On August 5, 2004, the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic signed the Dominican Republic- Central America-United States Free Trade Agreement, or the DR-CAFTA. The DR-CAFTA was negotiated as a regional agreement in which all parties would be subject to the “the same set of obligations and commitments,” but with each country defining its own separate schedules for market access. It is a comprehensive and reciprocal trade agreement, which distinguishes it from the unilateral preferential trade arrangement between the United States and these countries as part of the Caribbean Basin Initiative (CBI), as amended. It liberalizes trade in goods, services, government procurement, intellectual property, investment, and addresses labor and environment issues.

On August 5, 2004, the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic signed the Dominican Republic- Central America-United States Free Trade Agreement, or the DR-CAFTA. The DR-CAFTA was negotiated as a regional agreement in which all parties would be subject to the “the same set of obligations and commitments,” but with each country defining its own separate schedules for market access. It is a comprehensive and reciprocal trade agreement, which distinguishes it from the unilateral preferential trade arrangement between the United States and these countries as part of the Caribbean Basin Initiative (CBI), as amended. It liberalizes trade in goods, services, government procurement, intellectual property, investment, and addresses labor and environment issues.

In October 2007, the United States and Mexico announced the Mérida Initiative, a multi-year proposal for $1.4 billion in U.S. assistance to Mexico and Central America aimed at combating drug trafficking, gangs, and organized crime. This report outlines the various appropriations and other foreign aid measures outlined in the Mérida Initiative and what future actions regarding this ongoing effort will include.