CAFTA-DR

The CAFTA-DR is a free_trade_area agreement between USA + Costa Rica + Dominican Republic + El Salvador + Guatemala + Honduras + Nicaragua. Current status: in force. Per AJG Standing Order #13, this agreement is treated as a multilateral data point even when bilateral on its face — the broader implications for parallel supply chains, third-country preferences, and rule-of-origin spillovers are all relevant to Indian exporters and importers.

Coverage and effect

The agreement’s coverage typically includes some combination of tariff reduction, services market access, investment protection, intellectual property, government procurement, and dispute resolution. Specific tariff schedules, rule-of-origin requirements, and product-specific rules vary by chapter and are referenced from the parties’ published instruments.

India implications

Even where India is not a direct party, this agreement affects Indian trade through three mechanisms: (a) preference erosion, where Indian exports compete with preference-receiving exporters in the parties’ markets; (b) supply-chain reorganisation, as parties’ firms reconfigure sourcing to maximise the agreement’s benefits; (c) regulatory contagion, where higher standards in the agreement become the de-facto baseline for the broader region.