Puerto Rico Economic Pulse ©

November 2005: The Dawn of a New Agreement

A brief on CAFTA-DR agreement and implications for Puerto Rico

After a tough battle in the US Congress, CAFTA-DR got a long awaited approval. This new agreement is another page in the revolution of free trade, started by NAFTA in 1994 and fueled by subsequent bilateral treaties between the US and other countries. Now, it is Central America’s turn, a region battered by war, poverty and natural disasters, but engaged in a process of political and economic reconstruction. Will this new trade block enhance or restrain trade with Puerto Rico? Are there opportunities or risks for us? In this issue, we analyze the potential implications of CAFTA for Puerto Rico in a not so distant future.