Graduate School of International Studies Ajou University
The purpose of this case study is to compare and analyze the current legal systems in place in the Central American countries and in the Dominican Republic, regarding distributorship agreements.
In regulating this type of agreements, many developing countries have protected local distributors disproportionately throughout the years. The Free Trade Agreement between United States, Central America and Dominican Republic changed the scenario; surprisingly, differently for each country instead of setting equal grounds.
The present research is a comparative analysis of the changes, having two interconnected purposes in mind. The first one is to understand the favourableness of the legal environment to companies from Non CAFTA-DR countries, like Korea, as some of the changes benefits Korean companies and others do not apply to them. The second one, as a result of the first purpose, is to determine if the current regime has protectionist measures and obstacles to free and fair trade; that with their removal, the countries under analysis can establish local regimes that are consistent with modern standards, with their commitments in the multilateral trade scenario and with their internal economic integration process; and how this can improve their competitiveness, and protect the rights of the final consumers.
The proposed Korea-Central America Free Trade Agreement may be an opportunity to policymakers to use the inputs of this thesis in order to improve the legislation, if they agree with my findings.