- Thread starter DCfred
- Start date
U.S., Dominican Republic Reach Trade Deal
At what cost?
As a Brit living in the US and soon to be living in the DR it seems to me that the US always seems to achieve it's objejtives when dealing with a smaller 3rd world country, I know the US is a great market for Dominican goods but are Dominican companies strong enough to with stand competition in the DR from powerful multi national American based firms stamping their presence on the Dominican market at a cost to local business and making another country dependent on the USA.
As a Brit living in the US and soon to be living in the DR it seems to me that the US always seems to achieve it's objejtives when dealing with a smaller 3rd world country, I know the US is a great market for Dominican goods but are Dominican companies strong enough to with stand competition in the DR from powerful multi national American based firms stamping their presence on the Dominican market at a cost to local business and making another country dependent on the USA.
Free Trade with the US
I find this quite interesting as it will reduce some barriers in dealing with the US. I'm sure it will create more jobs for Dominicans but I don't believe it will raise the standard of living in the DR. I think we'll see high labour intensive type manufacturing increase but not those industries that the Asian markets have control of. As far as reducing import taxes, thats good but will the DR people be able to afford the products. Many products in the US are manufactured wholly or partly overseas and won't fall under the agreement.
As for Dominicans being able to take advantage of the US markets, its going to be difficult if they can't get a visitors VISA in order to develop a market. You need to be able to go to trade shows etc. to promote your products. So ... I guess its up to us to make all the money from this arrangement ...
There's always a good and bad side with these types of deals - the key is to make the good side work for you - I'm sure some enterprising young Dominicans will take advantage of it and get quite wealthy and everybody else will just be oblivious to whats going on.
We'll have to wait and see.
BigD
I find this quite interesting as it will reduce some barriers in dealing with the US. I'm sure it will create more jobs for Dominicans but I don't believe it will raise the standard of living in the DR. I think we'll see high labour intensive type manufacturing increase but not those industries that the Asian markets have control of. As far as reducing import taxes, thats good but will the DR people be able to afford the products. Many products in the US are manufactured wholly or partly overseas and won't fall under the agreement.
As for Dominicans being able to take advantage of the US markets, its going to be difficult if they can't get a visitors VISA in order to develop a market. You need to be able to go to trade shows etc. to promote your products. So ... I guess its up to us to make all the money from this arrangement ...
There's always a good and bad side with these types of deals - the key is to make the good side work for you - I'm sure some enterprising young Dominicans will take advantage of it and get quite wealthy and everybody else will just be oblivious to whats going on.
We'll have to wait and see.
BigD
The PURPOSE of an "FTA",Free Trade Agreement is to OPEN MARKETS!
If a "Dominican Pineapple" cant compete with an Hawaian Pineapple,then it loses out in a "Free Trade Environment"! If Kona Gold Coffee" can't make a dent in the Dominican coffee market,then it loses out! If Sony of Japan can sell TVs cheaper than "LG" in the DR then they win! "Baseball Hats" from the DR win out over Korean hats,etc. That is what we are talking about! Stop blaming the USA,Canada,Europe,Japan,or Korea because they can make cars and the DR can't! The whole idea of "Globalization",is that at the end of the day,everyone prospers!I guess that concept is to much for some to grasp! Eaiser to blame the "First World" for the problems of the Third Wordl! CCCCCCCCCCCCC
If a "Dominican Pineapple" cant compete with an Hawaian Pineapple,then it loses out in a "Free Trade Environment"! If Kona Gold Coffee" can't make a dent in the Dominican coffee market,then it loses out! If Sony of Japan can sell TVs cheaper than "LG" in the DR then they win! "Baseball Hats" from the DR win out over Korean hats,etc. That is what we are talking about! Stop blaming the USA,Canada,Europe,Japan,or Korea because they can make cars and the DR can't! The whole idea of "Globalization",is that at the end of the day,everyone prospers!I guess that concept is to much for some to grasp! Eaiser to blame the "First World" for the problems of the Third Wordl! CCCCCCCCCCCCC
Criss Colon said:
What Criss says is very true - if any of the DR's products can't compete then nothing really changes, its not like they're losing anything that they didn't have before - but on the other hand Sony of Japan and LG may open manufacturing plants in the DR to service both the DR and US markets and thus create more work for the DR people.
I think where we'll see the biggest change is in the protection of trade names (pharmaceuticals etc.) as well as the DR government becoming more accountable for its actions.
BigD
I Doubt It
You apply for business not visitor's visa to do the trade show thing and I bet the average DR business person doing that can qualify for either type of visa now. Joe Blow from the DR won't get a visitor's visa any more or any faster than now.
ERICKXSON said:
You apply for business not visitor's visa to do the trade show thing and I bet the average DR business person doing that can qualify for either type of visa now. Joe Blow from the DR won't get a visitor's visa any more or any faster than now.
One area the agreement will affect which has not yet been discussed here and so far the Dominican press has not focused on (although I am sure the local industry will soon remedy this!) is the impact on the prices and availability of medicines.
Part of the intellectual property obligations that the DR has agreed to by "docking" with CAFTA are to:
* extend pharmaceutical patent terms beyond the 20 years required in World Trade Organization (WTO) rules on Trade-Related Aspects of Intellectual Property (TRIPs);
* prevent the marketing approval of generic medicines if a patented version of the product is registered;
* grant additional exclusive marketing rights by prohibiting the Health Ministry (SESPAS) from using original pharmaceutical test data for the registration of generic medicines.
Taken together, these will strengthen patent monopolies and inhibit price competition in the Dominican market by delaying the market entry of generic equivalents, whether local or imported.
The impact goes beyond price, to potentially impact shear availablility in the DR of certain drugs altogether. For example, if a key patented AIDS or cancer drug has not been registered in the DR because the manufacturer in question did not consider the local market significant enough, then registration (for approval to enter the Dominican market) of its generic equivalents -- whether to be manufacturered locally or imported from a generic manufacturer in Brazil, Canada, India, Europe or Thailand -- can be delayed for five years if the original drug is off-patent or more if it is still on patent.
Part of the intellectual property obligations that the DR has agreed to by "docking" with CAFTA are to:
* extend pharmaceutical patent terms beyond the 20 years required in World Trade Organization (WTO) rules on Trade-Related Aspects of Intellectual Property (TRIPs);
* prevent the marketing approval of generic medicines if a patented version of the product is registered;
* grant additional exclusive marketing rights by prohibiting the Health Ministry (SESPAS) from using original pharmaceutical test data for the registration of generic medicines.
Taken together, these will strengthen patent monopolies and inhibit price competition in the Dominican market by delaying the market entry of generic equivalents, whether local or imported.
The impact goes beyond price, to potentially impact shear availablility in the DR of certain drugs altogether. For example, if a key patented AIDS or cancer drug has not been registered in the DR because the manufacturer in question did not consider the local market significant enough, then registration (for approval to enter the Dominican market) of its generic equivalents -- whether to be manufacturered locally or imported from a generic manufacturer in Brazil, Canada, India, Europe or Thailand -- can be delayed for five years if the original drug is off-patent or more if it is still on patent.
I really don't care what types of agreements are signed as long that...
they are ratified and followed through completely. If the U.S. and the D.R. are going to have FREE TRADE, then let it all be HASSLE FREE from both sides. NO U.S. GOVERNMENT SUBSIDIES to U.S. companies and vice-versa in the DR. Just pure free trade and let the market decide the fate of things. Also, IF WE ARE GOING TO BE TALKING ABOUT FAIR AND FREE TRADE, we ought to drop migration barriers between Peoples of the D.R. and the U.S. Let the market conditions of both countries affect the migration patterns, not government held ideologies of what types of people ought to migrate to and from the U.S. and D.R. respectively. I'm also for cutting away welfare programs (public housing, food vouchers, welfare checks, etc.) if we are really going to embrace FREE TRADE and REAL CAPITALISM. CAPITALISM says that if you make a buck, you'll live by what that buck buys you, if you make a million bucks, then you'll live by what those million bucks buys you, if you make zero buck, then you'll live by what zero bucks buys you. NO SOCIALIST PRACTICES OF MONETARY GRANTS OR "AFFORDABLE HOUSING" IN A CAPITALISTIC SOCIETIES. Like I said before, I don't care what agreements or type of economy is adapted, but I do care about hypocrasy. If free trade is what we want, then lets practice free trade with no exceptions, if capitalism is what we want, then lets practice full capitalism at it's fullest. Oh, that people don't like to see slums -- too bad, that's part of the capitalistic process. Those are my 2 cents on the trade agreements between DR and US and also on how I think capitalism ought to be run which is to say on a capitalistic mindset, not on a capitalistic mindset as long as everyone lives comfortable and then turn socialist for those that fell through the cracks.
they are ratified and followed through completely. If the U.S. and the D.R. are going to have FREE TRADE, then let it all be HASSLE FREE from both sides. NO U.S. GOVERNMENT SUBSIDIES to U.S. companies and vice-versa in the DR. Just pure free trade and let the market decide the fate of things. Also, IF WE ARE GOING TO BE TALKING ABOUT FAIR AND FREE TRADE, we ought to drop migration barriers between Peoples of the D.R. and the U.S. Let the market conditions of both countries affect the migration patterns, not government held ideologies of what types of people ought to migrate to and from the U.S. and D.R. respectively. I'm also for cutting away welfare programs (public housing, food vouchers, welfare checks, etc.) if we are really going to embrace FREE TRADE and REAL CAPITALISM. CAPITALISM says that if you make a buck, you'll live by what that buck buys you, if you make a million bucks, then you'll live by what those million bucks buys you, if you make zero buck, then you'll live by what zero bucks buys you. NO SOCIALIST PRACTICES OF MONETARY GRANTS OR "AFFORDABLE HOUSING" IN A CAPITALISTIC SOCIETIES. Like I said before, I don't care what agreements or type of economy is adapted, but I do care about hypocrasy. If free trade is what we want, then lets practice free trade with no exceptions, if capitalism is what we want, then lets practice full capitalism at it's fullest. Oh, that people don't like to see slums -- too bad, that's part of the capitalistic process. Those are my 2 cents on the trade agreements between DR and US and also on how I think capitalism ought to be run which is to say on a capitalistic mindset, not on a capitalistic mindset as long as everyone lives comfortable and then turn socialist for those that fell through the cracks.
In case anyone wants to read the actual official text of the US-DR agreement, the English version can be found at the following link:
http://www.ustr.gov/new/fta/Dr/texts.htm
http://www.ustr.gov/new/fta/Dr/texts.htm