ITC terminates study on CAFTA’s economic effects

ITC terminates study on CAFTA’s economic effects    The U.S. International Trade Commission said it has ended its investigation into the economic effects of the proposed U.S.-Central America Free Trade Agreement.
   A public hearing regarding the study, scheduled for Jan. 18, has also been canceled.
   The study was initially requested by the Office of the U.S. Trade Representative on Nov. 17. The USTR asked for the investigation after the Dominican Republic had enacted a tax on beverages sweetened with high fructose corn syrup that the United States found incompatible with the Dominican Republic’s obligations under the free trade agreement signed Aug. 5.
   The Bush administration had planned to add the Dominican Republic to CAFTA, which includes Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
   The USTR’s letter dated Jan. 4, stated the Dominican Republic repealed its sweetener tax Dec. 29, and has withdrawn its request for the CAFTA investigation.