WT/REG305/1
18 July 2016
(16-3851)
Page: 1/74
Committee on Regional Trade Agreements
FACTUAL PRESENTATION
FREE TRADE AGREEMENT BETWEEN THE DOMINICAN REPUBLIC AND
CENTRAL AMERICA (COSTA RICA, EL SALVADOR, GUATEMALA,
HONDURAS AND NICARAGUA)
(GOODS AND SERVICES)
Report by the Secretariat
This report, prepared for the consideration of the Free Trade Agreement between the
Dominican Republic and Central America (Costa Rica, El Salvador, Guatemala,
Honduras and Nicaragua) 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 official 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 Silvia Avila
Seifert (tel: +41 22 739 5064). Any statistical questions arising from this report may
be addressed to Ms Rowena Cabos (tel: +41 22 739 5185).
WT/REG305/1
-2-
TABLE OF CONTENTS
1
Page
TRADE ENVIRONMENT................................................................................................. 5 1.1
Overview.................................................................................................................. 5 1.2
Merchandise trade ..................................................................................................... 6 1.2.1
Dominican Republic - Central America........................................................................ 6 1.2.2
Costa Rica-Dominican Republic ................................................................................. 8 1.2.3
El Salvador-Dominican Republic ................................................................................ 9 1.2.4
Guatemala-Dominican Republic................................................................................ 10 1.2.5
Honduras-Dominican Republic .................................................................................10 1.2.6
Nicaragua-Dominican Republic ................................................................................. 11 1.3
2
Trade in services and investment ................................................................................ 13 CHARACTERISTIC ELEMENTS OF THE AGREEMENT .................................................... 18 2.1
3
Background Information ............................................................................................18 PROVISIONS ON TRADE IN GOODS ........................................................................... 19 3.1
Import duties and charges, and quantitative restrictions ................................................ 19 3.1.1
General provisions ................................................................................................. 19 3.1.2
Liberalization of trade and tariff lines ........................................................................ 20 3.1.2.1
Costa Rica..........................................................................................................22 3.1.2.2
El Salvador ........................................................................................................22 3.1.2.3
Guatemala ......................................................................................................... 23 3.1.2.4
Honduras ...........................................................................................................23 3.1.2.5
Nicaragua ..........................................................................................................24 3.1.3
Liberalization schedule............................................................................................24 3.1.3.1
The Dominican Republic ....................................................................................... 24 3.1.3.2
Costa Rica..........................................................................................................27 3.1.3.3
El Salvador ........................................................................................................28 3.1.3.4
Guatemala ......................................................................................................... 29 3.1.3.5
Honduras ...........................................................................................................31 3.1.3.6
Nicaragua ..........................................................................................................32 3.1.4
Tariff rate quotas ...................................................................................................33 3.2
Rules of origin ..........................................................................................................33 3.3
Export duties and charges, and quantitative restrictions ................................................. 35 3.4
Regulatory provisions on trade in goods ....................................................................... 35 3.4.1
Standards .............................................................................................................35 3.4.1.1
Sanitary and phytosanitary measures .................................................................... 35 3.4.1.2
Technical barriers to trade .................................................................................... 36 3.4.2
3.4.2.1
Safeguard mechanisms...........................................................................................37 Global safeguards ...............................................................................................37 WT/REG305/1
-33.4.2.2
Bilateral safeguards .............................................................................................38 3.4.2.3
Special safeguards ..............................................................................................38 3.4.3
Anti-dumping and countervailing measures ............................................................... 38 3.4.4
Subsidies and State-aid ..........................................................................................39 3.4.5
Customs-related procedures ....................................................................................39 3.4.6
Other regulations ...................................................................................................39 3.5
4
Sector-specific provisions on trade in goods ................................................................. 39 PROVISIONS ON TRADE IN SERVICES AND INVESTMENT ......................................... 39 4.1
Scope and definitions ................................................................................................39 4.2
Denial of benefits .....................................................................................................40 4.3
General provisions on trade in services ........................................................................ 41 4.3.1
Market access .......................................................................................................41 4.3.2
National treatment and MFN ....................................................................................41 4.3.3
Commercial presence ............................................................................................. 41 4.3.4
Stand-still (Consolidation of measures) .....................................................................41 4.3.5
Performance requirements ...................................................................................... 41 4.3.6
Senior management and boards of directors .............................................................. 42 4.3.7
Movement of natural persons .................................................................................. 42 4.4
Liberalization commitments........................................................................................43 4.5
Regulatory provisions ................................................................................................43 4.5.1
Domestic regulation ...............................................................................................43 4.5.2
Recognition ...........................................................................................................43 4.5.3
Subsidies ..............................................................................................................44 4.5.4
Safeguards ...........................................................................................................44 4.5.4.1
Balance of Payments restrictions ........................................................................... 44 4.5.5
Exceptions ............................................................................................................44 4.5.6
Other ................................................................................................................... 44 4.5.7
Other measures on investment ................................................................................ 44 4.6
5
Sector specific provisions on trade in services ............................................................... 45 GENERAL PROVISIONS OF THE AGREEMENT ............................................................. 45 5.1
Transparency ...........................................................................................................45 5.2
Current payments and capital movements.................................................................... 45 5.3
Exceptions ...............................................................................................................46 5.4
Accession and Withdrawal ..........................................................................................46 5.5
Institutional framework .............................................................................................46 5.6
Dispute settlement ................................................................................................... 47 5.7
Relationship with other agreements concluded by the Parties .......................................... 50 5.8
Government procurement ..........................................................................................52 5.9
Competition policy ....................................................................................................53 5.10
Intellectual property rights ....................................................................................... 54 WT/REG305/1
-4ANNEX 1 ........................................................................................................................ 55 ANNEX 2 ........................................................................................................................ 73 WT/REG305/1
-5-
Key Facts
Parties to the Agreement:
Central America1
Dominican Republic
Date of signature of the Free trade
Agreement
16 April 1998
Date of entry into
Dominican Republic
Dominican Republic
Dominican Republic
Dominican Republic
Dominican Republic
force:
- Costa Rica
- El Salvador
– Guatemala
- Honduras
- Nicaragua
and
the
7 March 2002
4 October 2001
3 October 2001
19 December 2001
3 September 2002
Date of notification:
6 January 2012
Full implementation of commitments:
Dominican Republic - Costa Rica
Dominican Republic - El Salvador
Dominican Republic – Guatemala
Dominican Republic - Honduras
Dominican Republic - Nicaragua
2010 and 2004
2004
2004
2004
2004
1 TRADE ENVIRONMENT
1.1 Overview
1.1. The Free Trade Agreement (FTA) between the Dominican Republic and Central America
(Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) is the third regional trade
agreement notified by the Dominican Republic; the sixth notified by Costa Rica, El Salvador and
Honduras; the fourth by Guatemala, and the fifth by Nicaragua.
1.2. In 2014, the GDP of the Dominican Republic (10.529 million inhabitants) was estimated at
US$63.97 billion. It was ranked 68th for exports and 59th for imports globally (total exports of
goods amounting to US$ 9.92 billion and imports to US$17.29 billion). The majority of its exports
and imports consist of manufactures (52.2% and 59.2%, respectively) followed by agricultural
products (23% and 16%, respectively) and fuels and mining products (8.9% and 24.2%,
respectively). As regards trade in services, the Dominican Republic was 42nd among exporters
(US$6.8 billion) and 70th among importers (US$2.9 billion). The average trade/GDP ratio in 20122014 was 57.9.
1.3. Among the Central American economies, in 2014, the GDP of Costa Rica (4.9 million
inhabitants) was estimated at US$49.6 billion. It was ranked 63rd for exports and 60th for imports
globally (total exports of goods amounting to US$11.3 billion and imports to US$17.2 billion). With
a population of 6.4 million, El Salvador's GDP was estimated at US$25 billion and it was ranked
83rd in global exports and 75th in imports (total exports of goods amounting to US$5.3 billion and
imports to US$10.5 billion). The GDP of Guatemala (15.9 million inhabitants) was estimated at
US$58.7 billion and it was ranked 65th in global exports and 58th in imports (total exports and
imports of respectively US$10.8 billion and US$18.3 billion). Honduras had a population of
8.3 million and a GDP of US$19.4 billion. It ranked 75th in global exports and 72nd in imports
(total exports of US$8.1 billion and imports of US$11.1 billion). Nicaragua (population of
6.2 million) was the smallest economy with a GDP of US$11.8 billion. It was ranked 85th in global
exports and 90th in imports (total exports of goods of US$5.1 billion and imports of
US$6.9 billion).
1.4. The majority of exports from Costa Rica (59.2%), El Salvador (75.4%), and Honduras
(59.1%) consisted of manufactured goods, while exports from Guatemala (45.6%) and Nicaragua
1
Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
WT/REG305/1
-6(46.9%) are dominated by agricultural products. Imports are dominated by manufactured products
(71.0% for Costa Rica, 63.2% for El Salvador, 64.3 % for Guatemala, 63.4% for Honduras and
53.2% for Nicaragua).
1.5. As regards trade in services, Costa Rica was 41st among exporters (US$6,855 million) and
85th among importers (US$2,109 million) followed by Guatemala (ranked 70th for exports at
US$2,602 million and 68th for imports at US$3,001 million), El Salvador (ranked 77th in exports
at US$2,165 million and 100th for imports at US$1,434 million), Honduras, ranked 71st for
exports and 90th for imports (US$2,557 million and US$1,720 million, respectively) and Nicaragua
(ranked 96th for exports at US$1,302 million and 114th for imports at US$912 million).
1.6. The average trade to GDP ratio in 2012-2014 was 66.9 for Costa Rica, 69.9 for El Salvador,
59.0 for Guatemala, 88.9 for Honduras and 104.6 for Nicaragua.
1.2 Merchandise trade
1.2.1 Dominican Republic - Central America
1.7. Trade between the Dominican Republic and Central America amounted to an annual average
of US$ 763 million during 2012-2014. In 2014, The Dominican Republic's exports to and imports
from Central America represented 1% and 3.2%, respectively, of its total exports and imports,
making Central America the ninth largest destination for the Dominican Republic's exports and the
seventh largest source of imports.2 Central America's exports to and imports from the Dominican
Republic represented 1.5% and 0.2%, respectively, of its total exports and imports, placing the
Dominican Republic in 11th and 36th position as a destination for and source of its exports and
imports.
1.8. Charts 1.1 and 1.2 show trends in trade between the Dominican Republic and Central
America and the world between 1998 and 2014. During this period, the Dominican Republic's
global trade and its trade with Central America increased, although imports have outpaced exports
since 2004. As a result it has had a trade deficit both globally and with Central America since
2004. In its trade with Central America, the Dominican Republic has maintained a trade deficit with
all the countries except for Honduras, although for much of the period since 2006, it has also had
a deficit with Honduras.
2
In 2014, the Dominican Republic's main export markets were: the United States (49.1%), Haiti
(14.3%), Canada (9.2%), the European Union (8.1%) and Switzerland (2.5%). The main sources of its imports
were: the United States (41%), China (11.6%), the European Union (9.5%), Mexico (6%) and Venezuela,
Bolivarian Rep. of (5.2%).
WT/REG305/1
-7Chart 1.1 Dominican Republic, bilateral trade with Central America and trade with world
20
Dominican Republic trade with Central America and world,
1998-2014
(US$ billion)
Nicaragua
18
Honduras
16
Guatemala
1.5
El Salvador
14
1.0
Costa Rica
12
Total exports (left axis)
10
Total imports (left axis)
8
0.5
6
4
2
0.0
1998
Source:
1999
2000
2001
2002
2003
UNSD, Comtrade database.
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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
Export
Import
Export
Import
0
2014
WT/REG305/1
-8Chart 1.2 Central America, bilateral trade with Dominican Republic and trade with world
1. Costa Rica trade with DR and world,
1998-2014
3. Guatemala trade with DR and world,
1998-2014
US$ Million
US$ Billion
160
20
140
18
16
120
14
100
12
80
10
60
8
6
40
4
US$ Million
40
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0
2000
0
1999
2
1998
20
6
40
30
4
20
2
10
4. Honduras trade with DR and world,
1998-2014
US$ Million
2014
2013
2012
2011
2010
2009
2008
2007
0
2006
0
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
8
50
2005
50
60
2004
100
10
70
2003
150
12
80
2002
200
US$ Billion
90
2001
250
US$ Million
2000
20
18
16
14
12
10
8
6
4
2
0
1999
US$ Billion
300
1998
US$ Million
2. El Salvador trade with DR and world,
1998-2014
US$ Billion
60
10
9
50
8
7
40
6
5
30
4
20
3
2
10
1
0
0
1998 2000 2002 2004 2006 2008 2010 2012 2014
5. Nicaragua trade with DR and world,
1998-2014
US$ Billion
7
6
30
5
4
20
3
2
10
1
0
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Export to DR
Total exports (right axis)
Import from DR
Total imports (right axis)
Note:
Mirror data used for bilateral trade of Honduras for 2008.
Source:
UNSD, Comtrade database, WTO-IDB and IFS and GTA database.
1.2.2 Costa Rica-Dominican Republic
1.9. Trade between Costa Rica and the Dominican Republic amounted to an annual average of
US$ 282 million during 2012-2014. In 2014, Costa Rica's exports to the Dominican Republic
represented 2.4% while imports represented 0.2% of its total exports and imports, making the
Dominican Republic the 12th largest destination for Costa Rica's exports and the 31st largest
source of its imports.3 In 2014, the Dominican Republic's exports to and imports from Costa Rica
3
In 2014, Costa Rica's main export markets were: the United States (38.3%), the European Union
(17.6), Hong Kong, China (5.6), Panama (5.1%) and Nicaragua (4.3%) .The main sources of its imports were:
the United States (50%), China (9.6%), the European Union (7.4%), Mexico (6.4%) and Japan (2.9%).
WT/REG305/1
-9represented 0.3% and 1.3%, respectively, of its total exports and imports, placing Costa Rica in
15th and 12th position as a destination for and source of its exports and imports.
1.10. Chart 1.3a and b below provides a breakdown of bilateral trade between the Parties by
product and of their trade at the global level over the period 2000-2002 before the Agreement
entered into force and for the more recent period of 2012-2014, by HS Section. In 2000-2002 five
of Costa Rica's major exports (machinery, vegetables, textiles, prepared foods and optical,
photographic equipment) accounted for 76% of its total exports; of these prepared foods, and
machinery accounted for 21% of total imports from Costa Rica by the Dominican Republic and
chemicals, plastics and pulp of wood, respectively, accounted for 38%, 23% and 7%. By 20122014 while machinery and vegetables remained Costa Rica's largest global export categories
(accounting for 55% of its exports), only machinery accounted for significant import by the
Dominican Republic (18%) while the share of prepared food had increased from 13% to 18%.
1.11. In 2000-2002 five export categories (textiles, prepared foodstuffs, machinery, natural and
cultured pearls, and optical, photographic equipment) accounted for 74% of the Dominican
Republic's total exports; two of these, machinery, and prepared foodstuffs, respectively, accounted
for 13% and 12% of Costa Rica's imports from the Dominican Republic. Plastics, chemicals and
base metals accounted, respectively, for 30%, 14% and 9% of the total. In 2012-14 the
Dominican Republic's global export patterns showed diversification away from textiles and
prepared foods whose share fell from 51% to 30%, while the shares of precious stones, optical
and photographic equipment rose; however Costa Rica's imports from the Dominican Republic
were concentrated in base metals, plastics, and machinery (accounting for 78% of its imports from
the Dominican Republic).
1.2.3 El Salvador-Dominican Republic
1.12. Trade between El Salvador and the Dominican Republic amounted to an annual average of
US$ 124 million during 2012-2014. In 2014, El Salvador's exports to the Dominican Republic
represented 1.6% while imports represented 0.06% of its total exports and imports, making the
Dominican Republic the eighth largest destination for El Salvador's exports and the 37th largest
source of its imports.4 In 2014, the Dominican Republic's exports to and imports from El Salvador
represented 0.03% and 0.5%, respectively, of its total exports and imports, placing El Salvador in
48th and 19th position as a destination for and source of exports and imports.
1.13. Chart 1.3a and b below provides a breakdown of bilateral trade between the Parties by
product and of their trade at the global level over the period 2000-2002 and 2012-2014 by HS
Section. In 2000-2002 El Salvador's major export categories (prepared foods, vegetable products,
chemicals, textiles, base metals) accounted for 28% of its total exports (with around 57% of its
exports falling under HS Chapter 99); of these, chemicals, prepared foods and textiles accounted
for 69% of total imports from El Salvador by the Dominican Republic and machinery and plastics
accounted, respectively for another 11% and 6%. In 2012-2014 textiles and prepared foods
accounted respectively for 43% and 15% of El Salvador's global exports; prepared foods were also
the largest imports by the Dominican Republic from El Salvador (31%) followed by plastics (16%)
and wood pulp (12%).
1.14. In 2000-2002 five export categories (textiles, prepared foodstuffs, machinery, natural and
cultured pearls, and optical, photographic equipment) accounted for 74% of the Dominican
Republic's total exports; one of these, namely chemicals, made up 14% of El Salvador's imports
from the Dominican Republic and plastics, pulp of wood, machinery and raw hides and skins
accounted, respectively for 51%, 15%, 11%, 4% of the total. By 2012-2014 the Dominican
Republic's global exports were more diversified, with a smaller share for textiles and prepared
foods (30% compared to 51%), and larger shares for precious stones, optical and photographic
equipment (to 25% compared to 14%). El Salvador's major imports from the Dominican Republic
were in contrast, dominated by mineral products (82%).
4
In 2014, El Salvador's main export markets were: the United States (46.5%), Honduras (14.2%),
Guatemala (13.4%), Nicaragua (6.4%) and Costa Rica (4.6%). The main sources of its imports were: the
United States (41.0%), Guatemala (9.5%), China (7.3%), Mexico (7%) and the European Union (5.9%).
WT/REG305/1
- 10 1.2.4 Guatemala-Dominican Republic
1.15. Trade between Guatemala and the Dominican Republic amounted to an annual average of
US$230 million during 2012-2014. In 2014, Guatemala's exports to the Dominican Republic
represented 1.3% while imports represented 0.2% of its total exports and imports, making the
Dominican Republic the 12th largest destination for Guatemala's exports and the 27th source of its
imports.5 In 2014, the Dominican Republic's exports to and imports from Guatemala represented
0.3% and 0.6%, respectively, of its total exports and imports, placing Guatemala in 17th and 14th
position as a destination for and source of its exports and imports.
1.16. Chart 1.3a and b below provides a breakdown of bilateral trade between the Parties by
product and of their trade at the global level over the period 2000-2002 and 2012-2014 by HS
Section. In 2000-2002 five of Guatemala's major export categories (vegetable products, prepared
foods, chemicals, minerals and base metals) accounted for 78% of its total exports; of these,
chemicals and prepared foods accounted for 68% of total imports from Guatemala by the
Dominican Republic. Articles of stone, wood and articles of wood and machinery accounted for
another 8%, 6.0% and 5.7%, respectively. By 2012-2014 Guatemala's share of exports of
vegetable products had declined from 35% to 23%; the overall share of its three largest export
categories in 2000-2002 (vegetable products, prepared foods and chemicals) had fallen from 66%
to 51%, while textiles exports have gained in importance (from negligible levels to 15%. In
comparison the Dominican Republic mainly imported chemical products and prepared foods from
Guatemala (63% of total imports compared to 68% in the previous period).
1.17. In 2000-2002 five export categories (textiles, prepared foodstuffs, machinery, natural and
cultured pearls, and optical, photographic equipment) accounted for 74% of the Dominican
Republic's total exports; one of these, namely machinery made up 21% of Guatemala's imports
from the Dominican Republic. Chemicals, plastics, base metals and vehicles accounted for another
28%, 19%, 9% and 6%, respectively. By 2012-2014 the Dominican Republic's global exports were
more diversified, with a smaller share for textiles and prepared foods (30% compared to 51%),
and larger shares for precious stones, optical and photographic equipment (to 25% compared to
14%). Guatemala's imports from the Dominican Republic were mainly minerals (70%) and
chemicals (15%).
1.2.5 Honduras-Dominican Republic
1.18. Trade between Honduras and the Dominican Republic amounted to an annual average of
US$ 81 million during 2012-2014. In 2014, Honduras' exports to and imports from the Dominican
Republic represented 1.2% and 0.1%, respectively, of its total exports and imports, making the
Dominican Republic the tenth largest destination for Honduras exports and the 19th source of its
imports.6 The Dominican Republic's exports to and imports from Honduras represented 0.2% and
0.4%, respectively, of its total exports and imports, placing Honduras in 19th and 22nd position as
a destination for and source of its exports and imports.
1.19. Chart 1.3a and b below provides a breakdown of bilateral trade between the Parties by
product and of their trade at the global level over the period 2000-2002 and 2012-2014 by HS
Section. In 2000-2002 five of Honduras' major exports (vegetables, prepared foods, wood and
articles of wood, base metals and chemicals) accounted for 80% of its total exports; of these,
chemicals, prepared foods and wood and articles of wood accounted for 79% of total imports from
Honduras by the Dominican Republic. Textiles and animal and vegetable fats and oils accounted,
respectively, for another 7% and 3%. In 2012-2014 while vegetables remained important global
exports, their share had declined to 32% from 45%; other key export categories in 2012-2014
were machinery, live animals, base metals and animal or vegetable fats and oils (together
accounting for 37% of total exports. The Dominican Republic's imports from Honduras continued to
5
In 2014, Guatemala's main export markets were: the United States (36.2%), El Salvador (11.6%),
Honduras (8.1%), the European Union (7.5%) and Nicaragua (4.7%). The main sources of its imports were:
the United States (40.3%), Mexico (10.7%), China (9.8%), the European Union (7.1%) and
El Salvador (4.5%).
6
In 2014, Honduras' main export markets were: the United States (45.5%), the European Union
(26.2%), El Salvador (4.5%), Guatemala (3.7%), and Nicaragua (3.1%). The main sources of its imports
were: the United States (40.9%), China (8.9%), Mexico (7.7%), Guatemala (7.0%) and the European Union
(5.7%).
WT/REG305/1
- 11 be dominated by prepared foods (34%), although textiles and animal and vegetable fats were
important imports accounting together for 40% of its imports from Honduras.
1.20. In 2000-2002 five export categories (textiles, prepared foodstuffs, machinery, natural and
cultured pearls, and optical, photographic equipment) accounted for 74% of the Dominican
Republic's total exports one of these, namely prepared foods, made up 43%, of Honduras' imports
from the Dominican Republic. Chemicals, pulp of wood, plastics and vegetable products accounted
for another 26%, 8%, 7% and 6.7%, respectively. By 2012-2014 the Dominican Republic's global
exports were more diversified, with a smaller share for textiles and prepared foods (30%
compared to 51%), and larger shares for precious stones, optical and photographic equipment (to
25% compared to 14%). Honduras' main imports from the Dominican Republic were mineral
products (69%) and chemicals (16%); prepared foods, which was the largest export category for
the Dominican Republic globally (16% of its global exports), accounted for 6% of Honduras'
imports from the Dominican Republic.
1.2.6 Nicaragua-Dominican Republic
1.21. Trade between Nicaragua and the Dominican Republic amounted to an annual average of
US$ 47 million during 2012-2014. In 2014, Nicaragua's exports to the Dominican Republic
represented 0.6% while imports represented 0.2% of its total exports and imports, making the
Dominican Republic the 12th largest destination for Nicaragua's exports and the 32nd source of its
imports.7 In 2014, the Dominican Republic's exports to and imports from Nicaragua represented
0.2% of its total exports and imports, placing Nicaragua in 18th and 34th position as a destination
for and source of its exports and imports.
1.22. Chart 1.3 below provides a breakdown of bilateral trade between the Parties by product and
of their trade at the global level over the period 2000-2002 and 2012-2014, by HS Section. During
the first period five of Nicaragua's major exports (animal products, vegetables, prepared foods,
natural and cultured pearls and wood and articles of wood) accounted for 86% of its total exports;
of these, wood and articles of wood and prepared foods accounted for 96% of total imports from
Nicaragua by the Dominican Republic. In 2012-2014 while animal products, vegetables and
prepared foods remained important global exports for Nicaragua, their share had fallen, while
textiles had become the largest export category (27%). This change was also reflected in the
Dominican Republic's main imports from Nicaragua: while prepared foods still accounted for 60%
of its imports from Nicaragua, the share of textiles had grown to 28%, while the share of articles
of wood had fallen from 55% to 5%.
1.23. In 2000-2002, five export categories (textiles, prepared foodstuffs, machinery, natural and
cultured pearls, and optical, photographic equipment) accounted for 74% of the Dominican
Republic's total exports, one of these, namely machinery made up 7.5% of Nicaragua's imports
from the Dominican Republic. Plastics, chemicals, base metals ad pulp of wood accounted,
respectively, for 39%, 34%, 13% and 3%. In 2012-2014 among the Dominican Republic's key
exports of prepared foods, precious stones, textiles, optical equipment and machinery, only
machinery was a key import by Nicaragua from the Dominican Republic, accounting for 14% of its
imports; other key imports by Nicaragua from the Dominican Republic were mineral products,
chemicals and plastics (which accounted for 80% of its imports from the Dominican Republic).
7
In 2014, Nicaragua's main export markets were: the United States (48.4%), Mexico (12.4%),
Venezuela, Bolivarian Rep. of (7.8%), the European Union (6.5%) and Canada (5.0%). The main sources of its
imports were: the United States (16.3%), China (14.9%), Mexico (9.5%), Costa Rica (8.1%) and Venezuela,
Bolivarian Rep. of (7.9%).
WT/REG305/1
- 12 Chart 1.3a Dominican Republic - Central America: product composition of merchandise
trade, annual average (2000-2002)
4
6
7
11 8
6
41 7
12 CRI
8
38
38
49
13
14
14 6
23
20
19
7
23
6
32
6
7
71 8
6
13
9
9
7
9
27
33
SLV 7
CRI
6
55
11
GTM
22
5
28
45
HND
20
3
19
SLV
13
NIC
14
GTM
12
6
7
NIC
HND
11
3
Central America's global
exports (%)
Dominican Republic's
global imports (%)
Dominican Republic's imports from
Central America (%)
5
5
4
35
45
23
18
14
31
Total: Costa Rica: US$ 42.6 million
El Salvador :US$ 11.3 million
Guatemala: US$ 25.4 million
Honduras: US$ 2.7 million
Nicaragua: US$ 2.0 million
Total: US$ 3.6 billion
7
13
7
8
10
18
11
4 4 SLV
22
GTM
12
15
19
37
28
CRI
39
51
13
SLV
37 35
55
7
14
26
34
Total: Costa Rica: US$ 4.4 million
El Salvador: US$ 1.7 million
Guatemala: US$ 3.0 million
Honduras: US$ 4.5 million
Nicaragua: US$ 1.5 million
34 11
33
7
21
8
7
14
20
20
26
CRI
43
30
14 9
17
HND
HND
GTM
6
9
NIC
3 NIC
3
Dominican Republic's
global exports (%)
Central America's global
imports (%)
Central America's imports from
Dominican Republic (%)
8
Total: Costa Rica: US$ 5.1 billion
El Salvador :US$ 2.9 billion
Guatemala: US$ 2.4 billion
Honduras:US$ 1.1 billion
Nicaragua : US$ 0.6 billion
14
10
17
7 8 11
6
5
14
11
9
14
8
37
15
7
7
9
14
10
Total: Costa Rica: US$ 6.4 billion
El Salvador: US$ 5.1 billion
Guatemala: US$ 5.5 billion
Honduras: US$ 2.7 billion
Nicaragua: US$ 1.8 billion
Total: US$ 2.0 billion
Legend: CRI - Costa Rica; SLV - El Salvador; GTM - Guatemala; HND - Honduras; NIC - Nicaragua.
Source: UNSD, Comtrade database.
WT/REG305/1
- 13 Chart 1.3b Dominican Republic - Central America: product composition of merchandise
trade, annual average (2012-2014)
4
2 1
5
NIC
6
27
5
6
18
9
16
9
60
16
12
28
CRI
22
11
37
14
7
7
12
7
5
10
6
12
8
Central America's imports from
Dominican Republic (%)
14
4
6
8
14
HND
32
17
31
45
35
SLV
35
CRI
34
82
20
19
19
Dominican Republic's
global exports (%)
24
70
69
6
7
8
7
38
15
10
9
18
Total: Costa Rica: US$ 36 million
El Salvador: US$ 41 million
Guatemala: US$ 97 million
Honduras: US$ 21 million
Nicaragua: US$ 18 million
13
8 10
11
7
16
27
15
7
29
13
9
21
GTM
36
11 CRI
3
19
15
NIC
3 3 2 SLV
6
16 15
22
14
Total: Costa Rica: US$ 11 billion
El Salvador :US$ 5 billion
Guatemala: US$ 10 billion
Honduras:US$ 3 billion
Nicaragua : US$ 5 billion
Central America's global
imports (%)
NIC
GTM
22 3
4
43
15
8
Total: US$ 18 billion
HND
2 3
8
6
32
15
Total: Costa Rica: US$ 242 million
El Salvador :US$ 80 million
Guatemala: US$ 128 million
Honduras: US$ 54 million
Nicaragua: US$ 29 million
4
26
5
26
2
27
23
23
SLV
24
45
CRI
11 13
31
26
34
18 31
27
14
GTM
SLV
21
9
HND
GTM
12
4
NIC
16
HND
16
4
Central America's global
exports (%)
Dominican Republic's
global imports (%)
Dominican Republic's imports from
Central America (%)
13
17
14
16
13
8
14
10
13
15
Total: Costa Rica: US$ 18 billion
El Salvador: US$ 11 billion
Guatemala: US$ 18 billion
Honduras: US$ 6 billion
Nicaragua: US$ 6 billion
Total: US$ 8 billion
1.3 Trade in services and investment
1.24. Charts 1.4 and 1.5 show global trade in commercial services for the parties (2001-2013)
and Charts 1.6 and 1.7 show trends in investment (2000-2014). The Dominican Republic
registered a surplus in its global trade in services that has increased, with some fluctuations,
during the period examined. Imports are dominated by transport services while its principle
exports were travel-related services.
1.25. While Costa Rica has had a growing surplus in its global trade in services during the period
examined, most of the other Central American economies have maintained deficits; El Salvador
moved from a deficit to a small surplus by the end of the period. Receipts from transport and
travel-related services are important for all Central American economies, while communication
services play an important role as well. Costa Rica has shown an increase in recent years in
receipts from computer and information services and other business services. Expenditure on
services was mainly in transportation and travel services. Data are not available for bilateral trade
in services between the Dominican Republic and the Central American economies.
WT/REG305/1
- 14 Chart 1.4 Dominican Republic: Trade in commercial services with world, 2001-2013
6
A. Dominican Republic imports from world
2001-2013
(US$ Billion)
6
5
5
4
4
3
3
2
2
1
1
0
2001
2003
2005
2007
2009
2011
2013
0
2001
B. Dominican Republic exports to world
2001-2013
(US$ Billion)
2003
2005
2007
2009
2011
2013
Note:
No trade data available for Construction (2001-2013); Communications services (2013); Computer and
information services (2001 and 2013); and Other business services (2013).
No import data available for Travel (2013); Insurance services (2001-2004 and 2013); Royalties and licence
fees (2013); and Personal, cultural and recreational services (2001-2005 and 2013).
No export data available for Transportation services (2013); Insurance services (2001-2004, 2013); Financial
services (2001, 2002 and 2013); Royalties and licence fees (2001-2013); and Personal, cultural and
recreational services (2001-2013).
Source:
WTO Statistics database.
WT/REG305/1
- 15 Chart 1.5 Central America: Total trade in commercial services with world, 2001-2013
Exports
Imports
6.0
US$ billion
US$ billion
Costa Rica
6.0
4.0
2.0
2.0
0.0
2001
4.0
2003
2005
2007
2009
2011
0.0
2001
2013
2003
2005
2007
2009
2011
2013
2003
2005
2007
2009
2011
2013
2003
2005
2007
2009
2011
2013
2.0
US$ billion
US$ billion
El Salvador
1.5
1.0
0.5
0.0
2001
2.0
1.5
1.0
0.5
2003
2005
2007
2009
2011
0.0
2001
2013
3.0
US$ billion
US$ billion
Guatemala
2.0
2.0
1.0
1.0
0.0
2001
3.0
2003
2005
2007
2009
2011
0.0
2001
2013
2.0
US$ billion
US$ billion
Honduras
1.5
1.0
2003
2005
2007
2009
2011
1.0
0.0
2001
2013
Nicaragua
0.8
0.6
2005
2007
2009
2011
2013
2003
2005
2007
2009
2011
2013
0.8
0.6
0.4
0.4
0.2
0.2
0.0
2001
2003
1.0
1.0
US$ billion
US$ billion
1.5
0.5
0.5
0.0
2001
2.0
2003
2005
2007
2009
2011
2013
0.0
2001
Note:
Costa Rica - No available trade for Construction(2001-2013); no available export data for Royalties and licence
fees (2006-2007); and Insurance (2001-2013).
El Salvador - No available export data for Computer and information (2005, 2007); and for Personal, cultural,
and recreational (2003, 2005-2008, 2010-2013).
WT/REG305/1
- 16 Guatemala - No available trade data for Construction (2004-2005, 2007-2008, 2013); and Royalties and
licence fees (2001-2003). No available export data for Personal, cultural, and recreational (20062008). No available import data for Construction (2011-2012).
Honduras - No available export data for Construction (2001-2002, 2006-2012); Computer and information
(2001-2002); Royalties and licence fees (2004-2013); and Personal, cultural, and recreational
(2001-2002, 2008). No available import data for Construction (2006-2009).
Nicaragua - No available trade data for Construction (2001-2013). No available export data for Financial;
Royalties and licence fees; and Personal cultural and Recreational (2001-2013); Computer and
information (2001-2008); Other business services (2001-2007). No available import data for
Computer and information (2001-2013); Financial (2001-2005); Royalties and licence fees (20012007); and Personal, cultural and recreational (2001-2007).
Source:
WTO Statistics database.
1.26. Charts 1.6 and 1.7 contain data on FDI. All the Parties are net recipients of FDI and most of
them showed a sharp increase in net inward investment stocks during the period. Data on bilateral
FDI stocks and flows between the Dominican Republic and Central America are not available.
Chart 1.6 Dominican Republic: FDI stock and flow with world, 2000-2014
Dominican Republic FDI stock with world,
2000-2014
(US$ billion)
35
Dominican Republic FDI flow with world,
2000-2014
(US$ billion)
3.5
Outward
Outward
Inward
30
Inward
3.0
2.5
25
2.0
20
1.5
15
1.0
10
0.5
5
0.0
0
2000
Source:
2002
2004
UNCTAD.
2006
2008
2010
2012
2014
-0.5
2000
2002
2004
2006
2008
2010
2012
2014
WT/REG305/1
- 17 Chart 1.7 Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua):
FDI stock and flow with world, 2000-2014.
FDI STOCK
FDI FLOW
Costa Rica
3.0
inward
US$ Billions
US$ Billions
30
outward
25
20
15
inward
outward
2.5
2.0
1.5
1.0
10
0.5
5
0.0
0
-0.5
2000
2002
2004
2006
2008
2010
2012
2014
2000
2002
2004
2006
2008
2010
2012
2014
10
inward
outward
8
2.0
US$ Billions
US$ Billions
El Salvador
6
1.5
1.0
4
0.5
2
0.0
0
2000
2002
2004
2006
2008
2010
2012
inward
outward
-0.5
2014
2000
2002
2004
2006
2008
2010
2006
2008
2010
2012
2014
14
US$ Billions
US$ Billions
Guatemala
inward
outward
12
10
8
6
1.5
inward
outward
1.0
0.5
4
2
0.0
0
2000
2002
2004
2006
2008
2010
2012
2014
12
US$ Billions
US$ Billions
Honduras
inward
outward
10
8
6
4
2000
1.5
1.0
2002
2004
2012
2014
inward
outward
0.5
0.0
2
0
2000
2002
2004
2006
2008
2010
2012
‐0.5
2014
2000 2002 2004 2006 2008 2010 2012 2014
10
US$ Billions
US$ Billions
Nicaragua
inward
outward
8
6
4
1.2
1.0
0.8
inward
outward
0.6
0.4
0.2
2
0.0
0
2000
2002
2004
2006
2008
2010
2012
2014
-0.2
Note:
No available outward flow for El Salvador (2009); and Nicaragua (2001-2005). No available outward
stock for El Salvador (2012); Honduras (2001-2003); and Nicaragua (2001-2004).
Source:
UNCTAD.
WT/REG305/1
- 18 2 CHARACTERISTIC ELEMENTS OF THE AGREEMENT
2.1 Background Information
2.1. The Parties signed the Agreement on 16 April 1998 and it came into force between the
Dominican Republic and the Central American countries as follows: on 7 March 2002 with Costa
Rica; on 4 October 2001 with El Salvador; on 3 October 2001 with Guatemala; on 19 December
2001 with Honduras; and on 3 September 2002 with Nicaragua. The Agreement was notified on
6 January 2012 pursuant to Article XXIV.7(a) of the GATT 1994 and Article V.7(a) of the GATS.8
2.2. The text of the Agreement, together with its annexes, may be viewed on the following official
web sites:
Dominican Republic:
http://www.mic.gob.do/
Costa Rica:
http://www.comex.go.cr/
El Salvador:
http://www.minec.gob.sv/
Guatemala:
http://www.mineco.gob.gt/
Honduras:
http://www.prohonduras.hn/dgiepc/texto-normativo-4.html
Nicaragua:
http://www.mific.gob.ni/
2.3. As can be seen from Box 2.1, the Agreement has 20 Chapters which are accompanied by
annexes. There are also five separate protocols, which form an integral part of the Agreement.9
Box 2.1 General provisions of the agreement
Chapter 1
Initial provisions
Chapter 2
General definitions
Chapter 3
National treatment and market access for goods
Chapter 4
Rules of origin
Chapter 5
Customs procedures
Chapter 6
Sanitary and phytosanitary measures
Chapter 7
Unfair trade practices
Chapter 8
Safeguard measures
Chapter 9
Investment
Chapter 10
Trade in services
Chapter 11
Temporary entry of business persons
Chapter 12
Government procurement
Chapter 13
Technical Barriers to Trade
Chapter 14
Intellectual property
Chapter 15
Competition policy
Chapter 16
Dispute settlement
Chapter 17
Exceptions
Chapter 18
Administration of the Agreement
Chapter 19
Transparency
Chapter 20
Final provisions
Protocol between Costa Rica, El Salvador, Guatemala and the Dominican Republic to the Agreement
Protocol between El Salvador and the Dominican Republic
Protocol of Accession of Honduras to the Protocol to the Agreement
Protocol between Honduras and the Dominican Republic to the Agreement
Protocol of Accession of Nicaragua to the Protocol to the Agreement.
Source:
Free trade Agreement between the Dominican Republic and Central America.
2.4. Unless otherwise provided, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua,
considered individually, shall apply the rules and procedures under the Agreement bilaterally with
the Dominican Republic (Article 1.01).
8
WTO document WT/REG305/N/1 - S/C/N/614 of 6 January 2012.
The Protocol between Costa Rica, El Salvador, Guatemala and the Dominican Republic to the Free
Trade Agreement between Central America and the Dominican Republic; the Protocol between El Salvador and
the Dominican Republic to the Free Trade Agreement between Central America and the Dominican Republic;
the Protocol of the Accession of Honduras to the Protocol to the Free Trade Agreement between Central
America and the Dominican Republic; the Protocol between Honduras and the Dominican Republic to the Free
Trade Agreement between Central America and the Dominican Republic; the Protocol of the Accession of
Nicaragua to the Protocol to the Free Trade Agreement between Central America and the Dominican Republic.
9
WT/REG305/1
- 19 2.5. The objectives of the Agreement are to encourage the expansion and diversification of trade
in goods and services, promote conditions of fair competition, to mutually eliminate barriers to
trade of goods and services and to the movement of capital and business persons and enhance
investment opportunities in each Party. Concerning full implementation, the tariff reduction
programmes (TRP) extend up to 2004, except for the Dominican Republic whose TRP for Costa
Rica extends to 2010.
3 PROVISIONS ON TRADE IN GOODS
3.1 Import duties and charges, and quantitative restrictions
3.1.1 General provisions
3.1. Chapters III to VIII and Chapter XIII deal with trade in goods and related aspects.
3.2. In Article 3.03, it is provided that each Party shall accord to the goods of the other Party no
less favourable than the most favourable treatment accorded to similar, directly competitive or
substitutable goods of national origin, pursuant to Article III of the GATT 1994 or any other
provision of a successor agreement of which the Parties are party, which are incorporated as an
integral part of the Agreement. Under Chapter XII (Government Procurement), each Party shall
accord, immediately and unconditionally, to covered originating goods of the other Party,
treatment no less favourable than it accords to its own goods.
3.3. As regards tariffs (Article 3.04), upon entry into force of the Agreement, the Parties commit
to guaranteeing access to their respective markets through the elimination of tariffs on originating
goods imported from the other Party, other than those listed in the Annex to Article 3.04 which
contains: A.1. exclusions from free trade (Tables 1a and 1b); A.2. products in HS 15 excluded
from free trade, subject to preferential tariff treatment (Table 2); and A.3. tariff reduction
programmes (TRP). Nicaragua may apply the temporary protection tariff (ATP) established in
Section B of the Annex to Article 3.04, to products listed in the Annex; these tariffs would be
eliminated gradually from 1 July 1998 to 1 July 2001.10 Additionally, upon request from any Party,
the Parties shall consult on the possibility of eliminating tariffs on originating goods included in the
Annex to Article 3.04. Concerning refunds of import tariffs of exported goods and tariff deferral
programmes, the Parties shall apply their domestic legislation (Article 3.05).
3.4. The customs value of a product will be determined according to the importing Party's
domestic legislation until the GATT 1994 Customs Valuation Code is adopted. However, as of entry
into force the Parties may not apply either reference or minimum prices for the purpose of customs
valuation of originating products (Article 3.06). Under the WTO Agreement on the implementation
of Article VII of the GATT 1994 (Customs Valuation Agreement), Costa Rica, the Dominican
Republic, Guatemala and Honduras have an Annex III, paragraph 3 reservation concerning the
reversal of the sequential order of Articles 5 and 6; and Costa Rica, the Dominican Republic, El
Salvador, Guatemala, Honduras and Nicaragua an Annex III, paragraph 4 reservation to apply
Article 5.2 whether or not the importer so requests.11
3.5. Under Article 4 of the Protocol to the Free Trade Agreement between Central America and the
Dominican Republic, goods of a Party produced under free-zone and other tax or customs special
regimes shall be admitted in the territory of the other Party in terms not less favourable than
those applied to products of that Party produced in its own free-zones or other tax or customs
special regimes. The Parties shall review and assess annually any change in these special regime
regulations and the evolution of trade in goods produced thereunder in order to improve market
access conditions for such goods.
3.6. With regard to non-tariff measures, except for the Parties' rights under Article XX of the GATT
1994 and those regulated by Chapter VI (Sanitary and Phytosanitary Measures) and XIII
10
25 tariff lines of HS Chapter 22 (Beverages, spirits and vinegar); 7 lines of Chapter 24 (Tobacco and
manufactures tobacco substitutes) and one HS subheading 3605.00 (matches other than pyrotechnic articles of
heading 36.04). The Authorities indicated that the aim of the ATP was to offset asymmetries due to preferential
treatment granted to Nicaragua by members of the Central American Common Market (MCCA) and to support
economic recovery and development.
11
WTO document G/VAL/73 of 3 November 2014.
WT/REG305/1
- 20 (Technical Barriers to Trade) of the Agreement, the Parties commit to guaranteeing access to their
respective markets through the immediate and total elimination of non-tariff barriers. Except as
otherwise provided in the Agreement, no Party may adopt or maintain any prohibition or
restriction on the import of any goods from the other Party, except in accordance with Article XI of
the GATT 1994. To this end, Article XI and its interpretative notes are incorporated into the
Agreement and form an integral part thereof. In the event that a Party adopts or maintains a
prohibition or restriction on the import of another Party's originating goods, it must prove that
such measures are WTO compatible (Article 3.07).
3.7. The Parties shall not increase nor establish customs processing fees on originating goods.
They shall eliminate such fees upon entry into force of the Agreement, except those permitted by
the WTO, and shall not collect consular fees or charges or require consular formalities
(Article 3.08). Provisions on country of origin marking are set out in the Annex to Article 3.09.
3.8. The Parties shall publish and notify within 40 days of entry into force their laws, regulations,
procedures and administrative rulings of general application respecting any matter covered by
Chapter III affecting imports of goods and the required formalities. As far as possible, a Party shall
publish and notify any proposed measure and allow a reasonable opportunity for the other Party to
comment. Additionally, on request by another Party, a Party shall provide information and respond
to questions pertaining to any actual or proposed measure. The provisions of the Chapter shall not
force any Party to provide confidential information, whose disclosure might hinder the enforcement
of its legislation, is contrary to public order or may prejudice the legitimate commercial interests of
public or private enterprises (Article 3.11).
3.9. The Joint Administration Council (JAC)12 shall establish a Committee on Trade in Goods
composed of representatives of each Party. It shall meet at least once a year (Article 3.12).
3.1.2 Liberalization of trade and tariff lines
3.10. The starting date for the TRPs for the Dominican Republic with Costa Rica, El Salvador and
Guatemala, was 1999. However, tariff reductions became effective upon entry into force of the
Agreement for each country: for the Dominican Republic, on 7 March 2002; for Costa Rica, in
1999; for El Salvador, on 4 October 2001; for Guatemala, on 3 October 2001; for Honduras, on 19
December 2001; and for Nicaragua, on 13 March 2000. These tariff reduction calendars were
confirmed by the JAC's decision of 2 September 2002. Moreover, the Dominican Republic provided
tariff data from 2001 for El Salvador, Guatemala and Honduras and from 2002 for Costa Rica and
Nicaragua. Costa Rica provided tariff data from 1999; El Salvador, Honduras and Guatemala from
2001 and Nicaragua from 2002.
3.11. Tables 3.1a and 3.1b show the Dominican Republic's liberalization of imports from
El Salvador, Guatemala and Honduras over the period 2001-2004 and from Costa Rica and
Nicaragua over the period 2002-2010 for Costa Rica and 2002-2004 for Nicaragua.
12
The JAC was constituted by CCA/DEC Nº 1/2002 of 3 September 2002 as follows: for Costa Rica, the
Ministro de Comercio Exterior; for El Salvador, the Ministro de Economía; for Guatemala, the Ministro de
Economía; for Honduras, the Secretario de Industria y Comercio; for Nicaragua, the Ministro de Economía y
Desarrollo; and for the Dominican Republic, the Secretario de Estado de Industria y Comercio; or their
successors.
WT/REG305/1
- 21 Table 3.1a Dominican Republic: Tariff elimination commitments under the Agreement
and average values of corresponding imports from Central America (Dominican Republic
with El Salvador, Guatemala and Honduras)
Commitments applied by Dominican Republic to
% to total imports
Honduras
Guatemala
El Salvador
1998-2000
Honduras
Honduras
Honduras
Average imports
(in million US$)
1998-2000
Guatemala
2001
Guatemala
Entry into force
2001
El Salvador
Entry into force
Guatemala
% of tariff lines
El Salvador
No. of tariff lines
El Salvador
Period
MFN Duty-Free
906
906
906
13.5
13.5
13.5
1.8
4.4
0.5
21.9
18.2
15.3
2001
5,337
5,321
5,321
79.4
79.2
79.2
3.0
13.8
2.5
36.6
57.5
76.0
2004
39
39
39
0.6
0.6
0.6
3.3
5.4
0.1
40.1
22.4
1.6
Remain dutiable
436
452
452
6.5
6.7
6.7
0.1
0.5
0.2
1.4
1.9
7.0
Total
6,718
6,718
6,718
100.0
100.0
100.0
8.2
24.0
3.3
100.0
100.0
100.0
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Dominican Republic authorities.
Table 3.1b Dominican Republic: Tariff elimination commitments under the Agreement
and average values of corresponding imports from Central America (Dominican Republic
with Costa Rica and Nicaragua)
Period
No. of tariff lines
Entry into force
2002
MFN
DutyFree
2002
2004
2010
Remain
dutiable
Total
Commitments applied by Dominican Republic to
% to total tariff lines
Average imports (in
million US$)
Entry into force
1999-2001
2002
% to total imports
1999-2001
Costa
Rica
Nicaragua
Costa
Rica
Nicaragua
Costa
Rica
Nicaragua
Costa
Rica
Nicaragua
906
906
13.5
13.5
12.5
0.0
35.0
0.8
5,321
39
341
111
5,321
39
79.2
0.6
0.1
55.8
8.4
0.4
0.4
92.3
2.5
6.7
19.9
3.0
0.1
0.1
2.3
0.1
452
79.2
0.6
5.1
1.7
6,718
6,718
100.0
100.0
35.7
2.4
100.0
100.0
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Dominican Republic authorities.
4.5
3.12. In 2001, 13.5% of the Dominican Republic's tariff schedule was already duty-free under the
MFN regime, corresponding to 21.9% of its average imports from El Salvador, 18.2% of average
imports from Guatemala and 15.3% of its average imports from Honduras over the
period 1998-2000.13 When the Agreement entered into force, an additional 79.4% of tariff lines
were liberalized for imports from El Salvador and 79.2% for imports from Guatemala and
Honduras corresponding to 36.6%, 57.5% and 76% of the Dominican Republic's average imports
from El Salvador, Guatemala and Honduras, respectively. In 2004 another 39 tariff lines were
liberalized corresponding to 40.1%, 22.4% and 1.6% of the Dominican Republic's average imports
from El Salvador, Guatemala and Honduras, respectively. At the end of the implementation period,
in 2004, 236 tariff lines (6.5% of the tariff) were still subject to duty for imports from El Salvador
and 452 (6.7% of the tariff) for Guatemala and Honduras corresponding to 1.4% of the Dominican
13
In 2001 and 2002, the Dominican Republic's tariff schedule based on the HS 1996 nomenclature
contained 6,718 HS eight-digit tariff lines, all of which were subject to ad valorem rates.
WT/REG305/1
- 22 Republic's imports from El Salvador, 1.9% from Guatemala and 7.0% from Honduras over the
period 1998-2000.
3.13. In 2002, 13.5% of the Dominican Republic's tariff schedule was already duty-free for
imports from Costa Rica and Nicaragua, under the MFN regime, corresponding to 35.0% and
0.8%, respectively, of its average imports from Costa Rica and Nicaragua over the period 19992001. When the Agreement entered into force, a further 79.2% of tariff lines were liberalized,
corresponding to 55.8% and 92.3%, respectively, of the Dominican Republic's imports from Costa
Rica and Nicaragua. 39 tariff lines were liberalized in 2004 (0.6% of the tariff), corresponding to
8.4% and 2.5%, respectively, of the Dominican Republic's imports from Costa Rica and Nicaragua.
341 tariff lines (5.1% of tariff lines) for trade with Costa Rica were liberalized in 2010. At the end
of the implementation period, in 2010 for Costa Rica and 2004 for Nicaragua, 111 tariff lines
(1.7% of the tariff) for trade with Costa Rica and 452 tariff lines (6.7% of the tariff) for trade with
Nicaragua remained subject to duty, corresponding to 0.4% of the Dominican Republic's imports
from Costa Rica and 4.5% from Nicaragua in 1999-2001.
3.1.2.1 Costa Rica
3.14. Table 3.2 shows Costa Rica's tariff elimination under the Agreement. In 1999, duty-free
entry under the MFN regime applied to 0.2% of Costa Rica's tariff schedule (14 tariff lines),
corresponding to 0.3% of Costa Rica's average imports from the Dominican Republic over the
period 1999-2001.14 In 1999, when tariff reduction started, 90.9% of tariff lines were liberalized,
corresponding to 85.3% of Costa Rica's imports from the Dominican Republic. Nine tariff lines were
liberalized in 2002 and a further 39 in 2004. At the end of the implementation period in 2004, 488
tariff lines were still subject to duty (8.1% of the tariff schedule), corresponding to 2.1% of Costa
Rica's imports from the Dominican Republic in 1999-2001.
Table 3.2 Costa Rica
Tariff elimination commitments under the Agreement and corresponding average
imports
Duty phaseout period
Number
of lines
% of total lines
in Costa Rica's
tariff schedule
% of Costa Rica's total
imports from
Dominican Republic
1999-2001
0.2
Value of Costa Rica's
imports from
Dominican Republic
(1999-2001)
in million US$
0.0
MFN duty-free
(1999)
1999
2002
2004
Remain
dutiable
Total
14
5,467
9
39
488
90.9
0.1
0.6
8.1
2.4
0.0
0.3
0.1
85.3
0.0
12.2
2.1
6,017
100.0
2.8
100.0
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Costa Rican authorities.
0.3
3.1.2.2 El Salvador
3.15. Table 3.3 shows El Salvador's tariff elimination under the Agreement. In 2001, duty-free
entry under the MFN regime applied to 47.1% of El Salvador's tariff schedule (2,815 tariff lines),
corresponding to 58.4% of El Salvador's average imports from the Dominican Republic over the
period 1998-2000.15 In 2001, when tariff reduction started, 50.7% of tariff lines were liberalized,
corresponding to 34.8% of El Salvador's imports from the Dominican Republic. One tariff line was
liberalized in 2002 and a further 37 in 2004. At the end of the implementation period in 2004,
90 tariff lines were still subject to duty (1.5% of the tariff schedule), corresponding to 0.1% of
El Salvador's imports from the Dominican Republic in 1998-2000.
14
In 1999, Costa Rica's tariff schedule contained 6,017 HS eight-digit tariff lines, all of which were
subject to ad valorem rates.
15
In 2001, El Salvador's tariff schedule contained 5,974 HS eight-digit tariff lines, all of which were
subject to ad valorem rates.
WT/REG305/1
- 23 Table 3.3 El Salvador
Tariff elimination commitments under the Agreement and corresponding average
imports
Duty phaseout period
Number
of lines
% of total lines
in El Salvador's
tariff schedule
% of El Salvador's total
imports from
Dominican Republic
1998-2000
47.1
Value of El Salvador's
imports from
Dominican Republic
(1998-2000)
in million US$
1.6
MFN duty-free
(2001)
2001
2002
2004
Remain
dutiable
Total
2,815
3,031
1
37
90
50.7
0.0
0.6
1.5
1.0
0.0
0.2
0.0
34.8
0.0
6.8
0.1
5,974
100.0
2.8
100.0
58.4
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the El Salvadorian authorities and WTO-IDB
database.
3.1.2.3 Guatemala
3.16. Table 3.4 shows Guatemala's tariff elimination under the Agreement. In 2001, duty-free
entry under the MFN regime applied to 46.7% of Guatemala's tariff schedule (2,772 tariff lines),
corresponding to 61.85% of Guatemala's average imports from the Dominican Republic over the
period 1998-2000.16 In 2001, when tariff reduction started, 44.3% of tariff lines were liberalized,
corresponding to 37.14% of Guatemala's imports from the Dominican Republic. 30 tariff lines were
liberalized in 2004. At the end of the implementation period in 2004, 510 tariff lines remained
subject to duty (8.6% of the tariff schedule), corresponding to 0.26% of Guatemala's imports from
the Dominican Republic in 1998-2000.
Table 3.4 Guatemala
Tariff elimination commitments under the Agreement and corresponding average
imports
Duty phaseout period
Number
of lines
% of total lines
in Guatemala's
tariff schedule
% of Guatemala's
total imports from
Dominican Republic
1998-2000
46.7
Value of Guatemala's
imports from
Dominican Republic
(1998-2000)
in million US$
1.3
MFN duty-free
(2001)
2001
2004
Remain
dutiable
Total
2,772
2,629
30
510
44.3
0.5
8.6
0.8
0.0
0.0
37.14
0.75
0.26
5,941
100.0
2.2
100.0
61.85
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the Guatemalan authorities and WTO-IDB database.
3.1.2.4 Honduras
3.17. Table 3.5 shows Honduras' tariff elimination under the Agreement. In 2001, duty-free entry
under the MFN regime applied to 2 lines in Honduras' tariff schedule for imports from the
Dominican Republic over the period 1998-2000.17 In 2001, when tariff reduction started, 91.3% of
tariff lines were liberalized, corresponding to 72.7% of Honduras' imports from the Dominican
Republic. Another 34 tariff lines were liberalized in 2004. At the end of the implementation period
16
In 2001, Guatemala's tariff schedule contained 5,941 HS eight-digit tariff lines, all of which were
subject to ad valorem rates.
17
In 2001, Honduras tariff schedule contained 5,921 HS eight-digit tariff lines, all of which were subject
to ad valorem rates.
WT/REG305/1
- 24 in 2004, 480 tariff lines remained subject to duty (8.1% of the tariff schedule), corresponding to
22.6% of Honduras' imports from the Dominican Republic in 1998-2000.
Table 3.5 Honduras
Tariff elimination commitments under the Agreement and corresponding average
imports
Duty phaseout period
Number
of lines
% of total lines
in Honduras'
tariff schedule
% of Honduras'
total imports from
Dominican Republic
1998-2000
0.0
Value of Honduras'
imports from
Dominican Republic
(1998-2000)
in million US$
0.0
MFN duty-free
(2001)
2001
2004
Remain
dutiable
Total
2
5,405
34
480
91.3
0.6
8.1
3.8
0.2
1.2
72.7
4.7
22.6
5,921
100.0
5.3
100.0
0.0
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by Honduras' authorities and WTO-IDB database.
3.1.2.5 Nicaragua
3.18. Table 3.6 shows Nicaragua's tariff elimination under the Agreement. In 2002, duty-free
entry under the MFN regime applied to 47.2% of Nicaragua's tariff schedule corresponding to 74%
of its imports from the Dominican Republic over the period 1999-2001.18 In 2002, when tariff
reduction started, a further 44.1% of tariff lines were liberalized, corresponding to 24.5% of
Nicaragua's imports from the Dominican Republic. 29 tariff lines were liberalized in 2004. At the
end of the implementation period in 2004, 521 tariff lines remained subject to duty (8.2% of the
tariff schedule), corresponding to 1.5% of Nicaragua's imports from the Dominican Republic in
1999-2001.
Table 3.6 Nicaragua
Tariff elimination commitments under the Agreement and corresponding average
imports
Duty phaseout period
Number
of lines
% of total lines
in Nicaragua's
tariff schedule
% of Nicaragua's
total imports from
Dominican Republic
1999-2001
47.2
Value of Nicaragua's
imports from
Dominican Republic
(1999-2001)
in million US$
1.0
MFN duty-free
(2002)
2002
2004
Remain
dutiable
Total
2,982
2,787
29
521
44.1
0.5
8.2
0.3
0.0
0.0
24.5
0.0
1.5
6,319
100.0
1.4
100.0
74.0
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the Nicaraguan authorities and WTO-IDB database.
3.1.3 Liberalization schedule
3.1.3.1 The Dominican Republic
3.19. Tables 3.7a and 3.7b and Chart 3.1 below provide details on the Dominican Republic's tariff
liberalization by HS Section and Chapter, respectively.
18
In 2002, Nicaragua's tariff schedule contained 6,319 HS ten-digit tariff lines, all of which were subject
to ad valorem rates.
WT/REG305/1
- 25 3.20. For imports from El Salvador, Honduras and Guatemala (Table 3.7a), the bulk of
liberalization across all HS Sections took place in 2001. In 2004, at the end of implementation
period of the Agreement, the 436 lines remaining subject to duties for El Salvador and 452 for
Guatemala and Honduras were in HS sections I (live animals), II (vegetable products), III (animal
or vegetable fat and oils), IV (prepared foodstuffs, beverages and tobacco), V (mineral products)
and XI (textile and textile articles); the majority of these are in Sections XI and V. Tariffs continue
to apply to 15 Chapters. Charts 3.1B, 3.1C and 3.1.D, respectively, for El Salvador, Guatemala and
Honduras show that MFN and preferential rates in these Chapters are the same, which indicates no
preferential liberalization of these products, except for Chapter 15 where the preferential rate is
three percentage points lower than the MFN rate. The Chapters with the highest preferential (and
MFN average rates) are 7 (edible vegetables and certain roots and tubers, at 25%), 2 (meat and
edible meat offal, at 22.3%), 61 (articles of apparel and clothing accessories; knitted or crocheted,
at 19.6%), 4, 24 and 62 (dairy produce, not elsewhere specified; tobacco and manufactured
tobacco substitutes; and articles of apparel not knitted and crocheted, at 20%) and 10 (cereals, at
18.8%).
3.21. For imports from Costa Rica (Table 3.7b), in 2010, the 111 tariff lines remaining subject to
duty are in HS sections I (live animals), II (vegetable products), III (animal or vegetable fat and
oils, IV (prepared foodstuffs, beverages and tobacco), V (minerals); the majority of these are in
Sections V, IV and III. At the end of the implementation period, tariffs continued to apply to
11 Chapters. Chart 3.1A shows that MFN and preferential rates in these Chapters are the same,
which indicates no preferential liberalization of these products, except for Chapter 15 where the
preferential rate is three percentage points lower than the MFN rate. The Chapters with the highest
preferential and MFN rates are 7 (edible vegetables and certain roots and tubers, at 25%),
2 (meat and edible offal, at 22.3%), 24 (tobacco and manufactured tobacco substitutes, at 20%).
10, (cereals, at 18.8%) and 17, (sugars and sugar confectionery, at 65%).
3.22. For imports from Nicaragua (Table 3.7b), as of 2004, the 452 tariff lines remaining subject
to duty are in HS sections I (live animals), II (vegetable products), III (animal or vegetable fat and
oils), IV (prepared foodstuffs, beverages and tobacco), V (mineral products) and XI (textile and
textile articles); the majority of these are in Sections XI and V. Chart 3.1E shows that MFN and
preferential rates in these Chapters are the same, which indicates no preferential liberalization of
these products, except for Chapter 15 where the preferential rate is three percentage points lower
than the MFN rate. The five highest preferential and MFN rates for products that remain subject to
duty correspond to Chapters 7 (edible vegetables and certain roots and tubers, 25%), 2 (meat and
edible meat offal, 22.3%), 61 (articles of apparel and clothing accessories; knitted or crocheted,
19.6%), 4, 24 and 62 (dairy produce, not elsewhere specified; tobacco and manufactured tobacco
substitutes; and articles of apparel not knitted and crocheted, 20%) and 10 (cereals, 18.8%).
Table 3.7a Dominican Republic: Tariff elimination under the Agreement, by HS Section
18.3
4
6
4
3
3
14
15
23
25
34
21.3
20.1
10.3
18.1
5.3
341
18.3
200
294
42
247
144
941
251
104
117
160
142
61
175
60
675
895
254
344
29
19
4
6
4
3
3
Average
Final Tariff
(Dutiable)
341
19
Remain
dutiable
3
3
200
294
42
247
144
941
251
104
117
160
142
61
175
60
675
895
254
344
29
2004
6
4
21.3
20.1
10.3
18.1
5.3
Average
Final Tariff
(Dutiable)
4
14
15
23
9
34
Honduras
2001
8
164
8
4
19
Remain
dutiable
(%)
25
392
200
294
42
263
144
941
251
104
117
160
142
61
175
60
675
895
254
344
29
Average
Final Tariff
(Dutiable)
Duty-free
lines
46
101
1
14
4
121
8
Remain
dutiable
No. of lines
279
410
66
290
182
1,068
263
104
117
188
878
61
175
60
683
1,059
262
348
29
2004
Average (%)
15.8
12.2
7.7
16.9
4.2
4.4
9.2
10.8
7.0
7.6
8.9
17.1
10.2
17.6
8.1
5.3
9.6
7.8
19.8
2001
HS Section
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
2004
No. of duty-free lines
Guatemala
El Salvador
2001
MFN (2001)
14
15
23
25
34
21.3
20.1
10.3
18.1
5.3
341
18.3
WT/REG305/1
- 26 -
39
452
2001
Average
Final Tariff
(Dutiable)
17.1
Average
Final Tariff
(Dutiable)
17.0
Remain
dutiable
436
2004
39
179
7
5,321
Honduras
2001
906
179
7
5,337
Average
Final Tariff
(Dutiable)
Duty-free
lines
10
Remain
dutiable
No. of lines
189
7
6,718
2004
Average (%)
17.2
20.0
8.6
2001
HS Section
XX
XXI
Total
Remain
dutiable
(%)
No. of duty-free lines
Guatemala
El Salvador
2004
MFN (2001)
179
7
5,321
39
452
17.1
Note:
For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related
calculations.
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Dominican Republic authorities.
Table 3.7b Dominican Republic: Tariff elimination under the Agreement, by HS Section
(Dominican Republic with Costa Rica and Nicaragua)
906
2010
21.3
20.1
10.3
18.1
5.3
6
4
3
3
341
39
341
111
13.2
Average
Final
Tariff
(Dutiable)
10
4
14
15
23
25
34
Remain
dutiable
8
164
8
4
19
14
15
23
25
34
21.3
20.1
10.3
18.1
5.3
3
3
341
18.3
39
452
17.1
2004
25
392
200
294
42
247
144
941
251
104
117
160
142
61
175
60
675
895
254
344
29
179
7
5,321
2002
46
101
1
14
4
121
8
Nicaragua
Average
Final
Tariff
(Dutiable)
279
410
66
290
182
1,068
263
104
117
188
878
61
175
60
683
1,059
262
348
29
189
7
6,718
No. of duty-free lines
Costa Rica
Remain
dutiable
15.8
12.2
7.7
16.9
4.2
4.4
9.2
10.8
7.0
7.6
8.9
17.1
10.2
17.6
8.1
5.3
9.6
7.8
19.8
17.2
20.0
8.6
MFN (2002)
Total
DutyNo. of
free
lines
lines
2004
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
Total
Average
(%)
2002
HS
Section
200
294
42
247
144
941
251
104
117
160
142
61
175
60
675
895
254
344
29
179
7
5,321
19
4
6
4
Note:
For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related
calculations.
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Dominican Republic authorities.
WT/REG305/1
- 27 Chart 3.1 Dominican Republic: Average of dutiable rates, by HS Chapter
B. Dominican Republic-El Salvador
A. Dominican Republic-Costa Rica
50
Rate of duty (%)
Rate of duty (%)
50
40
30
20
10
40
30
20
10
0
27
24
22
17
15
11
10
9
7
4
2
0
2
HS Chapter
C. Dominican Republic-Guatemala
7
Rate of duty (%)
50
40
30
20
10
40
30
20
10
0
2
4
7
9 10 11 15 17 22 24 27 52 61 62 63
0
2
4
7
HS Chapter
E. Dominican Republic-Nicaragua
50
Rate of duty (%)
9 10 11 15 17 22 24 27 52 61 62 63
HS Chapter
D. Dominican Republic-Honduras
50
Rate of duty (%)
4
9 10 11 15 17 22 24 27 52 61 62 63
HS Chapter
Legend:
MFN
Preferential
40
The blue line delineates HS chapters 1-24 and 25-97.
30
20
10
0
2
4
7
9 10 11 15 17 22 24 27 52 61 62 63
HS Chapter
Source:
WTO Estimates based on data from the Dominican Republic authorities.
3.1.3.2 Costa Rica
3.23. Table 3.8 and Chart 3.2 below provide details of Costa Rica's tariff liberalization by
HS Section and Chapter, respectively. For imports from the Dominican Republic, in 2004, 488 tariff
lines remain subject to duty in HS sections I (live animals), II (vegetable products), III (animal or
vegetable fats and oils), IV (prepared foodstuffs, beverages and tobacco), V (mineral products)
and XI (textiles and textile articles); the majority of these are in Section XI. At the end of the
implementation period, tariffs continue to apply to 15 Chapters. Chart 3.2 shows that MFN and
preferential rates in these Chapters are not the same except for chapters 10 and 11 which
indicates that although not liberalized, additional preferential access is provided for these products.
For chapters 2, 4, 24, 17 and 52 the preferential rates are, respectively, 72, 38, 6.6, 5 and
4.7 percentage points lower than the MFN rates; for chapters 61, 62, and 63 preferential rates are,
respectively, 2.9, 3.1 and 3.5 percentage points lower than the MFN rates; and for chapters both 7
and 9, 15, 22 and 27 the preferential rates are, respectively, 1.7, 1.9, 1.8 and 0.9 percentage
points lower than the MFN rates. The highest preferential and MFN rates for products that remain
subject to duty are in Chapters 2 (meat and edible offal, MFN average of 139.3% and preferential
average of 67.3%), 4 (dairy produce, MFN and preferential average of 104% and 66%),
17 (sugars and sugar confectionary, MFN and preferential average of 51% and 46.8%), 7 (edible
vegetables and certain roots and tubers, MFN and preferential average of 51% and 46%) and
10 (cereals, MFN and preferential average of 26%).
WT/REG305/1
- 28 Table 3.8 Costa Rica: Tariff elimination under the Agreement, by HS Section
HS
Section
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
Total
Average
(%)
MFN (1999)
Total No. of
lines
28.3
11.6
10.3
17.1
4.8
2.9
5.8
10.6
9.5
5.7
12.9
16.2
7.9
8.2
4.2
3.4
8.0
5.1
11.1
12.3
5.6
8.2
263
363
53
257
173
887
307
81
87
190
891
63
160
53
677
904
187
244
17
153
7
6,017
Number of additional duty-free
lines under the Agreement
1999
2002
2004
Duty-free
lines
231
338
29
229
147
880
300
81
87
187
507
63
160
53
677
891
186
244
17
153
7
5,467
13
1
14
Remain
dutiable
Average
Final Tariff
(Dutiable)
14
25
24
25
17
66.7
21.5
11.9
17.5
6.4
3
1
383
13.6
39
488
15.4
18
3
9
7
7
9
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Costa Rican authorities.
Chart 3.2 Costa Rica: Average of dutiable rates, by HS Chapter
Rate of duty (%)
140
120
100
80
60
40
20
0
2
4
7
9
10
11
15
17
22
24
27
52
61
62
63
HS Chapter
MFN
Source:
Preferential
WTO estimates based on data provided by the Costa Rican authorities.
3.1.3.3 El Salvador
3.24. Table 3.9 and Chart 3.3 below provide details of El Salvador's tariff liberalization by
HS Section and Chapter, respectively. In 2004 90 tariff lines remained subject to duty for imports
from the Dominican Republic, in HS sections I (live animals), II (vegetable products), III (animal
or vegetable fats and oils), IV (prepared foodstuffs, beverages and tobacco) and V (mineral
products). These correspond to 11 HS Chapters. Chart 3.3 shows that MFN and preferential rates
in most of these HS Chapters are the same which indicates no preferential liberalization of these
products, except for HS Chapters 10 (cereals) and 24 (tobacco and manufactured tobacco
substitutes) where preferential rates are 7.5 and 2.5 percentage points lower than the MFN rates,
respectively. The Chapters with the five highest preferential and MFN average rates are
WT/REG305/1
- 29 HS chapters 17 (sugars and sugar confectionery, at 40%), 10 (cereals, at 32.5%), 22 (beverages,
spirits and vinegar, at 36%), 4 (dairy produce, at 16.7%) and 7 (edible vegetables and certain
roots and tubers, at 16.3%).
Table 3.9 El Salvador: Tariff elimination under the Agreement, by HS Section
HS
Section
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
Total
MFN (2001)
Average
Total
Duty(%)
No. of
free
lines
lines
14.1
9.9
7.6
15.7
2.9
1.9
4.6
9.1
7.5
4.4
17.8
14.8
6.5
8.2
3.3
2.3
6.2
4.2
30.0
10.9
20.0
7.4
263
363
52
255
164
886
308
81
85
191
890
62
158
53
672
900
168
244
17
153
9
5,974
Number of additional duty-free
lines under the Agreement
2001
2002
2004
33
91
19
27
81
700
134
19
24
114
105
2
71
14
434
710
63
152
22
2,815
198
248
12
211
65
179
170
62
61
74
783
60
87
39
238
190
105
92
17
131
9
3,031
Remain
dutiable
Average Final
Tariff (Dutiable)
14
24
20
14
18
15.0
18.1
13.0
25.7
4.1
90
14.9
18
1
3
7
4
1
2
2
1
37
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the El Salvadorian authorities.
Chart 3.3 El Salvador: Average of dutiable rates, by HS Chapter
Rate of duty (%)
40
35
30
25
20
15
10
5
0
2
4
7
9
10
11
15
17
22
24
27
HS Chapter
MFN
Source:
Preferential
WTO estimates based on data provided by the El Salvadorian authorities.
3.1.3.4 Guatemala
3.25. Table 3.10 and Chart 3.4 below provide details on Guatemala's tariff liberalization by
HS Section and Chapter, respectively. In 2004 510 tariff lines remained subject to duty for imports
from the Dominican Republic, in HS sections I (live animals), II (vegetable products), III (animal
or vegetable fats and oils), IV (prepared foodstuffs, beverages and tobacco), V (mineral products)
WT/REG305/1
- 30 and XI (textiles and textile articles). These correspond to 15 HS Chapters. Chart 3.4 shows that
MFN and preferential rates in these HS Chapters are the same which indicates no preferential
liberalization of these products, except for HS Chapter 24 (tobacco and manufactured tobacco
substitutes) where the preferential rate is 0.7 percentage point lower than the MFN rate. The
Chapters with the five highest preferential and MFN average rates for products that remain subject
to duty are HS chapters 10 (cereals, at 32%), 61 and 62 (articles of apparel and clothing
accessories knitted or crocheted; articles of apparel and clothing accessories not knitted or
crocheted, at 26%), 63 (other made up textile articles, at 25.7%) and 52 (cotton, at 24%).
Table 3.10 Guatemala: Tariff elimination under the Agreement, by HS Section
HS
Section
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
Total
Average
(%)
MFN (2001)
Total
No. of
lines
10.9
10.1
7.2
12.5
3.9
1.9
4.6
9.1
7.8
4.7
19.8
17.9
6.4
7.6
3.3
2.6
7.8
4.2
20.0
11.0
11.1
7.6
254
363
52
251
170
867
299
81
86
191
881
62
157
53
670
898
185
244
17
151
9
5,941
Number of additional duty-free lines
under the Agreement
Dutyfree
lines
31
83
19
23
92
685
130
19
25
106
106
2
71
18
437
693
63
150
19
2,772
Remain
dutiable
Average
Final Tariff
(Dutiable)
31
36
25
33
16
14.0
17.5
12.2
15.2
9.4
3
2
369
25.5
30
510
22.4
2001
2004
174
244
8
195
62
179
165
62
61
82
404
60
86
35
233
205
122
94
17
132
9
2,629
18
3
4
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the Guatemalan authorities and WTO-IDB database.
Chart 3.4 Guatemala: Average of dutiable rates, by HS Chapter
Rate of duty (%)
35
30
25
20
15
10
5
0
2
4
7
9
10
11
15
17
22
24
27
52
61
62
63
HS Chapter
MFN
Source:
Preferential
WTO estimates based on data provided by the Guatemalan authorities and the WTO-IDB database.
WT/REG305/1
- 31 3.1.3.5 Honduras
3.26. Table 3.11 and Chart 3.5 below provide details of Honduras' tariff liberalization by
HS Section and Chapter, respectively. In 2004, 480 tariff lines remained subject to duty for
imports from the Dominican Republic in HS sections I (live animals), II (vegetable products), III
(animal or vegetable fats and oils), IV (prepared foodstuffs, beverages and tobacco), V (mineral
products), VII (plastics and articles thereof, rubber) and XI (textiles and textile articles)
corresponding to 15 HS Chapters. Chart 3.5 shows that MFN and preferential rates in these HS
Chapters are the same which indicates no preferential liberalization of these products, except for
HS Chapter 39 (plastics and articles thereof) where the preferential rate is one percentage point
lower than the MFN rate. The Chapters with the highest preferential and MFN average rates are HS
chapters 2 (meat and edible meat offal, at 31.3%), 10 (cereals, at 31.2%), 17 (sugar and sugar
confectionery, at 26.7%), 62 (articles of apparel and clothing accessories, at 20%), and 61
(articles of apparel and clothing accessories knitted or crocheted, at 19.7%).
Table 3.11 Honduras: Tariff elimination under the Agreement, by HS Section
HS
Section
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
Total
Average
(%)
MFN (2001)
Total No. of
lines
11.9
10.3
7.7
12.2
4.4
2.6
4.9
9.3
8.0
5.0
14.8
14.5
6.9
8.5
3.8
3.3
7.8
4.7
18.2
11.1
16.4
7.2
259
362
52
251
162
875
301
81
87
192
881
62
157
53
671
903
152
244
17
152
7
5,921
Number of additional duty-free
lines under the Agreement
Duty-free
lines
1
1
2
13
25
25
23
18
Average
Final
Tariff
(Dutiable)
23.8
18.4
11.6
16.6
9.6
1
4.0
3
2
375
19.6
34
480
18.7
2001
2004
228
337
27
225
144
871
296
81
87
188
503
62
157
53
671
903
152
244
17
152
7
5,405
18
3
4
4
Remain
dutiable
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by Honduras' authorities and WTO-IDB database.
Chart 3.5 Honduras: Average of dutiable rates, by HS Chapter
Rate of duty (%)
35
30
25
20
15
10
5
0
2
4
7
9
10 11 15 17 22 24 27 39 52 61 62 63
HS Chapter
MFN
Preferential
Source: WTO estimates based on data provided by the Honduras' authorities and the WTO-IDB database.
WT/REG305/1
- 32 3.1.3.6 Nicaragua
3.27. Table 3.12 and Chart 3.6 below provide details of Nicaragua's tariff liberalization by
HS Section and Chapter, respectively. In 2004 521 tariff lines remained subject to duty for imports
from the Dominican Republic in HS sections I (live animals), II (vegetable products), III (animal or
vegetable fats and oils), IV (prepared foodstuffs, beverages and tobacco), V (mineral products)
and XI (textiles and textile articles). These correspond to 15 HS Chapters. Chart 3.6 shows that
MFN and preferential rates in these HS Chapters are the same which indicates no preferential
liberalization of these products. The Chapters with the highest preferential and MFN average duties
are HS chapters 10 (cereals, at 57.8%), 17 (sugar and sugar confectionery, at 55%), 2 (meat and
edible meat offal, at 46.7%), 4 (dairy produce, at 36.7%) and 11 (products of the milling industry,
at 35%).
Table 3.12 Nicaragua: Tariff elimination under the Agreement, by HS Section
HS
Section
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
Total
MFN (2002)
Average
Total
(%)
No. of
lines
12.0
276
9.4
387
8.1
75
11.0
306
3.5
175
1.8
942
3.6
327
8.3
84
5.3
90
3.3
215
7.9
900
12.1
63
4.2
161
6.5
53
2.2
689
2.1
923
5.0
207
3.4
253
13.8
17
9.1
169
5.0
7
5.1
6,319
Number of additional duty-free lines
under the Agreement
Dutyfree
lines
35
94
11
29
88
746
137
22
26
135
108
2
70
14
454
725
80
167
39
2,982
Remain
dutiable
Average
Final Tariff
(Dutiable)
18
25
46
30
24
43.3
20.8
10.7
16.3
7.1
3
2
378
12.6
29
521
13.9
2002
2004
205
268
18
244
63
196
187
62
64
77
412
61
91
39
235
198
127
86
17
130
7
2,787
18
3
3
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the Nicaraguan authorities and WTO-IDB database.
Chart 3.6 Nicaragua: Average of dutiable rates, by HS Chapter
Rate of duty (%)
60
50
40
30
20
10
0
2
4
7
9
10
11
15
17
22
24
27
52
61
62
63
HS Chapter
MFN
Preferential
Source: WTO estimates based on data provided by the Nicaraguan authorities and the WTO-IDB database.
WT/REG305/1
- 33 3.1.4 Tariff rate quotas
3.28. The Annex to Article 3.04 to the Agreement establishes the rules applicable to tariff rate
quotas (TRQ). Except for two TRQs established between the Dominican Republic and Nicaragua,
there are no dates for the removal of TRQs.
3.29. As shown in Table A2.1, the Dominican Republic grants to Central American Parties an
annual TRQ for two tariff lines of Chapter 2 (chicken breasts).19 The in-quota rate is half the lowest
rate applied to out-of-quota imports.
3.30. As shown in Table A2.1 and A2.2, Costa Rica and the Dominican Republic have two bilateral
TRQs, one for two tariff lines of Chapter 2 (chicken breasts), which is part of the Dominican
Republic's quota for Central America and, another for three tariff lines in Chapter 4 (dairy
products).20 The in-quota rate is half the lowest rate applied to out-of-quota imports. However,
according to the Press Release CP-289 of 19 February 2003 of the Ministerio de Comercio Exterior
of Costa Rica, Costa Rica agreed not to use these quotas immediately upon entry into force of the
Agreement but they were implemented when the Dominican Republic, Central America and the
United States (DR-CAFTA) Agreement entered into force.
3.31. Nicaragua and the Dominican Republic have five bilateral TRQs as shown in Tables A2.1 and
A2.2: one for bovine meat and another for shrimp, for which the in-quota rate is half the rate
agreed with Central America under the TRP approved in Miami in March 2000; one TRQ for chicken
breasts, one for onions and shallots, and another for beans, for which the in-quota rate is half the
lowest rate applied to out-of-quota imports. However, in the Memorandum of Understanding of 3
September 2002 signed between Nicaragua and the Dominican Republic, quotas for beans, onions
and chicken breasts would not be assigned until an agreement is reached on the most favourable
tariff to be applied to these products, in line with the Technical Rectification procedure agreed
under the WTO and both Parties' international commitments. However, no agreement has been
reached on these quotas to date.
3.32. With the aim of enhancing the integration of their economies, Costa Rica and the Dominican
Republic agree to review the TRQs' volume every two years, and Nicaragua and the Dominican
Republic during the first year of implementation. Additionally, the Parties benefitting from
preferential quotas shall review the level of use of such quotas at least twice a year. There have
been no changes in the quota regime.
3.2 Rules of origin
3.33. Chapter IV of the Agreement covers rules of origin. The Annex to Chapter IV
details on specific rules of origin by HS Chapter. Furthermore, Article 2 of the Protocol
Costa Rica, El Salvador, Guatemala and the Dominican Republic and Article 1 of the
between El Salvador and the Dominican Republic incorporate additional specific rules of
the Annex.
provides
between
Protocol
origin to
3.34. The rules of origin and their modifications only apply to merchandise trade under the
Agreement. They are based on the change in tariff classification (CTC) principle which is
supplemented, if necessary, with other requirements specified in the Chapter and its Annex. The
domestic legislation in force in each Party shall apply for determining the transaction value of a
good (Articles 4.04-06).
3.35. Pursuant to Article 4.07, products shall be considered as originating when the good is:
a. wholly obtained or produced entirely in the territory of one or more Parties;
b. a product of the sea, seabed, or subsoil obtained outside the territory of the Parties by
vessels registered or recorded with a Party and flying its flag or chartered by enterprises
legally established in the territory of a Party;
19
20
Chicken breasts: 0207.13.91; 0207.14.91.
Dairy produce: 0402.10; 0402.21; 0402.29.
WT/REG305/1
- 34 c.
goods produced on board factory ships from fish, shellfish, and other marine life taken
from the sea by ships registered or recorded with that Party and that fly its flag;
d. produced entirely in the territory of the Parties exclusively from originating materials;
e. produced in the territory of the Parties from non-originating materials that meet the CTC
or other requirements, as set out in the Annex to Chapter IV, and satisfy all other
provisions of the Chapter.
3.36. Additionally, under Article 4.15, goods shall be originating if, according to SAC or NAD, they
use non originating parts and pieces because: (i) the unassembled good is classified as an
assembled good in the same heading or subheading; (ii) products and their parts are classified in
the same heading or subheading; and (iii) the assembly also confers origin when it incorporates
components which are classified under a different heading from that of the final product.
3.37. Article 4.08 refers to minimal processes or operations that by themselves, or in
combination, do not confer origin to a good, for example, operations for the preservation of a good
during transportation or storage; packing; simple jointing or assembling of parts to make a
complete good; simple water dilution operations or ionization and salting; and slaughter of
animals. Under Article 4.09, indirect materials shall be considered as originating, regardless of
where they are produced or manufactured, and the accounting value of those materials may be
used for calculating the value of the good.
3.38. The Annex to Chapter IV of the Agreement and Article 2 of the Protocol contain specific
rules for determining origin, which apply when a product has been manufactured in Costa Rica, El
Salvador, Guatemala, Honduras, Nicaragua and/or the Dominican Republic using non-originating
materials. These rules apply at the six-digit (subheading) and four-digit (heading) levels. For most
products, the CTC must be at the heading or subheading level in order to confer origin. In some
cases, however, changes in specific headings or subheadings do not confer origin.21 With respect
to certain groups of products, there are "notes" that clarify which manufacturing operations or
processes confer origin and/or allow the customs authorities to treat the good as originating.22
There are no agreed rules of origin for certain products.23
3.39. As for accumulation (Article 4.10), materials or goods originating in any Party and
incorporated in the territory of another Party shall be considered as originating in the latter.
3.40. Article 4.11 sets the formula for calculating the Regional Value Content (RVC) of a good.
Article 4.12 has a de minimis rule by which a good shall be considered as originating if the value of
all non-originating materials used to produce it that do not comply with the CTC requirement do
not exceed 10% until the year 2000 and 7% as of 2001. For SAC or NAD Chapters 50 to 63
(Textiles and textile articles), this percentage refers to the weight of the fibres or yarns.
3.41. Articles 4.13-14 and 4.16-18 contain provisions for fungible goods; sets or assortments of
goods; accessories, spare parts and tools; packaging materials and containers for retail sale; and
packing materials and containers for shipment. The Chapter also contain provisions on
21
For example, some products in HS Chapters 1, 2, 3, 6, 7, 9, 10, 14, 18, 22, 29, and 39-41.
For example, agricultural products (vegetables, fruit, forest products, etc.) grown in the territory of a
Party shall be considered as originating in the territory of that Party if they have been grown from seeds,
bulbs, rhizomes, cuttings, shoots or other living parts of plants imported from a Party or a non-Party. In
Chapters 27 (Mineral fuels, mineral oils and products of their distillation; Bituminous substances; Mineral
waxes); Section VI, Chapter 28-38 (Products of the chemical or allied industries); Section VII, Chapter 39-40
(plastics and articles thereof; Rubber and articles thereof), Section VIII, Chapter 41-43 (Raw hides and
skins, Leather, furskins, and articles thereof), specific definitions and processes are deemed to confer origin.
23
There are no agreed rules of origin between the Dominican Republic and Guatemala, Honduras and
Nicaragua for: cotton woven fabrics (HS 5208-5212); articles of apparel and clothing accessories, knitted or
crocheted (HS 6101-6117); articles of apparel and clothing accessories, not knitted or crocheted
(HS 6201-6217); other made up textile articles; sets; worn clothing and worn textile articles; rags
(HS 6301.10-6305.32; 6305.39-6310.90). The rules of origin for these tariff lines have been agreed between
the Dominican Republic and El Salvador and are incorporated to the Agreement through Article 1 of the
Protocol to the Agreement; they have also been agreed between the Dominican Republic and Costa Rica and
have been approved by the Joint Administration Council Decision CCA/DEC Nº 16/2010 of 3 September 2010.
22
WT/REG305/1
- 35 transhipment and international transit, certification and declaration of origin, record keeping and
origin verification procedures.
3.42. Under Article 4.49, a Committee on Rules of Origin is to be established and composed of
one representative of each Party and advisers as necessary. It shall be constituted within two
months after entry into force of the Agreement and shall meet at least twice a year in regular
sessions and on special sessions on request of any Party. Its tasks shall be: to propose to the
Council any necessary amendments of the Chapter, ensure its implementation and administration
and perform any other task entrusted to it by the Council. The Parties indicated that the
Committee was established on 4 November 2002. It has met and has taken several decisions one
of which was to adjust the rules of origin to the HS 2002 nomenclature.
3.3 Export duties and charges, and quantitative restrictions
3.43. Except as otherwise provided in the Agreement, no Party may adopt or maintain any
prohibition or restriction on the export or the sale for export of any good to the other Party, except
in accordance with Article XI of the GATT 1994. To this end, Article XI and its interpretative notes
are incorporated into the Agreement and form an integral part thereof (Article 3.07).
3.4 Regulatory provisions on trade in goods
3.4.1 Standards
3.4.1.1 Sanitary and phytosanitary measures
3.44. Chapter VI of the Agreement concerns sanitary and phytosanitary (SPS) measures.
Article 6.02 provides that the Parties may in accordance with the WTO Agreement on the
Application of Sanitary and Phytosanitary Measures (SPS Agreement) adopt, maintain or apply any
SPS measure, to protect human life and health (food safety) and animal life and health or to
preserve plant health in their territories, including measures that are stricter than any international
measure, standard, guideline or recommendation, provided there is scientific justification for doing
so and only to the extent necessary to secure an appropriate level of SPS protection. They shall
not apply measures that would constitute a disguised restriction to trade. They shall establish the
adequate level of protection taking into account the risk assessment methods of relevant
international organizations, the Codex Alimentarius Commission, the International Plant Protection
Convention (IPPC) and the Office International des Epizooties (OIE) as well as other specialized
regional organizations of which the Parties are members.
3.45. A risk assessment procedure by the importing Party to introduce an SPS measure, must not
exceed a maximum period of three months. The Parties shall designate the competent authority
for notification to the Committee on Sanitary and Phytosanitary Measures and shall use the
information centres as the channel for notification to the other Party. The Parties shall notify
proposed SPS measures through the appropriate channels. For emergency measures, the
notification shall be made in writing to the information centre at least three days before entry into
force or at the latest three days after.
3.46. On equivalence, the Parties shall render their SPS measures equivalent through bilateral
protocols of mutual recognition. To this end, they shall consider aspects such as the efficiency of
the measure, its impact on trade, the reduction of implementation costs, and an adequate
technological level as set out in the Annex to Article 6.02 on control, inspection and approval
procedures. The Dominican Republic adopted by Decisions CCA/DEC Nº 8/2003 and CCA/DEC Nº
13/2004 of the Joint Administration Council the content of Resolutions 93-2002 and 99-2002 of
the Consejo de Ministros de Integración Económica Centroamericana (COMIECO) on Mutual
Recognition of Drug Registration between El Salvador, Guatemala, Honduras and Nicaragua, which
will be applied in the framework of the Agreement. Such Resolutions shall however not apply to
Costa Rica until they are adopted by Costa Rica.
3.47. As concerns transparency, the authorities in charge of notifications and the information
centres shall use the same or similar formats to those used by the WTO SPS Committee. They
shall recognise the sanitary and phytosanitary status as established in the FAO, OIE and the
specialized regional organizations' databases.
WT/REG305/1
- 36 3.48. The Agreement establishes a Committee on Sanitary and Phytosanitary Measures,
composed of representatives of the Parties responsible for food safety matters, animal and plant
health, and trade. The Committee shall meet at least once a year or whenever it deems necessary
and may establish ad hoc technical groups to address specific matters which it will report to the
Committee. Decisions will be taken by consensus. The Committee shall establish an annual work
programme to promote and enhance the implementation of the WTO SPS Agreement, especially
the harmonization and equivalence of SPS measures and technical cooperation between the
Parties. The Committee shall also promote the Parties' active participation in relevant international
and regional organizations. (Article 6.03 and its Annex). The Parties indicated that the Committee
had not been active but it could be convened by any Party if necessary and that the contact points
had ensured adequate implementation of the Agreement.
3.49. On dispute settlement, the Parties renounce the use of retaliatory SPS measures. Measures
based on reciprocity shall be deemed retaliatory. The Parties may request consultations to clarify
or settle any dispute concerning the provisions of the Chapter. The requested Party shall address
the request within fifteen days. If the dispute is not settled through such consultations any Party
may request a dispute settlement procedure under Chapter XVI (Dispute Settlement). The Arbitral
Tribunal shall have recourse to specialists when scientific or technical matters are discussed. To
this end, the Committee shall establish a roster of independent qualified specialists on food safety
and animal and plant health.
3.4.1.2 Technical barriers to trade
3.50. Chapter XIII deals with standardization, metrology and related measures. The Parties
confirm their rights and obligations under the WTO Agreement on Technical Barriers to Trade (TBT
Agreement) and other international agreements of which the Parties are party. The Chapter
applies to the Parties' standards, metrology and other related measures which could directly or
indirectly affect trade. It does not apply to SPS measures (Article 13.02). The Parties shall use
international standards where they exist or their completion is imminent, except where such
international standards would not be an effective or appropriate means for fulfilling the legitimate
objectives because of fundamental climatic, geographical, technological or infrastructural factors,
or scientifically verified reasons (Article 13.03).
3.51. The Parties may conduct risk assessments as long they do not have the purpose or effect of
creating unnecessary trade barriers. In doing so the Parties shall take into account risk assessment
techniques developed by international organizations, relevant scientific evidence or available
technical information, intended end uses of goods and related processing technology. Where a
Party establishes a level of protection that it considers appropriate and conducts an assessment of
risk, it shall avoid arbitrary or unjustifiable distinctions between similar goods, where the
distinctions result in arbitrary or unjustifiable discrimination against goods or service providers of
the other Party, constitute a disguised restriction on trade between the Parties or discriminate
between similar goods for the same use under the same conditions that pose the same level of risk
and provide similar benefits (Article 13.04).
3.52. Without prejudice to the rights conferred by this Chapter and taking into account the
international activities on standards and metrology, the Parties shall, to the greatest extent, make
compatible their respective standards and metrology measures, without reducing the level of
safety or protection to human, animal or plant life or health, the environment and consumers. A
Party shall accept as equivalent any technical regulations of the other Party when, in cooperation
with the other Party, the exporting Party determines that the technical regulations of the importing
Party adequately fulfil its own legitimate objectives. The importing Party shall provide to the
exporting Party, on request, its reasons in writing for not treating a technical regulation as
equivalent. Furthermore, the Parties recognize the need to update, review and harmonize their
standards and technical regulations (Article 13.05). The Parties indicated that harmonization of
standards and technical regulations is still pending.
3.53. The Parties, recognizing that the outcome shall be of mutual advantage, and based on
reciprocity, shall accredit, approve, licence or recognize conformity assessment bodies in the
territory of the other Party, in conditions no less favourable than those accorded to conformity
assessment bodies in their territory. They may use the capacity and technical infrastructure of the
accredited bodies established in the territory of the Parties in the conformity assessment
procedures (Article 13.06).
WT/REG305/1
- 37 3.54. On metrology, the Parties shall ensure, to the extent practicable, the documented
traceability of its standards and the calibration of its measuring instruments, according to the
recommendations of the Bureau International des Poids et Measures (BIPM) and the International
Organization of Legal Metrology (OIML), and comply with the requirements set out in this Chapter.
3.55. Concerning transparency, the Parties shall ensure the existence of an Information Centre24
in their territory that may answer all reasonable questions and requests from the other Party and
from interested persons and supply the relevant updated documentation relating to any measure
on standards, metrology, conformity assessment procedures or authorization procedures adopted
or proposed in their territory by governmental or non-governmental bodies (Article 13.10). The
Parties shall promptly publish and notify in writing, using the same format as the WTO, any
proposed measure, at least 60 days before its adoption, thus allowing the interested Parties to get
acquainted with it. In emergency situations they may however waive the 60-day deadline. When
the measure is adopted, the Parties shall provide a copy to the other Parties through the
information Centres. Each Party shall also notify in writing its standardization plans and
programmes. Finally, when a Party rejects a shipment or a service by an administrative decision, it
shall notify the person in charge of the shipment or service of the technical reasons for the
rejection, without delay and in writing (13.09).
3.56. The Agreement also contains provisions on dangerous substances and scrap (Article 13.13),
protection of the environment (13.14), registration procedures (Article 13.15), and technical
cooperation (Article 13.16).
3.57. The Agreement creates a Committee on Technical Barriers to Trade, composed by an equal
number of specialized representatives of each Party, which shall adopt decisions by consensus and
shall start functioning upon entry into force of the Agreement. As set out in the Annex to
Article 13.11, the Committee shall follow up on matters related to the application and
administration of this Chapter and shall inter alia: assist in the resolution of problems due to
unnecessary technical barriers, facilitate the process by which the Parties shall make compatible
their measures on standards and metrology, promote technical cooperation activities, and
establish sub-committees on labelling and packaging, and on approval procedures within 30 days
of entry into force. The Parties indicated that the Committee had not been active but it could be
convened by any Party if necessary and that the contact points had ensured adequate
implementation of the Agreement. No sub-committees have been created to date. In the event of
disputes concerning the provisions of this Chapter (Article 13.12), the Parties shall have recourse
to the Committee. If its technical recommendation cannot resolve the dispute, the Parties may
turn to the dispute settlement mechanism under the Agreement.
3.4.2 Safeguard mechanisms
3.58. Chapter VIII covers safeguard measures. The Parties retain their rights and obligations to
apply safeguard measures under Article XIX of GATT 1994 and the WTO Agreement on
Safeguards. They may apply global or bilateral safeguard measures. Bilateral safeguards shall be
governed by the provisions of this Chapter, the provisions of Article XIX of GATT 1994, the WTO
Agreement on Safeguards and domestic legislation shall be suppletory.
3.4.2.1 Global safeguards
3.59. There are no specific provisions on global safeguards under the Agreement.
24
As set out in Annex to Article 13.10 the Information Centres are as follows: for Costa Rica, the
Ministerio de Economía y Comercio, through the Centro de Informaciones sobre Obstáculos Técnicos al
Comercio; for El Salvador, the Ministerio de Economía, through the Dirección de Política Comercial; for
Guatemala, the Ministerio de Economía, through the Comisión Guatemalteca de Normas (COGUANOR); for
Honduras, the Secretaría de Industria y Comercio, through the Dirección General de Sectores Productivos; for
Nicaragua, the Ministerio de Economía y Desarrollo, through the Dirección General de Ciencia y Tecnología; for
the Dominican Republic, the Dirección General de Normas y Sistemas de Calidad (DIGENOR); or their
successors.
WT/REG305/1
- 38 3.4.2.2 Bilateral safeguards
3.60. Unless otherwise provided, bilateral safeguard measures shall apply between Costa Rica, El
Salvador, Guatemala, Honduras and Nicaragua, considered individually, with the Dominican
Republic.
3.61. Under Article 8.03, the Parties may apply bilateral safeguards if the volume of imports of
one or more products has increased in such quantities and under such conditions that it constitutes
a substantial cause of serious injury, or threat thereof, to the domestic industry producing a like or
directly competitive product, and only if it is strictly necessary to counteract such serious injury, or
threat thereof. Safeguard measures may only take the form of tariffs; the tariff shall be the
applied MFN tariff. Measures may be applied for a period of a year renewable for an equal
consecutive period. The Parties may initiate investigations up to 24 months after full liberalization
has been achieved under Article 3.04.1, through the elimination of tariffs on originating goods.
This provision shall apply to products included in the Annex to Article 3.04 when they become
duty-free. Finally, the Parties may apply bilateral safeguard measures to the same product only
once.
3.62. The Parties shall establish clear and strict procedures25 for the adoption and implementation
of bilateral safeguard measures by which the investigating authority shall: carry out an
investigation to determine the adoption of a safeguard measure and publish the initiation of the
investigation through the official channels and notify it to the exporting Party within three working
days of the publication; evaluate all relevant factors of an objective and quantifiable nature having
a bearing on the situation of that industry, in particular, the rate and amount of the increase in
imports of the product concerned in absolute and relative terms, the share of the domestic market
taken by increased imports, changes in the level of sales, production, productivity, capacity
utilization, profits and losses, and employment; and demonstrate the existence of the direct causal
link. The importing Party may then request consultations with the other Party. The request shall
include import data for each of the three most recent years that form the basis of the claim that
the good is being imported into the territory of the other Party in increased quantities; the volume
and value of the domestic production of the like or directly competitive goods for each of the three
most recent years; the listing and description of the alleged causes of injury; and information on
the safeguard measure. The consultation period shall be 30 days unless the Parties agree on a
shorter period. The affected Party may impose mutually agreed compensatory tariff measures. The
consultations shall not force the Parties to disclose any confidential information provided during
the procedure. If the importing Party determines that reasons justify the extension of a bilateral
safeguard measure, the Party shall notify the competent authority of the other Party of its
intention to extend the measure at least 90 days before the measure is expected to expire, and
shall prove that the reasons leading to its application persist, for the purpose of holding respective
consultations (Article 8.04).
3.4.2.3 Special safeguards
3.63. The Agreement has no provisions on special safeguards.
3.4.3 Anti-dumping and countervailing measures
3.64. The Parties reject any unfair trade distorting practices (Article 7.01) and retain their rights
and obligations under the WTO Agreement on Subsidies and Countervailing Measures and the
Agreement on the Implementation of Article VI of the GATT 1994. These Agreements and the
Parties' domestic legislation for their implementation shall apply to investigation procedures and to
the application of anti-dumping and countervailing duties (Article 7.02). Furthermore, when the
duty is established the interested Parties may request clarifications on whether a specific good is
subject to such a duty. This shall not interrupt the course of the investigation nor suspend the
implementation of the duty (Article 7.03).
3.65. The Party affected by a measure resulting from a final determination may submit the issue
to the dispute settlement mechanism under Chapter XVI (Dispute Settlement) of the Agreement.
25
The Dominican Republic has established procedures for the investigation and adoption of bilateral
safeguards through the Comisión de Defensa Comercial established by Law 1-02. Neither Guatemala nor
Nicaragua or Honduras have established special mechanisms for the adoption of such bilateral safeguards.
WT/REG305/1
- 39 3.4.4 Subsidies and State-aid
3.66. The Parties confirm their WTO rights and obligations on support measures, domestic support
and export subsidies (Article 3.10).
3.4.5 Customs-related procedures
3.67. Chapter V contains general principles applicable to the Parties' customs administrations.
Specific procedures for different customs regimes shall be regulated by the Parties' domestic
legislation. However, the Parties shall establish minimum requirements for the release of goods
through automatic selective and random controls without prejudice to physical and document
controls in conformity with their customs legislation (Article 5.01).
3.68. The Parties commit to strengthen cooperation and mutual assistance and enhance
coordination in order to improve and harmonize customs procedures to be applied on the basis of
reciprocity. They shall facilitate the release of goods and maintain an agreed level of conformity in
their procedures. Finally, they shall jointly organize customs related capacity building programmes
for officials and users (Article 5.02).
3.69. Articles 5.04-07 refer to the immediate release of goods and simplification of
documentation, to facilitating the entry of samples, the use of electronic information systems and
the exchange of information between the Parties. Additionally, the Parties agree that any new
proposed customs regulation shall be made known 30 days before its entry into force, it shall be
published in conformity with the Party's domestic legislation and be notified by the importing Party
to the exporting Party within ten days of its publication (Article 5.08).
3.70. The Parties establish a Committee on Customs Procedures composed of representatives of
each Party which will meet at least once a year and upon the Parties' request. Its tasks will
include: to propose customs policies to facilitate trade, to agree on the interpretation,
implementation and administration of the Chapter, to deal with tariff classification and customs
valuation matters and to inform the Council about its activities (Article 5.09).
3.4.6 Other regulations
3.5 Sector-specific provisions on trade in goods
3.71. There are no sector-specific provisions on trade in goods.
4 PROVISIONS ON TRADE IN SERVICES AND INVESTMENT
4.1 Scope and definitions
4.1. Chapter IX contains rules on investment; Chapter X refers to trade in services; and
Chapter XI deals with temporary entry of business persons.
4.2. Chapter X on cross-border trade in services covers three of the four modes of supply,
1 (cross-border supply), 2 (consumption abroad), and 4 (presence of natural persons). The
objective of the Chapter is to establish a framework for liberalization of trade in services between
the Parties in accordance with the WTO General Agreement on Trade in Services, which will
promote their interests on the basis of mutual advantages and global balance of rights and
obligations.
4.3. Measures on cross-border trade in services include: (i) the production, distribution, sale or
supply of a service; (ii) the purchase, use or payment of a service; (iii) access to and use of
distribution and transportation systems in connection with the supply of a cross-border service;
(iv) the presence in the Party's territory of a service supplier from the other Party; and (v) the
provision of a bond or other form of financial security as a condition for supplying a service
(Article 10.3).
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- 40 4.4. Chapter X26 does not apply to: (i) development promotion measures granted by a Party or
State enterprise, including loans, guarantees, insurance, donations and fiscal incentives supported
by the Government; (ii) air services, including domestic and international air transportation
services, whether scheduled or non-scheduled, and auxiliary services related to air transport
services, except for aircraft repair and maintenance services, specialty air services and
computerized reservation systems services; (iii) government services or functions, such as law
enforcement, social rehabilitation, pensions, unemployment insurance, social security, social
welfare, public education, public training, health and child care. Nothing in the Chapter shall be
construed to impose any obligation on a Party with respect to a national of the other Party seeking
access to its employment market, or employed on a permanent basis in its territory, or to confer
any right on that national with respect to that access nor on government procurement, except as
provided in Article 12.2.3.
4.5. No provision in Chapter X may be construed as imposing the obligation to provide
confidential information, the disclosure of which may be an obstacle to the observance of laws or
be damaging to the public interest, or may injure legitimate trade interests of state and private
enterprises (Article 10.06). To achieve the objectives of the Chapter the Parties shall review it
every year taking into account the evolution and the regulation of trade in services in each Party
as well as progress achieved in the WTO and other fora (Article 10.21).
4.6. Chapter IX on investment covers measures adopted or maintained by a Party in relation to:
(i) the investors of the other Party for all matters relating to their investment; (ii) investments by
investors of a Party in another Party after entry into force. The Chapter also covers existing
investments at entry into force if they qualify as investments under Article 9.02.2(c).
4.7. It does not apply to: (i) economic activities reserved for each Party under domestic
legislation in force on the date the Agreement was signed; (ii) measures adopted by a Party to
restrict the participation of investments of investors of the other Party in its territory for reasons of
public policy or national security, to protect its cultural heritage and for the conservation and
protection of the environment; or (iii) disputes or claims arising prior to the entry into force of the
Agreement or relating to facts that occurred before that date, even if their effects persist
thereafter. In case of incompatibility between Chapter IX and another Chapter of the Agreement
the other Chapter will prevail.
4.2 Denial of benefits
4.8. Pursuant to Article 9.14, subject to notification and consultations, a Party may deny the
benefits of Chapter IX to an investor of the other Party that is an enterprise of the Party and to
investments of such investors if investors of a non-party own or control the enterprise and the
enterprise has no substantial business in the Party under whose legislation it is constituted.
4.9. Subject to notification and consultations, a Party may deny the benefits of Chapter X to a
service provider of the other Party where it is established that the service is being provided by an
enterprise that has no substantial business activities in the territory of the other Party and that,
under the current legislation of each country, is owned or controlled by persons of a non-party
(Article 10.14).
4.10. A Party may deny the benefits of Chapter XII (Procurement), subject to notification and
consultations, to a service provider of the other Party where it is established that the service is
being provided by an enterprise owned or controlled by persons of a non-party and that such
enterprise has no substantial business activities in the territory of any of the Parties.
26
For the purposes of Chapter X, measures adopted or maintained by a Party include measures adopted
or maintained by non-governmental institutions or bodies in the performance of regulatory, administrative or
other functions of a governmental nature delegated to them by the Party.
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- 41 4.3 General provisions on trade in services
4.3.1 Market access
4.11. The Agreement does not contain market access provisions as such. However, within six
months after its entry into force the Parties shall set up a list of existing non-discriminatory
quantitative restrictions. Periodically, at least every two years they will endeavour to negotiate to
liberalize or eliminate existing quantitative restrictions or those adopted by a Party after entry into
force. Each Party shall notify any non-discriminatory quantitative restriction adopted after entry
into force and shall add it to the list (Article 10.11). The Parties indicated that they had not
established lists of quantitative restrictions.
4.3.2 National treatment and MFN
4.12. Each Party shall accord to services and services providers of the other Party treatment no
less favourable than it accords to its own like services and service providers (Article 10.12).
4.13. Each Party shall accord, immediately and unconditionally, to services and services providers
of the other Party treatment no less favourable than it accords to like services and services
providers of any other country. The provisions of Chapter X (Trade in Services) shall not be
construed to prevent any Party from conferring advantages to adjacent countries in order to
facilitate exchanges limited to contiguous frontier zones and services that are both locally
produced and consumed (Article 10.4).
4.14. Concerning investment, each Party shall accord to investors of the other Party, with respect
to their investments, treatment no less favourable than that it accords to its own investors and
their investments (Article 9.04). Similarly, each Party shall accord to investors of the other Party
treatment no less favourable than that it accords to investors of a non-Party, except when a Party
has granted special treatment to investors and their investments under agreements establishing
provisions on the avoidance of double taxation, free trade areas, customs unions, common
markets, economic and monetary unions (Article 9.05).
4.15. Under Chapter XII (Government Procurement), each Party shall accord, immediately and
unconditionally, to covered services and services providers of the other Party offering their
services, treatment no less favourable than it accords to its own national services and services
providers.
4.3.3 Commercial presence
4.16. Pursuant to Article 10.10 of the Agreement, no Party may require a service provider of the
other Party to establish or maintain a representative office or any form of enterprise, or to be
resident in its territory, as a condition for the cross-border supply of a service.
4.3.4 Stand-still (Consolidation of measures)
4.17. Under Article 10.13, upon entry into force, no Party may increase the non-conformity level
of existing measures with respect to MFN, national treatment and commercial presence,
Articles 10.04, 10.10 and 10.12, respectively, and, six months after entry into force at the latest,
the Parties shall exchange a list of non-conforming measures with these articles. However, the
Agreement does not include lists of non-conforming measures. The Parties have indicated that the
exchange of lists has not taken place.
4.3.5 Performance requirements
4.18. Under Article 9.07, no Party may impose in connection with the establishment or acquisition
of an investment or in the subsequent regulation of such an investment, any of the performance
requirements listed in the WTO Agreement on Trade-Related Investment Measures (TRIMs).
WT/REG305/1
- 42 4.3.6 Senior management and boards of directors
4.19. No Party may require that an enterprise appoint to senior management positions individuals
of any particular nationality, except as established in each Party's domestic legislation.
4.3.7 Movement of natural persons
4.20. The temporary entry of business persons27 is governed by Chapter XI of the Agreement.
4.21. The Chapter reflects the preferential trading relationship between the Parties, the
desirability of facilitating temporary entry and the need to establish transparent criteria and
procedures to this end, as well as the need to ensure the security of borders and protect the
national workforce and permanent employment (Article 11.02). Each Party shall grant temporary
entry to business persons, covered by the Annex to Article 11.04 (temporary entry of business
persons) and the Appendix to its Section A (activities of business visitors), who are qualified for
entry under other applicable measures relating to public health and safety and national security. A
Party may deny temporary entry where it would adversely affect the settlement of any labour
dispute that is in progress or the employment of any person who is involved in such a dispute. If it
does so, the Party shall inform the person concerned in writing of the reasons for the refusal and
shall notify the other Party. The Parties shall limit fees for processing applications to the
approximate cost of the services rendered. The temporary entry of a business person does not
authorize the exercise of a profession (Article 11.04).
4.22. Each Party shall provide to the other Party materials that will enable it to become
acquainted with its measures relating to this Chapter and, no later than 12 months after entry into
force of the Agreement, shall prepare, publish and make available in its own territory and in the
territory of the other Party, explanatory material in a consolidated document on requirements for
temporary entry so business persons of the other Party may become acquainted with them.
Additionally, each Party shall collect, maintain, and make available to the other Party information
regarding the granting of temporary entry to business persons of the other Party for whom
immigration documentation has been issued (Article 11.05).
4.23. Annex to Article 11.04 contains commitments made by the Parties to facilitate the
temporary entry of business persons who otherwise comply with existing immigration measures
applicable to temporary entry and are categorized as: (i) business visitors; (ii) investors; and
(iii) intra-company transferees.
4.24. Each Party shall grant temporary entry to business persons seeking to engage in a business
activity set out in the Appendix to Annex 11.0428 on prior request by an enterprise or a business
association, without requiring an employment authorization provided the person complies with the
existing immigration measures applicable to temporary entry. A Party shall also grant temporary
entry to business persons seeking to engage in a business activity other than those set out in the
Appendix on a basis no less favourable than that provided under the existing legislation on
immigration, extranjería and related matters, provided the person complies with the existing
immigration measures applicable to temporary entry.
4.25. The Parties may not require labour certification tests or other procedures of similar effect as
a condition for granting temporary entry with regard to the three categories of business persons
covered, nor impose or maintain any numerical restriction in relation to business visitors and
intra-company transferees. Nevertheless, they may require a business person seeking temporary
entry into the country to obtain a visa or its equivalent prior to entry. The Parties shall consider
the possibility of eliminating the requirement for such a visa or equivalent document. Guatemala
does not require a visa for temporary entry by business persons from the Dominican Republic nor
does the Dominican Republic for Central American business persons.
27
Business person: national of one Party who is engaged in trade in goods, the provision of services or
the conduct of investment activities.
28
The temporary entry is designed in particular for business visitors in the following fields: research;
cultivation, manufacture and production; marketing; sales; distribution, after-sales services; and general
services (Appendix to Annex 11.04).
WT/REG305/1
- 43 4.26. Recourse to dispute settlement is not permitted with regard to a refusal to grant temporary
entry under Chapter XI, unless the matter involves a recurrent practice and the business person
concerned has exhausted the relevant administrative remedies.
4.27. The Parties establish a Committee on Temporary Entry of Business Persons comprising
representatives of the Parties, including immigration officials. The Committee shall meet at least
once a year to examine the application and administration of the Chapter and to elaborate
measures to further facilitate temporary entry.
4.28. Except as provided in Chapter XI and in the Chapters on initial provisions, general
definitions, publication, notification and guarantees of hearing and legality, dispute settlement and
final provisions, no provision in the Agreement shall impose an obligation on a Party regarding its
immigration measures.
4.4 Liberalization commitments
4.29. There are no liberalization commitments under the Agreement.
4.30. Under paragraph 2 of Article 10.13 the Parties shall exchange a list of non-conforming
measures with Articles 10.4, 10.10 and 10.12 (MFN, local presence and national treatment).
Additionally, the Parties were to deepen the liberalization achieved in different services sectors
through future negotiations in order to eliminate remaining non-conforming restrictions
(Article 10.15). The Parties have indicated that the exchange of lists had not taken place and that
negotiations to deepen liberalization had not taken place either. However, they have confirmed
that the services and investment Chapters are in force.
4.31. A Committee on Trade in Services, composed of representatives of the relevant authorities,
is established. It shall meet at least once a year or at any time at any Party's request. Its functions
shall include, supervising the implementation and administration of the Chapter, discussing
matters relating the cross-border trade in services presented by a Party; analysing matters
discussed in other international fora; facilitating the exchange of information between the Parties
and cooperating in giving advice on investment and cross-border trade in services; and
establishing working groups or convening panels of experts on matters of interest to the Parties.
4.5 Regulatory provisions
4.5.1 Domestic regulation
4.32. To ensure that measures relating to requirements and procedures for granting permits,
authorizations and licenses do not constitute unnecessary barriers to trade, the Parties shall
endeavour as appropriate to ensure that such requirements are based on objective and
transparent criteria, are not more burdensome than necessary and are not in themselves a
restriction on the supply of a service (Article 10.07).
4.5.2 Recognition
4.33. The Annex to Article 10.03 (Professional Services) deals with recognition.
4.34. Where a Party recognizes, autonomously or by agreement or arrangement, professional
degrees obtained in the territory of another Party or a non-Party: (i) nothing in Article 10.04
(national treatment) shall be construed to require the Party to accord such recognition to
professional degrees obtained, in the territory of any other Party; and (ii) it shall afford adequate
opportunity for another Party to demonstrate that professional degrees obtained in that other
Party's territory should be recognized or to negotiate with it an arrangement or agreement with
similar effects (Article 3 of the Annex).
4.35. Under Article 4, the Parties agree that mutual recognition procedures of degrees and the
concession of licenses for the exercise of a profession shall be based in standards and criteria
aimed at improving the quality of professional services, protecting consumers and preserving
public order. The Parties shall encourage relevant entities such as, government officials and
professional associations to set out such standards and criteria which may cover, inter alia,
WT/REG305/1
- 44 education, examinations, experience, conduct and ethics, professional development and
re-certification, scope of practice, local knowledge and consumer protection, and make
recommendations on mutual recognition and licensing. However, consultations with professional
associations have not taken place and no recommendations on recognition have been made. The
Parties shall encourage the competent authorities to adopt the recommendations received, as long
as they are consistent with the provisions of the Agreement, GATS Article VII and the results the
WTO negotiations on professional services. Finally, the Parties shall review the implementation of
the provisions of the Annex at least once a year. The Parties have indicated that a review of the
implementation of these provisions has not taken place yet.
4.5.3 Subsidies
4.36. The Committee on Trade in Services shall set out procedures to establish disciplines on
trade distorting subsidies and emergency safeguard measures, taking into account work carried
out in the relevant international organizations (Article 10.20).
4.5.4 Safeguards
4.37. The Committee on Trade in Services is also mandated to establish disciplines on emergency
safeguard measures.
4.5.4.1 Balance of Payments restrictions
4.38. Under Article 10.09, a Party may adopt restrictions to its trade in services when it faces
serious difficulties in or threats to its balance of payments, to attain a sufficient level of financial
reserves for the implementation of its economic development or transition programme. Such
restrictions shall be: non-discriminatory, be compatible with the International Monetary Fund,
avoid unnecessary damage to the commercial, economic and financial interests of the other Party,
not be more burdensome than necessary to deal with the difficulties, and be temporary and
progressively eliminated as the balance of payments situation improves.
4.39. A Party may give priority to essential services for its economic programme, but not impose
a measure for the purpose of protecting a specific industry or sector. Restrictions must be
promptly notified. The Parties applying restrictions shall hold consultations. The Council shall set
out the procedures for periodic consultations so it can make recommendations, in particular, on
the progressive elimination of restrictions. In such consultations the IMF statistical or other data
on foreign exchange, monetary reserves and balance of payments shall be accepted and the
conclusions shall be based on the IMF's assessment of the situation.
4.5.5 Exceptions
4.40. Notwithstanding the provisions of Chapter X (trade in services) and other Chapters, the
Parties may adopt measures to protect public order and morals; human, animal and plant life and
health and the environment; national security and the enforcement of laws and regulations on
fraudulent practices, on the protection of privacy and on public security; and national artistic,
historic and archaeological treasures. These measures shall not be applied in a manner that
constitutes a restriction to sub-regional trade in services or a means to discriminate between
Parties and non-parties to the Agreement, in which similar conditions prevail (Article 10.08).
4.5.6 Other
4.41. As regards anti-competitive business practices having adverse effects on competition and
trade in services inside the Parties, the domestic legislation on competition of each Party as well as
standards established through international agreements shall apply (Article 10.19).
4.5.7 Other measures on investment
4.42. Each Party shall accord to investments of investors of another Party treatment in
accordance with international common law, including fair and equitable treatment and full
protection and security (9.03). Each Party shall accord to the investors of the other Party whose
investments have been adversely affected in its territory due to armed conflict, state of
WT/REG305/1
- 45 emergency, insurrection, or civil strife, non-discriminatory treatment on any measure adopted or
maintained in relation to such losses, in respect of its own and non-Party investments
(Article 9.06).
4.43. Each Party may adopt, maintain or enforce any measure that it considers appropriate to
ensure that investment in its territory is undertaken in a manner sensitive to environmental
concerns (Article 9.15.)
4.44. Under Article 9.17 subrogation is recognized with respect to payments for compensation of
non-commercial risks relating to an investment.
4.6 Sector specific provisions on trade in services
4.45. There are no sector-specific provisions on trade in services under the Agreement.
5 GENERAL PROVISIONS OF THE AGREEMENT
5.1 Transparency
5.1. Chapter XIX deals with Transparency. Each Party shall designate a contact point to facilitate
communications between the Parties on any matter covered by the Agreement and at the request
of the other Party shall identity the office or the official responsible for a matter. The Parties shall
ensure that their laws, regulations, procedures, and administrative rulings of general application
referring to any matter covered by the Agreement are promptly published or otherwise made
available so interested persons and the other Parties become acquainted with them. On request by
another Party, a Party shall promptly provide information and respond to questions pertaining to
any actual or proposed measure (Article 19.01-03).
5.2. The Parties confirm the guarantees of hearing, legality and due process established in their
own laws and shall ensure that in legal and administrative proceedings related to the any measure
affecting the Agreement all essential formalities are respected (Article 19.04).
5.3. Under Article 10.05 of the services Chapter, the Parties shall promptly publish, or otherwise
make available to the public, and notify to the Committee on Trade in Services and to each Party,
at the latest upon entry into force of the Agreement, all measures relating to the Chapter and
international agreements on trade in services of which the Parties are party. Each Party shall
promptly inform other Parties of new laws, regulations and administrative guidelines or
modifications of existing laws that have a considerable effect on trade in services and shall readily
respond to information requests. They shall use national information services established under
Article III.4 of the GATS.
5.2 Current payments and capital movements
5.4. Under Article 9.10, each Party shall permit all transfers relating to an investment of an
investor of one Party in the territory of another Party, to be made freely and without delay
according to each Party's domestic legislation. Such transfers include: (i) profits, dividends,
interests, capital gains, royalty payments; (ii) management fees; (iii) proceeds from the sale of all
or any part of the investment or from its partial or complete liquidation; (iv) additional
contributions to capital for maintaining and expanding an investment; (v) payments made under a
contract, including a loan agreement; (vi) compensation payments due to expropriation; and (vii)
payments arising out of the dispute settlement mechanism of the Agreement.
5.5. The Parties shall permit transfers in a freely usable currency at the market rate of exchange
prevailing at the time of transfer, in line with their domestic legislation. They may however request
foreign exchange transfer reports or other monetary instruments. They may impose temporary
controls on foreign exchange operations when facing serious balance of payments problems and
while applying internationally agreed programmes. The adoption of such restrictions and their
termination shall be promptly notified to the other Party.
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- 46 5.3 Exceptions
5.6. Article XX of GATT 1994 and its interpretive notes are incorporated into and made part of the
Agreement, provided such measures are not applied in a manner that would constitute a means of
arbitrary or unjustifiable discrimination between Parties where the same conditions prevail, or a
disguised restriction on trade between them (Article 17.1).
5.7. Nothing in this Agreement shall be construed: (i) to require a Party to furnish or allow access
to any information, the disclosure of which it determines to be contrary to its essential security
interests; (ii) to preclude a Party from applying measures that it considers necessary to protect its
essential security interests, including measures, on trade in arms and ammunitions, measures
adopted in situations of war, on the non-proliferation of nuclear weapons, or measures relating to
fissionable materials; and (iii) to preclude a Party from applying measures for the fulfilment of its
obligations under the United Nations Charter for the maintenance of international peace and
security (Article 17.02).
5.8. Additionally, nothing in the Agreement shall be construed to compel a Party to make
available or disclose information that may prevent the enforcement or be contrary to its
Constitution or laws relating to the protection of privacy, financial matters, private persons bank
accounts in financial institutions, etc. (Article 17.03).
5.4 Accession and Withdrawal
5.9. Any country or group of countries may accede to the Agreement subject to such terms and
conditions as may be agreed between such country or countries and the Council and following
approval in accordance with the applicable legal procedures of each Party and acceding country.
The accession shall enter into force as provided in the instrument of accession (Article 20.05).
5.10. Any Party may withdraw from the Agreement. Such withdrawal shall enter into force
180 days after the Party provides notice to the other Party, without prejudice to a different date
the Parties may agree. If a Party withdraws, the Agreement shall remain in force for the remaining
Parties, until the withdrawal of the Dominican Republic (Article 20.10).
5.5 Institutional framework
5.11. Chapter XVIII deals with the Administration of the Agreement.
5.12. In Article 18.1, the Parties establish the Joint Administration Council, comprising cabinet
level representatives of the Parties, as set out in Annex I to Article 18.129, or their designees.
5.13. The Council shall (i) ensure the implementation of the Agreement; (ii) assess its results and
oversee its further elaboration; (iii) propose measures for its administration; (iv) negotiate and
approve trade liberalization of goods and services of the annexes to Article 3.04 and Chapter X
(Trade in services); (v) seek to resolve disputes regarding the interpretation or application of the
Agreement;(vi), supervise the work of all committees and working groups established under the
Agreement, as set out in Annex II to Article 18.0130; (vii) establish permanent or ad hoc
committees, working groups, groups of experts and set up their functions; (viii) draft regulations
as needed for further development of the Agreement, to be approved by the Parties; (ix) fix
payments to panellists, assistants and experts; and (x) consider any other matter that may affect
the operation of the Agreement.
29
The Joint Administration Council was constituted by CCA/DEC Nº 1/2002 of 3 September 2002 as
follows: for Costa Rica, the Ministro de Comercio Exterior; for El Salvador, the Ministro de Economía; for
Guatemala, the Ministro de Economía; for Honduras, the Secretario de Industria y Comercio; for Nicaragua, the
Ministro de Economía y Desarrollo; and for the Dominican Republic, the Secretario de Estado de Industria y
Comercio; or their successors.
30
Committee on Trade in Goods; Committee on Rules of Origin; Committee on Customs Procedures;
Committee on Sanitary and Phytosanitary Measures; Committee on Technical Barriers to Trade; Committee on
Trade in Services; Committee on Temporary Entry of Business Persons; Committee on Intellectual Property
and; Committee on Trade and Free Competition. These Committees were created by Decision of the Joint
Administration Council CCA/DEC/ Nº2/2002 of 3 September 2002.
WT/REG305/1
- 47 5.14. The Council may seek the advice of independent non-governmental persons or associations
and, if the Parties agree, may take any other action in the exercise of its functions. The Council
shall convene at least once a year in regular session, and at any time upon the Parties' request in
special session. It will establish its rules and procedures and will adopt decisions by consensus.
The Parties shall successively preside over the sessions.
5.15. The Council shall establish and oversee a Secretariat composed of the Parties' national
sections.31 Each Party shall appoint a permanent office as the National Section of the Secretariat,
an official responsible for such National Section and notify its address to the Council. The National
Sections shall assist the Council, provide administrative assistance to arbitral tribunals established
under the Agreement and perform any other function entrusted to them by the Council
(Article 18.02).
5.6 Dispute settlement
5.16. Chapter XVI refers to dispute settlement. The Parties shall at all times endeavor to agree on
the interpretation and application of the Agreement, and shall make every attempt through
cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that
might affect its operation (Article 16.2).
5.17. The provisions of Chapter XVI apply to the avoidance or settlement of all disputes between
the Parties regarding the interpretation or application of the Agreement or wherever a Party
considers that an actual or proposed measure of another Party is or would be inconsistent with the
obligations of the Agreement or cause nullification or impairment of benefits that could reasonably
be expected from the implementation of the Agreement. Under Article 16.04, the complaining
Party may choose either the Agreement or the WTO as the forum. The chosen forum will be used
to the exclusion of the other. In disputes relating to perishables deadlines shall be reduced to the
minimum by the Parties, the Council or the Arbitral Tribunal.
5.18. Each Party may request consultations (Article 16.06) in writing with copies to the Council
and to the other Parties, on any existing or planned measure which it considers might affect the
operation of the Agreement. If the consultations do not settle the dispute within 30 days, the
Parties may refer the question to the Council, which will meet within ten days. The Council may
call in technical advisers or create the expert groups it considers necessary, resort to good offices,
conciliation, mediation or other dispute settlement procedures, or make recommendations. The
Council may consolidate two or more proceedings concerning the same measure or other matters
that it determines are appropriate to be considered jointly (Article 16.07).
5.19. Any consulting Party may request in writing the establishment of an arbitral panel when the
Council has met and the matter has not been resolved within 30 days after its meeting. The
requesting Party shall present the complaint to the Council and to the other Parties in writing,
through its National Section of the Secretariat. The Council shall invite the other consulting Parties
to participle in the arbitrage which shall respond within ten days. If a Party decides not to
participate as a complaining Party it shall refrain from initiating a procedure regarding the same
matter (Article 16.08).
5.20. The Parties shall establish a roster of 30 individuals to serve as arbitrators. They shall be
designated by mutual agreement of the Parties for three-year periods and may be reappointed for
equal periods. The roster shall include three nationals from each Party and 12 who are not
nationals of the Parties (Article 16.9). The roster members shall: (i) have expertise or experience
in law, international trade, other matters covered by the Agreement, or the resolution of disputes
arising under international trade agreements; (ii) be chosen strictly on the basis of objectivity,
31
The National Sections were constituted by Decision of the Joint Administration Council CCA/DEC
Nº 3/2002 of 3 September 2002, as follows: for Costa Rica, the Dirección de Aplicación de Acuerdos
Comerciales Internacionales of the Ministerio de Comercio Exterior; for El Salvador, the Dirección de
Administración de Tratados Comerciales of the Ministerio de Economía; for Guatemala, the Dirección de
Administración del Comercio Exterior of the Ministerio de Economía; for Honduras, the Dirección General de
Administración de Tratados of the Secretaría de Estado de Industria y Comercio; for Nicaragua, the Dirección
de Integración y Administración de Tratados of the Dirección General de Comercio Exterior of the Ministerio de
Fomento, Industria y Comercio; for the Dominican Republic, the Dirección de Comercio Exterior y
Administración de Tratados Comerciales of the Secretaría de Estado de Industria y Comercio.
WT/REG305/1
- 48 reliability, and sound judgment; (iii) be independent of, and not be affiliated with or take
instructions from, any Party; and (iv) comply with a code of conduct to be established by the
Council.32
5.21. A three-member arbitral panel will be established based on procedures described in
Article 16.11. The disputing Parties shall endeavor to agree on the chair of the panel within
15 days of the request for the establishment of the panel. If the disputing Parties are unable to
agree on the chair within this period, the chair shall be designated within five days by one of them
selected by lot. The chair may not be a national of a disputing Party. Within five days of the
election of the chair, each disputing Party shall select by lot one arbiter who is a national of the
other disputing Party. A disputing Party may challenge any arbiter not selected from the roster.
5.22. The Council shall establish Model Rules of Procedure which shall ensure the right to one
hearing before the arbitral panel, as well as the opportunity to provide initial and written rebuttals,
which will be confidential.33
5.23. Within 90 days of the appointment of the last arbiter, unless the Parties agree on another
time-limit, the arbitral panel will present to the Parties its preliminary resolution, which will contain
its findings of fact, its determination regarding the measure and the draft report. Following written
comments from the disputing Parties within 30 days of the preliminary resolution being presented,
the final resolution (Article 16.15) will be presented to them and to the Council within 45 days of
the presentation of the preliminary resolution. It shall be published within 15 days of its
notification to the Parties and the Council. The final resolution will be binding on the Parties on the
terms and conditions specified therein (Article 16.16).
5.24. If in its final resolution an arbitral tribunal has determined that a measure is inconsistent
with the obligations of the Agreement or causes nullification or impairment and the Party
complained against has not complied with the resolution within the deadlines established by the
tribunal or has not reached agreement with any complaining Party on a mutually satisfactory
resolution within the time-limit set out by the tribunal, the complaining Party may suspend the
application of benefits of equivalent effect until they have reached agreement on a resolution of
the dispute or the Party complained against has complied with the decision. Once the concessions
have been suspended, at the written request of one of the Parties, notified to its National Section
of the Secretariat and to the other Parties, the Council shall establish, within a 25-day time-limit,
an arbitral tribunal to determine whether the level of the concessions suspended by the
complaining Party is excessive. The panel shall present its determination within 60 days after the
last arbiter is selected or such other period as the disputing Parties may agree.
5.25. Chart 5.1 below indicates the steps in the dispute settlement process.
32
The roster of arbiters has been approved by Decision of the Joint Administration Council CCA/DEC
Nº 15/2010 of 10 August 2010.
33
The Model Rules of Procedure have been approved by Decision of the Joint Administration Council
CCA/DEC Nº 10/2003 of 21 February 2003.
WT/REG305/1
- 49 Chart 5.1 Dispute settlement mechanism specific to the Agreement
Consultations
(Art. 16.6)
30 days
(less for perishable
products
Alternative methods of dispute
settlement (i.e., good offices,
conciliation, mediation)
(Art. 16.07)
Council
(meeting within a period of
10 days) (Art. 16.07)
30 days
Request for establishment of
an arbitral tribunal (Art. 16.08)
30 days
Establishment of the arbitral
tribunal (Art. 16.11)
90 days
Preliminary
resolution
(Art. 16.14)
45 days
Final resolution
(Art. 16.15)
Comments by the Parties
within 30 days
15 days
Publication
(Art. 16.15)
Time-limit as determined by the tribunal
Compliance
(Art. 16.16)
Non-compliance
Time-limit as determined by the tribunal
Suspension of concessions
Art. 16.17
Decision of the tribunal on level of
suspension
60 days
Report issued
WT/REG305/1
- 50 5.26. Articles 16.18 and 16.19 deal with internal procedures and the settlement of private trade
disputes. If a question of interpretation or application arises in a judicial or internal administrative
procedure, or a court or administrative body requests the opinion of a Party, the Council will try to
agree on an appropriate response. The Party in whose territory the court is located will present the
interpretation agreed by the Council in conformity with the rules of that forum and, if the Council
cannot agree on any interpretation or response, any Party may submit its own opinion. Each Party
shall encourage and facilitate the use of arbitration and other means of alternative dispute
resolution for the settlement of international commercial disputes between private parties. To this
end, each Party shall provide appropriate procedures to ensure observance of international
agreements on arbitration ratified by each Party and for the recognition and enforcement of
arbitral awards in such disputes.34 The Council may establish a Consultative Committee on Private
Trade Disputes composed of persons with specialized knowledge in this field.35 It shall report to
the Council and present general recommendations on the use and the efficiency of such
procedures.
5.27. In the case of disputes between an investor of a Party and a Party, Article 9.20 of
Chapter IX establishes the time limits and conditions for submitting a claim for arbitration and the
procedures that must be followed. The investor may submit the claim for arbitration to: (i) the
competent tribunals or national arbitrage proceedings in the Party in which the investment was
made; (ii) the ICSID Convention, if the two States are parties; (iii) the rules of the ICSID
mechanism, if only one of the States is party to the Convention; or (iv) the UNCITRAL Arbitration
Rules. Each Party must give its consent. The choice of one procedure is final and is made to the
exclusion of the other. The Parties may not address matters relating to disputes having been
submitted to judicial or arbitration proceedings, except when the other Party does not enforce the
verdict or arbitral award.
5.28. Chapter XVI shall apply disputes between the Parties relating to the provisions Chapter XII
(Government Procurement) (Article 12.12).
5.7 Relationship with other agreements concluded by the Parties
5.29. Table 5.1 shows participation by the Parties in other RTAs (notified and not notified).
Table 5.1 Dominican Republic and Central America countries (Costa Rica, El Salvador,
Guatemala, Honduras and Nicaragua): Participation in other RTAs (notified and
non-notified in force), as of 9 May 2016
RTA Name
Date of
Coverage
entry into
force
DOMINICAN REPUBLIC
Year
EU - CARIFORUM States EPA
01-Nov-08
Goods & Services
2008
GATT Art. XXIV & GATS Art. V
Dominican
Republic
Central
America - United States Free Trade
Agreement (CAFTA-DR)
Dominican Republic - Panama
01-Mar-07
Goods & Services
2006
GATT Art. XXIV & GATS Art. V
08-Jun-87
Goods
2016
n.a.
Goods
Not notified
CARICOM - Dominican Republic
GATT/WTO Notification
WTO Provision
Enabling Clause
COSTA RICA
EFTA - Central America (Costa Rica
and Panama)
19-Aug-14
Goods & Services
2014
GATT Art. XXIV & GATS Art. V
34
The Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua are parties to
the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) and to the InterAmerican Convention on International Commercial Arbitration (1975). Furthermore, the Parties legislation on
mediation and arbitration are: Costa Rica, Ley sobre arbitraje comercial internacional, Law Nº 8937 of 27 April
2011, and Resolución alterna de conflictos y promoción de la paz social RAC, Law Nº 7727 of 9 December
1997; El Salvador, Ley de Mediación, Conciliación y Arbitraje, published in Diario Oficial No. 153, Volume 536
of 21 August 2002; Reglamento General de la Ley de Mediación, Conciliación y Arbitraje: Decreto Ejecutivo Nº
64 of 2 September 2003; Guatemala, Ley de Arbitraje (Decreto del Congreso) Nº 67-95; Honduras, Decree Nº
161-2000, Ley de Conciliación y Arbitraje, approved on 17 October 2000, in force on 7 March 2001; Nicaragua,
Ley de Mediación y Arbitraje Nº 540 of 25 May 2005, in force on 24 June 2005.
35
Decision CCA/DEC Nº 4/2002 of the Joint Administration Council, the Consultative Committee on
Private Trade Disputes will be composed by persons designated by the Parties by 3 October 2002. The Parties
have not exchanged information on the composition of such Committee.
WT/REG305/1
- 51 RTA Name
EU - Central America
Costa Rica - Singapore
Date of
entry into
force
01-Oct-13*
Coverage
GATT/WTO Notification
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
01-Jul-13
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
Year
WTO Provision
Mexico - Central America
01-Jul-13
Goods & Services
2014
GATT Art. XXIV & GATS Art. V
Costa Rica - Peru
01-Jun-13
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
China - Costa Rica
01-Aug-11
Goods & Services
2012
GATT Art. XXIV & GATS Art. V
Dominican
Republic
Central
America - United States Free Trade
Agreement (CAFTA-DR)
Panama - Costa Rica (Panama Central America)
Canada - Costa Rica
01-Jan-09
Goods & Services
2006
GATT Art. XXIV & GATS Art. V
23-Nov-08
Goods & Services
2009
GATT Art. XXIV & GATS Art. V
Chile - Costa Rica (Chile - Central
America)
Central American Common Market
(CACM)
CACM - Accession of Panama
CARICOM - Costa Rica
Venezuela - Costa
AAP.A25TM N°26]
Rica
[LAIA,
01-Nov-02
Goods
2003
GATT Art. XXIV
15-Feb-02
Goods & Services
2002
GATT Art. XXIV & GATS Art. V
04-Jun-61
Goods
1961
GATT Art. XXIV
06-May-13
Goods
Not notified
15-Nov-05
Goods
Not notified
27-Jul-94
Goods
Not notified
EL SALVADOR
EU - 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)
El Salvador- Honduras - Chinese
Taipei
Dominican
Republic
Central
America - United States Free Trade
Agreement (CAFTA-DR)
Panama - El Salvador (Panama Central America)
Chile - El Salvador (Chile - Central
America)
Central American Common Market
(CACM)
CACM - Accession of Panama
01-Feb-10
Goods & Services
2012
GATT Art. XXIV & GATS Art. V
01-Mar-08
Goods & Services
2010
GATT Art. XXIV & GATS Art. V
01-Mar-06
Goods & Services
2006
GATT Art. XXIV & GATS Art. V
11-Apr-03
Goods & Services
2005
GATT Art. XXIV & GATS Art. V
01-Jun-02
Goods & Services
GATT Art. XXIV & GATS Art. V
04-Jun-61
Goods
2004(G)
2004(S)
1961
Venezuela - El Salvador [LAIA,
AAP.A25TM N°27]
Cuba - El Salvador [LAIA, AAP.A25
N°43]
06-May-13
Goods
Not notified
09-Jul-86
Goods
Not notified
n.a.
Goods
Not notified
GATT Art. XXIV
GUATEMALA
EU - Central America
01-Dec-13*
Goods & Services
2013
Mexico - Central America
01-Sep-13
Goods & Services
2014
GATT Art. XXIV & GATS Art. V
Chile - Guatemala (Chile - Central
America)
Colombia - Northern Triangle (El
Salvador, Guatemala, Honduras)
Panama - Guatemala (Panama Central America)
Guatemala - Chinese Taipei
23-Mar-10
Goods & Services
2012
GATT Art. XXIV & GATS Art. V
12-Nov-09
Goods & Services
2012
GATT Art. XXIV & GATS Art. V
20-Jun-09
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
Dominican
Republic
Central
America - United States Free Trade
Agreement (CAFTA-DR)
Central American Common Market
(CACM)
CACM - Accession of Panama
01-Jul-06
Goods & Services
2011
GATT Art. XXIV & GATS Art. V
01-Jul-06
Goods & Services
2006
GATT Art. XXIV & GATS Art. V
04-Jun-61
Goods
1961
GATT Art. XXIV
06-May-13
Goods
Not notified
Cuba
Guatemala
AAP.A25TM N°36]
Venezuela - Guatemala
AAP.A25TM N°23]
[LAIA,
18-May-01
Goods
Not notified
[LAIA,
10-Apr-86
Goods
Not notified
Ecuador
[LAIA,
19-Feb-13
Goods
Not notified
-
Guatemala
AAP.A25TM N°42]
GATT Art. XXIV & GATS Art. V
WT/REG305/1
- 52 RTA Name
Date of
entry into
force
n.a.
Coverage
Goods
Not Notified
Belize - Guatemala
04-Apr-10
Goods
Not notified
Canada - Honduras
01-Oct-14
Goods & Services
2015
GATT Art. XXIV & GATS Art. V
01-Aug-13*
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
Mexico
Guatemala
AAP.A25TM N°37]
[LAIA,
GATT/WTO Notification
Year
WTO Provision
HONDURAS
EU - Central America
Mexico - Central America
01-Jan-13
Goods & Services
2014
GATT Art. XXIV & GATS Art. V
Colombia - Northern Triangle (El
Salvador, Guatemala, Honduras)
Panama - Honduras (Panama Central America )
Chile - Honduras (Chile - Central
America)
El Salvador- Honduras - Chinese
Taipei
Dominican
Republic
Central
America - United States Free Trade
Agreement (CAFTA-DR)
Central American Common Market
(CACM)
CACM - Accession of Panama
27-Mar-10
Goods & Services
2012
GATT Art. XXIV & GATS Art. V
09-Jan-09
Goods & Services
2009
GATT Art. XXIV & GATS Art. V
19-Jul-08
Goods & Services
2011
GATT Art. XXIV & GATS Art. V
15-Jul-08
Goods & Services
2010
GATT Art. XXIV & GATS Art. V
01-Apr-06
Goods & Services
2006
GATT Art. XXIV & GATS Art. V
04-Jun-61
Goods
1961
GATT Art. XXIV
Venezuela
Honduras
AAP.A25TM N°16]
[LAIA,
06-May-13
Goods
Not notified
22-Sep-86
Goods
Not notified
NICARAGUA
EU - Central America
Chile - Nicaragua (Chile - Central
America)
Mexico - Central America
01-Aug-13*
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
19-Oct-12
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
01-Sep-12
Goods & Services
2014
GATT Art. XXIV & GATS Art. V
Panama - Nicaragua (Panama Central America)
Nicaragua - Chinese Taipei
21-Nov-09
Goods & Services
2013
GATT Art. XXIV & GATS Art. V
01-Jan-08
Goods & Services
2009
GATT Art. XXIV & GATS Art. V
Dominican
Republic
Central
America - United States Free Trade
Agreement (CAFTA-DR)
Global System of Trade Preferences
among
Developing
Countries
(GSTP)
Central American Common Market
(CACM)
CACM - Accession of Panama
01-Apr-06
Goods & Services
2006
GATT Art. XXIV & GATS Art. V
19-Apr-89
Goods
1989
Enabling Clause
04-Jun-61
Goods
1961
GATT Art. XXIV
Venezuela - Nicaragua
AAP.A25TM N°25]
*
[LAIA,
06-May-13
Goods
Not notified
18-Jan-74
Goods
Not notified
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 signatory 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.
Source:
WTO Secretariat.
5.8 Government procurement
5.30. Chapter XII establishes general principles to be applied by each Party's entities in their
covered procurement processes. Annex I to Article 12.02 refers to excluded entities, Annex II to
Article 12.02 to excluded goods, Annex III to Article 12.02 sets out bilateral coverage and Annex
IV contains the Dominican Republic public sector procurement system for goods and services.
5.31. The Chapter applies to measures adopted or maintained by a Party relating to covered
procurement of all central government entities, state enterprises, decentralized, autonomous and
semi-autonomous institutions and municipalities, except those listed in Annex I, and to originating
goods of the other Party, except those in Annex II and to all originating services notwithstanding
rights and obligations under Chapter X (Services). This includes procurement of goods and
WT/REG305/1
- 53 services or both by such methods as purchase, lease or rental, with or without an option to buy.
The Chapter does not apply to: (i) non contractual agreements or any form of assistance a Party
provides, including cooperative agreements, transfers, loans, equity transfers, guarantees,
government supplies of goods and services granted to individuals or to central governments or
municipalities; (ii) the procurement or acquisition of fiscal agency or depository services,
liquidation or management services for regulated financial institutions or services related to the
sale and distribution of public debt. Nothing in the Agreement shall be construed to prevent any
Party from taking measures necessary to protect public morals, order or safety; human, animal or
plant life or health; or measures necessary to protect intellectual property; and measures relating
to goods and services of persons with disabilities, philanthropic institutions or prison labour,
provided they are not applied in a discriminatory manner (Article 12.14).
5.32. In the bilateral relations of the Dominican Republic with all Central American Parties, the
Chapter does not apply to: (i) procurement and acquisition of goods, supplies, works and services
necessary for the resolution of situations arising from an exception status declared by law, and for
the resolution of situations of national interest or social benefit; (ii) procurement financed by loans
and donations made by persons, entities, associations or other international organisms or foreign
governments for the benefit of any Party, its entities, institutions or municipal governments;
procurement of goods, services and supplies between State agencies, and between those and the
decentralized, autonomous and municipal entities; and (iii) goods, work concessions, services and
supplies, considered as specific exceptions procured by public entities, such as goods, services and
contracts by delegations, Embassies and consulates in a foreign territory and individual
professional services.
5.33. The Parties shall not discriminate against a locally established supplier on the basis that the
goods or services offered by that supplier for a particular procurement are goods or services of
another Party (Article 12.03). For the purpose of covered procurement the Parties shall not apply
rules of origin different from those in Chapter IV (Rules of Origin), to imported goods from the
other Party (Article 12.04). They shall refrain from taking account of, seeking or imposing any
offset (Article 12.06). Each Party shall apply its domestic legislation to suppliers' challenges
relating to covered procurement on the condition that: proceedings be non-discriminatory, timely,
transparent and efficient; the contracting entity or preferably an impartial and independent
authority may receive and review the challenge, or the competent jurisdictional bodies; and when
the administrative proceedings have been exhausted suppliers may resort to legal proceedings
(Article 12.11).
5.34. The Chapter also contains general provisions including on technical specifications
(Article 12.07), procurement procedures (Article 12.08), transparency (Article 12.09), and disposal
of government entities (Article 12.16), among others.
5.35. Upon entry into force of the Agreement a Committee on Government Procurement shall be
established, composed of representatives of each Party. It shall meet as necessary so the Parties
may consult on the functioning of the Chapter to enhance the understanding of their respective
procurement systems, and promote opportunities for their micro, small and medium enterprises.
5.36. None of the Parties are party to the WTO Agreement on Government Procurement (GPA).
5.9 Competition policy
5.37. Chapter XV concerns competition. The Parties endeavour to avoid that anti-competitive
practices impair benefits under the Agreement and to develop common rules to avoid such
practices. They shall make efforts to establish mechanisms to promote competition policy and
ensure the implementation of free competition between and in the territory of the Parties
(Article 15.01).
5.38. A Committee on Trade and Free Competition is established, composed of two members of
each Party. Its function shall be to seek the most appropriate means to implement Article 15.01 or
any other task assigned to it by the Council.
WT/REG305/1
- 54 5.10 Intellectual property rights
5.39. Chapter XIV deals with intellectual Property. The Parties confirm their existing rights and
obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
in Annex C of the WTO Agreement.
5.40. The Parties establish under the Council a Committee on Intellectual Property, composed of
representatives of each Party. Its main function shall be to seek the most appropriate ways of
implementing the TRIPS Agreement or any other task assigned to it by the Council. The Council by
Decision CCA/DEC Nº 11/2003 asked the Committee to establish with the help of the World
Intellectual Property Organization and the European Patent Office a plan on technical cooperation
for the administration and use of the patent system in each country by strengthening national
patent offices and establishing modern systems to access national, regional and international
technological information.
WT/REG305/1
- 55 -
ANNEX 1
1.
Tables A1.1, A1.2, A1.3, A1.4, A1.5 and A1.6 show tariff liberalization by the Dominican
Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua by all products, agricultural
products and non-agricultural products.
2.
In 2001, the average MFN tariff applied by the Dominican Republic was 6.8%. When the
Agreement entered into force, the average tariff fell to 1.2% for imports from El Salvador,
Guatemala, and Honduras in 2001, and from Costa Rica and Nicaragua, in 2002. The average tariff
applied to agricultural products was reduced from 13% to 1.3% for imports from El Salvador and
Guatemala, to 1.6% for imports from Honduras and to 1.5% for imports from Costa Rica and
Nicaragua while that applied to non-agricultural products from 7.9% to 1.2% for El Salvador,
Guatemala and Honduras, and to 1.1% for Costa Rica and Nicaragua. The tariff applied to
agricultural products was about 1.6 times that applied to non-agricultural products. Salvadoran
and Guatemalan exporters enjoyed a relative margin of preference of 90% and Honduran
exporters 87.7% in the case of agricultural products and 85% in the case of non-agricultural
products, as compared with the MFN tariff in force. Costa Rican and Nicaraguan exporters enjoyed
a relative margin of preference of 88.5% for agriculture and 86% for non-agricultural products.
The share of duty-free lines with respect to imports from El Salvador and Guatemala rose from
13.5% in the MFN regime to 92.9% (from 17.3% to 91.8% in the case of agricultural products and
from 12.9% to 93.1% in the case of non-agricultural products) and for imports from Honduras
from 13.5% to 92.7% (from 17.3% to 90.2% in the case of agricultural products and from 12.9%
to 93.1% in the case of non-agricultural products). For imports from Costa Rica and Nicaragua the
share of duty free lines increased to 92.7% overall, and to 90.2% and 93.1%, respectively, for
agricultural and non-agricultural products. At the end of implementation, in 2004 for El Salvador,
Guatemala, Honduras and Nicaragua and 2010 for Costa Rica, the proportion of duty-free tariff
lines for imports from El Salvador and Guatemala increased to 93.5% overall and to 93.9% and
93.4%, respectively, for agricultural and non-agricultural products; for imports from Honduras and
Nicaragua, the proportion of duty-free tariff lines increased to 93.3% overall and to 92.3% and
93.4%, respectively, for agricultural and non-agricultural products; and imports from Costa Rica,
the proportion of duty-free tariff lines increased to 98.3% overall and to 92.3% and 99.4%,
respectively, for agricultural and non-agricultural products.
Table A1.1 Dominican Republic: Indicators of MFN tariff rates and preferential rates for
imports
Origin of
goods
Costa Rica
El Salvador
Guatemala
Year
MFN
2002
2002
2003
2004
2005
2006
2007
2008
2009
2010
MFN
2001
2001
2002
2003
2004
2001
2002
2003
2004
All products
Average applied
Share
tariffs
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
8.6
10.0
13.5
Agricultural products a
Average applied
Share
tariffs
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
13.0
15.7
17.3
Non-agricultural products
Average applied
tariffs
Overall
On
Share of
(%)
dutiable
duty-free
(%)
tariff lines
(%)
7.9
9.0
12.9
1.2
1.2
1.1
1.1
1.1
1.1
1.1
1.1
0.2
8.6
16.4
16.0
17.1
17.1
17.1
17.1
17.1
17.1
13.2
10.0
92.7
92.7
93.3
93.3
93.3
93.3
93.3
93.3
98.3
13.5
1.5
1.4
1.3
1.3
1.3
1.3
1.3
1.3
1.3
13.0
15.3
14.2
16.8
16.8
16.8
16.8
16.8
16.8
16.8
15.7
90.2
90.2
92.3
92.3
92.3
92.3
92.3
92.3
92.3
17.3
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.1
0.0
7.9
16.6
16.5
17.1
17.1
17.1
17.1
17.1
17.1
5.3
9.0
93.1
93.1
93.4
93.4
93.4
93.4
93.4
93.4
99.4
12.9
1.2
1.2
1.1
1.1
1.2
1.2
1.1
1.1
16.6
16.3
16.0
17.0
16.6
16.3
16.0
17.0
92.9
92.9
92.9
93.5
92.9
92.9
92.9
93.5
1.3
1.2
1.1
1.0
1.3
1.2
1.1
1.0
15.8
14.7
13.5
16.4
15.8
14.7
13.5
16.4
91.8
91.8
91.8
93.9
91.8
91.8
91.8
93.9
1.2
1.1
1.1
1.1
1.2
1.1
1.1
1.1
16.8
16.6
16.5
17.1
16.8
16.6
16.5
17.1
93.1
93.1
93.1
93.4
93.1
93.1
93.1
93.4
WT/REG305/1
- 56 Origin of
goods
Year
Honduras
2001
2002
2003
2004
MFN
2002
2002
2003
2004
Nicaragua
All products
Average applied
Share
tariffs
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
1.2
16.7
92.7
1.2
16.4
92.7
1.2
16.0
92.7
1.1
17.1
93.3
8.6
10.0
13.5
1.2
1.2
1.1
16.4
16.0
17.1
92.7
92.7
93.3
Agricultural products a
Average applied
Share
tariffs
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
1.6
16.2
90.2
1.5
15.3
90.2
1.4
14.2
90.2
1.3
16.8
92.3
13.0
15.7
17.3
1.5
1.4
1.3
15.3
14.2
16.8
90.2
90.2
92.3
Non-agricultural products
Average applied
tariffs
Overall
On
Share of
(%)
dutiable
duty-free
(%)
tariff lines
(%)
1.2
16.8
93.1
1.1
16.6
93.1
1.1
16.5
93.1
1.1
17.1
93.4
7.9
9.0
12.9
1.1
1.1
1.1
16.6
16.5
17.1
93.1
93.1
93.4
a
WTO definition.
Note:
For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related
calculations.
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Dominican Republic authorities.
3.
In 1999, the average preferential tariff applied by Costa Rica to imports from the Dominican
Republic was 1.8% as compared with an applied MFN rate of 8.2%. In 2000, under the Tariff
Liberalization Programme the average tariff for agricultural products from the Dominican Republic
fell from 17.4% to 3.0% and that applied to non-agricultural products from 6.6% to 1.1%, which
gave Dominican exporters a relative margin of preference of 83% for both categories, as
compared with the MFN tariff in force. Costa Rica's share of duty-free tariff lines was 91.1%:
88.0% for agricultural products and 91.6% for non-agricultural products. At the end of the
implementation period, in 2004, 90% of agricultural tariffs and 92.2% of non-agricultural tariffs
were zero for imports from the Dominican Republic. The share of duty-free tariff lines for all
products was 91.9%.
Table A1.2 Costa Rica: Indicators of MFN tariff rates and preferential rates for imports
from Dominican Republic
Origin of
goods
Year
MFN
1999
Dominican 1999
Republic 2000
2001
2002
2003
2004
ALL PRODUCTS
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
8.2
1.8
1.4
1.3
1.3
1.3
1.2
8.2
19.7
15.4
15.0
14.8
14.5
15.4
0.2
91.1
91.1
91.1
91.2
91.2
91.9
Agricultural products a
Average applied
Share
tariff
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
17.4
17.4
0.0
4.2
34.8
88.0
3.0
25.3
88.0
2.9
24.0
88.0
2.7
22.7
88.0
2.6
21.6
88.0
2.5
24.9
90.0
a
WTO Definition.
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Costa Rican authorities.
Non-agricultural products
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
6.6
1.3
1.1
1.1
1.1
1.0
1.0
6.7
16.0
13.0
12.8
12.9
12.8
13.3
0.3
91.6
91.6
91.6
91.8
91.8
92.2
4.
In 2001, the average preferential tariff applied by El Salvador to imports from the Dominican
Republic was 0.3% as compared with an applied MFN rate of 7.4%. The average tariff for
agricultural products from the Dominican Republic fell from 12% to 1.7% and that applied to nonagricultural products from 6.7% to zero, which gave Dominican exporters a relative margin of
preference of 83% for agricultural products and 100% for non-agricultural products, as compared
with the MFN tariff in force. El Salvador's share of duty-free tariff lines was 97.9%: 89.6% for
agricultural products and 99.3% for non-agricultural products. At the end of the implementation
period, in 2004, 91.8% of agricultural tariffs and 99.6% of non-agricultural tariffs were zero for
WT/REG305/1
- 57 imports from the Dominican Republic. The share of duty-free tariff lines for all products was
98.5%.
Table A1.3 El Salvador: Indicators of MFN tariff rates and preferential rates for imports
from Dominican Republic
Origin of
goods
Year
MFN
2001
Dominican 2001
Republic 2002
2003
2004
ALL PRODUCTS
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
7.4
0.3
0.3
0.3
0.2
14.1
13.4
12.7
11.8
14.9
47.1
97.9
97.9
97.9
98.5
Agricultural products a
Average applied
Share
tariff
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
12.0
15.9
24.6
1.7
16.6
89.6
1.6
15.9
89.6
1.6
15.0
89.6
1.4
17.6
91.8
Non-agricultural products
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
6.7
0.0
0.0
0.0
0.0
a
WTO Definition.
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the El Salvadorian authorities.
13.6
5.5
4.8
3.6
4.1
51.0
99.3
99.3
99.3
99.6
5.
In 2001, the average preferential tariff applied by Guatemala to imports from the Dominican
Republic was 2.0% as compared with an applied MFN rate of 7.6%. The average tariff for
agricultural products from the Dominican Republic fell from 10.1% to 2.4% and that applied to
non-agricultural products from 7.1% to 1.9%, which gave Dominican exporters a relative margin
of preference of 76% for agricultural products and 73% for non-agricultural products, as compared
with the MFN tariff in force. Guatemala's share of duty-free tariff lines was 90.9%: 83.8% for
agricultural products and 92.1% for non-agricultural products. At the end of the implementation
period, in 2004, 85.5% of agricultural tariffs and 92.4% of non-agricultural tariffs were zero for
imports from the Dominican Republic. The share of duty-free tariff lines for all products was
91.4%.
Table A1.4 Guatemala: Indicators of MFN tariff rates and preferential rates for imports
from Dominican Republic
Origin of
goods
Year
MFN
2001
Dominican 2001
Republic 2002
2003
2004
ALL PRODUCTS
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
7.6
2.0
2.0
1.9
1.9
14.2
21.9
21.6
21.4
22.4
46.7
90.9
90.9
90.9
91.4
Agricultural products a
Average applied
Share
tariff
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
10.1
13.2
23.3
2.4
14.8
83.8
2.3
14.3
83.8
2.2
13.8
83.8
2.2
15.0
85.5
Non-agricultural products
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
7.1
1.9
1.9
1.9
1.9
14.4
24.4
24.2
24.1
24.9
50.6
92.1
92.1
92.1
92.4
a
WTO Definition.
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the Guatemalan authorities and WTO-IDB database.
6.
In 2001, the average preferential tariff applied by Honduras to imports from the Dominican
Republic was 1.6% as compared with an applied MFN rate of 7.2%. The average tariff for
agricultural products from the Dominican Republic fell from 10.5% to 1.9% and that applied to
non-agricultural products from 6.6% to 1.5%, which gave Dominican exporters a relative margin
of preference of 82% for agricultural products and 77.2% for non-agricultural products, as
compared with the MFN tariff in force. Honduras' share of duty-free tariff lines was 91.3%: 88%
for agricultural products and 91.1% for non-agricultural products. At the end of the
implementation period, in 2004, 90.1% of agricultural tariffs and 92.2% of non-agricultural tariffs
WT/REG305/1
- 58 were zero for imports from the Dominican Republic. The share of duty-free tariff lines for all
products was 91.9%.
Table A1.5 Honduras: Indicators of MFN tariff rates and preferential rates for imports
from Dominican Republic
Origin of
goods
Year
MFN
2001
Dominican 2001
Republic 2002
2003
2004
ALL PRODUCTS
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
7.2
1.6
1.6
1.5
1.5
7.2
18.1
18.0
17.7
18.7
0.0
91.3
91.3
91.3
91.9
Agricultural products a
Average applied
Share
tariff
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
10.5
10.5
0.0
1.9
16.1
88.0
1.8
15.4
88.0
1.8
14.7
88.0
1.7
16.8
90.1
Non-agricultural products
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
6.6
1.5
1.5
1.5
1.5
6.6
18.7
18.6
18.5
19.1
a
WTO Definition.
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by Honduras' authorities and WTO-IDB database.
0.0
91.9
91.9
91.9
92.2
7.
In 2002, the average preferential tariff applied by Nicaragua to imports from the Dominican
Republic was 1.2% as compared with an applied MFN rate of 5.1%. The average tariff for
agricultural products from the Dominican Republic fell from 9.9% to 2.5% and that applied to nonagricultural products from 4.2% to 0.9%, which gave Dominican exporters a relative margin of
preference of 74% for agricultural products and 78.6% for non-agricultural products, as compared
with the MFN tariff in force. Nicaragua's share of duty-free tariff lines was 91.3%: 86.1% for
agricultural products and 92.3% for non-agricultural products. At the end of the implementation
period, in 2004, 88% of agricultural tariffs and 92.5% of non-agricultural tariffs were zero for
imports from the Dominican Republic. The share of duty-free tariff lines for all products was
91.8%.
Table A1.6 Nicaragua: Indicators of MFN tariff rates and preferential rates for imports
from Dominican Republic
Origin of
goods
Year
MFN
2002
Dominican 2002
Republic 2003
2004
2005
2006
2007
2008
2009
2010
2011
ALL PRODUCTS
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
5.1
1.2
1.2
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.1
9.7
13.6
13.4
13.9
13.9
13.9
13.9
13.9
13.9
13.9
13.9
47.2
91.3
91.3
91.8
91.8
91.8
91.8
91.8
91.8
91.8
91.8
Agricultural products a
Average applied
Share
tariff
of
dutyOverall
On
free
(%)
dutiable
tariff
(%)
lines
(%)
9.9
12.6
21.8
2.5
17.8
86.1
2.4
17.3
86.1
2.3
19.2
88.0
2.3
19.2
88.0
2.3
19.2
88.0
2.3
19.2
88.0
2.3
19.2
88.0
2.3
19.2
88.0
2.3
19.2
88.0
2.3
19.2
88.0
Non-agricultural products
Average applied
Share
tariff
of dutyfree
Overall
On
tariff
(%)
dutiable
lines
(%)
(%)
4.2
0.9
0.9
0.9
0.9
0.9
0.9
0.9
0.9
0.9
0.9
8.8
12.2
12.1
12.3
12.3
12.3
12.3
12.3
12.3
12.3
12.3
51.9
92.3
92.3
92.5
92.5
92.5
92.5
92.5
92.5
92.5
92.5
a
WTO Definition.
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on the data provided by the Nicaraguan authorities and WTO-IDB database.
8.
Table A1.7 below shows the market access conditions for Costa Rica's top 25 export
products in the Dominican Republic. In 1999-2001 Costa Rica's exports of these top 25 products
accounted for 68.1% of its total exports and covered 65 tariff lines, of which 2, representing 0.7%
WT/REG305/1
- 59 of total exports, were already duty-free under the MFN regime. 53 lines were liberalized upon
entry into force of the Agreement, another 5 tariff lines in 2004 and 3 in 2010. At the end of the
implementation period 2 tariff lines remained subject to duties: coffee, not decaffeinated and
cane sugar with average applied MFN rates in 2002 of 14% for coffee and 15% for cane sugar.
Table A1.7 Dominican Republic: Market access opportunities for Costa Rica's top 25
exports
080300
090111
901839
080430
300490
610821
854390
210690
620342
080719
621210
851631
060491
200799
401693
060290
854459
620711
853650
170111
151110
854250
711319
200919
Parts and accessories of the machines of heading no.
84.71
Bananas, including plantains, fresh or dried
Not decaffeinated
Needles, catheters, cannulae and the like, used in
medical, surgical, dental or veterinary sciences
Pineapples
Medicaments consisting of mixed or unmixed
products for therapeutic or prophylactic purposes, in
measured doses or put up for retail sale
Of cotton
Parts
Food preparations, n.e.s.
Of cotton
Fresh melons (excl. watermelons)
Brassieres
Hair dryers
Foliage, branches and other parts of plants, without
flowers or flower buds, grasses, fresh, for bouquets
or ornamental purposes
Jams, jellies, marmalades, purees or pastes of fruit,
obtained by cooking, whether or not containing
added sugar or other sweetening matter
Gaskets, washers and other seals
Live plants, incl. their roots, and mushroom spawn
Electric conductors, for a voltage > 80 V but <=
1.000 V, insulated, not fitted with connectors, n.e.s.
Of cotton
Other switches
Cane sugar
Crude oil
Electronic microassemblies
Of other precious metal, whether or not plated or
clad with precious metal
Orange juice, unfermented, whether or not
containing added sugar or other sweetening matter
Total of above
10.3
4.4
3.1
20.0
14.0
3.0
4
1
1
4
2.4
2.1
20.0
3.0
2
5
2
1.5
1.3
1.2
1.2
1.1
1.0
0.9
0.9
20.0
3.0
10.1
20.0
20.0
20.0
20.0
20.0
1
1
10
2
1
1
1
1
0.8
20.0
17
17
0.8
0.7
0.7
20.0
0.0
14.0
1
1
3
3
0.7
0.6
0.6
0.6
0.5
0.5
20.0
3.0
15.0
3.0
3.0
20.0
1
3
1
1
1
2
0.5
20.0
1
1
63
53
68.1
2
2
Remain Dutiable
1
2010
1
2002
3.0
Dutiable
29.7
Duty-free
Average MFN
applied rate
(%)
847330
Share in global
exports (%)
HS number and description of the product
Access Conditions to Dominican Republic's
import markets
MFN (2002)
Duty-free
Under the
Agreement:
No. of
tariff
lines
2004
Costa Rica's top export products in 1999-2001
1
1
5
1
1
10
2
1
1
1
1
1
3
1
1
1
2
5
3
2
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data from the Dominican Republic authorities and UNSD, Comtrade
database.
9.
Table A1.8 below shows the market access conditions for the Dominican Republic's top 25
export products in Costa Rica. In 1996-1998 Dominican Republic's exports of these top 25
products accounted for 51% of its total exports and covered 39 tariff lines, none of which were
duty-free under the MFN regime. 21 lines were liberalized upon entry into force of the Agreement.
At the end of the implementation period 18 tariff lines remained subject to duties relating to
coffee, not decaffeinated; cane sugar; textiles products; and tobacco, with average applied MFN
rates in 1999 of 51% for cane sugar, 15.3 % for coffee, 18% for textiles and 4.8% for tobacco.
WT/REG305/1
- 60 Table A1.8 Costa Rica: Market access opportunities for Dominican Republic's top 25
exports
Access conditions to Costa Rica's import markets
MFN 1999
Average
MFN
applied rate
(%)
Duty
Free
Dutiable
Lines
1
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(1999)
Dominican Republic's top export products in 1996-1998
HS number and description of the product
720260
Ferro-nickel
6.9
1.0
1
620342
Men's or boys' trousers, bib and
brace overalls, breeches and
shorts, of cotton
Cane sugar
5.3
18.0
1
4.7
51.0
1
Cigars, cheroots and cigarillos,
containing tobacco
Other instruments and appliances
3.7
17.0
1
3.7
1.0
1
1
Uppers and parts thereof, other
than stiffeners
Women's or girls' trousers, bib
and brace overalls, breeches and
shorts of cotton
Not decaffeinated
2.9
12.0
2
2
2.5
18.0
1
2.3
15.3
4
2.3
7.0
1
621210
Cocoa beans, whole or broken,
raw or roasted
Brassieres
1.9
18.0
1
620343
Of synthetic fibres
1.9
18.0
1
1
610910
1.8
18.0
1
1
1.6
17.0
1
1.2
18.0
1
1
1.0
18.0
1
1
710813
T-shirts, singlets and other vests
of cotton, knitted or crocheted
Of other precious metal, whether
or not plated or clad with precious
metal
Men's or boys' underpants and
briefs of cotton, knitted or
crocheted
Jerseys,
pullovers,
cardigans,
waistcoats and similar articles, of
cotton, knitted or crocheted
Other semi-manufactured forms
0.9
6.0
1
240110
Tobacco, not stemmed/ stripped
0.9
5.0
4
4
080300
0.8
17.0
4
4
853620
Bananas,
including
plantains,
fresh or dried
Automatic circuit breakers
0.8
6.5
2
2
620333
Of synthetic fibres
0.8
18.0
1
1
240120
Tobacco,
partly
stemmed/ stripped
Other apparatus
0.8
4.8
4
4
170111
240210
901890
640610
620462
090111
180100
711319
610711
611020
853690
or
wholly
0.6
1.0
1
610821
Women's or girls'
panties of cotton,
crocheted
briefs and
knitted or
0.6
18.0
1
650590
Hats and other headgear, knitted
or crocheted, or made up from
lace, felt or other textile fabric, in
the piece (but not in strips),
whether or not lined or trimmed
2-furaldehyde (furfuraldehyde)
0.6
17.0
1
0.5
1.0
293212
Total of above
51.0
0
1
1
1
1
4
1
1
1
1
1
1
1
1
1
39
21
18
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Costa Rican authorities and UNSD, Comtrade
database.
10.
Table A1.9 below shows the market access conditions for El Salvador's top 25 export
products in the Dominican Republic. In 1998-2000 El Salvador's exports of these top 25 products
accounted for 36.8% of its total exports and covered 61 tariff lines, of which 2, representing 0.9%
of total exports, were already duty-free under the MFN regime. 30 lines were liberalized upon
WT/REG305/1
- 61 entry into force of the Agreement and another 8 tariff lines in 2004. At the end of the
implementation period 21 tariff lines remained subject to duties: coffee, not decaffeinated;
cane sugar; petroleum oils and oils obtained from bituminous minerals, other than crude; and
textiles products, with average applied MFN rates in 2001 of 14% for coffee, 15% for cane sugar,
6.7% for petroleum oils and 20% for textiles.
090111
170111
210690
300490
030613
271000
630260
340119
220210
481910
190410
170490
340220
760720
481810
610910
300420
841821
330610
760429
520512
481920
340290
040700
481940
Not decaffeinated
Cane sugar
Food preparations, n.e.s.
Medicaments consisting of mixed or unmixed products for
therapeutic or prophylactic purposes, in measured doses or
put up for retail sale
Shrimps and prawns
Petroleum oils and oils obtained from bituminous minerals,
other than crude; preparations not elsewhere specified or
included, containing by weight 70 % or more of petroleum
oils or of oils obtained from bitumen
Toilet linen and kitchen linen, of terry towelling or similar
terry fabrics, of cotton
Soap and organic surface-active products and preparations,
in the form of bars, cakes, moulded pieces or shapes, and
paper, wadding, felt and nonwovens, impregnated, coated
or covered with soap or detergent
Waters, including mineral waters and aerated waters,
containing added sugar or other sweetening matter or
flavoured
Cartons, boxes and cases, of corrugated paper or
paperboard
Prepared foods obtained by the swelling or roasting of
cereals or cereal products
Sugar confectionery not containing cocoa, incl. white
chocolate (excl. chewing gum)
Preparations put up for retail sale
Aluminium foil, backed, of a thickness "excl. any backing" of
<= 0,2 mm
Toilet paper
T-shirts, singlets and other vests of cotton, knitted or
crocheted
Containing other antibiotics
Compression-type
Dentifrices
Other
Measuring less than 714.29 decitex but not less than 232.56
decitex
Folding cartons, boxes and cases, of non-corrugated paper
or paperboard
Surface-active preparations, washing preparations, incl.
auxiliary washing preparations and cleaning preparations
Birds¿ eggs, in shell, fresh, preserved or cooked
Other sacks and bags, including cones
Total of above
1.3
1.3
20.0
6.7
2
18
1.1
20.0
1
0.8
20.0
1
1
0.8
20.0
1
1
0.8
20.0
1
1
0.8
20.0
1
1
0.8
20.0
2
2
0.7
0.7
14.0
3.0
2
1
2
1
0.7
0.6
20.0
20.0
1
1
0.6
0.6
0.5
0.5
0.5
3.0
20.0
20.0
3.0
0.0
1
1
1
1
1
1
1
1
0.4
14.0
1
1
0.4
10.3
3
3
0.4
0.4
36.8
10.0
14.0
1
1
59
1
1
30
2004
1
1
10
5
2001
14.0
15.0
10.1
3.0
Dutiable
16.1
2.6
1.7
1.6
Duty-free
Average MFN
applied rate
(%)
HS number and description of the product
Access Conditions to Dominican
Republic's import markets
MFN (2001)
Duty-free
Under the
No. of
Agreement:
tariff lines
Share in global
exports (%)
El Salvador's top export products in 1998-2000
Remain Dutiable
Table A1.9 Dominican Republic: Market access opportunities for El Salvador's top 25
exports
1
1
10
5
2
1
17
1
1
1
1
1
2
8
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data from the Dominican Republic authorities and UNSD, Comtrade
database.
21
WT/REG305/1
- 62 11.
Table A1.10 below shows the market access conditions for the Dominican Republic's top 25
export products in El Salvador. In 1998-2000 the Dominican Republic's exports of these top 25
products accounted for 66.3% of its total exports and covered 30 tariff lines, of which 4,
representing 13.7% of total exports, were already duty-free under the MFN regime. 25 lines were
liberalized upon entry into force of the Agreement. At the end of the implementation period 1 tariff
line remained subject to duties, cane sugar, with an average applied MFN rate in 2001 of 40%.
Table A1.10 El Salvador: Market access opportunities for Dominican Republic's top
25 exports
620342
901890
240210
620462
720260
610910
620343
640610
621210
711319
610711
611020
170111
853620
620333
650590
853690
610821
080300
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts, of cotton
Other
instruments
and
appliances
Cigars,
cheroots
and
cigarillos, containing tobacco
Women's or girls' trousers,
bib
and
brace
overalls,
breeches and shorts of cotton
Ferro-nickel
T-shirts, singlets and other
vests of cotton, knitted or
crocheted
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts of synthetic fibres
Uppers and parts thereof,
other than stiffeners
Brassieres
Of other precious metal,
whether or not plated or clad
with precious metal
Men's or boys' underpants
and briefs of cotton, knitted
or crocheted
Jerseys, pullovers, cardigans,
waistcoats
and
similar
articles, of cotton, knitted or
crocheted
Cane sugar
Automatic circuit breakers
Men's or boys' jackets and
blazers of synthetic fibres
Hats and other headgear,
knitted or crocheted, or made
up from lace, felt or other
textile fabric, in the piece
(but not in strips), whether or
not lined or trimmed
Other apparatus
Women's or girls' briefs and
panties of cotton, knitted or
crocheted
Bananas, including plantains,
fresh or dried
Access conditions to El Salvador's import markets
MFN 2001
Average
MFN
applied rate
(%)
Duty
Free
Dutiable
Lines
1
1
9.8
25.0
7.0
0.0
4.8
20.0
1
1
4.7
25.0
1
1
3.9
3.7
0.0
25.0
1
1
3.6
25.0
1
1
3.5
10.0
2
2
3.3
3.0
25.0
15.0
1
1
1
1
2.4
25.0
1
1
2.2
25.0
1
1
1.8
1.7
1.2
40.0
5.0
25.0
1
1
1
1
1
1.1
15.0
1
1
1.1
1.0
0.0
25.0
1
1
1.0
15.0
4
4
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free
under the
Agreement
(2001)
Dominican Republic's top export products in 1998-2000
HS number and description of the product
1
1
1
1
1
WT/REG305/1
- 63 -
611592
180100
640399
610822
611120
620463
Full-length or knee-length
stockings, socks and other
hosiery, incl. stockings for
varicose veins and footwear
without applied soles, of
cotton, knitted or crocheted
Cocoa
beans,
whole
or
broken, raw or roasted
Footwear with outer soles of
rubber,
plastics
or
composition
leather,
with
uppers of leather
Women's or girls' briefs and
panties of man-made fibres,
knitted or crocheted
Babies'
garments
and
clothing
accessories
of
cotton, knitted or crocheted
Women's or girls' trousers,
bib
and
brace
overalls,
breeches
and
shorts
of
synthetic fibres
Total of above
Access conditions to El Salvador's import markets
MFN 2001
Average
MFN
applied rate
(%)
Duty
Free
Dutiable
Lines
1.0
25.0
1
1
0.9
5.0
1
1
0.9
20.0
1
1
0.9
25.0
1
1
0.8
25.0
1
1
0.8
25.0
1
1
26
25
66.3
4
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free
under the
Agreement
(2001)
Dominican Republic's top export products in 1998-2000
HS number and description of the product
1
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the El Salvadorian authorities and UNSD, Comtrade
database (mirror data).
12.
Table A1.11 below shows the market access conditions for Guatemala's top 25 export
products in the Dominican Republic. In 1998-2000 Guatemala's exports of these top 25 products
accounted for 63.4% of its total exports and covered 39 tariff lines, of which 5, representing 2.2%
of total exports, were already duty-free under the MFN regime. 25 lines were liberalized upon
entry into force of the Agreement and another 7 tariff lines in 2004. At the end of the
implementation period 2 tariff lines remained subject to duties: coffee, not decaffeinated and cane
sugar, with average applied MFN rates in 2001 of 14% for coffee and 15% for cane sugar.
Table A1.11 Dominican Republic: Market access opportunities for Guatemala's top 25
exports
090111
170111
080300
270900
090830
Not decaffeinated
Cane sugar
Bananas, including plantains, fresh or dried
Petroleum oils and oils obtained from bituminous
minerals, crude
Cardamoms
22.3
9.1
6.7
3.9
14.0
15.0
20.0
3.0
1
1
4
1
4
1
2.2
14.0
4
4
Remain Dutiable
2004
2001
Dutiable
Duty-free
Share in global
exports (%)
HS number and description of the product
Access Conditions to Dominican Republic's
import markets
MFN (2001)
Duty-free
Under the
Agreement:
No. of
tariff
lines
Average MFN
applied rate
(%)
Guatemala's top export products in 1998-2000
1
1
WT/REG305/1
- 64 -
300490
210410
080719
340600
240120
701091
190410
340111
380830
030613
721041
070410
481910
120740
330610
400110
730630
521213
300420
340119
Medicaments consisting of mixed or unmixed
products
for
therapeutic
or
prophylactic
purposes, in measured doses or put up for retail
sale
Soups and broths and preparations therefor
Fresh melons (excl. watermelons)
Candles, tapers and the like
Tobacco, partly or wholly stemmed/ stripped
Carboys, bottles, flasks, jars, pots, phials and
other containers, of glass, of a kind used for the
commercial conveyance or packing of goods, and
preserving jars, of glass, of a nominal capacity of
>1l
Prepared foods obtained by the swelling or
roasting of cereals or cereal products
For toilet use (including medicated products)
Herbicides, anti-sprouting products and plantgrowth regulators
Shrimps and prawns
Corrugated
Cauliflowers and headed broccoli
Cartons, boxes and cases, of corrugated paper or
paperboard
Sesamum seeds
Dentifrices
Natural rubber latex, whether or not prevulcanised
Other, welded, of circular cross-section, of iron
or non-alloy steel
Dyed
Containing other antibiotics
Soap and organic surface-active products and
preparations, in the form of bars, cakes,
moulded pieces or shapes, and paper, wadding,
felt and nonwovens, impregnated, coated or
covered with soap or detergent
Total of above
2.1
3.0
5
1.6
1.4
1.3
1.3
1.1
20.0
20.0
20.0
14.0
8.0
2
1
1
1
1
2
1
1
1
1
1.1
20.0
1
1
1.0
0.9
20.0
0.0
1
1
0.9
0.9
0.8
0.7
20.0
3.0
20.0
20.0
2
1
1
1
1
1
1
0.7
0.7
0.6
0.0
20.0
20.0
1
1
1
1
0.6
8.0
1
1
0.6
0.5
0.5
0.0
3.0
20.0
1
1
1
1
34
25
63.4
Remain Dutiable
2004
2001
Dutiable
Duty-free
Share in global
exports (%)
HS number and description of the product
Access Conditions to Dominican Republic's
import markets
MFN (2001)
Duty-free
Under the
Agreement:
No. of
tariff
lines
Average MFN
applied rate
(%)
Guatemala's top export products in 1998-2000
5
2
2
2
1
5
7
2
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data from the Dominican Republic authorities and UNSD, Comtrade
database.
13.
Table A1.12 below shows the market access conditions for the Dominican Republic's top
25 export products in Guatemala. In 1998-2000 the Dominican Republic's exports of these top
25 products accounted for 66.3% of its total exports and covered 30 tariff lines, of which 4,
representing 13.7% of total exports, were already duty-free under the MFN regime. 11 lines were
liberalized upon entry into force of the Agreement. At the end of the implementation period
15 tariff lines remained subject to duties relating to textiles and clothing; other instruments and
appliances; and cigars and cheroots; , with average applied MFN rates in 2001 of 15% for cigars,
20% for sugar and 26% for textiles.
WT/REG305/1
- 65 Table A1.12 Guatemala: Market access opportunities for Dominican Republic's top 25
exports
620342
901890
240210
620462
720260
610910
620343
640610
621210
711319
610711
611020
170111
853620
620333
650590
853690
610821
080300
611592
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts, of cotton
Other
instruments
and
appliances
Cigars,
cheroots
and
cigarillos, containing tobacco
Women's or girls' trousers,
bib
and
brace
overalls,
breeches and shorts of cotton
Ferro-nickel
T-shirts, singlets and other
vests of cotton, knitted or
crocheted
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts of synthetic fibres
Uppers and parts thereof,
other than stiffeners
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts of synthetic fibres
Of other precious metal,
whether or not plated or clad
with precious metal
Men's or boys' underpants
and briefs of cotton, knitted
or crocheted
Jerseys, pullovers, cardigans,
waistcoats
and
similar
articles, of cotton, knitted or
crocheted
Cane sugar
Automatic circuit breakers
Men's or boys' jackets and
blazers of synthetic fibres
Hats and other headgear,
knitted or crocheted, or made
up from lace, felt or other
textile fabric, in the piece
(but not in strips), whether or
not lined or trimmed
Other apparatus
Women's or girls' briefs and
panties of cotton, knitted or
crocheted
Bananas, including plantains,
fresh or dried
Full-length or knee-length
stockings, socks and other
hosiery, incl. stockings for
varicose veins and footwear
without applied soles, of
cotton, knitted or crocheted
Access conditions to Guatemala's import markets
MFN 2001
Average
MFN
applied rate
(%)
9.8
26.0
7.0
0.0
4.8
Duty
Free
Dutiable
Lines
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2001)
Dominican Republic's top export products in 1998-2000
HS number and description of the product
1
1
15.0
1
1
4.7
26.0
1
1
3.9
3.7
0.0
26.0
1
1
3.6
26.0
1
1
3.5
10.0
2
3.3
26.0
1
3.0
15.0
1
2.4
26.0
1
1
2.2
26.0
1
1
1.8
1.7
1.2
20.0
5.0
26.0
1.1
15.0
1.1
1.0
0.0
26.0
1.0
15.0
4
1.0
26.0
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
4
1
WT/REG305/1
- 66 -
180100
640399
610822
611120
620463
Cocoa
beans,
whole
or
broken, raw or roasted
Footwear with outer soles of
rubber,
plastics
or
composition
leather,
with
uppers of leather
Women's or girls' briefs and
panties of man-made fibres,
knitted or crocheted
Babies'
garments
and
clothing
accessories
of
cotton, knitted or crocheted
Women's or girls' trousers,
bib
and
brace
overalls,
breeches
and
shorts
of
synthetic fibres
Total of above
Access conditions to Guatemala's import markets
MFN 2001
Average
MFN
applied rate
(%)
Duty
Free
Dutiable
Lines
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2001)
Dominican Republic's top export products in 1998-2000
HS number and description of the product
0.9
5.0
1
1
0.9
28.0
1
1
0.9
26.0
1
1
0.8
26.0
1
1
0.8
26.0
1
1
66.3
4
26
11
15
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Guatemalan authorities, WTO-IDB and UNSD,
Comtrade database (mirror data).
14.
Table A1.13 below shows the market access conditions for Honduras' top 25 export products
in the Dominican Republic. In 1998-2000 Honduras' exports of these top 25 products accounted
for 68.4% of its total exports and covered 39 tariff lines, none of which were duty-free under the
MFN regime. 32 lines were liberalized upon entry into force of the Agreement and another 3 tariff
lines in 2004. At the end of the implementation period 4 tariff lines remained subject to duties:
coffee, not decaffeinated; cane sugar; palm oil and its fractions; and red beans, with average
applied MFN rates in 2001 of 14% for coffee, 15% for cane sugar, 20% for palm oil and 25% for
small red beans.
Table A1.13 Dominican Republic: Market access opportunities for Honduras' top 25
exports
090111
090190
080300
030613
080719
340111
030611
790390
080430
151110
Not decaffeinated
Coffee husks and skins; coffee substitutes
containing coffee in any proportion
Bananas, including plantains, fresh or dried
Shrimps and prawns
Fresh melons (excl. watermelons)
For toilet use (including medicated products)
Rock lobster and other sea crawfish
Zinc powders and flakes
Pineapples
Crude oil
12.3
10.6
14.0
14.0
1
2
9.8
8.4
4.4
1.9
1.9
1.8
1.7
1.6
20.0
20.0
20.0
20.0
20.0
3.0
20.0
3.0
4
2
1
1
1
1
2
1
Remain Dutiable
2004
2001
Dutiable
Duty-free
Share in global
exports (%)
HS number and description of the product
Access Conditions to Dominican Republic's
import markets
MFN (2001)
Duty-free
Under the
Agreement:
No. of
tariff
lines
Average MFN
applied rate
(%)
Honduras' top export products in 1998-2000
1
2
4
2
1
1
1
1
2
1
WT/REG305/1
- 67 -
440710
080119
340120
170310
170111
441700
151190
080711
940360
071332
441300
210320
320990
790111
440410
Coniferous
Fresh coconuts, whether or not shelled or peeled
Soap in other forms
Cane molasses
Cane sugar
Tools, tool bodies, tool handles, broom or brush
bodies and handles, of wood; boot or shoe lasts
and trees, of wood
Palm oil and its fractions, whether or not refined
Watermelons
Other wooden furniture
Small red (adzuki) beans
Densified wood, in blocks, plates, strips or profile
shapes
Tomato ketchup and other tomato sauces
Paints and varnishes, incl. enamels and lacquers,
based on synthetic or chemically modified
natural polymers, dispersed or dissolved in an
aqueous medium
Containing by weight 99.99 % or more of zinc
Hoopwood; split poles; piles, pickets and stakes
of wood, pointed but not sawn lengthwise;
wooden sticks, roughly trimmed but not turned,
bent or otherwise worked, suitable for the
manufacture of walking-sticks, umbrellas, tool
handles or the like; chipwood and the like, of
coniferous wood
Total of above
1.6
1.3
1.3
1.3
1.1
1.0
3.0
20.0
20.0
8.0
15.0
4.3
3
1
1
1
1
4
0.9
0.8
0.8
0.7
0.7
20.0
20.0
20.0
25.0
3.0
1
1
1
1
1
0.7
0.6
20.0
17.0
1
4
4
0.6
0.6
8.0
3.0
1
1
1
1
39
32
68.4
0
Remain Dutiable
2004
2001
Dutiable
Duty-free
Share in global
exports (%)
HS number and description of the product
Access Conditions to Dominican Republic's
import markets
MFN (2001)
Duty-free
Under the
Agreement:
No. of
tariff
lines
Average MFN
applied rate
(%)
Honduras' top export products in 1998-2000
3
1
1
1
1
4
1
1
1
1
1
1
3
4
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data from the Dominican Republic authorities and UNSD, Comtrade
database.
15.
Table A1.14 below shows the market access conditions for the Dominican Republic's top
25 export products in Honduras. In 1998-2000 the Dominican Republic's exports of these top
25 products accounted for 66.3% of its total exports and covered 30 tariff lines, none of which
were duty-free under the MFN regime. 16 lines were liberalized upon entry into force of the
Agreement. At the end of the implementation period 14 tariff lines remained subject to duties
relating to textiles and clothing; and cane sugar, with average applied MFN rates in 2001 of 20%
for textiles and 40% for sugar.
Table A1.14 Honduras: Market access opportunities for Dominican Republic's top 25
exports
620342
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts, of cotton
9.8
Access conditions to Honduras' import markets
MFN 2001
Average
MFN
applied rate
(%)
20
Duty
Free
Dutiable
Lines
1
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2001)
Dominican Republic's top export products in 1998-2000
HS number and description of the product
1
WT/REG305/1
- 68 -
901890
240210
620462
720260
610910
620343
640610
621210
711319
610711
611020
170111
853620
620333
650590
853690
610821
080300
611592
180100
640399
Other
instruments
and
appliances
Cigars,
cheroots
and
cigarillos, containing tobacco
Women's or girls' trousers,
bib
and
brace
overalls,
breeches and shorts of cotton
Ferro-nickel
T-shirts, singlets and other
vests of cotton, knitted or
crocheted
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts of synthetic fibres
Uppers and parts thereof,
other than stiffeners
Brassieres of all types of
textile materials, whether or
not elasticated, incl. knitted
or crocheted
Of other precious metal,
whether or not plated or clad
with precious metal
Men's or boys' underpants
and briefs of cotton, knitted
or crocheted
Jerseys, pullovers, cardigans,
waistcoats
and
similar
articles, of cotton, knitted or
crocheted
Cane sugar
Automatic circuit breakers
Men's or boys' jackets and
blazers of synthetic fibres
Hats and other headgear,
knitted or crocheted, or made
up from lace, felt or other
textile fabric, in the piece
(but not in strips), whether or
not lined or trimmed
Other apparatus
Women's or girls' briefs and
panties of cotton, knitted or
crocheted
Bananas, including plantains,
fresh or dried
Full-length or knee-length
stockings, socks and other
hosiery, incl. stockings for
varicose veins and footwear
without applied soles, of
cotton, knitted or crocheted
Cocoa
beans,
whole
or
broken, raw or roasted
Footwear with outer soles of
rubber,
plastics
or
composition
leather,
with
uppers of leather
Access conditions to Honduras' import markets
MFN 2001
Average
MFN
applied rate
(%)
Duty
Free
Dutiable
Lines
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2001)
Dominican Republic's top export products in 1998-2000
HS number and description of the product
7.0
1
1
1
4.8
15
1
1
4.7
20
1
3.9
3.7
1
20
1
1
3.6
20
1
3.5
10
2
3.3
20
1
3.0
15
1
2.4
20
1
1
2.2
20
1
1
1.8
1.7
1.2
40
5.5
20
1
2
1
2
1.1
15
1
1
1.1
1.0
1
20
1
1
1
1.0
15
4
4
1.0
20
1
0.9
5
1
1
0.9
20
1
1
1
1
1
1
2
1
1
1
1
1
1
WT/REG305/1
- 69 -
610822
611120
620463
Women's or girls' briefs and
panties of man-made fibres,
knitted or crocheted
Babies'
garments
and
clothing
accessories
of
cotton, knitted or crocheted
Women's or girls' trousers,
bib
and
brace
overalls,
breeches
and
shorts
of
synthetic fibres
Total of above
Access conditions to Honduras' import markets
MFN 2001
Average
MFN
applied rate
(%)
Duty
Free
Dutiable
Lines
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2001)
Dominican Republic's top export products in 1998-2000
HS number and description of the product
0.9
20
1
1
0.8
20
1
1
0.8
20
1
1
66.3
0
30
16
14
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Honduras' authorities, WTO-IDB and UNSD, Comtrade
database (mirror data).
16.
Table A1.15 below shows the market access conditions for Nicaragua's top 25 export
products in the Dominican Republic. In 1999-2001 Nicaragua's exports of these top 25 products
accounted for 82.4% of its total exports and covered 34 tariff lines, of which 3 were already
duty-free under the MFN regime. 30 lines were liberalized upon entry into force of the Agreement
and another 6 tariff lines in 2004. At the end of the implementation period 4 tariff lines remained
subject to duties: coffee, not decaffeinated; cane or beet sugar and chemically pure sucrose; cane
sugar; and red beans with average applied MFN rates in 2002 of 14.% for coffee, 15%-20% for
sugar and 25% for red beans.
Table A1.15 Dominican Republic: Market access opportunities for Nicaragua's top 25
exports
710812
170199
120220
020230
020130
010290
080300
170111
040610
071332
Not decaffeinated
Shrimps and prawns
Rock lobster and other sea crawfish (palinurus
spp., panulirus spp., jasus spp.)
Other unwrought forms
Cane or beet sugar and chemically pure sucrose,
in solid form
Shelled, whether or not broken
Frozen, boneless meat of bovine animals
Fresh or chilled bovine meat, boneless
Live bovine animals (excl. pure-bred for
breeding)
Bananas, including plantains, fresh or dried
Cane sugar
Fresh (unripened or uncured) cheese, including
whey cheese, and curd
Small red (adzuki) beans
5.0
4.8
8.0
20.0
1
1
4.6
4.3
4.2
4.0
0.0
22.5
40.0
8.0
2.3
2.0
2.0
20.0
15.0
20.0
4
1
1
1.4
25.0
1
Remain Dutiable
1
2
1
2004
14.0
20.0
20.0
Dutiable
24.2
7.7
5.4
Duty-free
Average MFN
applied rate
(%)
090111
030613
030611
Share in global
exports (%)
HS number and description of the product
Access Conditions to Dominican Republic's
import markets
MFN (2002)
Duty-free
Under the
Agreement:
No. of
tariff
lines
2002
Nicaragua's top export products in 1999-2001
1
2
1
1
1
1
2
1
2
2
1
2
4
1
1
1
WT/REG305/1
- 70 -
240210
030269
691010
020110
440710
240110
410422
040630
120740
080450
190590
Preparations with a basis of extracts, essences or
concentrates or with a basis of coffee
Cigars, cheroots and cigarillos, containing
tobacco
Fresh or chilled freshwater and saltwater fish
Of porcelain or china
Carcasses and half-carcasses
Coniferous wood sawn or chipped lengthwise,
sliced or barked, whether or not planed, sanded
or finger-jointed, of a thickness of > 6 mm
Tobacco, not stemmed/ stripped
Bovine leather, otherwise pre-tanned
Processed cheese, not grated or powdered
Sesamum seeds
Guavas, mangoes and mangosteens
Bread, pastry, cakes, biscuits and other bakers'
wares, whether or not containing cocoa;
communion wafers, empty cachets of a kind
suitable for pharmaceutical use, sealing wafers,
rice paper and similar products
Total of above
1
1.2
14.0
1
1
1.2
1.2
1.0
0.9
20.0
16.6
40.0
3.0
1
5
1
3
1
5
0.7
0.6
0.6
0.6
0.5
0.5
8.0
8.0
20.0
0.0
20.0
20.0
1
1
1
1
1
1
5
2
5
2
40
30
Remain Dutiable
1
2002
20.0
Dutiable
1.3
Duty-free
Average MFN
applied rate
(%)
210112
Share in global
exports (%)
HS number and description of the product
Access Conditions to Dominican Republic's
import markets
MFN (2002)
Duty-free
Under the
Agreement:
No. of
tariff
lines
2004
Nicaragua's top export products in 1999-2001
1
3
2
82.4
3
6
4
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data from the Dominican Republic authorities and UNSD, Comtrade
database.
17.
Table A1.16 below shows the market access conditions for the Dominican Republic's top 25
export products in Nicaragua. In 1999-2001 the Dominican Republic's exports of these top 25
products accounted for 66.4% of its total exports and covered 41 tariff lines, four of which,
representing 14.1% of total exports, were already duty-free under the MFN regime. 13 lines were
liberalized upon entry into force of the Agreement. At the end of the implementation period 15
tariff lines remained subject to duties including textiles and clothing; and cane sugar; , with
average applied MFN rates in 2002 of 15% for textiles and 55% for cane sugar.
Table A1.16 Nicaragua: Market access opportunities for Dominican Republic's top 25
exports
620342
901890
620462
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts, of cotton
Other
instruments
and
appliances
Women's or girls' trousers,
bib
and
brace
overalls,
breeches and shorts of cotton
Access conditions to Nicaragua's import markets
MFN 2002
Average
MFN
applied rate
(%)
10.1
15.0
7.4
0.0
4.6
15.0
Duty
Free
Dutiable
Lines
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2002)
Dominican Republic's top export products in 1999-2001
HS number and description of the product
1
1
1
1
1
WT/REG305/1
- 71 -
240210
620343
720260
610910
621210
711319
640610
610711
611020
853620
170111
650590
080300
620333
853690
611592
640399
610822
620463
610821
611241
Cigars,
cheroots
and
cigarillos, containing tobacco
Men's or boys' trousers, bib
and brace overalls, breeches
and shorts of synthetic fibres
Ferro-nickel
T-shirts, singlets and other
vests of cotton, knitted or
crocheted
Brassieres
Of other precious metal,
whether or not plated or clad
with precious metal
Uppers and parts thereof,
other than stiffeners
Men's or boys' underpants
and briefs of cotton, knitted
or crocheted
Jerseys, pullovers, cardigans,
waistcoats
and
similar
articles, of cotton, knitted or
crocheted
Automatic circuit breakers
Cane sugar
Hats and other headgear,
knitted or crocheted, or made
up from lace, felt or other
textile fabric, in the piece
(but not in strips), whether or
not lined or trimmed
Bananas, including plantains,
fresh or dried
Men's or boys' jackets and
blazers of synthetic fibres
Other apparatus
Full-length or knee-length
stockings, socks and other
hosiery, incl. stockings for
varicose veins and footwear
without applied soles, of
cotton, knitted or crocheted
Footwear with outer soles of
rubber, plastics or
composition leather, with
uppers of leather
Women's or girls' briefs and
panties of man-made fibres,
knitted or crocheted
Women's or girls' trousers,
bib
and
brace
overalls,
breeches
and
shorts
of
synthetic fibres
Women's or girls' briefs and
panties of cotton, knitted or
crocheted
Women's or girls' swimwear
of synthetic fibres, knitted or
crocheted
Access conditions to Nicaragua's import markets
MFN 2002
Average
MFN
applied rate
(%)
Duty
Free
Dutiable
Lines
1
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2002)
Dominican Republic's top export products in 1999-2001
HS number and description of the product
4.6
15.0
1
4.0
15.0
1
1
3.9
3.6
0.0
15.0
1
1
3.2
3.2
15.0
15.0
1
1
1
2.9
5.0
2
2
2.7
15.0
1
1
2.4
15.0
1
1
1.9
1.5
1.2
2.5
55.0
15.0
1.2
1
1
1
1
2
1
1
1
1
15.0
5
5
1.0
15.0
1
1
0.9
0.9
0.0
15.0
1
1
0.9
15.0
1
0.9
15.0
1
1
0.8
15.0
1
1
0.8
15.0
1
1
0.8
15.0
1
1
1
1
1
WT/REG305/1
- 72 -
620211
Women's or girls' overcoats,
raincoats, car-coats, capes,
cloaks and similar articles, of
wool or fine animal hair
Total of above
0.8
66.4
Access conditions to Nicaragua's import markets
MFN 2002
Average
MFN
applied rate
(%)
Duty
Free
15.0
Dutiable
Lines
1
4
28
Remaining
dutiable lines
Share in
global
exports
(%)
Duty-free under
the Agreement
(2002)
Dominican Republic's top export products in 1999-2001
HS number and description of the product
1
13
15
Note:
Based on the HS 1996 nomenclature.
Source:
WTO estimates based on data provided by the Nicaraguan authorities, WTO-IDB and UNSD,
Comtrade database (mirror data).
WT/REG305/1
- 73 -
ANNEX 2
TARIFF RATE QUOTAS UNDER THE AGREEMENT
Table A2.1 Dominican Republic's TRQs for imports from Central America
Partner
For Central
America
For
Costa Rica
Description
of products
(HS) Tariff Code
Chicken
breasts
0207.13.91
0207.14.91
Chicken
breasts
Dairy Produce
For
Nicaragua
Bovine meat
Quota
Year
0207.13.91
0207.14.91
1999
2000
2001
2002
2003
2004
Quantity
Metric
tonnes
1,420
1,639
1,857
2,076
2,294
2,513
1999
2000
2001
2002
2003
2004
1,170
1,350
1,530
1,710
1,890
2,070
0402.10
0402.21
0402.29
2,200
020110.00
020120.00
020130.00
020210.00
020220.00
020230.10
020230.90
1,500
Shrimp and
other decapod
Natantia
030613.10
030613.90
030619.10
250 MT
Chicken
Breastsa
020713.00
020714.91
2001
2002
2003
2004
Onions and
shallotsa
0703.1000
2001
2002
2003
2004
Beansa
071331.00
071332.00
071333.00
2001
2002
2003
2004
In-quota
tariff rate
WTO
inquota
rate
MFN
2014
(average)
12.5%
25%
25%
12.5%
25%
25%
10%
20%
25%
-
36.8%
2001 9%
2002 6%
2003 3%
2004 0%
10%
25%
20%
25%
20%
25%
7.5%
25%
25%
10%
25%
25%
2001
2002
2003
2004
327
365
404
443
350
337.5
362.5
375
1,620
1,680
1,720
1,800
6%
4%
2%
0%
_
Not included in WTO document G/AG/N/DOM/22.
a
The Agreement entered into force without agreement by the Parties on the preferential tariff to be
applied.
Source:
Prepared by the WTO Secretariat, based on Tables Nº 4a, and 4c of the Protocol to the Free Trade
Agreement between the Dominican Republic and Central America, Table 4b of the Protocol of
Accession of Nicaragua to the Agreement, WTO-IDB.
WT/REG305/1
- 74 Table A2.2 TRQs on imports from the Dominican Republic by Costa Rica and Nicaragua
Partner
By Costa
Rica
By
Nicaragua
Description of
products
(HS) Tariff
Code
Chicken breasts
0207.13.91
0207.14.91
Dairy products
0402.10
0402.21
0402.29
Bovine meat
Shrimp and
other decapod
Natantia
020110.00
020120.00
020130.00
020210.00
020220.00
020230.00
030613.11
030613.19
030619.90
Chicken
breastsa
020713.91
020714.91
Onions and
shallotsa
070310.11
070310.12
070310.13
070310.19
070310.20
Beansa
071331.10
071331.90
071332.00
071333.10
071333.20
071333.90
Quota
Year
1999
2000
2001
2002
2003
2004
Quantity
Metric
Tonnes
1,170
1,350
1,530
1,710
1,890
2,070
As of
1999
As of
2001
In-quota Tariff
rate
1999
2000
2001
2002
2003
2004
2,200
1,500
As of
2001
250
2001
2002
2003
2004
327
365
404
443
2001
2002
2003
2004
337.5
350
362.5
375
2001
2002
2003
2004
1,620
1,680
1,740
1,800
WTO
in-quota
rate
MFN
2014
(aver
age)
25.5%
25%
24.5%
24%
23.5%
23%
51%
50%
49%
48%
47%
46%
19.5%
39%
59.4%
56.0%
58.8%
-
30%
-
10%
10%
50%
35%
7.5%
15%
15%
10%
20%
21.7%
2001
2002
2003
2004
5%
4%
2%
0%
2001
2002
2003
2004
5%
4%
2%
0%
40%
-
quotas do not apply as indicated in WTO document G/AG/N/NIC/41.
a
The Agreement entered into force without agreement by the Parties on the preferential tariff to be
applied.
Source:
Prepared by the WTO Secretariat, based Table 4b of the Protocol to the Free Trade Agreement
between the Dominican Republic and Central America, Table 4a of the Protocol of Accession of
Nicaragua to the Agreement, WTO-IDB.
__________