Transcript Document

DOMINICAN REPUBLIC-CENTRAL AMERICA
FREE TRADE AGREEMENT
Central American Rural Farmer Perspective
Kana Matsui
7 Apr. 2011
OUTLINE
Background on Central America
 DR-CAFTA and its provisions

Pre-existing conditions
 Observations since implementation


Conclusions
AGRICULTURE IN CENTRAL AMERICA
DR-CAFTA: WHICH NATIONS?
United States
 Dominican Republic
 Guatemala
 Honduras
 El Salvador
 Nicaragua
 Costa Rica

Exemptions
 Tariff phase out schedules
 Tariff rate quotas

UNITED STATES VS CENTRAL AMERICA

Economies of scale
 Area
 Capital

investment
Domestic support
 Type
of support
 Stage of agricultural development
 Affect international prices
DOMESTIC ISSUES
Lack of information
 Less institutional support for security
 Lack of environmental regulations
 Difficult to access international market

 Infrastructure
 Intermediaries
 Licensing
and other international regulations
OBSERVED EFFECTS
Decrease in employment
 Increase in cost of agricultural inputs
 Increase in foreign investment
 Increase in migration

CONCLUSION

General agreement on needs but how?

Still to be observed, researched, and analyzed