U.S. Government Procurement from CAFTA-DR Countries: What Manufacturers Need to Know

CAFTA-DR Government Procurement Coverage

Chapter 9 of CAFTA-DR establishes government procurement commitments between the parties. Qualifying suppliers from CAFTA-DR countries — including manufacturers operating in Dominican Republic free zones — are entitled to non-discriminatory access to covered U.S. federal procurement above specified thresholds. The applicable threshold for goods procurement from U.S. federal agencies is approximately $182,000 (adjusted periodically). State and local government procurement is generally not covered by CAFTA-DR’s procurement chapter.

Qualifying as a CAFTA-DR Supplier

To qualify for CAFTA-DR government procurement preference, the supplier must be a legally established entity in a CAFTA-DR country, the goods must satisfy CAFTA-DR rules of origin, and the supplier must comply with the procurement requirements of the U.S. contracting agency. For medical device manufacturers in Dominican Republic free zones, CAFTA-DR government procurement access can open U.S. Department of Defense and Veterans Affairs medical supply channels that were previously inaccessible from non-CAFTA sources.

Buy American Act Considerations

The Buy American Act imposes domestic content requirements on U.S. federal procurement. CAFTA-DR’s government procurement chapter provides waivers from Buy American Act requirements for qualifying CAFTA-DR suppliers on covered procurements. This is a significant benefit: it allows DR-manufactured goods to compete for U.S. federal contracts on equal terms with U.S. domestic manufacturers for covered categories.

Practical Application

For Caribbean Corridor manufacturers targeting U.S. government procurement, establishing CAFTA-DR qualifying status and Buy American Act compliance documentation is a specific component of the U.S. market entry structure. EGS advises corridor participants on government procurement strategy as part of the full Caribbean Corridor market entry framework. Contact EGS to evaluate your government procurement eligibility.