Download Slides on The Americas the Caribbean Basin | IN 312 and more Study notes International Business in PDF only on Docsity! IN312 International Trade Chapter 8 Th A i &e mer cas The Caribbean Basin Department of International Trade & Marketing (ITM) http://www3.FITnyc.edu/ITM/IN312 The Americas & The Caribbean Basin • 35 countries • Cover 8% of the earth • Have 18% of world population P l ti• opu a on: • North 441 million (50%) • South: 378 million (42%) • Central: 41 “ (5%) • Caribbean: 30 “ (3%) Total: 890 million Pat Yanez Central America DR-CAFTA - Dominican Republic-Central American Free Trade Agreement - Negotiated in 2002. U.S. ,Costa Rica, El Salvador, Guatemala, Honduras & Nicaragua Dominican Rep joined negotiations in 2004, . . . - The US House of Reps. Approved it on 2005 by a vote of 217–215, with 2 representatives not voting - It aims to create a free trade area, similar to NAFTA - It’s considered an incremental step towards FTAA - Apparel labor costs ranges from $0.92-$2.50/hour - Regional rule of origin for yarns and fabrics for products cut an sewn in region for duty-free access to regional markets. Pat Yanez South America MERCOSUR - Mercado del Sur – Southern Cone Common Market - Founded in 1991 by the Treaty of Asunción H d t M t id U- ea quar ers: on ev eo, ruguay - Members: Argentina, Brazil, Paraguay, and Uruguay Associate Members: Bolivia Chile Colombia Ecuador and Peru- , , , , - Venezuela’s application is pending - Covers 70% of South America’s total economy - Annual GDP: $3 trillion (5th largest world economy) - Population: 263 million people - Official languages: Spanish, Portuguese, Guarani - In 2007 signed FTA with Israel. In 2008, with India. Pat Yanez Caribbean Basin CBERA & CBTPA - Caribbean Basin Economic Recovery Act (1983) - Caribbean Basin Trade Partnership Act ( 2000) Program Benefit Tariff Schedules of the US (1963), U.S. fabric forward rule of origin for cut Harmonized Tariff Schedules of the U.S. (HTSUS) (1989) garments parts to be exported, assembled, and imported with tariffs based only on value added (known as “item 807”, later as “item 9802”) Caribbean Basin Economic Recovery Act (CBERA) or (CBI) (1983) U.S. fabric forward rule of origin for duty- free access to U.S. markets Caribbean Basin Trade Partnership Act (CBTPA) (2000) U.S. yarn-forward rule of origin for duty- free access to U.S. markets Pat Yanez
