Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America

This report provides a preliminary assessment of DR-CAFTA (the , with particular attention to three key themes: (1) expected trade and non-trade benefits, (2) actions that Central American countries need to pursue to capitalize optimally on the new opportunities, and (3) identification of the popula...

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Bibliographic Details
Main Author: World Bank
Format: Foreign Trade, FDI, and Capital Flows Study
Language:English
en_US
Published: Washington, DC 2012
Subjects:
GDP
WTO
Online Access:http://documents.worldbank.org/curated/en/2005/12/6489025/dominican-republic-central-american-free-trade-agreement-dr-cafta-challenges-opportunities-central-america
http://hdl.handle.net/10986/8358
id okr-10986-8358
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO SERVICE MARKETS
ACCORDS
ADVERSE IMPACTS
AGRICULTURAL COMMODITIES
AGRICULTURAL PRODUCTS
AGRICULTURE
APPAREL
APPAREL EXPORT
APPAREL INDUSTRIES
APPAREL TRADE
BILATERAL TRADE
BILATERAL TRADE AGREEMENTS
BOVINE MEAT
BUSINESS CYCLE
BUSINESS CYCLE SYNCHRONIZATION
BUSINESS CYCLES
CAPACITY BUILDING
CENTRAL AMERICA
CIVIL SOCIETY
COMMODITY PRICES
COMMON MARKET
COMPETITIVE ENVIRONMENT
COMPETITIVENESS
CONSUMERS
CUSTOMS
CUSTOMS UNION
DEBT
DISPUTE SETTLEMENT
DOMESTIC LEGISLATION
DOMESTIC PRICES
DOMESTIC REFORMS
DONOR AGENCIES
DOUBLE TAXATION
DOUBLE TAXATION TREATIES
DYNAMIC EFFECTS
DYNAMIC GAINS
ECONOMIC COOPERATION
ECONOMIC GROWTH
ECONOMIC VALUE
ELIMINATING TARIFFS
EXPORT GROWTH
EXPORT PRODUCTS
EXPORT PROMOTION
EXPORT PROSPECTS
EXPORT VOLUMES
EXPORTS
FINANCIAL ASSETS
FINANCIAL RESOURCES
FINANCIAL SERVICES
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOSTERING TRADE
FREE ACCESS
FREE TRADE
FREE TRADE AGREEMENT
FREE TRADE AGREEMENTS
GDP
GDP PER CAPITA
GOVERNMENT REGULATIONS
GROWTH RATE
GROWTH RATES
HARMONIZATION
HUMAN CAPITAL
IMPORT TAXES
IMPORTS
INCOME
INCOME LOSSES
INCOME TAXES
INCREASING TRADE
INDUSTRY TRADE
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTERNATIONAL TRADE
INTERNATIONAL TRANSPORT
INTRAINDUSTRY TRADE
INVESTMENT LEVELS
INVESTMENT PROTECTION
LABOR MARKETS
LABOR REGULATIONS
LIVING STANDARDS
MACROECONOMIC POLICIES
MACROECONOMIC POLICY
MACROECONOMIC POLICY COORDINATION
MARKET ACCESS
MOST FAVORED NATION
NATIONAL INNOVATION SYSTEM
NON-TARIFF BARRIERS
PARTIAL EQUILIBRIUM ANALYSES
POLICY MAKERS
POLICY PRIORITIES
POLITICAL CONDITIONS
POLITICAL FACTORS
POSITIVE EFFECTS
PREFERENTIAL MARKET ACCESS
PREFERENTIAL TREATMENT
PRELIMINARY ASSESSMENT
PRICE CHANGES
PROTECTION LEVELS
PROTECTIONS
PUBLIC GOODS
PUBLIC SECTOR
QUOTAS
RECIPROCAL ACCESS
RECIPROCITY
REDUCING PROTECTION
REDUCING TARIFFS
REGIONAL AGREEMENTS
REGIONAL COORDINATION
REGIONAL INTEGRATION
REGIONAL INTEGRATION EFFORTS
REGIONAL TRADE
REGIONAL TRADE INTEGRATION
REGULATIONS
REGULATORY REFORMS
REMOVING BARRIERS
REMOVING TRADE BARRIERS
SAFEGUARD MEASURES
SPECIAL SAFEGUARD
STATIC ANALYSES
STATIC GAINS
TARIFF BARRIERS
TARIFF REDUCTIONS
TARIFF-FREE ACCESS
TAX POLICY
TAX REVENUE
TAXATION
TECHNICAL ASSISTANCE
TOTAL FACTOR PRODUCTIVITY
TRADE
TRADE AGREEMENT
TRADE AREA
TRADE BARRIERS
TRADE CAPACITY
TRADE DIVERSIFICATION
TRADE EXPANSION
TRADE FACILITATION
TRADE FLOWS
TRADE IN SERVICES
TRADE INTEGRATION
TRADE INTENSITY
TRADE LIBERALIZATION
TRADE MORE
TRADE OPENNESS
TRADE POLICIES
TRADE POLICY
TRADE PREFERENCE
TRADE PREFERENCES
TRADE PROTECTION
TRADE REFORMS
TRADE RESTRICTIONS
TRADE STRUCTURE
TRADING PARTNER
TRANSITION PERIODS
TRANSPORT COSTS
TREATIES
UNILATERAL EFFORTS
UNILATERAL PREFERENCES
UNILATERAL TRADE
UNILATERAL TRADE REFORMS
UNSKILLED LABOR
VALUE ADDED
WAGES
WELFARE GAINS
WELFARE IMPACTS
WELFARE LOSSES
WORLD TRADE
WORLD TRADE ORGANIZATION
WTO
ZERO TARIFFS
spellingShingle ACCESS TO SERVICE MARKETS
ACCORDS
ADVERSE IMPACTS
AGRICULTURAL COMMODITIES
AGRICULTURAL PRODUCTS
AGRICULTURE
APPAREL
APPAREL EXPORT
APPAREL INDUSTRIES
APPAREL TRADE
BILATERAL TRADE
BILATERAL TRADE AGREEMENTS
BOVINE MEAT
BUSINESS CYCLE
BUSINESS CYCLE SYNCHRONIZATION
BUSINESS CYCLES
CAPACITY BUILDING
CENTRAL AMERICA
CIVIL SOCIETY
COMMODITY PRICES
COMMON MARKET
COMPETITIVE ENVIRONMENT
COMPETITIVENESS
CONSUMERS
CUSTOMS
CUSTOMS UNION
DEBT
DISPUTE SETTLEMENT
DOMESTIC LEGISLATION
DOMESTIC PRICES
DOMESTIC REFORMS
DONOR AGENCIES
DOUBLE TAXATION
DOUBLE TAXATION TREATIES
DYNAMIC EFFECTS
DYNAMIC GAINS
ECONOMIC COOPERATION
ECONOMIC GROWTH
ECONOMIC VALUE
ELIMINATING TARIFFS
EXPORT GROWTH
EXPORT PRODUCTS
EXPORT PROMOTION
EXPORT PROSPECTS
EXPORT VOLUMES
EXPORTS
FINANCIAL ASSETS
FINANCIAL RESOURCES
FINANCIAL SERVICES
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOSTERING TRADE
FREE ACCESS
FREE TRADE
FREE TRADE AGREEMENT
FREE TRADE AGREEMENTS
GDP
GDP PER CAPITA
GOVERNMENT REGULATIONS
GROWTH RATE
GROWTH RATES
HARMONIZATION
HUMAN CAPITAL
IMPORT TAXES
IMPORTS
INCOME
INCOME LOSSES
INCOME TAXES
INCREASING TRADE
INDUSTRY TRADE
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTERNATIONAL TRADE
INTERNATIONAL TRANSPORT
INTRAINDUSTRY TRADE
INVESTMENT LEVELS
INVESTMENT PROTECTION
LABOR MARKETS
LABOR REGULATIONS
LIVING STANDARDS
MACROECONOMIC POLICIES
MACROECONOMIC POLICY
MACROECONOMIC POLICY COORDINATION
MARKET ACCESS
MOST FAVORED NATION
NATIONAL INNOVATION SYSTEM
NON-TARIFF BARRIERS
PARTIAL EQUILIBRIUM ANALYSES
POLICY MAKERS
POLICY PRIORITIES
POLITICAL CONDITIONS
POLITICAL FACTORS
POSITIVE EFFECTS
PREFERENTIAL MARKET ACCESS
PREFERENTIAL TREATMENT
PRELIMINARY ASSESSMENT
PRICE CHANGES
PROTECTION LEVELS
PROTECTIONS
PUBLIC GOODS
PUBLIC SECTOR
QUOTAS
RECIPROCAL ACCESS
RECIPROCITY
REDUCING PROTECTION
REDUCING TARIFFS
REGIONAL AGREEMENTS
REGIONAL COORDINATION
REGIONAL INTEGRATION
REGIONAL INTEGRATION EFFORTS
REGIONAL TRADE
REGIONAL TRADE INTEGRATION
REGULATIONS
REGULATORY REFORMS
REMOVING BARRIERS
REMOVING TRADE BARRIERS
SAFEGUARD MEASURES
SPECIAL SAFEGUARD
STATIC ANALYSES
STATIC GAINS
TARIFF BARRIERS
TARIFF REDUCTIONS
TARIFF-FREE ACCESS
TAX POLICY
TAX REVENUE
TAXATION
TECHNICAL ASSISTANCE
TOTAL FACTOR PRODUCTIVITY
TRADE
TRADE AGREEMENT
TRADE AREA
TRADE BARRIERS
TRADE CAPACITY
TRADE DIVERSIFICATION
TRADE EXPANSION
TRADE FACILITATION
TRADE FLOWS
TRADE IN SERVICES
TRADE INTEGRATION
TRADE INTENSITY
TRADE LIBERALIZATION
TRADE MORE
TRADE OPENNESS
TRADE POLICIES
TRADE POLICY
TRADE PREFERENCE
TRADE PREFERENCES
TRADE PROTECTION
TRADE REFORMS
TRADE RESTRICTIONS
TRADE STRUCTURE
TRADING PARTNER
TRANSITION PERIODS
TRANSPORT COSTS
TREATIES
UNILATERAL EFFORTS
UNILATERAL PREFERENCES
UNILATERAL TRADE
UNILATERAL TRADE REFORMS
UNSKILLED LABOR
VALUE ADDED
WAGES
WELFARE GAINS
WELFARE IMPACTS
WELFARE LOSSES
WORLD TRADE
WORLD TRADE ORGANIZATION
WTO
ZERO TARIFFS
World Bank
Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America
geographic_facet Latin America & Caribbean
description This report provides a preliminary assessment of DR-CAFTA (the , with particular attention to three key themes: (1) expected trade and non-trade benefits, (2) actions that Central American countries need to pursue to capitalize optimally on the new opportunities, and (3) identification of the population groups that may require assistance to adapt to a more competitive environment. The report focuses on the developing countries of Central America, namely Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The analysis presented in the report shows that the vast majority of the population in Central America is likely to experience welfare gains from implementation of DR-CAFTA, even in the short run. At the same time, the removal of trade barriers in sensitive agricultural crops could adversely affect a small share of the population living in rural areas in Central America. Although provisions in DR-CAFTA will allow for long timetables in reducing tariffs for the most sensitive products, appropriate support programs may need to be designed. In addition, selective investments in education, rural infrastructure, rural finance, and technical assistance will be required to ensure that the rural poor have the means to take full advantage of the new opportunities arising out of DR-CAFTA. Chapter 1 of the report reviews the main findings of the chapters in the order in which they appear. Chapter 2 places DR-CAFTA in the historical context of the economic reforms that Central American countries have been undertaking since the late 1980s. Chapter 3 provides a summary overview of the recently negotiated DR-CAFTA, with special attention on the extent to which the agreement's provisions would significantly change market access for Central American goods and services, and also on how far they could be expected to consolidate prior reforms. Chapter 4 reviews various analyses that assess the potential impacts of DR-CAFTA on the developing countries of Central America. Chapter 5 focuses on the identification and quantification of potentially affected populations from the easing of trade restrictions in sensitive agricultural products, and analyzes policy options to assist vulnerable groups. Chapter 6 reviews evidence related to key macroeconomic implications of DR-CAFTA, namely the potential revenue losses that might be produced by the removal of import taxes and the treaty's potential effect on the patterns of business-cycle synchronization. Chapter 7 reviews evidence from each Central American country in the areas of trade facilitation, institutional and regulatory reforms, and innovation and education, in order to identify key priorities for the complementary agenda for DR-CAFTA.
format Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study
author World Bank
author_facet World Bank
author_sort World Bank
title Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America
title_short Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America
title_full Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America
title_fullStr Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America
title_full_unstemmed Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America
title_sort dominican republic, central american free trade agreement (dr-cafta) : challenges and opportunities for central america
publisher Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/12/6489025/dominican-republic-central-american-free-trade-agreement-dr-cafta-challenges-opportunities-central-america
http://hdl.handle.net/10986/8358
_version_ 1764405313641906176
spelling okr-10986-83582021-04-23T14:02:39Z Dominican Republic, Central American Free Trade Agreement (DR-CAFTA) : Challenges and Opportunities for Central America World Bank ACCESS TO SERVICE MARKETS ACCORDS ADVERSE IMPACTS AGRICULTURAL COMMODITIES AGRICULTURAL PRODUCTS AGRICULTURE APPAREL APPAREL EXPORT APPAREL INDUSTRIES APPAREL TRADE BILATERAL TRADE BILATERAL TRADE AGREEMENTS BOVINE MEAT BUSINESS CYCLE BUSINESS CYCLE SYNCHRONIZATION BUSINESS CYCLES CAPACITY BUILDING CENTRAL AMERICA CIVIL SOCIETY COMMODITY PRICES COMMON MARKET COMPETITIVE ENVIRONMENT COMPETITIVENESS CONSUMERS CUSTOMS CUSTOMS UNION DEBT DISPUTE SETTLEMENT DOMESTIC LEGISLATION DOMESTIC PRICES DOMESTIC REFORMS DONOR AGENCIES DOUBLE TAXATION DOUBLE TAXATION TREATIES DYNAMIC EFFECTS DYNAMIC GAINS ECONOMIC COOPERATION ECONOMIC GROWTH ECONOMIC VALUE ELIMINATING TARIFFS EXPORT GROWTH EXPORT PRODUCTS EXPORT PROMOTION EXPORT PROSPECTS EXPORT VOLUMES EXPORTS FINANCIAL ASSETS FINANCIAL RESOURCES FINANCIAL SERVICES FOREIGN INVESTMENT FOREIGN INVESTORS FOSTERING TRADE FREE ACCESS FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS GDP GDP PER CAPITA GOVERNMENT REGULATIONS GROWTH RATE GROWTH RATES HARMONIZATION HUMAN CAPITAL IMPORT TAXES IMPORTS INCOME INCOME LOSSES INCOME TAXES INCREASING TRADE INDUSTRY TRADE INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL TRADE INTERNATIONAL TRANSPORT INTRAINDUSTRY TRADE INVESTMENT LEVELS INVESTMENT PROTECTION LABOR MARKETS LABOR REGULATIONS LIVING STANDARDS MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC POLICY COORDINATION MARKET ACCESS MOST FAVORED NATION NATIONAL INNOVATION SYSTEM NON-TARIFF BARRIERS PARTIAL EQUILIBRIUM ANALYSES POLICY MAKERS POLICY PRIORITIES POLITICAL CONDITIONS POLITICAL FACTORS POSITIVE EFFECTS PREFERENTIAL MARKET ACCESS PREFERENTIAL TREATMENT PRELIMINARY ASSESSMENT PRICE CHANGES PROTECTION LEVELS PROTECTIONS PUBLIC GOODS PUBLIC SECTOR QUOTAS RECIPROCAL ACCESS RECIPROCITY REDUCING PROTECTION REDUCING TARIFFS REGIONAL AGREEMENTS REGIONAL COORDINATION REGIONAL INTEGRATION REGIONAL INTEGRATION EFFORTS REGIONAL TRADE REGIONAL TRADE INTEGRATION REGULATIONS REGULATORY REFORMS REMOVING BARRIERS REMOVING TRADE BARRIERS SAFEGUARD MEASURES SPECIAL SAFEGUARD STATIC ANALYSES STATIC GAINS TARIFF BARRIERS TARIFF REDUCTIONS TARIFF-FREE ACCESS TAX POLICY TAX REVENUE TAXATION TECHNICAL ASSISTANCE TOTAL FACTOR PRODUCTIVITY TRADE TRADE AGREEMENT TRADE AREA TRADE BARRIERS TRADE CAPACITY TRADE DIVERSIFICATION TRADE EXPANSION TRADE FACILITATION TRADE FLOWS TRADE IN SERVICES TRADE INTEGRATION TRADE INTENSITY TRADE LIBERALIZATION TRADE MORE TRADE OPENNESS TRADE POLICIES TRADE POLICY TRADE PREFERENCE TRADE PREFERENCES TRADE PROTECTION TRADE REFORMS TRADE RESTRICTIONS TRADE STRUCTURE TRADING PARTNER TRANSITION PERIODS TRANSPORT COSTS TREATIES UNILATERAL EFFORTS UNILATERAL PREFERENCES UNILATERAL TRADE UNILATERAL TRADE REFORMS UNSKILLED LABOR VALUE ADDED WAGES WELFARE GAINS WELFARE IMPACTS WELFARE LOSSES WORLD TRADE WORLD TRADE ORGANIZATION WTO ZERO TARIFFS This report provides a preliminary assessment of DR-CAFTA (the , with particular attention to three key themes: (1) expected trade and non-trade benefits, (2) actions that Central American countries need to pursue to capitalize optimally on the new opportunities, and (3) identification of the population groups that may require assistance to adapt to a more competitive environment. The report focuses on the developing countries of Central America, namely Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The analysis presented in the report shows that the vast majority of the population in Central America is likely to experience welfare gains from implementation of DR-CAFTA, even in the short run. At the same time, the removal of trade barriers in sensitive agricultural crops could adversely affect a small share of the population living in rural areas in Central America. Although provisions in DR-CAFTA will allow for long timetables in reducing tariffs for the most sensitive products, appropriate support programs may need to be designed. In addition, selective investments in education, rural infrastructure, rural finance, and technical assistance will be required to ensure that the rural poor have the means to take full advantage of the new opportunities arising out of DR-CAFTA. Chapter 1 of the report reviews the main findings of the chapters in the order in which they appear. Chapter 2 places DR-CAFTA in the historical context of the economic reforms that Central American countries have been undertaking since the late 1980s. Chapter 3 provides a summary overview of the recently negotiated DR-CAFTA, with special attention on the extent to which the agreement's provisions would significantly change market access for Central American goods and services, and also on how far they could be expected to consolidate prior reforms. Chapter 4 reviews various analyses that assess the potential impacts of DR-CAFTA on the developing countries of Central America. Chapter 5 focuses on the identification and quantification of potentially affected populations from the easing of trade restrictions in sensitive agricultural products, and analyzes policy options to assist vulnerable groups. Chapter 6 reviews evidence related to key macroeconomic implications of DR-CAFTA, namely the potential revenue losses that might be produced by the removal of import taxes and the treaty's potential effect on the patterns of business-cycle synchronization. Chapter 7 reviews evidence from each Central American country in the areas of trade facilitation, institutional and regulatory reforms, and innovation and education, in order to identify key priorities for the complementary agenda for DR-CAFTA. 2012-06-18T20:46:58Z 2012-06-18T20:46:58Z 2005-12 http://documents.worldbank.org/curated/en/2005/12/6489025/dominican-republic-central-american-free-trade-agreement-dr-cafta-challenges-opportunities-central-america http://hdl.handle.net/10986/8358 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study Economic & Sector Work Latin America & Caribbean