Final answer:
True, the implementation of CAFTA with the U.S. and five Central American states, subsequently joined by the Dominican Republic, resulted in the creation of a free trade area known as DR-CAFTA, aimed at reducing trade barriers in the region.
Step-by-step explanation:
The statement "Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA" is true. The Central American Free Trade Agreement, known as CAFTA, was indeed implemented with the United States and several Central American countries, namely El Salvador, Honduras, Nicaragua, Guatemala, and later, with the inclusion of the Dominican Republic, the agreement is referred to as CAFTA-DR. This agreement was part of larger efforts to reduce trade barriers and promote economic integration within the Americas, which included discussions on the possibility of the Free Trade Area of the Americas (FTAA).
CAFTA's implementation aimed to ease the flow of goods by reducing tariffs and trade barriers between the member countries, aligning with the United States' involvement in other regional trade agreements such as the more well-known NAFTA and less-prominent ones like the Caribbean Basin Initiative and the free trade agreement with Israel.