NEWS: DR-CAFTA historic opportunity

BREAKING NEWS from the DR:

Dominican Republic President Leonel Fernandez considers the start of the DR-CAFTA free trade agreement as a historic opportunity for the DR to transform its economic structure and face the increasing social challenges that have built up over the years. Fernandez in the Presidency web site saying that "Today the foundations of a prosperous Dominican Republic are being sowed." Fernandez said that the country's entry into DR-CAFTA should be considered as a triumph for the Dominican state. He also credited the previous government for their efforts and said that the start of the free trade agreement demonstrates the benefits of continuing with policies that benefit national interests. DR-CAFTA was signed on 5 August 2004, between the United States and El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica and the DR. Implementation is still pending in Costa Rica.

The Dominican Embassy in Washington, D.C. and the United States Department of State have exchanged diplomatic notes, officially confirming the Dominican Republic's entry into DR-CAFTA on 1 March at 9:30am. The agreement reduces tariffs on 77% of goods imported from the United States. As reported in Listin Diario, the cost of food and other consumer goods is expected to decline gradually once the new imports reach the market. US imports will now have an advantage over goods imported from China, Taiwan, Latin America and Canada. The effects of DR-CAFTA are already in evidence, with major supermarkets already importing new lower cost brands from the US.

From what I understand of this so far, this is really good for the United States and will allow major corporations (chains) to enter into the US. Although it will open things up for the Dominican Republic from an international perspective, it might possibly kill the "little guys" here who are selling basic products that can be shipped from the US at a cheaper cost now.