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Daily News - 18 April 2000
Impasse over soft drinks puts Caribbean free trade treaty on hold
The local association of soft drink bottlers has mustered enough support to boycott the signing of the Caribbean Free Trade Agreement. The agreement was to be signed on Wednesday, 19 April in Santo Domingo.
The main bottleneck is that the Caribbean nations (primarily Trinidad & Tobago) are standing by their objection to exclude soft drinks from the treaty.
Local manufacturers say that local conditions, many in place to protect the sugar and bottling industries, place the DR at a competitive disadvantage. They say that local raw material inputs -- sugar (94%) and soft drink concentrate (20-30%) -- are heavily taxed. The treaty contemplates the duty free import of soft drinks that are not affected by these taxes. The soft drink manufacturers state there are also high local taxes on imported containers (25%) and that local producers have much higher power costs, as they have to maintain independent power systems plus pay the high fees of the private power distributors. The bottlers say that consumers would prefer the much cheaper imports thus endangering the jobs of 4,600 people, in addition to 50,000 other indirect jobs. Soft drink bottlers contribute RD$350 million in taxes and consume 54,000 tons of sugar a year.
Clinton praises US Congress for moving on parity bill
US President Clinton released a statement on Friday, 14 April congratulating the US Congress for moving on the Africa-CBI trade legislation. He also urged Congress to complete the remaining work on the bill so that the final approval could occur during the first week after the Easter recess.
President Clinton called the bill "a win-win proposition" for the US and African and Caribbean Basin nations.
He said it would "boost investment, economic growth, and job creation in these countries, while improving the global competitive position of our own textile industry. It will help promote economic reform, reduce poverty and broaden participation in the benefits of the global economy."
The Dominican Republic is the Caribbean nation that stands to gain most from the passing of the NAFTA-parity provisions.
US National Cotton Council president, Robert E. McLendon also praised the agreement saying it would boost US cotton use and help the US textile industry maintain its competitiveness. He foresees the establishing of manufacturing affiliations.
News sources say that House Speaker Dennis Hastert (R-Ill) was the key in breaking the logjam, when he convinced House members to move closer to the Senate position on the treatment of textiles and apparel imports from the region. The initiative was taken following a visit of World Trade Organization director general Mike Moore to Hastert.
The compromise grants duty free and quota-free access for:
1) apparel manufactured in Caribbean countries from U.S. fabric (made from U.S. yarn), 2) a limited amount (250 million square meter equivalents) of apparel made from fabrics knitted in the Caribbean from U.S. yarn (so-called "regional knits") and 3) a limited amount of a specific category of outer wear T-shirts (40 million square meter equivalents). The caps on the regional knits reportedly will grow by 10 percent per year.
Aides said if the deal holds, Congress is likely to take up the legislation in early May, before it moves on to the more controversial issue of trade with China. But they warned it is still possible the agreement could unravel, especially if there is strong opposition from textile-state senators.
European Union to support modernization of Dominican government
The European Union will be contributing US$29.5 million to support government modernization programs (PARME). The Dominican State will be contributing US$6.9 million to the program.
Max Puig, in charge of Lomé IV in the DR, and Roger Leenders, representative of the EU in the DR signed the agreement yesterday at the National Palace.
The program objectives are to strengthen democracy, respect for human rights and government institutions seeking human, social and economic development in the DR. The reforms calls for structural changes in the political, administrative and legal systems at both central and local government levels.
Government reforms and modernization are being implemented by the office of Dr. Onofre Rojas, the
Comision de Reforma y Modernizacion del Estado. Modernization of the state is mentioned as one of the principal achievements of the Leonel Fernández government.
67 kilos of cocaine in 265 coconuts
The National Drug Control Department uncovered a 67 kilo cocaine shipment ready for export in the Port of Haina. The narcotics dealers were exporting through the fruit and vegetables company of Apolinar Castillo (fugitive of justice). The cocaine was detected in 265 coconuts that were in a container together with 250 boxes of oranges that would be exported to the Port of Elizabeth, in New Jersey. The containers were consigned to Onésimo Cabreja who the authorities arrested when he attempted to leave for Puerto Rico via the Santiago Airport. Major Jacobo Mateo Moquete, spokesman for the Drug Control Department, said the shipment was detected because they had almost two years on the trail of the dealers.
Large truck traffic banned for Easter holidays
Ministry of Public Works announced a ban on the transiting of trucks on highways and roads from 20 April through 24 April as of 6 am. The ban is issued given the peak bus and vehicle traffic that takes place over the Easter holiday, the peak domestic vacation time.
State Sugar Council rehires sugar mill administrators
According to an item in El Siglo newspaper, the Consejo Estatal del Azucar has rehired government sugar mill administrators to serve as coordinators of the transition period between state enterprise and private management. Salaries of these administrators were increased from RD$26,000 to RD$30,000. The administrators had recently received their severance payments.
The administrators are in charge of CEA affairs at the Rio Haina, Barahona, Porvenir-Consuelo-Quisqueya, Santa Fe, Boca Chica, Amistad, Montellano, Ozama sugar mills and the Melazas Dominicanas molasses plant.
El Siglo reports that the CEA has also rehired many other employees. The ten mills were leased to the private sector in September, but the Commission for the Reform of Public Enterprises (CREP) took three months to actually hand them over to the private companies. Four consortiums assumed the control of the practically abandoned state sugar mills in December. Of these, five of the ten mills are already producing sugar.
Extraction of construction materials not to blame for demise of rivers, says expert
Engineer Augusto Rodríguez Gallart said irresponsible business practices and tree-cutting by indigent farmers are the main causes of the demise of Dominican rivers. In an interview in El Siglo, the highly reputed Dominican water resource expert, said that factories and companies that are contaminating the rivers by dumping their waste and an increase in the migration of Haitian subsistence farmers are to blame.
Ecologists have blamed construction material extraction for the demise of the rivers. But Rodríguez explained that the problem is at the source, where the rivers are born. He urged that Congress pass the Water Code (Código de Agua) that has been dormant in Congress for five years now. The bill establishes funds to be used for maintenance of reservoirs and for the planting of the river sources. He says that the increase in construction materials is a consequence of the drying up of the rivers and not the main cause. Rodríguez says that the increase in migration of indigent Haitians establishing themselves in scantly inhabited mountain areas where they are taking over state-owned lands and cutting down trees to plant plantains has had . Haiti is a land that has been almost 100% deforested by the same negative farming practices.
The lack of protection of the river sources is contributing to the increase in sediments entering the reservoirs, which reduces their lifespan.
Eng. Rodríguez explained that abundant trees in the river source areas allow for the soil to retain water in the springs that feed the river when it is not raining. Well forested river source areas prevents the erosion of sediment that is washed down the rivers.
Recently the government ordered a ban on extraction of contamination materials, after San Cristóbal province leaders and ecologists blamed this for the demise of its rivers. News reports say that the extraction of materials continues, though to a lesser degree.
Penn, Schoen & Berland poll shows Balaguer in 2nd position
El Siglo/ Penn, Schoen & Berland survey showed that former President Joaquín Balaguer is consolidating himself in the crucial second position of voting preferences. All leading polls show that none of the candidates has the 50%+1 support level necessary to win in a first round. Thus a run off election is most likely to be necessary.
The poll showed Hipólito Mejía (PRD) has 44% of voter preferences (March 2000, 44%, January 2000, 50%, October 1999 52%). Joaquín Balaguer (PRSC) received 28% of voters preferences (March 2000, 24%, January 2000, 20%, October 1999, 22%), and the ruling party candidate Danilo Medina (PLD) received 24% (March 2000, 23%, January 2000, 27%, October 1999, 23%). 3% of those polled said they were undecided.
The poll was carried out 5-10 April and 1,400 potential voters nationwide were interviewed.
President Leonel Fernández won the presidency in 1996 with the support of the PRSC.
Political parties take a break for the holidays
The Listin Diario reports that the political parties will take a break from campaigning over the Easter holidays. Joaquin Balaguer, Hipolito Mejia, Danilo Medina, and minority party candidates Ramon Almanzar and Cesar Estrella Sadhala accepted the suggestion made by the Catholic Church to take a respite for the Easter week holiday.
Electoral board on the Internet
The Junta Central Electoral, the government body in charge of organizing the presidential election in the DR, is online at http://www.jce.do. The web site contains data on 4,373,081 Dominicans that are registered in the Padron Electoral, or the official voters list. This excludes 121,863 persons that will not be able to vote in the 2000 presidential election. The JCE is motivating voters to check their data by visiting the web site. To contact the JCE by email, write to jce@codetel.net.do
Slight earthquake shakes DR
A slight earthquake was felt in a great part of the nation last night around 10:30 pm. Calls to the Seismology Institute (Tel. 687-1296) at the UASD were not answered. The previous shake that was felt in the DR occurred on 4 January 2000, and had an intensity of 3.8 on the Richter Scale. It caused slight damages in buildings and homes in the cities of Santiago and Cotuí.
Alert to buying a stolen car
Miguel Llenas, who has a new company called Data Credito, said that an estimated 30-35,000 stolen cars from Mexico are circulating in the DR. He said that last year 120,000 cars were stolen in Texas or Florida for resale purpose. Dominican dealers purchase these cars in Orlando, Florida, he said. He said his company seeks to compare original chassis numbers previous to okaying car insurance. Buyers of used cars should verify that the original chassis has not been tampered with. If you buy a stolen car in the DR, you may very well lose the car and not be able to recover the money you paid for it.
Verdi's Requiem on Good Friday at Cathedral
Not to be missed by those staying in Santo Domingo over the Easter holidays is the performance of the Santo Domingo Cathedral Choir and Orchestra on Good Friday, 21 April. 120 voices and 55 of the nation's best musicians will perform Giuseppe Verdi's "Requiem" as of 8 pm at the Cathedral. This is a free performance, but those interested should go early as seats fill up. Carlos Piantini will be guest conductor. Performing with the choir will be Amy Cofield, from the US, and Dominican Moisés Augusto Franco who has been living in Italy for several years.
Merengue Grammy winner to perform in DR
Elvis Crespo, winner of the Grammy Award for Best Merengue Performance ("Píntame" with sales of 4 million copies), arrived yesterday to La Romana. He came by way of the La Romana Punta Aguila airport. He will perform Saturday, 22 April in La Romana's Altos de Chavón amphitheater. He arrived yesterday by way of the La Romana Punta Aguila airport.
The evening will be extra special as his co-performer is Fernando Villalona, one of the best Dominican merengue music performers of all times. Villalona will open the evening with a first part show. For more information, call 809 412-8862.
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