Trade facilitation — the process of making trade simpler and smoother — benefits all parties in a trading relationship. Inefficient administration and other border procedures are expensive, both for the authorities that administer the procedures and for the businesses that trade. Many provisions of the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) will better facilitate the flow of trade between the parties involved.

DR-CAFTA addresses a number of trade facilitation issues.

• DR-CAFTA contains a chapter on customs administration, which provides for cooperation among customs authorities, reviews and appeals, penalties, and advance rulings that generally track existing U.S. law and regulations.
• A chapter on sanitary and phytosanitary measures requires parties to apply science-based disciplines that should be clear and transparent.
• A chapter on technical barriers to trade similarly promotes transparency in administration. In addition, the parties have agreed to share information to combat illegal transshipment of goods and to facilitate express shipments. Provision is made for the rapid release of goods within 48 hours if possible. Parties must publish their laws and regulations governing trade and investment, as well as proposed regulations, in advance and provide an opportunity for public comment on them. The parties have affirmed their resolve to eliminate bribery and corruption in international trade and investment.

U.S. businesses endorse DR-CAFTA’s dispute settlement provisions.

• DR-CAFTA sets high standards that will facilitate trade between the United States and its new partners in the region. It will promote transparent, efficient and predictable customs operations and ensure that customs laws, regulations, decisions and rulings are not applied in a manner that creates unwarranted obstacles to trade. Provisions relating to rules of origin will ensure that preferential duties apply only to goods eligible to receive them, reinforced by cooperative efforts on enforcement among the parties.