What is CAFTA-DR?

What is CAFTA-DR?

• A. A currency union in the Caribbean basin.
• B. A regional defense alliance in the region.
• C. A free trade agreement between the US and several Central American nations plus the Dominican Republic.
• D. A cultural exchange program with economic goals.

Answer: (C)

CAFTA-DR is a free trade agreement among the United States and several Central American nations plus the Dominican Republic. It aims to reduce tariffs and other trade barriers, promote investment, and establish rules on trade in services, intellectual property, and government procurement. The participating countries are the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. This makes it the best description for CAFTA-DR, since it focuses on trade liberalization and economic integration rather than currency union, defense alliance, or cultural exchange.

CAFTA-DR is a free trade agreement among the United States and several Central American nations plus the Dominican Republic. It aims to reduce tariffs and other trade barriers, promote investment, and establish rules on trade in services, intellectual property, and government procurement. The participating countries are the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. This makes it the best description for CAFTA-DR, since it focuses on trade liberalization and economic integration rather than currency union, defense alliance, or cultural exchange.