Home › Publications › Reports & Studies ›

The Economic Impact of the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) on Florida

(Released October 2004)

Download and read the full report (PDF, 331KB) | Adobe Acrobat Reader Required

 

Executive Summary

Introduction:

The U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) will provide substantial new trade-related economic opportunities for Florida businesses, workers and citizens. Already, the Central American countries and the Dominican Republic together form Florida's largest export market in the world, accounting for $3.1 billion of exports in 2003. This study draws upon the experiences of the North American Free Trade Agreement (NAFTA) and the recent U.S.-Chile Free Trade Agreement and uses the U.S. Department of Commerce's Bureau of Economic Analysis Regional Input-Output Modeling System (RIMS II) to offer a vision of the potential impact of the DR-CAFTA on the Florida economy.

Results:

  • $958 million (one year after implementation) and $5.1 billion in increased output across all industries (nine years after implementation);
  • $226 million (one year after implementation) and $1.2 billion in increased earnings of employees in all industries (nine years after implementation); and
  • 6,879 (one year after implementation) and 36,308 new jobs created (nine years after implementation).

Conclusion:

The DR-CAFTA presents a substantial opportunity for Florida's elected leaders to make a substantial positive contribution to the state's economic growth, increase worker incomes, and provide new opportunities for those who are seeking work in higher-paying, export-oriented jobs. While the Central American countries and the Dominican Republic are small, the cumulative economic opportunity they create for Florida is great.