About CAFTA

The Central America Free Trade Agreement was ratified by the U.S. Congress on August 2, 2005. CAFTA removes nearly all of the longstanding barriers to trade between the U.S., Honduras, Guatemala, Nicaragua, El Salvador, Costa Rica, and the Dominican Republic.

Together, these Latin American countries have a population of 45 million people, and a 2003 GDP of $204 billion; they are the second largest Latin American trading partner with the U.S., after Mexico.

Two-way trade between the U.S. and the CAFTA nations was $31.9 billion in 2003, ranking these countries together as the 13th largest U.S. trading partner worldwide, ahead of Brazil, Singapore, and Australia.

CAFTA offers important new benefits to U.S. companies:

  • tariffs on U.S exports to the region are eliminated, phased out, or substantially lowered
  • legal protections to protect investors and traders are significantly strengthened
  • customs procedures are more transparent and streamlined
  • intellectual property rights enjoy significant new protections

Together these changes mean U.S. companies will increase substantially their investment and trade with the region.

Honduras, which implemented CAFTA on April 1, 2006, is uniquely poised for explosive growth following the implementation of CAFTA. (learn why)

How will CAFTA specifically benefit your company? Learn more here.



Welcome > Why Honduras? · About CAFTA · Exporter Guide · Importer Guide · Investor Guide · Online Resources · Contact Us