GlossaryEN1 min readUpdated: Jun 26, 2026

CAFTA‑DR

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Last updated: 26 June 2026Published: 22 November 2025

Source: https://ustr.gov/trade-agreements/free-trade-agreements/cafta-dr-dominican-republic-central-america-fta

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Logistics Concept

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Definition & Explanation

CAFTA-DR (Central America Free Trade Agreement – Dominican Republic) is a multilateral free trade agreement between the United States and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and Panama. The agreement phases out tariffs and establishes preferential market access for goods, services, and investment among its signatories. For customs brokers and freight forwarders, it is operationally relevant when claiming preferential duty treatment: goods that satisfy the Rules of Origin provisions qualify for reduced or zero-duty entry. Beyond tariff schedules, CAFTA-DR incorporates investment protection and labour standards commitments, distinguishing it from simpler tariff-reduction arrangements. It should not be confused with USMCA (formerly NAFTA), which governs trade between the US, Canada, and Mexico.

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