DR1 Daily News will be taking a break for the Christmas holidays. There will be no news updates on Thursday, 22 December through Monday, 26 December. A Tuesday, 27 December edition will summarize news happenings over those days. DR1 Forums, nevertheless, will continue open to postings 24/7. Any breaking news can be posted there at http://www.dr1.com/forums/
Check into the DR1 calendar page for holiday events. See http://www.dr1.com/calendar/
The National Development Council approved the 2006 budget last night. It was set at RD$238.55 billion and will be submitted to Congress next week. The Council reported that RD$38.1 billion will go to "General Services", RD$90.7 billion for "Social Services", RD$46.0 billion for "Economic Services", RD$1.21 billion for environmental protection and another RD$72.28 billion for payment of the public debt. Congress gets RD$3.68 billion, the Executive Branch gets RD$32.7 billion, and the Ministry of the Interior and the Police gets RD$17.9 billion. Of the money assigned to the Ministry of the Interior and the Police, over RD$11.0 billion will go to the different municipalities around the country. Education was assigned RD$19.0 billion, and the Ministry of Public Health will be assigned RD$23 billion.
The United States Trade Representative spokesperson Christin Baker has gone on record stating the US government would announce whether any of the DR-CAFTA signatories would be ready by 1 January before the end of the year. "After 1 January, the United States will put the agreement into force with the other countries on a rolling basis," she stated. As reported, only El Salvador has made sufficient progress in adopting the new rules and regulations. "We want to reward countries as they become ready and look forward to continued progress with the others. Countries can continue to enjoy existing preferences while they work with the United States to come on board. Preserving benefits during a brief transition period is a non-disruptive way to move countries over the goal line while keeping the Administration's commitment to Congress to ensure full implementation of all obligations," according to Baker.
Despite achieving the approval of the fiscal reform as a prerequisite for the implementing of DR-CAFTA, now the government announces that it will not be until July 2006 when the nation would enter. This means the government will have a windfall of revenues. The fiscal reform increases taxation, and with the agreement not being implemented, the government will keep major revenue-producers, such as the exchange commission tax.
Nevertheless, Industry and Commerce Minister Francisco Javier Castillo has told reporters that the DR had fulfilled the pre-requisites for entering the trade agreement on 1 January. The high-ranking government official made the announcement during a meeting of the National Development Council that was debating the 2006 budget. Castillo said that the decision was taken in accord with the provisions of the DR-CAFTA legislation that allows countries to delay the application of the treaty. Countries that choose to do so have to notify the treaty holder, in this case the Organization of American States (OAS), and will enter into DR-CAFTA after 90 days. Castillo said that the Dominican Republic would notify the OAS on 1 April of its intentions to enter the DR-CAFTA agreement. He emphasized the fact that the Dominican Republic had deposited all the necessary documentation within the required time frame in order to begin on 1 January 2006.
One of the main requirements holding up implementation in the Dominican Republic is the passing of the procurement law that would oblige the Dominican government to hold tenders for purchases and contracting of major public works.
The Dominican Republic will continue to enjoy the protection of the Caribbean Basin Initiative (CBI) whose implementation dates back 1984. The CBI will allow the Dominican Republic to export goods manufactured in the country to the United States under favorable conditions. According to US Trade Representative spokesperson Christin Baker, the United States is looking to have a smooth transition between the CBI and DR-CAFTA. In a 19 December statement, Baker said:
"To the extent possible, the United States will seek to create a seamless transition between the Caribbean Basin Initiative / Caribbean Basin Trade Partnership Act (CBI/CBTPA) and the CAFTA-DR. Countries that have ratified the Agreement would retain their benefits under CBI/CBTPA until the CAFTA-DR enters into force for them and would retain their ability to seek retroactive duty refunds for qualifying textiles and apparel. Moreover, U.S. partners for whom the Agreement enters into force by April 1 can retain their full year agricultural quotas for 2006; treatment of quotas after that date will be determined as appropriate."
However, Jose Antonio Flaquer, the head of the Dominican Association of Exporters says that the country has not prepared the export sector sufficiently in order to make the most of the opening of DR-CAFTA. Flaquer was complaining about all of the paperwork that is needed in order to export from the DR.
See http://www.ustr.gov/Document_Library/Press_Releases/2005/December/...
Law 557-05 that deals with the recent tax reform will kick in on the first of January, and housewives will be facing higher prices for some very important items. Salt cod, salted herring, matches and even toothpaste will go up at least 16% with the VAT tax that will be applied for the first time. Also on the list are tomato paste, vinegar, bouillon concentrate ("sopitas"), laundry soap and all pasta products. Luxury items like shrimp, lobster and other shellfish are also to be taxed at the new 16% rate. The new taxes will also be applied to agricultural supplies such as fertilizers and their components, as well as educational materials for pre-university study.
The recent economic recovery and the new appraisal of its foreign credit standing gives the Dominican Republic a stellar performance over the last year, according to the PIMCO Year in Review. The Dominican Republic has surprised observers and market analysts with the highest results within the ascending countries with its 25% yield, followed by the Philippines with 18%. Other countries in the same category, such as Brazil and Russia had returns of 11.5% and 12% respectively. PIMCO is part of Allianz Global, one of the leading financial services companies, with offices in over 70 countries and 70 years of experience. PIMCO said that it was sorry that it had not anticipated the recovery In the Dominican economy. It is expected that this news will stimulate investment in the country.
In what is sure to raise some eyebrows and telephone calls to lawyers, the CDEEE announced yesterday that it had selected four companies for the final bidding on the two 600 megawatt, coal-fired power plants that are aimed at ending the Dominican Republic's energy crisis. Of the 24 companies that obtained the documentation for the tender, only five returned the forms for pre-qualification. Of these, the government selected the Sichuan Machinery Equipment Impo Co., Constructora MC C. por A.-Constructora Emaca, Energia 2000, S.A., H.N. Energy Solutions, S.A., Doosan Heavy Industries/Construction Co., and Emirates Power DR, S.A. These companies have to present their proposals and economic and financial reports by 11 January 2006. The two coal-fired generation plants are planned for construction in Azua and Manzanillo.
The magistrate at the Second Court of Instruction has imposed bail bonds totaling over nine million pesos on Quirino Paulino Castillo's relatives. The family members are accused of money laundering. Paulino Castillo's mother, wife and brothers were prohibited from leaving the country by magistrate Vanesa Acosta who also added Quirino's son, Anderson, who is currently in the States visiting his father and looking into schools there. His case will be looked at by the magistrates upon his return. The prosecutor's office had asked for bail to be set at RD$10 million for each of the adults as well as regular appointments at the prosecutor's office and placed a ban on their leaving the country. Santo Domingo district attorney, Jose Manuel Hernandez requested that the family be obliged to report to the DA's office every 15 days.
Because its owners had installed a satellite tracking system (in this case Lo Jack), a Mitsubishi Montero was recovered within hours of being stolen. The vehicle was reported stolen between 10:00 pm and 11:00 pm, and by 11:20 the company had received signals from the vehicle that traced its movement. Because the companies that install this sort of apparatus have an agreement with the Justice Department, there are assistant district attorneys available and police officers on hand to apprehend suspects. In this case, the police and justice officials were able to locate the stolen SUV at 1:00am in a farm in the La Victoria section of Santo Domingo, and arrested three men accused of being part of the band of thieves. Along with the cited Montero, there were several other vehicles on the farm, waiting to be dismantled for spare parts. The police have not yet identified the owner of the farm where the vehicles were recovered.
The director of Civil Aviation Board, Norge Botello told reporters from Hoy newspaper that he "didn't know about the number of illegal flights" that take place in Dominican airspace. Botello excused himself by saying that it was the Armed Forces and the Dominican security forces responsibility to watch out for these things. Botello said that he knew that there were illegal flights across Dominican airspace, but it was thanks to the press that he found out that there were as many as 200 flights per year. He said he felt that they certainly posed a threat to national security. Botello pointed out that his people are responsible for providing internal security at Dominican airports and that he was fully prepared to cooperate with the Armed Forces in any way that he could. He indicated that the Armed Forces had the sophisticated equipment necessary to track these flights, and that his organization lacked such equipment.
The Tigres del Licey carried off the regular season championship for the 17th time. Likewise, the Aguilas Cibaenas have assured their participation in the round robin play offs. At press time the Estrellas, who had lost the first game of a rare twilight double-header by a score of 8 to 1, were leading 4 - 0 in the fifth inning. The trouble is that the Estrellas cannot lose another game if they are to have even the slightest hope of making the Round Robin phase of the championship. And even with this happening, they need for the Leones de Escogido and the Azucareros of La Romana to keep on losing. Last night, the Leones won 5 - 4 over the Azucareros and Licey won 2 - 0 over the hapless Gigantes de San Francisco de Macoris.
STANDINGS
| Team | Games Played | Won - Lost | Games behind |
| Licey* | 47 | 30 - 17 | -0- |
| Aguilas** | 46 | 26 - 20 | 3.5 |
| Azucareros | 47 | 24 - 23 | 6.0 |
| Escogido | 47 | 24 - 23 | 6.0 |
| Estrellas | 46 | 20 - 26 | 9.5 |
| Gigantes*** | 47 | 16 - 31 | 14.0 |
*Licey wins regular season for 17th time
**Aguilas have spot in Round Robin tournament
***Gigantes eliminated from post-season play
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