When exploiting its potential with both the United States and Europe, the Dominican Republic's excellent geographic location offers a definite comparative advantage. The principal trading partner with the U. S. under the Caribbean Basin Initiative, the DR is the fourth largest trading partner of the U.S. in Latin America and the Caribbean, behind Mexico, Brazil and Venezuela. In 2000, it exported US$6.9 billion and imported US$7.5 billion, according to Economic Commission for Latin America and the Caribbean (ECLAC) stats. 

The DR still enjoys duty-free access to U.S. markets for about 3,000 manufactured and semi-manufactured goods under the Generalized System of Preferences which benefits developing countries. In addition, the country's growing textile industry takes advantage of U.S. tariff schedules known as 807A and 809 that provide for reduced duties for U.S.-origin products assembled or processed outside of the United States. 

Dominican exports also have duty-free entry to the 320 million affluent consumer market in the European Union (EU), the world's largest consumer market. Under the Lomé IV Accord, Dominican products which meet certain requirements have duty-free access to Europe. The DR has been the Caribbean nation to most efficiently use the development programs available under the Lomé IV Convention and expects to continue to do the same under the Cotonou Accord that enters into effect this year. 

Keeping with the times, the nation is beginning to implement free trade agreements signed with the English-speaking Caribbean (Caricom) and Central America. The DR is spearheading a strategic alliance between the Caribbean and Central America that would represent a market of 60 million consumers and the political pull of 20 votes in leading international organizations.

Principal exports
In 2000, the majority of exported items were clothing and other goods manufactured in the duty free industrial zones. Other major exports were cigars, ferronickel, sugar, coffee, cocoa, tobacco, fertilizers, beer, fresh and processed fruits and vegetables, flowers and tropical plants.

Principal imports
Foodstuffs, petroleum and byproducts, industrial and agricultural raw materials, capital goods, vehicles, wood and pharmaceuticals.