Access of Latin American and Caribbean Exports to the U.S. Market 2005-2006

The trade relationship between the United States and Latin America and the Caribbean has grown over the past years. Important efforts in pursuit of trade liberalization bore fruit during the period 2005 - 2006. In July 2005, the United States Congress approved the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). During 2006, the U.S. signed bilateral free trade agreements (FTA) with Peru and Colombia. Both of these agreements, which now await action by the U.S. Congress, seek to eliminate tariffs and other barriers to goods and services and expand trade between the countries. Furthermore, in September 2006, the U.S. Senate approved a resolution of advice and consent for the U.S. - Uruguay Bilateral Investment Treaty (BIT), which will offer current and future investors in both the U.S. and Uruguay a more stable and predictable legal and regulatory environment, promoting increased investment in Uruguay and greater two-way trade.

In the context of growing trade and investment, this report, hopes to contribute to transparency and efforts towards the elimination of obstacles to the free flow of goods among countries in the Western Hemisphere. The 2005-06 Report highlights trends in antidumping activity affecting Latin America, new labeling and packaging regulations for food products in the United States and selected World Trade Organization (WTO) cases covering issues such as Portland cement, online gambling, sugar, and shrimp involving the U.S. and Latin America and the Caribbean.

The classification of trade inhibiting measures follows the definition used in the Office of the United States Trade Representative (USTR) yearly publication National Trade Estimate Report on Foreign Trade Barriers. This report focuses on three areas of significant relevance for Latin America and the Caribbean:

Imports policies (e.g., tariffs and other import charges, quantitative restrictions, import licensing and customs barriers).

Security and safety of food and drug supply (e.g., new labeling and packaging regulations for food products in the United States).

Agricultural supports (e.g., export subsidies, market development programs, and export finance programs).