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Proposed Modifications to the CAFTA-DR Rules of Origin Would Have Little Effect on Total U.S. Trade and U.S. Production, Says USITC

June 17, 2016
News Release 16-071
Inv. No. CAFTA-DR-103-028
Contact: Peg O'Laughlin, 202-205-1819
Proposed Modifications to the CAFTA-DR Rules of Origin Would Have Little Effect on Total U.S. Trade and U.S. Production, Says USITC

Proposed modifications to the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) rules of origin are likely to have negligible effects on total U.S. trade and U.S. industry, reports the United States International Trade Commission (USITC) in its publication Probable Economic Effects of Certain Modifications to the CAFTA-DR Rules of Origin.

The USITC, an independent, nonpartisan, factfinding federal agency, produced the report at the request of the U.S. Trade Representative (USTR).

As requested, the report provides advice on the probable economic effects of the proposed modifications to the CAFTA-DR rules of origin on U.S. trade under CAFTA-DR, on total U.S. trade, and on domestic producers of the affected articles.  The proposed modifications, detailed in the USTR’s request letter, cover chemical products, polyvinyl chloride and other plastics, gaming machines, and fishing lures.

The proposed modification for the rule of origin for fishing lures could result in a significant increase in U.S. imports of fishing lures from CAFTA-DR partner countries.  However, because U.S. imports from CAFTA-DR countries are a small portion of total U.S imports of fishing lures, the effect on total U.S. imports of these products is likely negligible. For all other products, the likely effects on U.S. imports from CAFTA-DR partner countries are negligible.

Probable Economic Effects of Certain Modifications to the CAFTA-DR Rules of Origin (Inv. No. CAFTA-DR-103-028, USITC publication 4613, June 2016) is available at https://www.usitc.gov/publications/332/pub4613.pdf.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requestor. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requestor for national security reasons.

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