FREE TRADE AGREEMENT BETWEEN THE DOMINICAN REPUBLIC, CENTRAL AMERICA AND THE UNITED STATES _______________ TABLE OF CONTENTS PREAMBLE .......................................................................................................................................................... 3 CHAPTER ONE: INITIAL PROVISIONS ....................................................................................................... 4 CHAPTER TWO: GENERAL DEFINITIONS................................................................................................. 5 CHAPTER THREE: NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS...................... 9 CHAPTER FOUR: RULES OF ORIGIN AND ORIGIN PROCEDURES .................................................. 62 CHAPTER FIVE : CUSTOMS ADMINISTRATION AND TRADE FACILITATION............................. 78 CHAPTER SIX: SANITARY AND PHYTOSANITARY MEASURES ....................................................... 83 CHAPTER SEVEN: TECHNICAL BARRIERS TO TRADE....................................................................... 86 CHAPTER EIGHT: TRADE REMEDIES ...................................................................................................... 91 CHAPTER NINE: GOVERNMENT PROCUREMENT ............................................................................... 98 CHAPTER TEN: INVESTMENT .................................................................................................................. 156 CHAPTER ELEVEN: CROSS-BORDER TRADE IN SERVICES ............................................................ 180 CHAPTER TWELVE: FINANCIAL SERVICES ........................................................................................ 194 CHAPTER THIRTEEN: TELECOMMUNICATIONS............................................................................... 225 CHAPTER FOURTEEN: ELECTRONIC COMMERCE ........................................................................... 242 CHAPTER FIFTEEN: INTELLECTUAL PROPERTY RIGHTS ............................................................. 244 CHAPTER SIXTEEN: LABOR...................................................................................................................... 270 CHAPTER SEVENTEEN: ENVIRONMENT............................................................................................... 277 CHAPTER EIGHTEEN: TRANSPARENCY ............................................................................................... 287 CHAPTER NINETEEN: ADMINISTRATION OF THE AGREEMENT AND TRADE CAPACITY BUILDING..................................................................................................................... 291 CHAPTER TWENTY: DISPUTE SETTLEMENT...................................................................................... 295 CHAPTER TWENTY-ONE: EXCEPTIONS................................................................................................ 307 CHAPTER TWENTY-TWO: FINAL PROVISIONS................................................................................... 310 APPENDIX 3.3.6 SPECIAL RULES OF ORIGIN ANNEX 4.1 SPECIFIC RULES OF ORIGIN ANNEX I ANNEX II ANNEX III Page 2 SCHEDULE OF COSTA RICA TO ANNEX 3.3 SCHEDULE OF THE DOMINICAN REPUBLIC TO ANNEX 3.3 SCHEDULE OF EL SALVADOR TO ANNEX 3.3 SCHEDULE OF GUATEMALA TO ANNEX 3.3 SCHEDULE OF HONDURAS TO ANNEX 3.3 SCHEDULE OF NICARAGUA TO ANNEX 3.3 SCHEDULE OF THE UNITED STATES TO ANNEX 3.3 Page 3 THE DOMINICAN REPUBLIC – CENTRAL AMERICA – UNITED STATES FREE TRADE AGREEMENT PREAMBLE The Government of the Republic of Costa Rica, the Government of the Dominican Republic, the Government of the Republic of El Salvador, the Government of the Republic of Guatemala, the Government of the Republic of Honduras, the Government of the Republic of Nicaragua, and the Government of the United States of America, resolved to: Strengthen the special bonds of friendship and cooperation among their nations and promote regional economic integration; Contribute to the harmonious development and expansion of world trade and provide a catalyst to broader international cooperation; Create an expanded and secure market for the goods and services produced in their territories while recognizing the differences in their levels of development and the size of their economies; Avoid distortions to their reciprocal trade; Establish clear and mutually advantageous rules governing their trade; Ensure a predictable commercial framework for business planning and investment; Build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other multilateral and bilateral instruments of cooperation; Seek to facilitate regional trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters; Enhance the competitiveness of their firms in global markets; Foster creativity and innovation, and promote trade in goods and services that are the subject of intellectual property rights; Promote transparency and eliminate bribery and corruption in international trade and investment; Create new opportunities for economic and social development in the region; Protect, enhance, and enforce basic workers’ rights and strengthen their cooperation on labor matters; Create new employment opportunities and improve working conditions and living standards in their respective territories; Build on their respective international commitments on labor matters; Implement this Agreement in a manner consistent with environmental protection and conservation, promote sustainable development, and strengthen their cooperation on environmental matters; Page 4 Protect and preserve the environment and enhance the means for doing so, including through the conservation of natural resources in their respective territories; Preserve their flexibility to safeguard the public welfare; Recognize the interest of the Central American Parties in strengthening and deepening their regional economic integration; and Contribute to hemispheric integration and provide an impetus toward establishing the Free Trade Area of the Americas; Have agreed as follows: CHAPTER ONE: INITIAL PROVISIONS Article 1.1 Establishment Of A Free Trade Area The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 and Article V of the General Agreement on Trade in Services, hereby establish a free trade area. Article 1.2 Objectives 1. The objectives of this Agreement, as elaborated more specifically through its principles and rules, including national treatment, most-favored-nation treatment, and transparency, are to: (a) encourage expansion and diversification of trade between the Parties; (b) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties; (c) promote conditions of fair competition in the free trade area; (d) substantially increase investment opportunities in the territories of the Parties; (e) provide adequate and effective protection and enforcement of intellectual property rights in each Party’s territory; (f) create effective procedures for the implementation and application of this Agreement, for its joint administration, and for the resolution of disputes; and (g) establish a framework for further bilateral, regional, and multilateral cooperation to expand and enhance the benefits of this Agreement. 2. The Parties shall interpret and apply the provisions of this Agreement in the light of its objectives set out in paragraph 1 and in accordance with applicable rules of international law. Page 5 Article 1.3 Relation To Other Agreements 1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which such Parties are party. 2. For greater certainty, nothing in this Agreement shall prevent the Central American Parties from maintaining their existing legal instruments of Central American integration, adopting new legal instruments of integration, or adopting measures to strengthen and deepen these instruments, provided that such instruments and measures are not inconsistent with this Agreement. Article 1.4 Extent Of Obligations The Parties shall ensure that all necessary measures are taken in order to give effect to the provisions of this Agreement, including their observance, except as otherwise provided in this Agreement, by state governments. CHAPTER TWO: GENERAL DEFINITIONS Article 2.1 Definitions Of General Application For purposes of this Agreement, unless otherwise specified: Central America means the Republics of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua; central level of government means: (a) for Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua, the national level of government; and (b) for the United States, the federal level of government; Commission means the Free Trade Commission established under Article 19.1 (The Free Trade Commission); covered investment means, with respect to a Party, an investment, as defined in Article 10.28 (Definitions), in its territory of an investor of another Party in existence as of the date of entry into force of this Agreement or established, acquired, or expanded thereafter; customs authority means the competent authority that is responsible under the law of a Party for the administration of customs laws and regulations; customs duty includes any customs or import duty and a charge of any kind imposed in connection