What is Free Trade Agreement？
Free Trade Agreements (FTAs) is an agreement between two countries for speeding free trade which can help your company to enter and compete more easily in the global marketplace. Trade agreements help level the international playing field and encourage foreign governments to adopt open and transparent rulemaking procedures, as well as non-discriminatory laws and regulations. FTAs help strengthen business climates by eliminating or reducing tariff rates, improving intellectual property regulations, opening government procurement opportunities, easing investment rules, and much more.
FTAs can be a catalyst for accelerating economic growth by allowing greater competition, encouraging the formation of international partnerships, and by greatly liberalizing many industries. Most FTAs include specific obligations in the areas of intellectual property, services, investment, and telecommunications. Many FTAs also provide for groundbreaking cooperation in promoting labor rights and the environment.
Taiwan – Central America Free Trade Agreement
Taiwan sign Free Trade Agreement with Central America countries to advance the liberalization of international trade. The Agreement first entered into force between Taiwan and Panama on January 1, 2004, followed by Nicaragua on Jan 1, 2008; Guatemala on July 1, 2006; El Salvador on March 1, 2008; Honduras on July 15, 2008. Taiwan Government continues to work with Dominic and Paraguay to ensure timely and full implementation of the Agreement. In addition, Taiwan continues to talk to Japan, The United Stated, Singapore, New Zealand and Philippines to consider signing Free Trade Agreement with Taiwan.
For more detail please visit Bureau of Foreign Trade, Ministry of Economic.
http://www.taiwantrade.com.tw/TWTRADE/TC/temp/FTA/1_2.htm
U.S.- CAFTA-DR Free Trade Agreement
The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) includes seven signatories: the United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. The U.S. Congress approved the CAFTA-DR in July 2005 and the President signed the implementation legislation on August 2, 2005. The CAFTA-DR has been approved by the legislatures in all the partner countries, with the exception of Cost Rica, which will hold a public referendum on the Agreement in October 2007.
The Agreement first entered into force between the United States and El Salvador on March 1, 2006, followed by Honduras and Nicaragua on April 1, 2006, Guatemala on July 1, 2006, and the Dominican Republic on March 1, 2007. The U.S. Government continues to work with Costa Rica to ensure timely and full implementation of the Agreement.
100% industrial products and 85% agriculture products from Central American exports into the United States have benefited from duty-free treatment, in which the benefit of duty-treatment for textile and ready-made clothes can be recalled to Janaury.1, 2004.
For more detail please visit EXPORT.GOV
http://203.84.204.121/language/translatedPage?lp=en_zt&.intl=tw&tt=url&text=http%3a%2f%2fita.doc.gov%2fcafta%2findex.asp
The Opportunities of Free Trade Agreement
Central America is next to the United States, the biggest market in the world, they can quick respond the demand and feedback of the United State; also enjoy the low transportation cost. In addition, Central America enjoy benefited from duty-free treatment when CAFTA-DR entered into force that enhance the competitiveness and benefit of investing in Central America. Central America countries are very important diplomatic states and share very close economic relationship with Taiwan that they are the best production station and gateway for Taiwan companies to export to the United States.
For more detail please visit Bureau of Foreign Trade, Ministry of Economic.
http://www.taiwantrade.com.tw/TWTRADE/TC/temp/FTA/1_2.htm
| Tariff Code |
Product |
Current Rate |
CAFTA Rate |
| 1.Articles of apparel and clothing accessories |
| 6113~6117 |
Articles of apparel and clothing accessories, knitted or crocheted |
0~32% |
0% |
| 6201~6215 |
Articles of apparel and clothing accessories, not knitted or crocheted |
0~28.6% |
0% |
| 2.Articles of Plastics |
| 3901~3926 |
Articles of plastics |
0%~6.5% |
0% |
| 3.Fresh Vegetables |
| 0701~0709 |
Edible vegetables and certain roots and tubers |
0%~21.3% |
0% |
| 4.Aqua farming |
| 0302 |
Fish, fresh or chilled, excluding fish fillets and other fish meat |
0% |
0% |
| 0303 |
Fish, frozen |
0% |
0% |
| 0306 |
Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption） |
0%
（Crab Meat）7.5% |
0% |
| 5.Frozen Foods |
| 0710 |
Vegetables (uncooked or cooked by steaming or boiling in water), frozen
|
14% |
0% |
| 2004 |
Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen
|
6.4% |
0% |
| 2009 |
Fruit juices (including grape must)and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter |
US 7.85cents/liter |
0% |
| 6.Processed Foods |
| 1601~1605 |
Preparations of meat, of fish or of crustaceans, mollusks or other aquatic invertebrates |
0%~20% |
Most products at 0%; others subject to a linear reduction of tariffs over a period of years |
| 1701~1704 |
Sugars and sugar confectionery |
0%~12.2%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to quota tariff rates |
| 1801~1806 |
Cocoa and cocoa preparations |
0%~10%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to quota tariff rates |
| 1901~1905 |
Preparations of cereals, flour, starch or milk; pastry products |
0%~17.5%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to a linear reduction of tariffs over a period of years |
| 2001~2009 |
Preparations of vegetables, fruit, nuts or other parts of plants |
0%~22.4%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to a linear reduction of tariffs over a period of years |
| 2101~2106 |
Miscellaneous edible preparations |
0%~20%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to a linear reduction of tariffs over a period of years |
| 2201~2209 |
Beverages, spirits and vinegar |
0%~17.5%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to a linear reduction of tariffs over a period of years |
| 2301~2309 |
Residues and waste from the food industries; prepared animal fodder |
0%~7.5%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to a linear reduction of tariffs over a period of years |
| 2401~2403 |
Tobacco and manufactured tobacco substitutes |
0%~350%
some products subject to tariffs on aggregate quantity |
Most products at 0%; others subject to a linear reduction of tariffs over 15 years |
| 7.Animal or Vegetable Fats and Oils |
| 1501~1522 |
Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes |
0%~19.1%
some products subject to tariffs on aggregate quantity |
0% |
| 8.Mechanical Appliances |
| 8414 |
Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filter |
0%~4.7% |
0% |
| 8509 |
Electro-mechanical domestic appliances, with self-contained electric motor; Vacuum cleaners |
0%~4.2% |
0% |
| 8516 |
Electric instantaneous or storage water heaters and immersion heaters; electric space heating
apparatus and soil heating apparatus; electro-thermic hairdressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric smoothing irons; other electrothermic appliances of a kind used for domestic purposes; electric heating resistors |
0%~5.3% |
0% |
| 9.Hand Tools |
| 8201 |
Hand tools |
0%~6.2% |
0% |
| 8202 |
Hand saws; blades for saws of all kinds (including slitting, slotting or toothless saw blades) |
0%~7.2% |
0% |
| 8203 |
Files, rasps, pliers (including cutting pliers), pincers, tweezers, metal cutting shears, pipe-cutters, bolt croppers, perforating punches and similar hand tools |
0%~12% |
0% |
| 8204 |
Hand-operated spanners and wrenches (including torque meter wrenches but not including tap wrenches); interchangeable spanner sockets, with or without handles |
9% |
0% |
| 8205~8215 |
Hand tools (including glaziers' diamonds), not elsewhere specified or included |
0%~84.% |
0% |
| 10.Vehicles and Parts and Accessories |
| 8703 |
Motor cars and other motor vehicles principally designed for the transport of persons |
2.5% |
0% |
| 8704 |
Motor vehicles for the transport of goods |
0%~25% |
0% |
| 8705 |
Special purpose motor vehicles, other than those principally designed for the transport of persons or goods |
0% |
0% |
| 8706 |
Chassis fitted with engines, for the motor vehicles of headings Nos.87.01 to 87.05 |
0%~4% |
0% |
| 8707 |
Bodies (including cabs), for the motor vehicles of headings Nos.87.01 to 87.05 |
0%~4% |
0% |
| 8708 |
Parts and accessories of the motor vehicles of headings Nos. 87.01 to 87.05 |
0%~2.5% |
0% |
| 11.Motorcycles and Parts and Accessories |
| 8711 |
Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars |
0%~2.4% |
0% |
| 8714 |
Parts and accessories of vehicles of headings Nos.87.11 to 87.13 |
0%~10% |
0% |
| 12.Bicycles and Parts and Accessories |
| 8712 |
Bicycles and other cycles (including delivery tricycles), not motorized |
3.7%~11% |
0% |
| 8714 |
Parts and accessories of vehicles of headings Nos.87.11 to 87.13 |
0%~10% |
0% |
| 13.Handbags and Similar Containers |
| 4202 |
Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco-pouches, tool bags, sports bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper |
0%~20% |
0% |
| 14. Footwear |
| 6401~6406 |
Footwear, gaiters and the like; parts of such articles |
0%~48% |
Most products at 0%; others subject to a linear reduction of tariffs over a period of years |
| 15.Furniture and Articles of Wood |
| 4401~4421 |
Wood and articles of wood; wood charcoal |
0%~10.7% |
0% |
| 4501~4504 |
Cork and articles of cork |
0%~14% |
0% |
| 4601~4602 |
Manufactures of straw of esparto and of other plaiting materials; basket ware and Wickerwork |
0%~10% |
0% |
| 16.Electrical Machinery and Equipment and Parts |
| 8525 |
Transmission apparatus for radiotelephony, radio-telegraphy, radio -broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras |
0%~3% |
0% |
| 8526 |
Radar apparatus, radio navigational aid apparatus and radio remote control apparatus |
0%~4.9% |
0% |
| 8527 |
Reception apparatus for radiotelephony, radio-telegraphy or radio-broadcasting, whether or not combined, in the same housing, with sound recording or reproducing |
0%~6% |
0% |
| 8528 |
Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors |
0%~5% |
0% |
| 8529 |
Parts suitable for use solely or principally with the apparatus of headings Nos.85.25 to 85.28 |
0%~4% |
0% |
| 17.Electronic Parts and Accessories |
| 8473 |
Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with the machines of headings Nos.84.69 to 84.72 |
0% |
0% |
| 8517 |
Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line system; videophones |
0% |
0% |
| 8534 |
Printed circuit |
0%~2% |
0% |
| 8542 |
Electronic integrated circuits and micro assemblies |
0% |
0% |
| 18.Medical or Surgical Instruments and Apparatus |
| 9018 |
Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments |
0% |
0% |
| 9020 |
Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters |
0% |
0% |
| 9022 |
Apparatus based on the use of Xrays or of alpha, beta or gamma radiations |
0% |
0% |
| 19.Packing Machinery |
| 8422 |
Dish washing machines; machinery for cleaning or drying bottles or other containers; machinery for filling, closing, sealing or labeling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers; other packing or wrapping machinery (including heat-shrink wrapping machinery); machinery for aerating beverages |
0%~2.40% |
0% |
Most Dominican Republic and Central American exports into the United States have benefited from duty-free treatment.
Comparison Chart of CAFTA Tariff Rates for Taiwanese Companies that Export from Central America to the United States |
