April 5, 2006
Honduras and Nicaragua Implement FTA

By proclamation of President George W. Bush, effective April 1, 2006, goods entering the U.S. from Honduras or Nicaragua are eligible to receive preferential benefits under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). CAFTA-DR was narrowly approved by the U.S. Congress and signed by President Bush in 2005.

Honduras and Nicaragua join one other Central American country, El Salvador, in meeting the requirements that allow CAFTA-DR to be implemented. El Salvador began implementation on March 1, 2006. Two other countries -Dominican Republic and Guatemala - have signed and ratified the overall agreement but have not yet completed the legislative and regulatory changes required. A third country, Costa Rica, has signed the treaty but has not yet ratified it.

The goal of CAFTA-DR is to remove trade barriers among the participating countries. The agreement will reduce or eliminate duties on goods shipped between the U.S. and CAFTA-DR participants.

President George W. Bush's proclamation of the implementation of CAFTA-DR with respect to Honduras and Nicaragua is available at the following URL: http://www.whitehouse.gov/news/releases/2006/03/20060331-6.html