The Free Trade Agreement between Central America and the Dominican Republic was signed on 5 August 2004. CAFTA-DR has removed tariffs on more than 80 percent of U.S. exports to six countries: Costa Rica, the Dominican Republic, Guatemala, Honduras, Nicaragua, and El Salvador. By November 2019, trade had increased by 104%, from $2.44 billion in January 2005 to $4.97 billion. In September 1986, the Uruguay Round began in Punta del Este, Uruguay. It focused on extending trade agreements to several new areas. These include services and intellectual property. It has also improved trade in agriculture and textiles. The Uruguay Round led to the creation of the World Trade Organization. On 15 April 1994, the 123 participating governments signed the WTO Agreement in Marrakesh, Morocco. The WTO has taken the lead in future global multilateral negotiations.
They do not have as much influence on economic growth as a multilateral agreement. The EU has concluded or is negotiating such bilateral trade agreements: the WTO is a negotiating forum on the liberalisation of world trade. The EU negotiates in the WTO on behalf of all EU countries. Multilateral agreements oblige all signatories to treat each other equally. No country can offer better trade agreements to one country than to another. This is similar to the conditions of competition. It is particularly important for emerging countries. Many of them are smaller, which makes them less competitive. Most-favoured-nation status provides the best trading conditions a nation can obtain from a trading partner.
Developing countries benefit most from this trade status. Some regional trade agreements are multilateral. The most important was the North American Free Trade Agreement (NAFTA), ratified on January 1, 1994. NAFTA quadrupled trade between the United States, Canada and Mexico from 1993 to 2018. The Agreement between the United States, Mexico and Canada (USMCA) entered into force on July 1, 2020. The USMCA was a new trade deal between the three countries, negotiated under President Donald Trump. The third advantage is that it standardizes trade rules for all trading partners. Companies save legal fees because they follow the same rules for each country. Second, the details of the negotiations relate specifically to trade and commercial practices. The public often mistook. As a result, they receive a lot of press, controversies and protests.
The WTO`s first draft was the Doha Round of Trade Agreements in 2001, a multilateral trade agreement among all WTO members. Developing countries would allow imports of financial services, including banking services. In doing so, they must modernize their markets. In return, developed countries would reduce agricultural subsidies. This would boost the growth of developing countries, which are good at food production. Within this multilateral framework, the Commission is working to improve export competition and market access, in particular for food and beverages from the EU. . . .