WASHINGTON -
United States Trade Representative Robert B. Zoellick today formally notified
Congress of the Administration's intent to initiate negotiations for a free
trade agreement (FTA) with the largest economy in the Caribbean, the Dominican
Republic. The Administration will seek to integrate the Dominican Republic into
the FTA being negotiated between the United States and five nations in Central
America. The Administration could then send Congress one agreement including the
six countries.
"An FTA with the
Dominican Republic will foster economic growth and create higher paying jobs in
the United States by further reducing and eliminating barriers to trade and
investment between the Dominican Republic and the United States. The Dominican
Republic's relatively open trade and investment regime, augmented by recent
fiscal reforms, has made it one of the world's fastest growing economies over
the last decade and an economic engine in the Caribbean Basin," wrote Zoellick
in the letter to Congressional leaders.
The Dominican
Republic also enjoys strong trade and business ties with Puerto Rico, which will
be enhanced by the FTA. "Adding the Dominican Republic as an FTA partner will
promote economic growth and further integration in the Caribbean by building on
a successful agreement with Central America and by lending further momentum to
concluding the Free Trade Area of the Americas (FTAA) negotiations by January
2005," Zoellick also wrote.
Provisions in the
Trade Act of 2002, which granted Trade Promotion Authority (TPA), require the
Administration to consult with and notify Congress regarding free trade
negotiations. Zoellick has been consulting with Congress throughout this year on
ways to expand bilateral trade ties between the United States and the Dominican
Republic, including on July 24, 2003, when he met with the Congressional
Oversight Group (COG). Zoellick also notified Congress today of the intent to
begin FTA talks with Bahrain next year.
"It has been
almost one year since the President secured Trade Promotion Authority from the
Congress so as to get the tools to open markets with FTAs and negotiations in
the WTO and Free Trade Area of the Americas (FTAA). Last week, Congress
completed favorable action on our two new FTAs with Singapore and Chile. We are
in the midst of negotiations on FTAs with Morocco, Australia, five nations in
Central America, and five nations in southern Africa," said Zoellick today
regarding the notification. "Today, the Administration is building on this
momentum by announcing our intent to start free trade talks with the Dominican
Republic and Bahrain."
Since 1985, the
Dominican Republic has enjoyed preferential access to the U.S. market through
the Caribbean Basin Initiative (CBI). Zoellick noted in the letter that
consultations with Congress regarding the Dominican Republic have been positive,
and that the trade talks will build on the direction provided by Congress in
CBI.
According to a
recent Cato Institute Paper by Dan Griswold, the markets opened through the
recently completed Chile and Singapore FTAs, the ongoing Morocco, Central
America (CAFTA), South African Customs Union (SACU), and Australia FTA
negotiations, and the proposed Bahrain FTA negotiations, taken together as a
group would constitute the 4th largest U.S. export market and the world's 9th
largest economy in terms of purchasing power. The Cato paper did not include the
Dominican Republic, but the markets of the Dominican Republic and Central
America would create the second largest U.S. trading partner in Latin America.
In early 2001,
the United States began to pursue a strategy of promoting trade liberalization
globally, regionally and bilaterally. The United States helped launch the
ongoing World Trade Organization (WTO) negotiations, called the Doha Development
Agenda, and has put forward bold proposals in agriculture, services and goods to
spur the talks forward. Along with its co-Chair Brazil, the United States is
leading the effort to complete the Free Trade Area of the Americas on schedule,
and is hosting the next FTAA Ministerial in Miami.
Click here to access a fact sheet on trade and the Dominican Republic, and to view the letters to the House and Senate notifying intent to initiate negotiations
.
