Skip to Main Content

Latin American Jurisdictions: DR-CAFTA

Bloc Membership


Costa Rica

Dominican Republic

El Salvador





Dominican Republic-Central American Free Trade Agreement (DR-CAFTA)

The Dominican Republic – Central America Free Trade Agreement (DR-CAFTA), is similar to NAFTA, but involves relations between the US and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. Like other multi-lateral agreements, the legislation for DR-CAFTA creates a ‘free trade area,’ allowing for tariff-reductions for certain targeted commodities and financial instruments exchanged between the US and member countries. Individual agreements such as DR-CAFTA are seen as stepping stones towards the FTAA (Free Trade Area of the Americas), a more ambitious plan introduced by the United States that would encompass all South American and Caribbean nations as well as those of North and Central America (except Cuba).