The Dominican Republic-Central America Free Trade Agreement (DRCAFTA) recognizes the importance of electronic commerce for the future of trade and investment; expanded growth; and creating new, higherskilled jobs.

DR-CAFTA meets Trade Promotion Authority (TPA) negotiating objectives for electronic commerce.

• The principal negotiating objectives established by Congress for e-commerce in TPA are as follows:
  • current obligations, rules, disciplines and other commitments under the World Trade Organization (WTO) apply to e-commerce;
  • electronically deliverable goods and services receive no less favorable treatment than like products delivered in physical form;
  • the classification of such goods and services ensures the most liberal treatment possible; and
  • governments refrain from impeding e-commerce, but when regulations are needed, they are the least restrictive to trade, nondiscriminatory and transparent.
• DR-CAFTA meets these objectives.
  • The parties have agreed not to apply customs duties, fees or charges on digital products delivered electronically and to apply customs duties on the basis of value of the carrier medium for digital products delivered physically.
  • Parties may not give less favorable treatment to some digital products than they accord to other similar digital products on the basis of the nationality of the author, performer, producer, developer or distributor of the products.
  • Transparency and cooperation are the guiding principles.

U.S. e-commerce companies endorse DR-CAFTA.

• DR-CAFTA is a state-of-the-art accomplishment that promises growth in a digital age.
• American businesses increasingly rely on electronic commerce, and the negotiation of an agreement with a group of developing countries that ensures that e-commerce will grow and deepen demonstrates to others that such commitments are possible in other trade agreements, including those developed in the WTO.