President Bush issued a Proclamation to formally implement the Central American Free Trade Agreement (CAFTA-DR) as between the United States and Guatemala effective July 1, 2006. The first stage of tariff reductions on imports from Guatemala is effective as to products entered, or withdrawn from warehouse for consumption, on or after that date.
Guatemala now joins El Salvador, Honduras and Nicaragua, with which CAFTA-DR was implemented earlier this year. Implementation of the free trade agreement with the remaining signatory countries – Costa Rica and the Dominican Republic – is scheduled to occur on a “rolling basis” as the U.S. certifies that these countries have made the necessary changes to their respective domestic laws.
As a result of the implementation of the CAFTA-DR with the United States, Guatemala has been formally removed from the list of designated beneficiary countries under the Generalized System of Preferences (GSP) and the Caribbean Basin Economic Recovery Act (CBERA) as of July 1.
Members that have specific questions regarding the treatment of products under the CAFTA-DR are asked to contact Bob Bauer or Jeff Levin.
