Proposed Modifications to CAFTA-DR Rules of Origin
On June 17th, the (ITC) International Trade Commission announced their intentions to modify the existing Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) rules of origin for certain import commodities such as fishing lures, gaming machines, chemical products and industrial plastics. While the proposed rule modification could result in a significant increase in U.S. imports of some of these commodities from CAFTA-DR partner countries, because U.S. imports from those countries represents only a small portion of total U.S imports of the commodities, the effect on total U.S. imports of these products is likely negligible.
The proposed changes would allow for more lenient rules of origin allowing additional non-originating components to be used in connection to the existing tariff shift rules. To read about the probable economic effects of this proposed modification click here. To read the entire press release from ITC on the matter, click here.