(Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua)

Timetable/Milestones

• Entered into force for Dominican Republic : March 1, 2007
• Entered into force for Costa Rica: January 1, 2009
• Entered into force for Guatemala: July 1, 2006
• Entered into force for Honduras: April 1, 2006
• Entered into force for Nicaragua: April 1, 2006
• Entered into force for El Salvador: March 1, 2006
• Entered into force for U.S.: January 1, 2006
• Costa Rica ratifies agreement: October 7, 2007
• Honduras ratifies agreement: March 3, 2006
• Guatemala ratifies agreement: March 10, 2005
• Nicaragua ratifies agreement: September, 2005
• Dominican Republic ratifies agreement: Sept. 6, 2005
• Agreement signed by President Bush: August 2, 2005
• House vote to implement agreement (217-215) July 27, 2005
• Senate vote to implement agreement (54-45) June 30, 2005
• Bill sent to Congress: June 23, 2005
• El Salvador ratifies agreement: Dec. 2004
• Dominican Republic joins the CAFTA: Aug. 5, 2004
• Negotiations ended with Dominican Republic: May 15, 2004
• Agreement signed by U.S. and Costa Rican governments: Jan. 25, 2004
• Negotiations ended: Dec. 17, 2003 (except for Dominican Republic)
• Congress receives notification of intent: Aug. 4, 2003
• Negotiations began: Jan. 8, 2003

Cafta + Dr Sugar Facts

• Production (Avg. 2005-2007):
  • Regional: 4,455,333 mt
  • Costa Rica: 391,333 mt
  • Dominican Republic: 498,667 mt
  • El Salvador: 563,000 mt
  • Guatemala: 2,152,333 mt
  • Honduras: 366,000 mt
  • Nicaragua: 484,000 mt
• Consumption (Avg. 2005-2007):
  • Regional: 1,938,666 mt
  • Costa Rica: 220,667 mt
  • Dominican Republic: 324,000 mt
  • El Salvador: 232,333 mt
  • Guatemala: 669,333 mt
  • Honduras: 277,000 mt
  • Nicaragua: 215,333 mt
• Imports (Avg. 2005-2007):
  • Regional: 20,000 mt
  • Costa Rica: None
  • Dominican Republic: 20,000 mt
  • El Salvador: None
  • Guatemala: None
  • Honduras: None
  • Nicaragua: None
• Exports: (Avg. 2005-2007):
  • Regional: 2,602,667 mt
  • Costa Rica: 169,333 mt
  • Dominican Republic: 207,667 mt
  • El Salvador: 336,000 mt
  • Guatemala: 1,531,000 mt
  • Honduras: 102,000 mt
  • Nicaragua: 256,667 mt

Access currently granted to U.S. market under minimum WTO tariff rate quota:

• Regional: 311,700 mt (27.9% of total TRQ)
  • Costa Rica: 15,796 mt (1.41% of total TRQ)
  • Dominican Republic: 185,335 mt (16.59% of total TRQ)
  • El Salvador: 27,379 mt (2.45% of total TRQ)
  • Guatemala: 50,546 mt (4.52% of total TRQ)
  • Honduras: 10,530 mt (.94% of total TRQ)
  • Nicaragua: 22,114 mt (1.98% of total TRQ)

Individual Country Information

Costa Rica

• Production (Avg. 2005-2007): 391,333 mt
• Consumption (Avg. 2005-2007): 220,667 mt
• Imports (Avg. 2005-2007): None
• Exports: (Avg. 2005-2007): 169,333 mt
• Current minimum access under WTO TRQ: 15,796 mt (1.41% of total TRQ)

Dominican Republic

• Production (Avg. 2005-2007): 498,667 mt
• Consumption (Avg. 2005-2007): 324,000 mt
• Imports (Avg. 2005-2007): 20,000 mt
• Exports: (Avg. 2005-2007): 207,667 mt
• Current minimum access under WTO TRQ: 185,335 mt (16.59% of total TRQ)

El Salvador

• Production (Avg. 2005-2007): 563,000 mt
• Consumption (Avg. 2005-2007): 232,333 mt
• Imports (Avg. 2005-2007): None
• Exports: (Avg. 2005-2007): 336,000 mt
• Current minimum access under WTO TRQ: 27,379 mt (2.45% of total TRQ)

Guatemala

• Production (Avg. 2005-2007): 2,152,333 mt
• Consumption (Avg. 2005-2007): 669,333 mt
• Imports (Avg. 2005-2007): None
• Exports: (Avg. 2005-2007): 1,531,000 mt
• Current minimum access under WTO TRQ: 50,546 mt (4.52% of total TRQ)

World’s seventh largest exporter, exporting an average of 1.2 million metric tons (2002-2005). Through a combination of tariffs and non-tariff measures (e.g., a unique requirement that vitamin A be added to sugar), the Guatemalan government effectively blocks all foreign imports.

Honduras

• Production (Avg. 2005-2007): 366,000 mt
• Consumption (Avg. 2005-2007): 277,000 mt
• Imports (Avg. 2005-2007): None
• Exports: (Avg. 2005-2007): 102,000 mt
• Current minimum access under WTO TRQ: 10,530 mt (.94% of total TRQ)

Nicaragua

• Production (Avg. 2005-2007): 484,000 mt
• Consumption (Avg. 2005-2007): 215,333 mt
• Imports (Avg. 2005-2007): None
• Exports: (Avg. 2005-2007): 256,667 mt
• Current minimum access under WTO TRQ: 22,114 mt (1.98% of total TRQ)

Additional Access Granted to U.S. Market

The CAFTA + DR will phase-out sugar tariffs over 15 years. The tier-two or “out-of-quota” duty on sugar imported into the United States will not be cut from its Most Favored Nation rate of 15.36 cents/lb. for raw and 16.21 cents/lb. for refined sugar. The United States established TRQs for the Dominican Republic and Central American countries, starting at a collective 107,000 mt and growing to just over 151,000 mt in Year 15 (on a rolling basis after the agreement has entered into force in the individual countries), thereafter growing by 2 percent a year (simple growth) into perpetuity. The United States also established a quota for specialty sugar goods of Costa Rica in the amount of 2,000 mt annually. Provisions ensure only net surplus exporting countries in the region have increased access, and provisions have been agreed to allow alternative forms of compensation to be established to facilitate sugar stock management by the United States. New TRQ access will be as follows:

NOTE: Access is based on when the agreement is ratified and entered into force in each country. Costa Rica and the Dominican Republic will not receive additional access until at least 2007.

440

Year	Costa Rica	Dom. Rep.	El Salvador	Guatemala	Honduras	Nicaragua
Year 1 (2006)			24,000	32,000	8,000	22,000
Year 2 (2007)	11,000	10,000	24,480	32,640	8,160	22,440
Year 3 (2008)	11,220	10,200	24,960	33,280	8,320	22,880
Year 4 (2009)	11,440	10,400	28,000	37,000	8,480	23,320
Year 5 (2010)	11,660	10,600	28,560	37,740	8,640	23,760
Year 6 (2011)	11,880	10,800	29,120	38,480	8,800	24,200
Year 7 (2012)	12,100	11,000	29,680	39,220	8,960	24,640
Year 8 (2013)	12,320	11,200	31,000	42,000	9,120	25,080
Year 9 (2014)	12,540	11,400	31,620	42,840	9,280	25,520
Year 10 (2015)	12,760	11,600	32,240	43,680	9,440	25,960
Year 11 (2016)	12,980	11,800	32,860	44,520	9 ,600	26,400
Year 12 (2017)	13,200	12,000	34,000	47,000	9,760	26,840
Year 13 (2018)	13,420	12,200	34,680	47,940	9,920	27,280
Year 14 (2019)	13,640	12,400	35,360	48,880	10,080	27,720
Year 15 (2020)	13,860	12,600	36,040	49,820	10,240	28,160
Year 16 (2021)	14,080	12,800
Annual increase	220	200	680	940	160