
vehicles, other 1.1 4.5 8.0 1.0 10.0 5.0 10.0  E, G, 
H  C D, N     
841191 Parts, of turbo-jets or turbo-
propellers 1.0 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
844399a Parts and accessories of 
printing machinery 0.9 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
120100 Soya beans, whether or not 
broken. 0.9 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
271019 Petroleum oils, other 0.9 3.9 10.3 4.6 3.5 4.6 3.7  G    C, E, H, N D    
  WT/REG211/3  
 
- 123 - United States' top export products (2003-
2005) MFN average (2006)* Duty-free 
(2006)* Year of Liberalization 
Remain 
dutiable  
HS code and description Share in 
global 
exports CR DR ES GU HO NI 
2006 
2007 
2009 
2010 
2015 
2016 
2020 
852990 Parts suitable for use with 
apparatus of headings 85.25 to 
85.28, other 0.8 7.0 17.0 7.5 7.5 7.5 7.5  G D   C, E, H, N    
710239 Diamonds, other 0.8 5.0 20.0 5.0 5.0 5.0 5.0  E, G, 
H, N D C      
851762a Machines for the reception, 
conversion, transmission or 
regeneration of voice, images 
or other data 0.8 0.0 3.0 0.0 0.0 0.0 0.0 C, E, G, H, 
N  D       
100590 Maize, other 0.6 9.3 40.0 13.8 22.5 15.0 13.8   D     C E, G, 
H, N 
901890 Other instruments and 
appliances 0.6 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
843143 Parts for boring or sinking 
machinery of subheading 8430.41 or 8430.49 0.6 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
870840 Gear boxes and parts thereof 0.6 9.0 8.0 1.0 10.0 5.0 5.0  E, G, 
H   D C, N    
847330 Parts and accessories of the 
machines of heading 84.71 0.6 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
870431 Motor vehicles for the 
transport of goods, g.v.w. not 
exceeding 5 tonnes 0.6 5.0 13.1 3.0 7.5 7.5 5.0     D C, E, G, H, 
N    
100190 Wheat and meslin, other 0.5 0.0 0.0 0.0 0.0 0.0 0.0 C, D, E, G, 
H, N         
 Total 25.7                
Note:  D/DR= Dominican Republic; E/ES= El Salvador; G/GU=Guatemala; H/HO=Honduras; N/NI=Nicaragua; C/CR=Costa Rica. 
 Based on HS(2007) nomenclature.  
a  aligned with HS 2002 equivalent in the case of Cost a Rica, Nicaragua, El Salvador and Dominican Republic. 
*  In the case of Costa Rica and the Dominican Republic, the MFN rate shown is that for 2009 and 2007, respectively. Source:  WTO Secretariat, based on data supplied from the Parties and UNSD COMTRADE. 
 WT/REG211/3 
 
- 124 - 
 
  ANNEX 2 
TARIFF-RATE QUOTAS UNDER THE AGREEMENT 
1. Article 3.13 of the Agreement provides that th e Parties shall implement and administer the 
TRQs for agricultural goods in accordance with  Article XIII of the GATT 1994, including its 
interpretive notes, and the Import Licensing Agr eement. TRQs maintained by the Parties under the 
Agreement are detailed in the following Tables.  
(a) Costa Rica 2. For a period not greater than three years fr om the entry into force of the Agreement, 
Costa Rica shall allocate the quota quantities in  accordance with Article XIII of the GATT 1994 and 
the Import Licensing Agreement. Thereafter, quota quantities are allocated based on the 
proportion of the total quantity of the good th at each importer imported during a previous 
representative period, while also allocating a reasonable proportion of the quota quantities to new 
entrants. The quantity of goods imported from the United States or the Dominican Republic under 
a TRQ is not counted towards the quota of any TRQ provided for elsewhere in Costa Rica's tariff. 
Table A2.1 Costa Rica: Tariff-rate quotas fo r products originating in the United States
 
HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual Increase Unlimited 
as of 
Pork 
02031100, 02031200, 02031900, 02032100, 02032200, 02032900 0 base rate in years 1-6, then 
nine equal annual reductions until duty-free in year 15 1,100 MT 
 
 years 1-5: 100 MT  
years 6-10: 125 MT years 11-14: 150 MT  2020 
Chicken Leg Quarters 
02071399B, 02071499B 0 base rate in years 1-10, 
13.4% reductions in years 
11-13, 15% reduction in 
years 14-16, duty-free in 
year 17 330 MT  
 30 MT 2022 
Milk Powder 
04021000, 04022111, 
04022112, 04022121, 04022122, 04022900 0 
base rate in years 1-10, 
then ten equal annual reductions until duty-free in year 20 200 MT  
 10-23 MT (5% 
increase in relation to previous year) 2025 
Butter 
04051000, 04052000 0 150 MT  
 7-17 MT (5% 
increase in relation 
to previous year) 2025 
Cheese 
04061000, 04062090, 
04063000, 04069010, 04069020, 04069090 0 410 MT  
 11-37 MT (5% 
increase in relation to previous year) 2025 
Ice cream 
21050000 0 150 MT  
 7-15 MT (5% 
increase in relation 
to previous year) 2025 
Other Dairy Products 
04029990, 22029090 0 140 MT 
 7-16 MT (5% 
increase in relation to previous year) 2025 
Rough Rice ( see note 
a) 
10061090 0 base rate in years 1-10, 
then 8% reduct ions in years 
11-15, 12% reductions in 
years 16-19, duty-free in 
year 20 51,000 
MT 
 1,000 MT 2025 
Milled Rice 
10062000, 10063010, 
10063090, 10064000 0 5,250 MT  
 1,250 MT 2025 
Fresh Potatoes 
07019000 0 MFN rate applies 300 MT 
 6 MT. After year 15 
in-quota quantity 
increases 6 MT 
annually. - 
Fresh Onions 
07031011, 07031012, 
07031013, 07031019 0 MFN rate applies 300 MT 
 6 MT. After year 15 
in-quota quantity increases 6 MT annually. - WT/REG211/3 
 
- 125 - 
 
  HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual Increase Unlimited 
as of 
Frozen French Fries 
20041000 0 base rate-20% in year 1, 
then four equal annual 
reductions until duty-free in 
year 5 2,631 MT 
 5% 2010 
Note: 
a Costa Rica may maintain and administer performance requirements existing on the date of entry into 
force of the Agreement for rough rice provided that they are maintained at a level not exceeding the 
total in-quota quantity specified for the good; are admi nistered so as not to impair the orderly fill of 
the in-quota quantity; and are eliminated when the over-quota duty reaches zero. Costa Rica shall allocate the in-quota quantities that are subject to performance requirements to persons that satisfy those requirements in accordance with the ex isting provisions of Law No. 8285 of 3 May 2002. 
Source: WTO Secretariat, based on the text of the Agreement. 
 
Table A2.2 Costa Rica: Tariff-rate quotas for products originating in the Dominican 
Republic  
HS Code 
(description) In quota rate Out of quota rate Quantity 
Chicken Breasts 
02071391, 02071491 12.5% Negotiations to be concluded on tariff treatment 
no later than one year following entry into force. If no agreement is reac hed, the following tariff 
treatment applies: base rate in years 1-10 (base rates: chicken breasts 41%, milk powder 66%), reductions of 8% in years 11-15, 12% reductions in years 16-19, duty-free as of year 20 2,070 MT 
Milk Powder 
040210, 040221, 
040229 20% in year 1, then 
seven equal annual 
reductions until year 7. 
Duty-free as of year 8 2,200 MT 
Source: WTO Secretariat, based on the text of the Agreement.  
 
(b) Dominican Republic 
3. The Dominican Republic shall allocate the quot a quantities of each qualifying good to 
persons based on the proportion of the total quan tity of imports of the good that each person 
imported during a previous representative period, while also allocating a reasonable proportion of 
the quota quantities to new entrants, if any. Th e quantity of goods imported from the United 
States, Costa Rica or Nicaragua under a TRQ is not counted towards the quota of any TRQ 
provided for elsewhere in the Dominican Republic's tariff. 
Table A2.3 Dominican Republic: Tariff-rate quot as for products originating in the United 
States  
HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity  
(year 1) Annual 
Increase Unlimited 
as of 
Prime and Choice Beef 
02012010, 02013010, 02022010 0 15 equal annual reductions 
until duty-free in year 15 1,100 MT 
 100 MT 2020 
Beef Trimmings 
02023010 0 15 equal annual reductions 
until duty-free in year 15 220 MT 
 20 MT 2020 
Pork Cuts 
02031100, 02031200, 
02031900, 02032100, 02032200, 02032910, 02032990 0 base rate in years 1-6, 10% 
reductions in years 7-10, 12% reduction in years 11-14, duty-free in year 15 3,465 MT 
 years 1-4: 
315 MT; year 5: 590 MT; years 6-14: 500 MT 2020 
Bacon 
02090010, 02101200 0 10 equal annual reductions 
until duty-free in year 10 220 MT 
 20 MT 2015 
Chicken Leg Quarters 
02071492 0 base rate in years 1-10, 
then 8% reduct ions in years 
11-15, 12% reductions in years 16-19, duty-free in year 20 550 MT 
 50 MT 2025 WT/REG211/3 
 
- 126 - 
 
  HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity  
(year 1) Annual 
Increase Unlimited 
as of 
Mechanically De-Boned 
Chicken Meat 
02071300, 02071410 0 10 equal annual reductions 
until duty-free in year 10 440 MT 
 40 MT 2015 
Turkey Meat 
02072612, 02072710, 
02072792, 02072793 0 12 equal annual reductions 
until duty-free in year 12 3,850 MT 
 350 MT 2017 
Liquid Milk 
04012000, 04011000, 
04013000 0 10 equal annual reductions 
until duty-free in year 10 220 MT 
 20 MT 2015 
Milk Powder 
04021000, 04021090, 
04022110, 04022190, 04022910, 04022990 0 base rate in years 1-10, 
then ten equal annual reductions until duty-free in year 20 2,970 MT 
 270 MT 2025 
Butter 
04051000 0 10 equal annual reductions 
until duty-free in year 10 220 MT  20 MT 2015 
Mozzarella Cheese 
04061010 0 base rate in years 1-10, 
then 8% reduct ions in years 
11-15, 12% reductions in years 16-19, duty-free in 
year 20 138 MT  12 -13 MT 2025 
Cheddar Cheese 
04069020 0 15 equal annual reductions 
until duty-free in year 15 138 MT 12 -13 MT 2020 
Other Cheeses 
04061090, 04062000, 
04063000, 04064000, 04069010, 04069030, 04069090 0 10 equal annual reductions 
until duty-free in year 10 138 MT  12 -13 MT 2015 
Ice Cream 
21050000 0 12 equal annual reductions 
until duty-free in year 12 165 MT  15 MT 2017 
Yoghurt 
04031000 0 base rate in years 1-10, 
then ten equal annual reductions until duty-free in year 20 110 MT  10 MT 2025 
Brown Rice 
10062000 0 base rate in years 1-10, 
then 8% reductions in years 
11-15, 12% reductions in 
years 16-19, duty-free in 
year 20 2,140 MT  140 MT 2025 
Milled Rice 
10063000  0 base rate in years 1-10, 
then 8% reductions in years 11-15, 12% reductions in years 16-19, duty-free in 
year 20 8,560 MT  560 MT 2025 
Beans 
07133100, 07133200, 
07133300 0 15 equal annual reductions 
until duty-free in year 15 8,560  560 MT 2020 
Glucose 
17023021 0 12 equal annual reductions 
until duty-free in year 12 1,320 MT  120 MT 2017 
Pig Fat 
15010010  12 equal annual reductions 
until duty-free in year 12 550 MT  50 MT 2017 
Source: WTO Secretariat, based on the text of the Agreement. 
 
Table A2.4 Dominican Republic: Tariff-rate qu otas for products originating in Costa Rica  
HS Code 
(description) In quota rate Out of quota rate Quantity 
Chicken Breasts 
02071391, 02071491 12.5% Negotiations to be concluded on tariff treatment 
no later than one year following entry into force. If no agreement is reached, the following tariff treatment applies: base  rate in years 1-10, 
reductions of 8% in year s 11-15, 12% reductions 
in years 16-19, duty-free as of year 20 2,070 MT 
Milk Powder 
040210, 040221, 
040229 20% in year 1, then 
seven equal annual 
reductions until year 7. 
Duty-free as of year 8 2,200 MT 
Source: WTO Secretariat, based on the text of the CAFTA-DR Agreement. WT/REG211/3 
 
- 127 - 
 
  Table A2.5 Dominican Republic: Tariff-rate qu otas for products originating in Nicaragua  
HS Code 
(description) In quota rate Out of quota rate Quantity 
Chicken Breasts 
02071391, 02071491 10% 
Negotiations to be concluded on tariff 
treatment no later than one year following entry into force. If no agreement is reached, the following tariff treatment applies: base rate in years 1-10, reductions of 8% in years 11-15, 12% reductions in years 16-19, duty-free as of year 20 443 MT 
Onions and 
Shallots 
070310 7.5% 375 MT 
Beans 
071332 20% in year 1, then four 
equal annual reductions until year 4. Duty-free as of year 5 1,800 MT 
Beans 
071331, 071333 20% in year 1, then two 
equal annual reductions 
until year 2. Duty-free as 
of year 3 
Source: WTO Secretariat, based on the text of the Agreement. 
 
(c) El Salvador 
4. El Salvador shall allocate the quota quantities of each qualifying good to persons based on 
the proportion of the total quantity of imports of  the good that each person imported during a 
previous representative period, while also allocating a reasonable proportion of the quota quantities to new entrants, if any. The quantity of goods imported from the United States under a 
TRQ is not counted towards the quota amount of an y TRQ provided for elsewhere in El Salvador's 
tariff. El Salvador may maintain and administer  performance requirements (i.e. agreements by 
importers to purchase a share of the local crop du ring the tariff phase out period) on pork, white 
and yellow corn, and rough rice.  
Table A2.6 El Salvador: Tariff-rate quotas fo r products originating in the United States
 
HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
Beef 
02012000A, 02013000A, 
02022000A, 02023000A 0 15% reduction in year 1, 
6.6% reduction in years 
4-8, 9.6% reduction in 
years 9-14, duty-free in year 15 105 MT  5 MT 2020 
Pork 
02031100, 02031200, 
02031900, 02032100, 
02032200, 02032900 0 base rate in years 1-6, 
8% reductions in years 
7-11, 15% reduction in 
years 12-14, duty-free 
in year 15 1,650 MT  
(see note 
a) 
 150 MT 2020 
Liquid Dairy 
04011000, 04012000, 
04013000 0 
base rate in years 1-10, 
then ten equal annual reductions until duty-free in year 20 10 MT  5 % 2025 
Milk Powder 
04021000, 04022111, 
04022112, 04022121, 
04022122, 04022900 0 300 MT  5 % 2025 
Buttermilk, Curdled 
Cream and Yoghurt 
04031000, 04039010, 
04039090 0 10 MT  5 % 2025 
Butter 
04051000, 04052000, 
04059090 0 100 MT  5 % 2025 
Cheese 
04061000, 04062090, 
04063000, 04069010, 04069020, 04069090 0 410 MT  5 % 2025 
Ice Cream 
21050000 0 120 MT  5 % 2025 WT/REG211/3 
 
- 128 - 
 
  HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
Other Dairy Products 
21069020 0 120 MT  5 % 2025 
Yellow Corn 
10059020 0 base rate in years 1-6, 
8% reductions in years 
7-11, 15% reduction in 
years 12-14, duty-free 
in year 15 367,500 
MT  
(see note 
b) 
 5 % 2020 
White Corn 
10059030 0 MFN rate  35,700 
MT (see note c) 2% 
After 2020, 700 
MT  - 
Sorghum 
10070090 0 15 equal annual 
reductions until duty-
free in year 15 263 MT  5% 2020 
Chicken Leg Quarters 0 
Base rate in years 1-10, 
8.25% reduction in years 11-14, 16.75% 
reduction in years 15-
17, duty-free in year 18 0 MT 
 years 3-12: 464 
MT  
(see note d) 2023 
Rough Rice 
10061090 0 62,220 
MT  
(see note 
e) 2% 2023 
Milled Rice 
10062000, 10063010, 
10063090, 10064000 0 5,625 MT  years 1-5: 375 
MT year 6: 1,000 MT  
years 7-17: 320 
MT  2023 
a El Salvador may maintain performance requirem ents on 750 MT annually in years 1-14. No 
performance requirements may be maintained as of 2020. 
b El Salvador may maintain performance requir ements on 100,000 MT annua lly in years 1-14. No 
performance requirements may be maintained as of 2020. 
c El Salvador may maintain performance requir ements on 15,000 MT annually in years 1-15. No 
performance requirements may be maintained as of 2021. 
d Quantities for years 13-17 to be determined through consultations between El Salvador and the 
United States. If no agreement is reached, the quan tity shall be equal to 5% of the national chicken 
production of El Salvador. 
e Aggregate quantity of parboiled rough rice sh all not exceed 3,000 MT per annum (where 1 MT 
parboiled rough rice is equivalent to 0.7 MT of parboiled milled rice). El Salvador may maintain 
performance requirements at a level not to exc eed the fixed percentage of the total in-quota 
quantity for rough rice. No performance requirements may be maintained as of 2023. 
Source: WTO Secretariat, based on the text of the Agreement. 
 
(d) Guatemala 
5. Guatemala shall allocate the quota quantities of each qualifying good to persons based on 
the proportion of the total quantity of imports of  the good that each person imported during a 
previous representative period, while also allocating a reasonable proportion of the quota 
quantities to new entrants, if any. The quantity of goods imported from the United States under a 
TRQ is not counted towards the amount of any TRQ provided for elsewhere in Guatemala's tariff. 
Guatemala may maintain and administer performance requirements on imports of rough rice. 
Table A2.7 Guatemala: Tariff-rate quotas fo r products originating in the United States  
HS Code (description) In 
quota 
rate Out of quota rate Initial Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
Beef 
02012000B, 02013000B, 02022000B, 02023000B 0 15 equal annual 
reductions until duty-free in year 15 1,060 MT  60 MT 2020 
Cheese 
04061010, 04061090, 
04062090, 04063000, 
04069020, 04069090 0 base rate in years 
1-10, then ten 
equal annual 
reductions until 
duty-free in year 20 450 MT  5% 2025 
Milk Powder 
04021000, 04022111, 0 400 MT  5% 2025 WT/REG211/3 
 
- 129 - 
 
  HS Code (description) In 
quota 
rate Out of quota rate Initial Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
04022112, 04022121, 
04022122, 04022900, 04039010, 04039090 
Butter 
04051000, 04052000, 
04059090, 04013000 0 100 MT  5% 2025 
Ice Cream 21050000 0 
160 MT  5% 2025 
Other Dairy Products 
22029090 
 0 10 equal annual 
reductions until 
duty-free in year 10 182 MT  5% 2015 
Pork 
02031100, 02031200, 
02031900, 02032100, 02032200, 02032900 0 15 equal annual 
reductions until 
duty-free in year 15 4,148 MT  197 – 198 MT 2020 
Yellow Corn 
10059020 0 10 equal annual 
reductions until 
duty-free in year 10 525,000 MT  25,000 MT 2015 
White Corn 
10059030 0 MFN rate 20,400 MT  400 MT 
After year 15, 
400 MT  - 
Rough Rice 
10061090 0 
Base rate in years 
1-10, 8.25% 
reduction in years 
11-14, 16.75% 
reduction in years 
15-17, duty-free in 
year 18 54,600 MT  
(see note a)  2,600 MT 2023 
Milled Rice 
10062000, 10063010, 
10063090, 10064000 0 10,500 MT  500 MT 2023 
Chicken Leg Quarters 
02071399B, 02071499B, 
16023200A 0 21,810 MT  1,316 MT 
(annual 
decrease as 
of year 3 ) 
(see note b) 2023 
a Guatemala may maintain performan ce requirements at a level not to exceed the total in-quota 
quantity specified for the good. 
b Quantities in years 13-17 to be determined through consultations between Guatemala and the 
United States. If no agreement is reached, the quan tity shall be equal to 5% of the national chicken 
production of Guatemala. 
Source: WTO Secretariat, based on the text of the Agreement.  
(e) Honduras 
6. For a period not greater than three years fr om the entry into force of the Agreement, 
Honduras shall allocate the quota quantities of each qualifying good on an objective basis consistent with Article 3.13 of the Agreement. Thereafter, Honduras shall allocate the quota 
quantities of each qualifying good to persons ba sed on the proportion of the total quantity of 
imports of the good that each person imported du ring a previous representative period, while also 
allocating a reasonable proportion of the quota quantities to new entrants, if any. Honduras shall establish a mechanism for reallocating unused quota quantities to interested persons. The quantity 
of goods imported from the United States under a TRQ is not counted towards the amount of any 
TRQ provided for elsewhere in Honduras' tariff.  
Table A2.8 Honduras: Tariff-rate quotas for products originating in the United States
 
HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
Cheese 
04061000, 04062090, 
04063000, 04069010, 04069020, 04069090 0 
base rate in years 1-10, 
then ten equal annual reductions until duty-free in year 20 410  5 % 2025 
Milk Powder 
04021000, 04022111, 
04022112, 04022121, 
04022122, 04022900,  0 400 MT  5 % 2025 WT/REG211/3 
 
- 130 - 
 
  HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
Butter 
04051000, 04052000, 
04059090 0 100 MT  5 % 2025 
Ice Cream 
21050000 0 100  5 % 2025 
Other Dairy Products 
22029090  0 140 MT  5 % 2025 
Pork 
02031100, 02031200, 
02031900, 02032100, 
02032200, 02032900 0 base rate in years 1-6, 
then 8% reduction in 
years 7-11, 15% 
reduction in years 12-14, 
duty-free in year 15 2,150 MT  150 MT 2020 
Yellow Corn 
10059020 0 base rate in years 1-6, 
then 8% reduction in years 7-11, 15% reduction in years 12-14, duty-free in year 15 190,509 MT  9,072 MT 2020 
White Corn 
10059030 0 MFN rate 23,460 MT  460 MT 
After year 
20, 460 MT  - 
Rough Rice 
10061090 0 base rate in years 1-10, 
8.25% reduction in years 11-14, 16.75% reduction in years 15-17, duty-free in year 18 91,800 MT  
(see note a)  1,800 MT 2023 
Milled Rice 
10062000, 10063010, 
10063090, 10064000 0 8,925 MT  425 MT 2023 
Chicken Leg Quarters 
02071399B, 02071499B, 
16023200A 0 base rate in years 1-10, 
8.25% reduction in years 11-14, 16.75% reduction in years 15-17, duty-free in year 18 0  years 3-12: 
534 or 535 MT 
(see note b) 2023 
a Honduras may maintain performance requirements  at a level not to exceed the total in-quota 
quantity specified for the good. 
b Quantities in years 13-17 to be determined through consultations. In the absence of an agreement 
quantity is equal to 5% of national chicken production of Honduras.  
Source: WTO Secretariat, based on the text of the Agreement.  
 
(f) Nicaragua 
7. Nicaragua shall allocate the in-quota quantities of each qualifying good to persons based on 
the proportion of the total quantity of imports of  the good that each person imported during a 
previous representative period, while also allocating a reasonable proportion of the in-quota 
quantities to new entrants, if any. The quantity of goods imported from the United States or the Dominican Republic under a TRQ is not counted towards the in-quota amount of any TRQ provided for elsewhere in Nicaragua's tariff.  
Table A2.9 Nicaragua: Tariff-rate quotas fo r products originating in the United States
 
HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
Cheese 
04061000, 04062090, 
04063000, 04064000, 04069010, 04069020, 04069090 0 base rate in years 1-10, then 
ten equal annual reductions until duty-free in year 20 575 MT 5 % 2025 
Milk Powder 
04021000, 04022111, 
04022112, 04022121, 
04022122, 04022900,  0 base rate in years 1-10, then 
ten equal annual reductions until 
duty-free in year 20 650 MT 5 % 2025 
Butter 
04051000, 04052000, 
04059090 0 base rate in years 1-10, then 
ten equal annual reductions until duty-free in year 20 150 MT 5 % 2025 WT/REG211/3 
 
- 131 - 
 
  HS Code (description) In 
quota 
rate Out of quota rate Initial 
Quantity 
(year 1) Annual 
Increase Unlimited 
as of 
Ice Cream 
21050000 0 base rate in years 1-10, then 
ten equal annual reductions until 
duty-free in year 20 72,815 
litres  5 % 2025 
Other Dairy Products 
19019090, 22029090  0 base rate in years 1-10, then 
ten equal annual reductions until duty-free in year 20 50 MT  5 % 2025 
Pork 
02031100, 02031200, 
02031900, 02032100, 
02032200, 02032900 0 15 equal annual reductions until 
duty-free in year 15 1,100 MT  100 MT 2020 
Yellow Corn 
10059020 0 Base rate in years 1-6, 8.25% 
reduction in years 7-10, 13.4% reduction in years 12-15, duty-free in year 15 68,250 MT  3,250 MT 2020 
White Corn 
10059030 0 MFN rate 5,100 MT 
Quantity 
as of year 
20 is 7,000 
MT.  100 MT 
 - 
Rough Rice 
10061090 0 Base rate in years 1-10, 8.25% 
reduction in years 11-14, 16.75% reduction in years 15-17, duty-free in year 18 92,700 MT  
(see note a) 2,700 MT 2023 
Milled Rice 
10062000, 10063010, 
10063090, 10064000 0 Base rate in years 1-10, 8.25% 
reduction in years 11-14, 
16.75% reduction in years 15-
17, duty-free in year 18 13,650 MT  650 MT 2023 
Chicken Leg Quarters 
02071399B, 02071499B, 
16023200A 0 Base rate in years 1-10, 8.25% 
reduction in years 11-14, 16.75% reduction in years 15-17, duty-free in year 18 0  as of year 
3: 317 or 318 MT 
(see note 
b) 2023 
a Nicaragua may maintain performance requirements at a level not to exceed the total in-quota 
quantity specified for the good. 
b Quantities in years 13-17 to be determined through consultations. In the absence of an agreement 
quantity is equal to 5% of national chicken production of Nicaragua.  
Source: WTO Secretariat, based on the text of the Agreement.  
Table A2.10 Nicaragua: Tariff-rate quotas for products originating in the Dominican 
Republic  
HS Code 
(description) In quota rate Out of quota rate Quantity 
Chicken Breasts 
02071391, 02071491 10% 
Negotiations to be concluded on tariff 
treatment no later than one year following entry into force. If no agreement is reached, the following tariff treatment applies: base rate in years 1-10, reductions of 8% in years 11-15, 12% reductions in years 16-19, duty-free as of year 20 443 MT 
Onions and 
Shallots 
070310 7.5% 375 MT 
Beans 
071332 20% in year 1, then four equal 
annual reductions until year 4. Duty-free as of year 5 1,800 MT 
Beans 
071331, 071333 20% in year 1, then two equal 
annual reductions until year 2. 
Duty-free as of year 3 
Source: WTO Secretariat, based on the text of the Agreement.  
 
(g) The United States 
8. Any quantity of goods imported from Costa Rica, the Dominican Republic, El Salvador, 
Guatemala, Honduras and Nicaragua under a TRQ is not counted toward the amount of any TRQ 
provided for elsewhere in the U.S. tariff schedule. The in-quota duty rate is zero on all products. 
  WT/REG211/3  
 
- 132 - Table A2.11 United States: Tariff-rate quotas applied under CAFTA-DR  
HS Code (description) Out of quota rate Costa Rica Dominican 
Republic El Salvador Guatemala Honduras Nicaragua 
Beef 
02011050, 02012080, 02013080, 02021050, 02022080, 02023080 15 equal annual reductions 
until duty-free in year 15 IQ: 10,536 MT 
AI: 502 MT UNL: 2020 IQ: 1,320 MT  
AI: 120 MT UNL: 2020 IQ: 105 MT 
AI: 5 MT UNL: 2020  IQ: 525 MT 
AI: 25 MT UNL: 2020 IQ: 10,5000 MT 
AI: 500 MT UNL: 2020 
Sugar (see note a) 
17011150, 17011250, 17019130, 
17019148, 17019158, 17019950, 
17022028, 17023028, 17024028, 
17026028, 17029020, 17029058, 
17029068, 17049068, 17049078, 
18061015, 18061028, 18061038, 
18061055, 18061075, 18062073, 
18062077, 18062094, 18062098, 
18069039, 18069049, 18069059, 
19012025, 19012035, 19012060, 
19012070, 19019054, 19019058, 
21011238, 21011248, 21011258, 
21012038, 21012048, 21012058, 
21039078, 21069046, 21069072, 
21069076, 21069080, 21069091, 
21069094, 21069097  MFN rate IQ: 11,000 MT 
AI: 220 MT 
After 2020, 220 MT IQ: 10,000 MT 
AI: 200 MT  
After 2020, 200 
MT IQ: 24,000 MT 
AI: 480 – 3,040 
MT 
After 2020, 680 
MT IQ: 32,000 MT 
AI: 640 – 3,720 
MT 
After 2020, 940 
MT IQ: 8,000 MT 
AI: 160 MT 
After 2020, 160 
MT IQ: 22,000 MT 
AI: 440 MT 
After 2020, 440 
MT 
Sugar 
17011110, 17011210, 17019110, 17019910, 17029010, 21069044  MFN rate Annual quantity is 
2,000 MT      
Peanuts 
12021080, 12022080, 20081135, 
20081160 years 1-6: base rate  
years 7-10: minus 8.25%  
years 12-15: minus 13.4%  
year 15: duty-free   IQ: 500 MT 
AI: 25 MT 
UNL: 2020   IQ: 10,000 MT 
AI: 1,000 MT as 
of year 6 
UNL: 2020 
Peanut Butter 
20081115 15 equal annual reductions 
until duty-free in year 15      IQ: 280 MT 
AI: 28 MT UNL: 2020  
  WT/REG211/3  
 
- 133 - HS Code (description) Out of quota rate Costa Rica Dominican 
Republic El Salvador Guatemala Honduras Nicaragua 
Cheese 
04061008, 04061018, 04061028, 
04061038, 04061048, 04061058 
04061068, 04061078, 04061088, 
04062028, 04062033, 04062039, 
04062048, 04062053, 04062063, 
04062067, 04062071, 04062075, 
04062079, 04062083, 04062087, 
04062091, 04063018, 04063028, 
04063038, 04063048, 04063053, 
04063063, 04063067, 04063071, 
04063075, 04063079, 04063083, 
04063087, 04063091, 04064070 
04069012, 04069018, 04069032, 
04069037, 04069042, 04069048 
04069054, 04069068, 04069074, 
04069078, 04069084, 04069088 
04069092, 04069094, 04069097, 
19019036 base rate in years 1-10, 
then ten equal annual 
reductions until duty-free 
in year 20 IQ: 300 MT 
AI: 5% 
UNL: 2025 IQ: 413 MT 
AI: 37-38 MT 
UNL: 2025 IQ: 450 MT 
AI: 5% 
UNL: 2025 
 IQ: 500 MT 
AI: 5% 
UNL: 2025 IQ: 350 MT 
AI: 5% 
UNL: 2025 IQ: 625 MT 
AI: 5% 
UNL: 2025 
Cheese 
04061088, 04062091, 04063091, 
04069097       IQ: 250 MT 
AI: 5% 
UNL: 2025 
Milk Powder 
04021050, 04022125, 04022150, 
04039055, 04039045, 04041090, 
23099028, 23099048 base rate in years 1-10, 
then ten equal annual 
reductions until duty-free 
in year 20 IQ: 50 MT 
AI: 5% 
UNL: 2025      
Butter 04013075, 04022190, 04039065, 04039078, 04051020, 04052030, 04059020, 21069026, 21069036 base rate in years 1-10, 
then ten equal annual reductions until duty-free in year 20 IQ: 50 MT 
AI: 5% UNL: 2025  IQ: 60 MT 
AI: 5% UNL: 2025  IQ: 100 MT 
AI: 5% UNL: 2025   
  WT/REG211/3  
 
- 134 - HS Code (description) Out of quota rate Costa Rica Dominican 
Republic El Salvador Guatemala Honduras Nicaragua 
Other Dairy Products 
04022950, 04029170, 04029190, 
04029945, 04029955, 04029990, 
04031050, 04039095, 04041015, 
04049050, 04052070, 15179060, 
17049058, 18062026, 18062028, 
18062036, 18062038, 18062082, 
18062083, 18062087, 18062089, 
18063206, 18063208, 18063216, 
18063218, 18063270, 18063280, 
18069008, 18069010, 18069018, 
18069020, 18069028, 18069030, 
19011030, 19011040, 19011075, 
19011085, 19012015, 19012050, 
19019043, 19019047, 21050040, 
21069009, 21069066, 21069087, 
22029028 base rate in years 1-10, 
then ten equal annual 
reductions until duty-free 
in year 20 IQ: 150 MT 
AI: 5% 
UNL: 2025 IQ: 110 MT 
AI: 10 MT 
UNL: 2025 IQ: 120 MT 
AI: 5% 
UNL: 2025 IQ: 250 MT 
AI: 5% 
UNL: 2025  IQ: 100 MT 
AI: 5% 
UNL: 2025 
Other Dairy Products 
04029170, 04029190, 04029945, 04029955  IQ: 220 MT 
AI: 20 MT UNL: 2025      
Ice Cream 
21050020 
 base rate in years 1-10, 
then ten equal annual 
reductions until duty-free 
in year 20 IQ: 97,087 litres 
AI: 5% 
UNL: 2025 IQ: 160,194 litres 
AI: 14,563 litres 
UNL: 2025 IQ: 77,670 litres 
AI: 5% 
UNL: 2025 IQ: 194,174 litres 
AI: 5% 
UNL: 2025 IQ: 48,544 litres 
AI: 5% 
UNL: 2025 IQ: 266,989 
AI: 5% 
UNL: 2025 
Fluid Fresh Milk and Cream, 
and Sour Cream 04013025, 04039016  base rate in years 1-10, 
then ten equal annual reductions until duty-free in year 20 IQ: 407,461 
AI: 5% UNL: 2025  IQ: 366,715 
AI: 5% UNL: 2025 IQ: 305,596 
AI: 5% UNL: 2025 IQ: 560,259 
AI: 5% UNL: 2025 IQ: 254,663 
AI: 5% UNL: 2025 
Ethyl Alcohol 
22071060, 22072000 MFN rate Aggregate not to 
exceed 31 million 
gallons in any 
calendar year  IQ: 6,604,322 
gallons 
AI: 5% 
(See note b)    
IQ = Initial Quantity; AI = Annual Increase, UNL=unlimited 
Note:  a  In any year duty-free treatment is accorded to the lesser of (i) the aggregate quantity set out in subparagraph (a) for that  Party, or (ii) a quantity equal to the amount 
by which the Party's exports to all destinations exceeds its im ports from all sources ("trade surplus") for goods classified un der the following subheadings: HS1701.11, 
HS1701.12, HS1701.91, HS1701.99, HS1702.40, and HS1702.60, except that a Party's exports to the United States of goods classifi ed under subheadings HS1701.11, 
HS1701.12, HS1701.91, and HS1701.99 and its imports of originating good s of the United States cla ssified under HS1702.40 and HS 1702.60 shall not be included in the 
calculation of its trade surplus. A Party's trade surplus shall be calculated using the most recent annual data available. 
b  After year 15, the in-quota quantity available to El Salvador shall increase by the lesser of 1,320,864 gallons each year or  the difference between the previous year's in-
quota quantity and 10% of the base quantity of dehydrated alco hol and mixtures established under Section 423 of the US Tax Refo rm Act of 1986. 
Source: WTO Secretariat, based on the text of the Agreement. WT/REG211/3 
 
- 135 - 
 
  ANNEX 3 
1. Goods which may be subject to an agricultural safeguard measure and the conditions of 
application for each of the Parties are detailed in Tables A3.1 to A3.7.  
(a) Costa Rica 
Table A3.1 Costa Rica: U.S. Goods Subj ect to Agricultural Safeguard Measures   
Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Beef 
02011000, 02012000, 02013000, 02021000, 02022000, 02023000 150 MT 10% years 1-8, <= 100% of difference between MFN 
rate and ATR years 9-11, <= 75% of difference between MFN rate and ATR years 12-14, <=50% of difference between MFN rate and ATR 
Pork 
02031100, 02031200, 02031900, 
02032100, 02032200, 02032900 140% 
of TRQ  years 1-9, <=100% of difference between MFN 
rate and ATR 
years 10-12, <=75% of difference between MFN 
rate and ATR 
years 13-14, <=50% of difference between MFN 
rate and ATR Vegetable Oil 15079000, 15121900, 15122900, 15152900, 15162090, 15171000, 15179010, 15179090 1,178 
MT 5% 
Chicken Leg Quarters 
02071399, 02071499 130% 
of TRQ  years 1-13, <=100% of difference between MFN 
rate and ATR 
years 14-15, <=75% of difference between MFN 
rate and ATR 
year 16, <=50% of difference between MFN rate 
and ATR 
Liquid Dairy 
04011000, 04012000, 04013000 50 MT 10% 
years 1-14, <=100% of difference between MFN 
rate and ATR years 15-17, <=75% of difference between MFN rate and ATR years 18-19, <=50% of difference between MFN rate and ATR Milk Powder  
04021000, 04022111, 04022112, 
04022121, 04022122, 04022900 130% 
of TRQ  
Butter and Dairy Spreads 04051000, 04052000  130% 
of TRQ  
Cheese  
04061000, 04062090, 04063000, 
04069010, 04069020, 04069090 130% 
of TRQ  
Ice Cream  
21050000  130% 
of TRQ  
Other Dairy Products 
04029990, 22029090 130% 
of TRQ  
Tomatoes  
07020000  50 MT  10% 
years 1-5, <=100 % of difference between MFN 
rate and ATR 
years 6-10, <=75% of difference between MFN rate and ATR years 11-14, <=50% of difference between MFN rate and ATR Carrots  
07061000  50 MT  10% 
Potatoes 
07101000 50 MT 10% 
Beans 
07133200, 07133310, 07133390, 
07133990 1,200 
MT 10% 
High Fructose Corn Syrup 
17023020, 17024000, 17026000, 17029090 50 MT 10% 
White Corn 
10059030 9,000 
MT 10% 
Sweet Peppers 
07096010 50 MT 10% years 1-4, <=100% of difference between MFN 
rate and ATR years 5-8, <=75% of difference between MFN rate and ATR years 9-11, <=50% of difference between MFN rate and ATR WT/REG211/3 
 
- 136 - 
 
  Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Rough Rice 
10061090 110% 
of TRQ  years 1-13, <=100% of difference between MFN 
rate and ATR 
years 14-16, <= 75% of difference between MFN 
rate and ATR 
years 17-19, <=50% of difference between MFN 
rate and ATR Milled Rice 
10062000, 10063010, 10063090, 10064000 110% 
of TRQ  
Note: ATR = applicable tariff rate. Where the trigger level is a percentage of the applicable TRQ, the trigger 
level in any year is determined by multiplying the in-quota quantity for that year by the applicable percentage. If the trigger level is a fixed initial amount, this corresponds to the trigger in year one. The trigger level in any subsequent year is determined by adding to that amount the quantity derived by applying the applicable simple annual trigger rate. 
2. Paragraph 3 of Annex 3.15 states that Costa Rica and the Dominican Republic shall conclude 
negotiations on the agricultural safeguard trigger levels to be applied to originating goods classified under 02071391 and 02071491 and subheadings 040210, 040221, and 040229 that are 
imported directly into Costa Rica from the Dominican Republic no later than one year after the 
date of entry into force.  At the expiration of the one-year period, if no agreement has been 
reached, Costa Rica may apply an agricultural trigger level for such goods in amount equivalent to 
130% of the in-quota quantity of the applicable TRQ.
1  
(b) Dominican Republic  Table A3.2 Dominican Republic: U.S. Goods Subject to Agricultural Safeguard Measures
  
Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Cheddar cheese 
04069020 130% 
of TRQ  
years 1-5, <=100% of difference between MFN 
rate and ATR years 6-10, <=75% of difference between MFN rate and ATR years 11-14, <=50% of difference between MFN rate and ATR Beans 
07133100, 07133200, 07133300 130% 
of TRQ  
Onions 07031000 750 MT 10% 
Garlic 
07032000 50 MT 10% 
High fructose corn syrup 
17025000, 17026010, 17026021, 17026029 50 MT 10% 
Vegetable oil 
15079000, 15122900, 15152900, 
15171000 3,200 
MT 10% 
Turkey meat 
02072612, 02072710, 02072792, 02072793 130% 
of TRQ  years 1-4, <=100% of difference between MFN 
rate and ATR years 5-8, <=75% of difference between MFN rate and ATR years 9-11, <=50% of difference between MFN rate and ATR 
Fresh potatoes 
07019000 300 MT 10% 
Glucose 17023021 130% 
of TRQ  
Pork Cuts 
02031100, 02031200, 02031900, 
02032100, 02032200, 02032910, 
02032990 130% 
of TRQ  years 1-9, <=100% of difference between MFN 
rate and ATR 
years 10-12, <=75% of difference between MFN 
rate and ATR 
years 13-14, <=50% of difference between MFN 
rate and ATR 
Chicken leg quarters 
02071492 130% 
of TRQ  years 1-14, <=100% of difference between MFN 
rate and ATR years 15-17, <=75% of difference between MFN rate and ATR 
Mozzarella cheese 
04061010 130% 
of TRQ  
                                               
1 No such negotiations have been conducted yet. WT/REG211/3 
 
- 137 - 
 
  Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Milk powder 
04021000, 04021090, 04022110, 04022190, 04022910, 04022990 130% 
of TRQ  
Rough & Broken Rice 
10061000, 10064000 700 MT 10% 
Brown rice 
10062000 130% 
of TRQ  
Milled rice 
10063000 130% 
of TRQ  
Other cheeses 
04061090, 04062000, 04063000, 04064000, 04069010, 04069030, 04069090 130% 
of TRQ  years 1-4, <=100% of difference between MFN 
rate and ATR years 5-7, <=75% of difference between MFN rate and ATR years 8-9, <=50% of difference between MFN rate and ATR 
Note: ATR= applicable tariff rate. Where the trigger level is a percentage of the applicable TRQ, the trigger 
level in any year is determined by multiplying the in-quota quantity for that year by the applicable percentage. If the trigger level is a fixed initial amount, this corresponds to the trigger in year one. The trigger level in any subsequent year is determined by adding to that amount the quantity derived 
by applying the applicable simple annual trigger rate. 
3. Paragraph 4 of Annex 3.15 states that Costa Rica and the Dominican Republic shall conclude 
negotiations on the agricultural safeguard trigger levels to be applied to originating goods classified under 02071391 and 02071491 and subheadings 040210, 040221, and 040229 that are imported directly into the Dominican Republic from Costa Rica no later than one year after the 
date of entry into force.  At the expiration of the one-year period, if no agreement has been 
reached, the Dominican Republic may apply an agricultural trigger level for such goods in amount equivalent to 130% of the in-quota quantity of the applicable TRQ.  
4. Paragraph 6 of Annex 3.15 states that the Dominican Republic and Nicaragua shall conclude 
negotiations on the agricultural safeguard trigger levels to be applied to originating goods classified under 02071391 and 02071491 and subheadings 040210, 040221, and 040229 that are 
imported directly into the Dominican Republic from  Nicaragua no later than one year after the date 
of entry into force.  At the expiration of the one-year period, if no agreement has been reached, 
the Dominican Republic may apply an agricultural trigger level for such goods in amount equivalent to 130% of the in-quota quantity of the applicable TRQ.  
(c) El Salvador 
Table A3.3 El Salvador: U.S. Goods Subject to Agricultural Safeguard Measures
  
Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Liquid dairy 
04011000, 04012000, 04013000 130% 
of TRQ  
years 1-14, <=100% of difference between MFN 
rate and ATR years 15-17, <=75% of difference between MFN rate and ATR years 18-19, <=50% of difference between MFN rate and ATR Milk powder 
04021000, 04022111, 04022112, 
04022121, 04022122, 04022900 130% 
of TRQ  
Butter 04051000, 04052000, 04059090 130% 
of TRQ  
Cheese 
04061000, 04062090, 04063000, 
04069010, 04069020, 04069090 130% 
of TRQ  
Ice cream 
21050000 130% 
of TRQ  
Other dairy products 
21069020 130% 
of TRQ  
Buttermilk, Curdled cream & 
yoghurt 
04031000, 04039010, 04039090 130% 
of TRQ  WT/REG211/3 
 
- 138 - 
 
  Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Rough rice 
10061090 110% 
of TRQ  
years 1-13, <=100% of difference between MFN 
rate and ATR 
years 14-15, <= 75% of difference between MFN 
rate and ATR 
years 16-17, <=50% of difference between MFN 
rate and ATR Milled rice 
10062000, 10063010, 10063090, 
10064000 110% 
of TRQ  
Parboiled rice 
1006 110% 
of TRQ  
Chicken leg quarters 
02071399, 02071499, 16023200 130% 
of TRQ  
Pork 
02031100, 02031200, 02031900, 
02032100, 02032200, 02032900 130% 
of TRQ  years 1-9, <=100% of difference between MFN 
rate and ATR 
years 10-12, <=75% of difference between MFN 
rate and ATR 
years 13-14, <=50% of difference between MFN 
rate and ATR 
Vegetable oil 
15079000, 15122900, 15152900, 15162090, 15121900 8,000 
MT 5% years 1-4, <=100% of difference between MFN 
rate and ATR years 5-8, <=75% of difference between MFN rate and ATR years 9-11, <=50% of difference between MFN rate and ATR 
Canned meat 
16010010, 16010030, 16010080, 
16010090, 16024990 400 MT 10% 
Beans 07133200, 07133390, 07133310 60 MT 10% years 1-5, <=100% of difference between MFN 
rate and ATR years 6-10, <=75% of difference between MFN rate and ATR years 11-14, <=50% of difference between MFN 
rate and ATR Sorghum 
10070090 110% 
of TRQ  
High fructose corn syrup 
17023020, 17024000, 17025000, 
17026000 75 MT 10% 
Note: ATR= applicable tariff rate. Where the trigger level is a percentage of the applicable TRQ, the trigger 
level in any year is determined by multiplying the in-quota quantity for that year by the applicable percentage. If the trigger level is a fixed initial amount, this corresponds to the trigger in year one. The trigger level in any subsequent year is determined by adding to that amount the quantity derived by applying the applicable simple annual trigger rate. 
(d) Guatemala 
Table A3.4 Guatemala: United States Goods Subject to Agricultural Safeguard Measures  
Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Liquid dairy 
04011000, 04012000 50MT 10% 
years 1-14, <=100% of difference between MFN 
rate and ATR 
years 15-17, <=75% of difference between MFN 
rate and ATR years 18-19, <=50% of difference between MFN rate and ATR Cheese 
04061010, 04061090, 04062090, 
04063000, 04069010, 04069020, 
04069090 130% 
of TRQ  
Milk powder 04021000, 04022111, 04022112, 04022121, 04022122, 04022900, 04039010, 04039090 130% 
of TRQ  
Butter 
04051000, 0405200, 04059090, 
04013000 130% 
of TRQ  
Ice cream 
21050000 130% 
of TRQ  
Chicken leg quarters 
02071399, 02071499, 16023200 130% 
of TRQ  years 1-13, <=100% of difference between MFN 
rate and ATR 
years 14-15, <= 75% of difference between MFN 
rate and ATR 
years 16-17, <=50% of difference between MFN 
rate and ATR Rough rice 
10061090 110% 
of TRQ  
Milled rice 
10062000, 10063010, 10063090, 
10064000 110% 
of TRQ  WT/REG211/3 
 
- 139 - 
 
  Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Pork 
02031100, 02031200, 02031900, 02032100, 02032200, 02032900 130% 
of TRQ  
years 1-5, <=100% of difference between MFN rate 
and ATR 
years 6-10, <=75% of diffe rence between MFN rate 
and ATR years 11-14, <=50% of difference between MFN rate and ATR Fresh potatoes 
07019000 350 MT 10% 
High fructose corn syrup 17026000 50 MT 10% 
Vegetable oil 
15152900, 15122900, 15121900, 
15079000 2,600 
MT 5% 
Whole beans 
07133310 50 MT 5% years 1-9, <=100% of difference between MFN rate 
and ATR years 10-12, <=75% of difference between MFN rate and ATR years 13-14, <=50% of difference between MFN rate and ATR 
Pimientos 
07096010 25 MT 10% 
years 1-4, <=100% of difference between MFN rate 
and ATR 
years 5-7, <=75% of difference between MFN rate 
and ATR 
years 8-9, <=50% of difference between MFN rate 
and ATR Onions 07031012 64 MT 10% 
Tomatoes 
07020000 150 MT 10% 
Vegetable oil 
15162090, 15162010  2,600 
MT 5% 
Other dairy Products 
22029090 130% 
of TRQ  
Note: ATR = applicable tariff rate. Where the trigger level is a percentage of the applicable TRQ, the trigger 
level in any year is determined by multiplying the in-quota quantity for that year by the applicable percentage. If the trigger level is a fixed initial amount, this corresponds to the trigger in year one. The trigger level in any subsequent year is determined by adding to that amount the quantity derived by applying the applicable simple annual trigger rate. 
(e) Honduras 
Table A3.5 Honduras: United States Goods Subject to Agricultural Safeguard Measures   
Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Pork 
02031100, 02031200, 02031900, 02032100, 02032200, 02032900 130% 
of TRQ  years 1-9, <=100% of difference between MFN rate 
and ATR years 10-12, <=75% of difference between MFN rate and ATR years 13-14, <=50% of difference between MFN rate and ATR 
Chicken leg quarters 
02071399, 02071499, 16023200 130% 
of TRQ  years 1-13, <=100% of difference between MFN 
rate and ATR 
years 14-15, <= 75% of difference between MFN 
rate and ATR 
years 16-17, <=50% of difference between MFN 
rate and ATR Rough rice 10061090 110% 
of TRQ  
Milled rice 
10061020, 10063010, 10063090, 
10064010, 10064090 110% 
of TRQ  
Liquid dairy 
04011000, 04012000, 04013000 50 MT 10% 
years 1-14, <=100% of difference between MFN 
rate and ATR years 15-17, <=75% of difference between MFN rate and ATR years 18-19, <=50% of difference between MFN rate and ATR Milk powder 
04021000, 04022111, 04022112, 
04022121, 04022122, 04022900 130% 
of TRQ  
Butter 04051000 04052000, 04059090 130% 
of TRQ  
Cheese 
04061000, 04062090, 04063000, 
04069010, 04069020, 04069090 130% 
of TRQ  WT/REG211/3 
 
- 140 - 
 
  Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Other dairy goods 
22029090 130% 
of TRQ  
Ice cream 
21050000 130% 
of TRQ  
Onions 
07031011, 07031012 480 MT 10% 
years 1-5, <=100% of difference between MFN rate 
and ATR years 6-10, <=75% of diffe rence between MFN rate 
and ATR years 11-14, <=50% of difference between MFN rate and ATR Wheat flour 
11010000 210 MT 10% 
Vegetable oil 15079000, 15121900, 15122900, 15152900, 15162090, 15171000, 15179010, 15179090 3,500 
MT 5% 
Processed meat 
16010090 140 MT 10% 
High fructose corn syrup 
17023020, 17024000, 17026000 214 MT 10% 
Note: ATR= applicable tariff rate. Where the trigger level is a percentage of the applicable TRQ, the trigger 
level in any year is determined by multiplying the in-quota quantity for that year by the applicable percentage. If the trigger level is a fixed initial amount, this corresponds to the trigger in year one. 
The trigger level in any subsequent year is determined by adding to that amount the quantity derived 
by applying the applicable simple annual trigger rate. 
 
(f) Nicaragua 
Table A3.6 Nicaragua: United States Goods Subject to Agricultural Safeguard Measures   
Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Beef 
02011000, 02012000, 02013000, 02021000, 02022000, 02023000 300 MT 10% years 1-7, <=100% of difference between MFN 
rate and ATR years 8-11, <=75% of difference between MFN rate and ATR years 12-14, <=50% of difference between MFN rate and ATR 
Chicken leg quarters 
02071399, 02071499, 16023200 130% 
of TRQ  years 1-13, <=100% of difference between MFN 
rate and ATR 
years 14-15, <= 75% of difference between MFN 
rate and ATR 
years 16-17, <=50% of difference between MFN 
rate and ATR Rough rice 10061090 110% 
of TRQ  
Milled rice 
10062000, 10063010, 10063090, 
10064000 110% 
of TRQ  
Liquid dairy 
0401100011, 0401100019, 0401100020, 0401200011, 0401200019, 0401200020, 0401300011, 0401300019, 0401300020 50 MT 10% 
years 1-14, <=100% of difference between MFN 
rate and ATR years 15-17, <=75% of difference between MFN rate and ATR years 18-19, <=50% of difference between MFN 
rate and ATR Milk powder 
04021000, 04022111, 04022112, 
04022121, 04022122, 04022900 130% 
of TRQ  
Butter 
04051000, 04052000 130% 
of TRQ  
Cheese 
04061000, 04062090, 04063000, 
04064000, 04069010, 04069020, 
04069090 130% 
of TRQ  
Other dairy goods 
1901909091, 1901909099, 22029090 130% 
of TRQ  
Ice cream 
21050000 130% 
of TRQ  WT/REG211/3 
 
- 141 - 
 
  Good 
Tariff Classification Trigger 
Level Annual 
Trigger 
Growth 
Rate Additional Import Duty 
Onions 
07031011, 07031012 450 MT 10% years 1-5, <=100% of difference between MFN 
rate and ATR years 6-10, <=75% of difference between MFN rate and ATR 
years 11-14, <=50% of difference between MFN 
rate and ATR Beans 
07133200 700 MT 10% 
High fructose corn syrup 17023020, 17024000, 17025000, 17026000 75 MT 10% 
Yellow corn 
10059020 115% 
of TRQ  years 1-9, <=100% of difference between MFN 
rate and ATR 
years 10-12, <=75% of difference between MFN 
rate and ATR 
years 13-14, <=50% of difference between MFN 
rate and ATR Sorghum 
10070090 1,000 
MT 10% 
Note: ATR = applicable tariff rate. Where the trigger level is a percentage of the applicable TRQ, the trigger 
level in any year is determined by multiplying the in-quota quantity for that year by the applicable percentage. If the trigger level is a fixed initial amount, this corresponds to the trigger in year one. The trigger level in any subsequent year is determined by adding to that amount the quantity derived by applying the applicable simple annual trigger rate. 
5. Paragraph 5 of Annex 3.15 states that the Dominican Republic and Nicaragua shall conclude 
negotiations on the agricultural safeguard trigger levels to be applied to originating goods classified under 02071391 and 02071491 and subheadings 040210, 040221, and 040229 that are 
imported directly into Nicaragua from the Dominican Republic no later than one year after the date 
of entry into force.  At the expiration of the one-year period, if no agreement has been reached, 
Nicaragua may apply an agricultural trigger level for such goods in amount equivalent to 130% of 
the in-quota quantity of the applicable TRQ.
2  
(g) United States Table A3.7 United States: Central America or Dominican Republic Goods Subject to 
Agricultural Safeguard
 
Good 
Tariff Classification Trigger 
Level Additional Import Duty 
Cheese 
04061008, 04061018, 04061028, 04061038, 04061048, 04061058, 04061068, 04061078, 04061088, 04062028, 04062033, 04062039, 04062048, 04062053, 04062063, 04062067, 04062071, 04062075, 04062079, 04062083, 04062087, 04062091, 04063018, 04063028, 04063038, 04063048, 04063053, 04063063, 04063067, 04063071, 04063075, 04063079, 04063083, 04063087, 04063091, 04064070, 
04069012, 04069018, 04069032, 04069037, 04069042, 04069048, 
04069054, 04069068, 04069074, 04069078, 04069084, 04069088, 04069092, 04069094, 04069097 19019036 130% 
of TRQ 
years 1-14, <=100% of 
difference between MFN rate and ATR years 15-17, <=75% of difference between MFN rate and ATR 
years 18-19, <=50% of 
difference between MFN rate and ATR 
Butter 
04013075, 04022190, 04039065, 04039078, 04051020, 04052030, 
04059020, 21069026, 21069036 130% 
of TRQ 
Ice cream 
21050020 130% 
of TRQ 
Fluid Fresh & Sour cream 
04013025, 04039016 130% 
of TRQ 
Other dairy goods 
04022950, 04029170, 04029190, 04029945, 04029955, 04029990, 04031050, 04039095, 04041015, 04049050, 04052070, 15179060, 17049058, 18062026, 18062028, 18062036, 18062038, 18062082, 18062083, 18062087, 18062089, 18063206, 18063208, 18063216, 
18063218, 18063270, 18063280, 18069008, 18069010, 18069018, 
18069020, 18069028, 18069030, 19011030, 19011040, 19011075, 19011085, 19012015, 19012050, 19019043, 19019047, 21050040, 21069009, 21069066, 21069087, 22029028 130% 
of TRQ 
                                               
2 No such negotiations have been conducted yet. WT/REG211/3 
 
- 142 - 
 
  Good 
Tariff Classification Trigger 
Level Additional Import Duty 
Peanuts 
12021080, 12022080, 20081135, 20081160 130% 
of TRQ years 1-5, <=100% of 
difference between MFN 
rate and ATR 
years 6-10, <=75% of 
difference between MFN 
rate and ATR 
years 11-14, <=50% of 
difference between MFN 
rate and ATR Peanut butter 
20081115 130% 
of TRQ 
Note: ATR= applicable tariff rate. Where the trigger level is a percentage of the applicable TRQ, the trigger 
level in any year is determined by multiplying the in-quota quantity for that year by the applicable percentage.  WT/REG211/3 
 
- 143 - 
 
  ANNEX 4 
Table A4.1 Comparison of Product specif ic rules of origin under Annex 4.1 and 
Appendix 3.3.6 of the CAFTA-DR  
HS Section and 
Description HS Ch. Annex 4.1 Appendix 3.3.6 
I - Live Animals; 
Animal Products 1 CTC "Born and raised" 
2 "Born and raised"; Born, raised and slaughtered"* 
3 "Captured or raised" 
4 "where milk, animal eggs, honey or animal products 
are obtained" 
5 CTC 
II - Vegetable 
Products 6 CTC "from country where grown"; " grown or reproduced" 
7 "from country where grown in its natural state or 
unprocessed" 
8 "from the country where grown" 
9 "from country where the plant was grown and the 
product obtained" 
10 "from the country where grown" 
11 CTC 
12 "from the country where grown"; CTC 
13 "from the country where they are obtained by means 
of extraction, exudation and incision" 
14 "from the country where grown" 
III - Animal or Vegetable Fat and Oils 15 CTC CTC 
IV - Prepared 
Foodstuffs; 
Beverages, Spirits 
and Vinegar 16 CTC CTC 
17 "from country where grown"; CTC 
18 "from country where the cocoa beans of this heading 
were grown in their natural state or unprocessed"; 
CTC 
19-20 CTC 
21 "from the country where the coffee bean were 
grown"; CTC 
22 "where water, ice and snow classified under this 
heading are obtained in their natural state"; "where sugar and water are obtained in its natural state"; CTC 
23-24 CTC 
V - Mineral Products 25 CTC "from the country where they are obtained by means 
of a mining operation, in their natural state" 
26 "from the country where the mineral products are 
obtained in their natural state"; from the country 
where the slag and ash are obtained" 
27 CTC; CTC+TR  TR; CTC; "from th e country where they are obtained 
in their natural state"; "from the country where the electrical energy is generated" 
VI - Chemical 
Products 28-30 TR, CTC CTC; TR 
31 CTC 
32-38 CTC; TR 
VII - Plastics 39 CTC; CTC or RVC (30%); 
TR CTC; TR; "country where the waste and scrap are 
obtained by means of manufacture, operations of transformation or consumption"  
40 CTC or CTC+RVC (30%); 
TR CTC; TR; "country where obtained in their natural 
state"; "country where the waste and scrap are 
obtained"; "where waste and scrap are obtained"  
VIII - Raw Hides and Skins 41 CTC; TR CTC; TR; "country where the waste and scrap are 
obtained" 
42 CTC; CTC+TR 
43 CTC CTC; TR 
IX - Wood and 
Articles of Wood 44 CTC CTC; CTC+TR; "from the country where the wood is 
obtained" 
45-46 CTC 
X - Pulp of Wood 47 CTC CTC; "where they are obtained (by means of 
manufacture, operations of transformation or 
consumption)" 
48 CTC; CTC+TR 
 49 CTC 
XI -Textiles 50-60 CTC CTC 
61-62 CTC+TR Bilateral rules of origin apply 
63 CTC+TR CTC; Bilateral rules of origin apply WT/REG211/3 
 
- 144 - 
 
  HS Section and 
Description HS Ch. Annex 4.1 Appendix 3.3.6 
XII - Footwear 64 CTC+RVC (55% Build Up) 
; CTC CTC 
65-67 CTC 
XIII - Stone, 
plaster, cement 68 CTC CTC 
69 
XIV - Pearls 70 CTC CTC 
XV - Base metals 71 CTC CTC 
72 CTC; CTC or TR;  
73 CTC; CTC+TR; CTC or 
CTC+RVC (45%); CTC or RVC (45%);  
74 CTC; RVC (45%); 
CTC+TR 
75 CTC; CTC or TR 
76 CTC; CTC or RVC (35%) 
78-80 CTC 
81 CTC; CTC or RVC (45%); 
CTC+RVC (45%) 
82 CTC; CTC or CTC+RVC 
(45%) 
83 CTC; CTC or 
CTC+RVC(45%) 
XVI - Machinery 84 CTC; CTC or CTC+RVC 
(45%); CTC or RVC (45-50%);RVC (50%); CTC or TR; CTC+RVC (45%);  CTC 
85 CTC; CTC or CTH+RVC 
(45%); CTC or RVC 
(45%); CTC+RVC (45%) CTC 
XVII - Vehicles, 
Aircraft, Vessels 86 CTC; CTC or CTC+RVC 
(45%) CTC 
87 RVC (50%); CTC or RVC 
(50%); CTC or CTC+RVC 
(35-45%); 
CTC+RVC(45%)  CTC 
88 CTC CTC 
89 CTC or CTC+RVC (45%); 
CTC CTC 
XVIII - Optical 90 CTC or CTC+RVC (45%); 
CTC; CTC or RVC (35-45%);  CTC 
91 CTC or CTC+RVC (45%); 
CTC+RVC (45%); CTC CTC 
92 CTC or CTC+RVC (35-
45%); CTC CTC 
XIX - Arms and 
Ammunition 93 CTC or CTC+RVC (45%); 
CTC CTC 
XX - Miscellaneous 94 CTC; CTC+RVC (45%); 
CTC or CTC+RVC (45%) CTC 
95 CTC; CTC or CTC+RVC 
(45%) CTC 
96 CTC; CTC or RVC (45%); 
CTC or CTC+RVC (35-45%);  CTC 
XXI - Works of Art 97 CTC "country where they have been obtained"; "where 
they have remained more than one hundred years in 
the region" 
Note: RVC percentages shown in the table are those ca lculated using the "build-down" methodology unless 
otherwise indicated. 
 
__________