Archive News

Non-traditional exports rose to US$277 million in the first quarter of 2008, a delightful 31% increase from a year ago when non-traditional exports totaled US$211 million, the Center for Exports and Investment (CEI-RD) reports. Growth in the exports of avocados, organic bananas, organic cacao, re-bar, cement and rum have spearheaded the increase. The CEI-RD reveals that industrial products jumped from US$46 million a year ago to US$120 million this year. And, for a 'banana republic', it is curious that avocados were the leading agricultural export in the first quarter. The United States and Puerto Rico were the main markets for these exports. Organic banana exports grew by 167% from a year ago, reaching US$27 million this past quarter.

14 May 2008 - DR1 Daily News

The superintendent of banks, Rafael Camilo, has told reporters that the government has put conversations with the International Monetary Fund (IMF) on its post-election agenda, with the idea of reaching a new accord. According to Hoy newspaper, Camilo explained that the agreement would not be the same as the most recent one. The "Stand-by" arrangement was established in order to lessen the impact of the economic crisis generated by the 2003-2004 banking scandals. Camilo said that the current talks are looking at a "watchfulness agreement", adding that the government was not going to ask the IMF for any money since the current hard currency reserves were sufficient.
Camilo is challenging forecasts that claim interest rates would increase in the coming months. He said that the exchange rate remains stable, and changes in the demand for money in the economy are not expected. Furthermore, he said that the Central Bank does not plan to adjust upwards the interest rates on its certificates of deposit. Camilo did say that consumer and mortgage loans are up by 25%.

14 May 2008 - DR1 Daily News

The Center for Exports and Investment (CEI-RD) says that 57 call centers are currently operating in the DR. Eddy Martinez of CEI-RD feels that there is potential for the number of call centers to double in the next two years. He says that approximately 25,000 Dominicans are employed in call centers and forecasts that by 2014, as many as 200,000 could be employed in this sector. Martinez said that the DR has been the Latin American leader in attracting call center business. Other world leaders are the Philippines, India, Germany and Ireland. He said that these business are entry-level jobs for young Dominicans, and wages are around RD$20,000 for agents.
The CEI-RD recently signed an agreement with the Contact Center Institute of the Americas (CCI) to train more Dominicans for these jobs. INFOTEP will be the local training counterpart.

13 May 2008 - DR1 Daily News

The Dominican Confederation of SMEs (Codopyme) is urging the Senate to pass the bill that creates a new framework for small and medium sized businesses in the DR. The bill passed in the Chamber of Deputies several weeks ago, but has not been put on the Senate agenda. The bill was sent to Congress from the President's Office. "The delay in passing the project is creating serious difficulties for small companies to compete," explained Issaachart Burgos, as leading motivation for the passing the bill. He says that the bill creates a special chapter for very small businesses. Burgos said that a large number of their members might even have to close operations given the fines and complex social security and income tax requirements from the government.

13 May 2008 - DR1 Daily News

During the past 15 years the DR has received a total of US$12.1 billion in foreign direct investment (FDI). This information comes from the Central Bank, the Dominican Republic Center for Exports and Investment (CEI-RD) and the Foreign Investment Association (ASIEX). In 2007 alone the DR received US$1.7 billion in FDI, slightly less than Costa Rica, but more than the remaining four DR-CAFTA countries. Tourism and telecommunications were the major areas of investment. Net revenues for services have continued a constant, registering 95% net revenues in 2007 as a whole. Free trade zones experienced 4% net revenues in 2007. Listin Diario writes that macroeconomic stability in the DR has been the key factor in increasing FDI.

13 May 2008 - DR1 Daily News

DR-CAFTA seems to be working only one way, with a significant increase in imports from the United States. The trade deficit for the first three months of the year increased to US$688 million, up from US$426 million for the same period in 2007. Imports were US$1.6 billion, up from US$1.4 billion. At the same time, exports declined from US$991.8 to US$927.3 million. In 2004, Dominicans exported more to the US than was imported. In that year, the trade balance was US$168.8 million in favor of the DR. In an interview with Hoy, economist Luis Vargas commented that the decline in exports is due to the accelerated dismantling of industry and farming in the DR.

12 May 2008 - DR1 Daily News

The Association of Industries of the DR (AIRD), the Agribusiness Board (JAD) and the Dominican Association of Free Zones (ADOZONA) have decided to act on a common agenda to foster local manufacturing and promote exports and contribute to the maintaining of macroeconomic stability. Only by strengthening local production can we confront the international pressures and improve local competitiveness, say Manuel Diez, president of AIRD; Jose Ramon Peralta, president of JAD; and Fernando Capellan, president of ADOZONA upon announcing their decision to work towards the common goals. According to the business leaders, free zone exports declined 11.3% in 2007, while farming and local manufacture grew only 2.8 and 1.9% respectively last year. In a written statement, the businessmen point out that these sectors account for 25% of the total labor force. "To foster exports is the best way to consolidate jobs and social welfare," they explained.
They stress the need for government policies that foster competitiveness. "To back manufacturing is more efficient than to back consumption," they point out. They criticize that financing for production is scarce, contrary to the widespread availability of consumer loans.

09 May 2008 - DR1 Daily News

Dominican exports to the US continue to be affected by labeling problems, according to Daniel Orellano, an expert on the implementation of DR-CAFTA, speaking at a workshop on FDA rules at the Hotel Melia. Listin Diario reports that 60% of the products denied entry into the US market were halted for this reason. From January to August 2007, 600 product shipments were returned to the DR for failing to meet labeling requirements. Orellano said that FDA officials would be visiting the DR to help businesses label their products correctly. Orellano said that other DR-CAFTA countries were experiencing the same problem.

08 May 2008 - DR1 Daily News

Eight years after the United States put a stop on Dominican meat imports, the Dominican Republic is still waiting to get a new federal license to export meat to the US. Almost every year since then, there have been announcements to the effect that the ban was being lifted and that meat exports would be renewed shortly. However, this has not happened, and apparently, according to Diario Libre, it is not likely to happen in the near future. The director of livestock for the Ministry of Agriculture tells reporters that the problem is one of "equipment in the slaughterhouses". Authorities from the United States say that the issues are of a phyto-sanitary nature and a lack of laboratories to test the meat. The newspaper says that the government has done very little to tackle the problem. Meat exports to the United States started to grow in the 1980s, and by 1998 they had reached 20,000,000 pounds. The problems started when the laboratories became careless, according to the paper, and the United States began to require a Federal Export License. Of the fourteen slaughterhouses operating in 1997, the new requirements and controls eliminated all but four. By 2000, the Dominican Republic no longer had a license to export meat and the government requested new inspections but, for some reason, the license has not been forthcoming, and meat imports have increased. Just last year, the country imported US$30 million in meat and offal.

07 May 2008 - DR1 Daily News

Farmers are facing a 24% reduction in the amount of credit that is available to them. That, however, is not all. They are also facing price increases in everything that goes into producing a crop. According to Listin Diario's Jairon Severino, farming supplies have increased by anywhere between 40% and 119% over the past 15 months. For example, in January 2006 the price of a gallon of diesel fuel was RD$96.80, while today it is pegged at RD$156.40, an increase of RD$59.60, or 61.5%. The most popular fertilizer, 15-15-15, has gone up from RD$496.60 for a 100-pound bag to RD$1,086.82, an increase of 118%. In the livestock sector similar increases in corn prices, soybeans and other feeds have increased from between 40% and 60%. The Agro-Business Board (JAD) is asking the government to reduce the cost of diesel fuel by targeting a special tax-free fuel program at farmers. The JAD also wants the government to give more capital to the Agriculture Bank in order to finance more crops.

07 May 2008 - DR1 Daily News