The Dominican Republic and Central America Free Trade Agreement with the USA: some concerns

Abstract

This article examines the role of free-trade agreements that integrate profoundly asymmetrical economies in simultaneously benefiting the more powerful nation and exacerbating inequalities within and between the countries involved. The latest in a series of such agreements in the Americas, the Dominican Republic and Central America Free Trade Agreement (DR–CAFTA), opens up the economies of these small nations to US investment and exports, as multinational companies are able to take advantage of lower production costs and weak labour legislation. In the global economy, South–South trade agreements offer a far better alternative for countries with weak institutions and little economic or political leverage.

Keywords:

• Globalisation
• Latin America and the Caribbean
• North America
• Rights

Notes

Manufacturing has long played a key role in the US economy. The long-term decline in the country's manufacturing sector started in the 1970s and has continued.

Since the 1955 Bandung Conference, a major goal was to adopt extended South–South co-operation among 40 developing countries.

CARICOM, the Organization of Caribbean nations and dependencies, replaced CARIFTA in 1973.

Besides, Canada was not exempted from the provisions of the Omnibus Trade and Competitiveness Act, a protectionist bill that was passed by Congress in 1988 during CUFTA's ratification.

Additional information

Notes on contributors

Sherrow O. Pinder

Sherrow O. Pinder is Assistant Professor of Political Science and Multicultural and Gender Studies at California State University, Chico