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DR-CAFTA Commission Wants to Update Non-Textile Rules of Origin

The Office of the U.S. Trade Representative has released a joint statement from the January 23, 2012 meeting of the Dominican Republic-Central American-U.S. (DR-CAFTA) Free Trade Commission. During the meeting, the Commission determined it is timely to consider possible modifications and updates to the Agreement's rules of origin for non-textiles and non-apparel goods. It also reviewed the progress made on updating the DR-CAFTA rules of origin to correspond with the 2012 Harmonized System.

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Already Agreed to Changes to Textile Rules of Origin (but Not Yet in Effect)

At its last meeting, the Commission agreed to a series of changes to the Agreement’s rules of origin for textiles and apparel goods. During the most recent meeting, the Commission reviewed the status of the implementation of the modifications to the textile and apparel product rules of origin and states it looks forward to their implementation as soon as possible. (Changes to the agreement's rules of origin for textiles and apparel goods affected sewing thread, increased cumulation limits, nightwear, and the "short supply" list. However, these changes are not yet in effect for the U.S. See ITT's Online Archives 11022523 and 11030715 for summaries.)

Says Timely to Consider Updates to Non-Textile/Non-Apparel Rules of Origin

The Commission now states that it has determined that it is timely to consider possible modifications and updates to the Agreement’s rules of origin for non-textiles and non-apparel goods. It has established an ad hoc working group to consider modifications of the CAFTA-DR rules of origin and instructed it to meet within 60 days to initiate its work.

Also Working on Update to Rules of Origin for 2012 HS Nomenclature

The Commission also reviewed the progress made on updating the DR-CAFTA rules of origin to correspond to the 2012 changes in the Harmonized System (HS) nomenclature. The Commission has instructed its technical teams to conclude this update for its signature within 60 days. The Commission states it looks forward to promptly adopting these changes once consultations are concluded and the work is finalized.

Instructed Officials to Meet Later in 2012 to Consider Adoption of Trade Projects

According to the statement, the DR-CAFTA Public-Private Sector Dialogue on Trade Facilitation was held on January 24, 2012. This event would help identify the challenges to the efficient flow of trade that the private sector faces and to exchange views on priorities and best practices in the areas of Customs and trade facilitation, logistics and supply chains, and technical standards. The Commission has instructed its senior officials to meet by the end of the second quarter of 2012 to consider the adoption of three concrete projects and their roadmap for implementation.

Reports DR-CAFTA Trade Increased 23% in 2011

The Commission reviewed the trade and economic flows within the DR-CAFTA region. Trade between the U.S. and the Central American partners and the Dominican Republic experienced significant growth since the Commission met in 2011, growing from $44 billion in the first eleven months of 2010 to $54 billion in the equivalent period during 2011, a 23 percent increase.

The Commission also reviewed ongoing work to help small- and medium-sized enterprises (SMEs) take advantage of opportunities under the Agreement.