The Dominican Republic-Central American Free Trade Agreement (DR-CAFTA): Understanding the Reasons Why the Dominican Republic (DR) Joined the CAFTA Negotiations

In 2004, the Dominican Republic DR joined the Central America Free Trade Agreement CAFTA negotiations, which had been started between the nations of Central America and the United States. For the DR, this was a major step towards permanently opening up its domestic market and securing access to the markets of the other member nations. The question is, why would a small country like the DR choose to enter into a free trade agreement To answer this question, one must understand the domestic and international pressures the DR has experienced over the last 35 years. This thesis will examine the DRs decision to join CAFTA through the overall framework of regionalization and how that influenced a proliferation of preferential trade agreements throughout the Western Hemisphere. The DRs economy has always been closely linked to the influence and policies of the United States, and specific changes in the global economic climate drove both nations to seek strategic partnerships with each other. The DR has had to make major adjustments to take advantage of potential economic opportunities. The thesis concludes that the DR-CAFTA is a continuation of those efforts.