The Dominican Republic is an attractive destination for foreign entrepreneurs looking to invest and start new businesses in this country.
The climate, stable economy, and tax incentives offered by the Dominican government to foreign investment are the main attractions of this Central American country.
This article lists the trade treaties and international agreements of the Dominican Republic with other countries.
What is a trade treaty?
A trade treaty is a formal agreement between countries that establishes the rules and conditions under which commercial activities will be carried out between them. The main objective of these trade treaties is to facilitate the exchange of goods and services by reducing or eliminating tariffs, quotas, and other trade barriers. They also usually include provisions on investment protection, intellectual property, fair competition, and dispute resolution. By promoting freer and fairer trade, trade treaties seek to stimulate economic growth, improve international cooperation, and strengthen economic relations between the signatory nations.
Trade agreements, conventions, and free trade treaties with other countries
Learn about the main agreements and international treaties of the Dominican Republic:
Free Trade Agreement between DR, Central America, and the US (DR-CAFTA)
This treaty between the United States and Central America was negotiated between January 2003 and January 2004, with the Dominican Republic being incorporated in July 2004.
This treaty seeks to create a free trade zone among the signatory countries (the United States and each Central American country).
CARIFORUM-European Union Economic Partnership Agreement (EPA)
This agreement between the Dominican Republic and the European Union states and CARIFORUM countries was signed in October 2008 and came into force in January 2009.
The CARIFORUM-European Union agreement represents a viable solution for exporting goods and services to Europe.
Since the entry into force of this agreement, market access to European goods in the region has improved, with lower tariffs, more flexible rules of origin, and the elimination of quotas for Dominican products.
Free Trade Agreement between DR and the Caribbean Community (CARICOM)
This agreement between the Dominican Republic and the Caribbean was signed in August 1998 and came into force in December 2001.
The DR-CARICOM FTA agreement includes free access for goods, the elimination of non-tariff trade barriers, the establishment of rules of origin, the harmonization of sanitary and phytosanitary measures, and the gradual unlocking of trade in services, among other things.
With this agreement, products originating from the Dominican Republic benefit from free access in the more developed CARICOM countries (Jamaica, Barbados, Trinidad and Tobago, Guyana, and Suriname).
Free Trade Agreement between Central America and the Dominican Republic
An agreement signed in 1998 between the Dominican Republic and each Central American country individually (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua).
The main objectives of this treaty are:
- Stimulating the expansion and diversification of trade in goods and services between the parties.
- Promoting conditions of free competition within the Free Trade Zone.
- Eliminating barriers to trade in goods and services originating from the parties.
- Increasing investment opportunities in the territories of the parties.
Partial Scope Agreement – Dominican Republic and Panama (AAPP)
An agreement signed on July 17, 1985, ratified in 1987, and came into force on November 2, 2003.
The Partial Scope Agreement between the Dominican Republic and Panama aims to grant tariff preferences and eliminate or reduce non-tariff restrictions to strengthen trade between the signatory countries.
The Dominican Republic is a country with high development projections, thanks to the agreements and trade treaties that improve access to international markets.
At Contadores Dominicanos, we provide you with all the legal, corporate, and accounting advice to create businesses in Dominican territory. We have highly qualified professionals who are ready to assist you.
