AGREEMENT ESTABLISHING THE FREE TRADE AREA BETWEEN THE CARIBBEAN COMMUNITY AND THE DOMINICAN REPUBLIC

AGREEMENT ESTABLISHING THE FREE TRADE AREA BETWEEN THE CARIBBEAN

COMMUNITY AND THE DOMINICAN REPUBLIC

The Caribbean Community (CARICOM), of the one part, and the Dominican Republic, of the other

part, (which hereinafter shall be referred to as "the Parties");

CONSIDERING growing process of economic globalisation and the intensification of the regional and

sub-regional economic integration processes in which the Parties are deeply involved, and with the

purpose of achieving more adequate integration in these processes and a more significant joint

presence at their fora of negotiation;

CONSIDERING the urgent need to broaden the markets of the Parties in order to achieve the

economies of scale that will support better levels of efficiency, productivity and competitiveness;

CONSIDERING that the symmetry and complementarity that exist between the economies of the

Parties enable them to achieve levels of cooperation and integration that favour the economic

development of both Parties;

CONSIDERING the significance accorded by the Parties to the development of closer, more dynamic

and balanced trade and investment relations between them, with clear and accurate guidelines that

permit full participation of all economic agents;

CONSIDERING the importance that the Parties accord to economic co-operation between them for

their economic development;

CONSIDERING that in order to achieve a balance of rights and obligations within the framework of this

Agreement, liberalisation should include trade in goods and services, and investment regimes;

CONSIDERING the rights and obligations of Member States of CARICOM and the Dominican

Republic as Members of the World Trade Organisation (WTO), and other relevant international

agreements as well as those existing among the Member States of CARICOM under the Treaty of

Chaguaramas;

The Parties agree to create a Free Trade Area that includes Trade in Goods and Services, Investment

and Economic Co-operation.

ARTICLE I - ESTABLISHMENT OF THE FREE TRADE AREA

(i)The FreeTrade Area between CARICOM, comprising the

States listed in 1 (ii) and theDominican Republic,(hereinafter referred

to as "the Parties") ishereby established.

(ii)Antigua and Barbuda, Barbados, Belize,Dominica, Grenada,

Guyana, Jamaica, Montserrat, St. Kitts and Nevis, SaintLucia, St.

Vincent and the Grenadines, Suriname and Trinidad and Tobago.

2.For the purpose of this Agreement, itsAnnexes and Appendices, reference to the

"territory of the Parties"shall:

(i)for each Member State ofCARICOM mean its territory, as well as its

maritime areas, including the seabedand subsoil adjacent to the outer

limit of the territorial sea, over which thatState exercises,

inaccordance with international law, jurisdictionor sovereign rights for

the purpose of exploration and exploitation of thenatural resources of

such areas;

(ii)for the Dominican Republic mean the land areas, maritime area, air

space,subsoil as well as the airspace above them in accordance with

itsnational

legislation and international law.

3.For thepurpose of this Agreement, its Annexes and Appendices, the More

DevelopedCountries of CARICOM (hereinafter referred to as "the MDCs"}are:

(i)Barbados

(ii)Guyana

(iii)Jamaica

(iv)Suriname

(v)Trinidad and Tobago

4.For the purpose of this Agreement, itsAnnexes and Appendices, the Less

Developed Countries of CARICOM (hereinafterreferred to as "the LDCs") are:

(i)Antigua and Barbuda

(ii)Belize

(iii)Dominica

(iv)Grenada

(v)Montserrat

(vi)StKilts and Nevis

(vii)Saint Lucia

(viii)St Vincent and the Grenadines

ARTICLE II- OBJECTIVE

The fundamental objective of the Agreement shall beto strengthen the commercial and economic

relations between the Partiesthrough:

(i)the establishment of a Free Trade Areabetween the Parties

consistent with the Marrakesh Agreement Establishing theWorld

Trade Organisation (theWTO);

(ii)the promotion and expansion of the saleof goods originating in the

territories of the Parties through,Interalia, free access to the markets

of the Parties, elimination of non-tariffbarriers to trade, and the

establishment of a system of Rules of Origin, CustomsCo-operation

and the Harmonisation of

Technical, Sanitary and Phyto-SanitaryProcedures;

(iii)the progressive liberalisation of tradein services;

(iv)the liberalisation of the movement ofcapital between the Parties,

and the promotion and protection of investmentsaimed at taking

advantage of the opportunities offered by the markets of theParties,

and the strengthening of their competitiveness;

(v)the promotion of the active participationof private economic agents

with a view to deepening and broadening the economicrelations

between the Parties, including the promotion and establishment

ofjoint ventures;

(vi)the promotion and development ofcooperative activities in the

following areas: agriculture, mining, industry,construction,

tourism,transportation, telecommunications,banking,insurance, capital

markets, professional services and science andtechnology;

(vii)the discouragement of anti-competitivebusiness practices

between and within theParties.

ARTICLE III- THE JOINT COUNCIL

The Parties hereby establish a Joint Councilcomprising representatives of both Parties.

2.The Joint Council (hereinafter referred toas " the Council") shall:

(i)supervise the implementation and administration of the Agreement,

its Annexesand Appendices;

(ii)resolve any dispute which may arise outof the interpretation,

execution of, or non-compliance with, or application ofthis Agreement,

its Annexes andAppendices in accordance with itspowers under

Article XV dealing with Settlement of Disputes;

(iii)establish and delegate responsibilitiestoad hocor standing

committees, working groups or expertgroups;

(iv)supervise the work of allad hocor standing committees, working

groups and expert groups established under thisAgreement, its

Annexes and Appendices;

(v)consult with governmental,inter-governmental and non-

governmental entities as necessary;

(vi)keep this Agreement, its Annexes andAppendices under periodic

review, evaluating the functioning of this Agreementand

recommending measures it considers suitable to better achieve its

objective;

(vii)carry out any other functions which maybe assigned to it by the

Parties;

(viii)consider any other matter that mayaffect the operation of this

Agreement, its Annexes and Appendices and takeappropriate action.

(i)The Council shall establish its rules andprocedures.

(ii)All decisions shall be taken byconsensus.

(iii)The decisions of the Council shall have the status

ofrecommendations to the Parties.

4.Each Party shall designate a representativeto transmit and receive correspondence

on its behalf.

ARTICLE IV-MEETINGS OFTHE JOINT COUNCIL

The Council shall convene in ordinary session atleast once a year and in extraordinary sessions at

such other times as may beagreed between the Parties.

2.The meetings of the Council shall bechaired jointly by the Parties.

3.Meetings shall be held alternately in theDominican Republic and in a Member State

of CARICOM or such other place as maybe agreed between the Dominican Republic

and CARICOM.

4.The Agenda for each ordinary meeting of theCouncil shall be settled by the Parties

at least one month before each proposedmeeting.

ARTICLE V - TRADE INGOODS

The Parties agree to implement a programme toliberalise the trade in goods between them.

2.The conditions under which goods covered bythis Agreement will be traded in the

Free Trade are set out in theAgreement on Trade in Goods that appears as Annex I.

3.The Rules of Origin shall be those set outin Appendix I to Annex I.

ARTICLE VI - TRADE INSERVICES

The Parties agree to progressively liberalise tradein services between themselves by the

establishment of a framework of principlesand rules as contained in the Agreement on Trade in

Services that appears asAnnex II.

ARTICLEVII-INVESTMENTS

The Parties agree to promote and facilitate investments within the Free Trade Area through the

provisions contained in the Agreement on Reciprocal Promotion and Protection of Investments that

appears as Annex III.

ARTICLE VIII - TRADE FINANCING

The Council shall periodically review trade financingarrangements between the Member States of

CARICOM and the Dominican Republic andrecommend those mechanisms which may be

implemented to facilitate thisactivity.

2.The Parties, recognising the importance oftimely payments for the development of

trade, undertake to ensure that neitherthe Dominican Republic nor any Member State

of CARICOM shall impose undueimpediments to trade transactions and the

corresponding timely payment for goodsand services traded within the context of

thisAgreement.

ARTICLE IX - ECONOMIC COOPERATION

The Parties agree to develop a broad co-operationprogramme in the following areas: agriculture,

mining, industry, construction,tourism, transportation, telecommunications, banking, insurance,

capitalmarkets, professional services, and science andtechnology and suchother areas as may be

agreed by the Parties.

2.The Parties agree to encourage jointproduction of goodsand collaboration in the

provision of services,especially those intended to take advantage of market

opportunities in thirdstates.

ARTICLE X - DOUBLE TAXATION AGREEMENTS

The Parties agree to work towards the adoption ofagreements to prevent and avoid double taxation

between the Member States ofCARICOM and the Dominican Republic.

ARTICLE XI - GOVERNMENT PROCUREMENT

The Parties agree to work towards the adoption of anagreement to encourage and facilitate greater

participation by their economicentities in business opportunities arising from government

procurementactivities.

ARTICLE XII - INTELLECTUAL PROPERTY RIGTHS

The Parties agree to develop and adopt an Agreementon Intellectual Property Rights, taking into

account the rights and obligationsprovided for in the Agreement on Trade-Related Aspects of

Intellectual PropertyRights (TRIPS), contained In Annex IC of the Agreement establishing the WTO,

andother relevant international agreements to which all the Member States ofCARICOM and the

Dominican Republicare signatories.

2.Pending the adoption of the Agreement referred to in paragraph 1, the provisionsof

the TRIPS and the other relevant international agreements to which all theCARICOM

Member States and the Dominican Republic are signatories will apply tointellectual

property rights issues which may arise between them.

ARTICLE XIII- PRIVATE SECTORACTIVITIES

The Parties agree to promote active participation oftheprivate sector in the fulfillment of the objective

of this Agreement.To this end, the Parties establish a CARICOM/Dominican Republic Business

Forumto analyse trade and investment opportunities, exchange business information andorganise

business encounters, and deal with any other relevant matter includingany matter as may be referred

to it by theCouncil. The Forum shallregulate its own procedures and may make recommendations to

the Council on anymatter within its competence.

ARTICLE XIV - COMMITTEES

There shall be the following Standing Committeeswhich shall operate under the guidance of the

Council:

(i)Committee on Trade in Goods;

(ii)Committee on Technical Barriers toTrade;

(iii)Committee on Sanitary and Phyto-sanitaryMeasures;

(iv)Committee on Rules of Origin and CustomsCooperation;

(v)Committee on Trade in Services;

(vi)Committee on Investment;

(vii)Committee on Intellectual PropertyRights;

(viii)Committee on Anti-Competitive BusinessPractices;

(ix)Any other Committee which may beestablished by the Council

pursuant to Article III 2(iii).

2.Each Committee shall,int eralia, have the following functions:

(i)monitor the implementation of theprovisions of the Agreement,

Annex or Appendix within its area ofcompetence;

(ii)consider all matters relating to thesubject area withinits

competence, including such matters as may bereferred to it by the

Parties;

(iii)consult on issues of mutual concernrelating to itssubject area

which arise in international fora;

(iv)facilitate information exchange among theParties;

(v)create working groups or convene expertpanels on topics of

mutual interest relating to its subject area;

(vi)any other function assigned to it by theCouncil.

3.Each Committee shall meet as may be agreedby its members and shall regulate its

own proceedings.

ARTICLE XV - SETTLEMENT OF DISPUTES

The Parties agree to adopt the following Rules fortheSettlement of Disputes arising under this

Agreement, its Annexes andAppendices.

2.The Rules governing Settlement of Disputes(the Rules) shall apply to all disputes

between the Parties relating tointerpretation, application, execution of or non-

compliance with the provisionsof the Agreement, its Annexes and Appendices with the

exception of matterscovered In Annex III.

3.The Parties shall first seek to resolve anydispute referred toin paragraph 2 above

through informal consultations andseek to arrive at a mutually satisfactory solution. In

the case of perishables,the Parties shall notify the Council immediately of the dispute

and of theaction being taken.

4.Where the Parties fail to arrive at amutual solution within 30 days, or in the case of

perishables within 10 days,pursuant to paragraph 3 above, the aggrieved Party may

deliver to the otherParty a request in writing for the intervention of the Council. The

request tothe Council shall contain sufficient information to enable examination of

therequest.

5.The Council shall ordinarily meet within 15days of receipt of a request and, in the

case of perishables, within 5 days ofreceipt of a request. In special circumstances the

timeframe may be adjusted bymutual agreement between the Parties. The Council

shall render its decisionwithin a reasonable time.

6.The Council may engage expert advisors inseekingsolutions to disputes between

the Parties.

7.The Council shall within one (1) year afterthe entry into force of this Agreement

establish mechanisms for the settlementofdisputes.

8.Pending the adoption of mechanisms providedfor inparagraph 7, the Council may

exercise the option of conciliation,mediation and/or "arbitration to resolve any dispute

which may arise between theParties.

ARTICLE XVI - AMENDMENTS

This Agreement, its Annexes and Appendices maybeamended by the Parties. Proposals made by one

Party for amendments shallbe submitted to the Council for its consideration.

2.Amendments shall enter into force once theParties have notified each other through

diplomatic channels, that all internallegal procedures have been completed.

ARTICLE XVII - EVALUATION OF THE AGREEMENT

Three (3) years after the entry into force of thisAgreement, the Council shall carry out an evaluation of

the Agreement, itsAnnexes and Appendices with respect to the achievement of their objectives

andrecommend what further measures may be taken to achieve them. Therecommendations shall

take into account any national, regional and internationaldevelopments affecting the matters covered

by this Agreement, its Annexes andAppendices.

ARTICLE XVIII - TERMINATlON

Any Party may at any time withdraw from thisAgreement by giving written notice of termination to the

other Party.Termination shall take effect six (6) months after such notice is received bythe other Party.

The rights acquired and the obligations assumed under thisAgreementshall cease on the effective

date of termination, except asprovided in paragraphs 2 and 3 of this Article.

2.Obligations undertaken prior to terminationwith respect to trade in goods and

services shall continue in force for afurther period of one year, unless the Parties

agree to a longer period.

3.The provisions of the Agreement on theReciprocal Promotion and Protection of

Investments (Annex III) shall continue toapply to investments established or acquired

prior to the date of termination,for a period of ten years from the date of termination,

except in so far asthose provisions extend to the establishment of covered

investments.

ARTICLE XIX - ACCESSION BY OTHERSTATES

This Agreement shall be open to other States subjecttoprior negotiations between the Parties and

those States which haverequested to become Parties to this Agreement.

2.The negotiations shall take into accountthat this Agreement, its Annexes and its

Appendices establish preferentialtreatment by the Dominican Republic to the Less

Developed Member States ofCARICOM by reason of their lesser degree of

development.

ARTICLE XX - STATUS OF ANNEXES AND APPENDICES

The Annexes and Appendices of this Agreement shallform an integral part thereof.

ARTICLE XXI - DEPOSITARY

This Agreement shall be deposited with theSecretary-General of the Caribbean Community who shall

transmit certified copiesto the Parties.

ARTICLE XXII - ENTRY INTO FORCE

This Agreement, its Annexes and Appendices shallenter into force on the 1st. day of January 1999, or

as soon thereafter as theParties have notified each other through diplomatic channels that all

internallegal procedures have been completed.

IN WITNESS WHEREOF,I the undersignedPlenipotentiaries, being duly authorised, have affixed their

signatures to thisAgreement.

DONE ATSanto Domingo in the DominicanRepublic in the English and Spanish languages, both being

equally authentic,this 22nd day ofAugust 1998

For the CaribbeanCommunity

For the Government ofthe

Dominican Republic

SIGNED _________________

Dr. the Hon.Kenny Anthony

Chairman of the Conference of

Heads ofGovernmentof

the Caribbean Community

SIGNED ________________

Dr. the Hon. Leonel

FernándezReyna

President of the Dominican Republic