Just Signed Free Trade Agreement Already in Second Year

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Even though the ink on the signatures to the Free Trade Agreement with the United States is still wet it would seem that the Dominican Republic is considered to be in the second year of tariff elimination. Apparently, the agreement commenced, as prescribed, when the first Central American country entered into it. El Salvador signed March 1, 2006. The pact also establishes (article 7, chapter 3, annex 3.3) that the dismantling of tariffs shalll begin on January 1 of each year. The agreement calls for the elimination of tariffs on certain products over 5, 10, 15 and 20 year time increments. This means that some articles, including vehicles, will be tax-exempt in 5 years. But the 20% tariff on vehicles has already dropped to 16% since the Dominican Republic is already considered to be in the second year of the agreement.
Read 341 times Last modified on Thursday, 08 March 2007 20:48

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