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International Monetary Fund

I. T he I mpact of CAFTA-DR on the N icaraguan E conomy 1 1. Expected to promote new development opportunities to its members, the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) represents a significant change in the macro-economic environment of Central America . This chapter provides an overview of what recent studies say about the expected macroeconomic impact of the Agreement. Section A presents its main features. Section B describes Nicaragua’s trade and economic relations with the other members of CAFTA

International Monetary Fund. External Relations Dept.

Since taking office in 2004, the government of El Salvador has pursued an outward-oriented strategy to boost growth and improve social conditions through greater integration with the global and regional economies, investment and social reforms, and stabilization of the public debt. Its early achievements include an increase in tax revenue, improved debt management, and the signing of the Central America-Dominican Republic-United States Free Trade Agreement. Economic growth—spurred by investment and exports—has picked up; inflation has fallen to the lowest

International Monetary Fund
This Selected Issues paper for Nicaragua reports that the Central America–Dominican Republic-United States Free Trade Agreement (CAFTA-DR) provides a general framework for country-specific bilateral agreements. In addition to the phased liberalization of trade in goods, CAFTA-DR provides broad market access for services and includes provisions in areas such as intellectual property rights, investment, government procurement, and competition policies. Labor provisions are slightly tighter than under other similar agreements by offering a platform to examine the quality of existing legislation, rather than only ensuring its implementation.
Mr. Jun I Kim and Ms. Laura Papi

The Central American–Dominican Republic Free Trade Agreement (CAFTA-DR) with the United States, combined with increasing integration among the Central American countries, provides an opportunity to reflect on the long-run options for exchange rate regimes in Central America. 1 Although the macroeconomic conditions of the Central American countries present similarities and have improved significantly in recent years, their exchange rate regimes cover the whole spectrum: floating regimes in the Dominican Republic and Guatemala, and crawling pegs in Costa Rica

International Monetary Fund

This Selected Issues paper for Nicaragua reports that the Central America–Dominican Republic-United States Free Trade Agreement (CAFTA-DR) provides a general framework for country-specific bilateral agreements. In addition to the phased liberalization of trade in goods, CAFTA-DR provides broad market access for services and includes provisions in areas such as intellectual property rights, investment, government procurement, and competition policies. Labor provisions are slightly tighter than under other similar agreements by offering a platform to examine the quality of existing legislation, rather than only ensuring its implementation.