Central America Wins Dispute with Dominican Republic

The WTO has provisionally determined that the measures imposed by the Dominican Republic, charging tariffs of up to 38% on imports of certain products from the region, are inconsistent with its trade obligations.

Friday, October 21, 2011

The lawsuit filed at the World Trade Organization (WTO) by El Salvador, Honduras, Guatemala and Costa Rica objected to the high tariffs imposed by the Caribbean country on products from the region.

According to an article in Prensalibre.com: "The preliminary report, which will be submitted to the Settlement Dispute Body of the WTO in late December or early January, concludes that the Dominican government acted "inconsistently "with their obligations, not only regarding the Safeguards Agreement, but also with the General Agreement on Tariffs and Trade. The Dominican Republic has rejected the claims, asserting that the dispute doesn’t have any foundation."

The Guatemalan Economy Minister, Luis Velasquez said, "This is a clear message to the Dominican Republic that in future they should not impose arbitrary measures or safeguards unilaterally, without prior documentation."

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