CAFTA-DR (Dominican Republic-Central America FTA)

The Dominican Republic-Central America FTA (CAFTA-DR) is the first free trade agreement between the United States and a group of smaller developing economies: our Central American neighbors Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, as well as the Dominican Republic. The CAFTA-DR promotes stronger trade and investment ties, prosperity, and stability throughout the region and along our Southern border.

Some Facts on the CAFTA-DR and…

CAFTA-DR and Regional Manufacturing

Trade under CAFTA-DR supports Made-in-America jobs and unlocks opportunities for well-paying work as goods flow across borders and are manufactured into final products.  Working together, our region can compete better. 

CAFTA-DR and Labor         

CAFTA-DR is strengthening workers’ rights and conditions in the region, through enforcement of labor protections to which its workers are entitled under countries’ national laws. This includes through the first labor dispute   under any free trade agreement to ensure Guatemalan workers can exercise their rights under Guatemalan law.  We remain committed to helping Guatemala achieve that outcome and earn the benefits that come with enforcing the law to uphold internationally recognized labor rights.

CAFTA-DR and Creating Opportunities in the Region

Trade and economic growth promotes prosperity and stability and opportunities for citizens within their home country.  CAFTA-DR requirements for rule of law and transparent and fair procedures in government actions create a better climate for investment and business.  A better economic environment builds communities where citizens can thrive and youth have opportunity for a productive future at home.  


CAFTA-DR Trade & Investment Summary

U.S. goods and services trade with CAFTA-DR totaled an estimated $108.5 billion in 2022. Exports were $58.3 billion; imports were $50.2 billion. The U.S. goods and services trade surplus with CAFTA-DR was $8.1 billion in 2022.

U.S. goods exports to CAFTA-DR in 2022 were $48.3 billion, up 24.3 percent ($9.4 billion) from 2021 and up 62 percent from 2012. U.S. goods imports from CAFTA-DR totaled $35.6 billion in 2022, up 19.4 percent ($5.8 billion) from 2021, and up 15 percent from 2012. U.S. exports to CAFTA-DR account for 2.3 percent of overall U.S. exports in 2022. The U.S. goods trade surplus with CAFTA-DR was $12.7 billion in 2022, a 40.8 percent increase ($3.7 billion) over 2021.

U.S. exports of services to CAFTA-DR were an estimated $10.0 billion in 2022, 11.4 percent ($1.0 billion) more than 2021, and 45 percent greater than 2012 levels. U.S. imports of services from CAFTA-DR were an estimated $14.6 billion in 2022, 23.8 percent ($2.8 billion) more than 2021, and 62 percent greater than 2012 levels.  The United States has a services trade deficit of an estimated $4.6 billion with CAFTA-DR in 2022, up 63.6 percent from 2021.

U.S. foreign direct investment (FDI) in CAFTA-DR (stock) was $8.5 billion in 2022, a 10.6 percent increase from 2021.