DR excluded from Cafta?

Keith R

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Jan 1, 2002
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Yeah, the DR was warned that the tax would be a deal-breaker, but Dominican officials didn't seem to take the warning seriously. They just never seemed to grasp that the US never wanted the DR in the CAFTA as much as the DR wanted it. Thus by adding on something that pissed off powerful lobbies in the US -- and believe me, farm lobbies, ADM and Coca-Cola are quite influential in the Congress -- the DR made a package already tough to sell in Congress almost impossible to sell. USTR Zoellick was not left with a choice if he wanted Congress to ratify CAFTA -- he had to jettison the DR from the accord.
 

Chris

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Oct 21, 2002
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Where should the DR go from here? Believe me, I'm not a lover of sweeteners and prefer my sugar right from the cane.... So, I can understand the point of view of the 25% tax on import of the sweet syrups... But, if this was the dealbreaker, as I believe it was, which road should the DR follow now? Go back to the US and cry? Right from the start, the DR was added on to Cafta as an afterthought, remember, they did not want to negotiate in the main negotiations, but wanted some special dispensation and special negotiations. So, where to now?
 

Texas Bill

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Feb 11, 2003
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It is my humble opinion that.........

the DR has neither the economic nor the political clout on the world scene that will be beneficial in the long run.
There is an element in this contry that has the mistaken idea that they can dictate to the economic powerhouses of the world.
Whether that is from misplaced pride in their country, or whether it is just plain stupidity has yet to be decided.
If the DR EVER wishes to join the family of nations in the world market, they MUST keep their monopolistic ideas from surfacing and use some 'common sense' in their dealings with those nations.
The DR has very little in the form of quality exportable goods which are not produced in the 'free trade zones'. Additionally, they must realize that the incentives for outside investors (businesses locating in the DR) to settle here are becoming geometrically fewer with each passing day. Their "cheap" labor force is no longer applicable in the world market; that milleau having been taken over by China, India and other countries in Asia.
Even without certain and positive evidence, I am convinced thet the Dominican Legislative bodies succumed to briberies ugly head in adding the 25% tax on the 'corn syrup' proposal. That act, in and of itself reflect the political problem this country has suffered historically. The politicians just can't seem to realize that their dishonesty is the cause of most of the problems besetting this society today.

I could go on and on, but to what avail??? It's all been discussed ad-nausium already in many previous topics.

Just my peso worth.

Texas Bill
 

Guatiao

El Leon de los Cacicazgos
Mar 27, 2004
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Is it so bad the exclusion of DR from the agreement? How will this hurt the Dominican government & people? Is 25% tax something really to fuss about?

That's what I'm asking myself, I sort of like the fact the DR is not in the trade agreement, it'll cost jobs & some will suffer but the DR should learn to pay for it's mistakes & not ask for handouts to big brother.
What I don't like about the exclument is that the DR is one of Americas closiet friends & to think hippo sent those troops to Iraq, put (somewhat) innocent Dominican lives in harm, one of the first countries to back the US & still do.
The DR should start to awake & start creating new friends/connections with Asian, Oceanic, Middle Eastern & other Euro countries if they want to enter the world economic stage. The US is not the only country in the world, DR can make any free trade agreement with anybody; Mexico, Brazil, Canada, etc.
Little countries can be major players in world economics just look at Japan, Britan, Spain, etc. By the way I keep thinking how in the world did Japan bounce back so strong since WW2, it's just will be 60yrs since the war & this little country is becoming very powerful. What happened there (economically) that didn't happen in DR, Japan was almost completely destroyed by the Atomic bomb & numerous sumami's, the DR hasn't had a war since (ever), numerous hurricanes (just as japan) but is dirt poor, my young mind just doesn't get it! How 1 country with many natural resources, tourism, etc is poor & another with limited resources, some tourism & alot of technology is a semi-power house. Not trying to hijack the thread just comparing 2 countries.

Peace,
Capo
 

liam1

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Jun 9, 2004
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you just can't compare japan and the DR. japanese are very, very hard working people and also highly educated. i think after the WWII japan (and germany) were prohibited to invest in armed forces so they invested everything they got into builing a strong economy. and not to mention government opretion and corruption.
 

Texas Bill

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Feb 11, 2003
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The main differences.....

between Japan and the DR is in the level of education and in the desire by the population to gain an education.

In the DR, the level of educated teachers is virtually zilch except, perhaps, for a select few private schools and those at the university level.
The support given these teachers is of the lowest order as to be non-existant. By that I mean the budget authorized is insufficient to support even the meanest goals of a somewhat nebulous order.

Tie that with the complacent attitude and fleeting work ethic and you have the formula for a degraded work force incapable of elevating the society to an acceptable level of competetion amoung nations world wide.

I'm not slamming the DR populations in the above observations, just calling a spade a spade and neither a shovel nor a spoon. And, YES, there are many exceptions to the above. I just haven't observed very many of them.

Texas Bill
 

Mr_DR

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May 12, 2002
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capodominicano said:
Is it so bad the exclusion of DR from the agreement? How will this hurt the Dominican government & people? Is 25% tax something really to fuss about?

That's what I'm asking myself, I sort of like the fact the DR is not in the trade agreement, it'll cost jobs & some will suffer but the DR should learn to pay for it's mistakes & not ask for handouts to big brother.
What I don't like about the exclument is that the DR is one of Americas closiet friends & to think hippo sent those troops to Iraq, put (somewhat) innocent Dominican lives in harm, one of the first countries to back the US & still do.
The DR should start to awake & start creating new friends/connections with Asian, Oceanic, Middle Eastern & other Euro countries if they want to enter the world economic stage. The US is not the only country in the world, DR can make any free trade agreement with anybody; Mexico, Brazil, Canada, etc.
Little countries can be major players in world economics just look at Japan, Britan, Spain, etc. By the way I keep thinking how in the world did Japan bounce back so strong since WW2, it's just will be 60yrs since the war & this little country is becoming very powerful. What happened there (economically) that didn't happen in DR, Japan was almost completely destroyed by the Atomic bomb & numerous sumami's, the DR hasn't had a war since (ever), numerous hurricanes (just as japan) but is dirt poor, my young mind just doesn't get it! How 1 country with many natural resources, tourism, etc is poor & another with limited resources, some tourism & alot of technology is a semi-power house. Not trying to hijack the thread just comparing 2 countries.

Peace,
Capo
Japan don't have Haiti and government corruptions holding them back, they are more dedicated and educated, they don't hang in clubs listening to bachata or prostituting or hanging around resorts waiting on defenseless tourists to scam, and they definately won't be intimidated or manipulated by the USA. Intelectually, you cant compare a Jap and a Dom.
 

liam1

Bronze
Jun 9, 2004
843
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Mr_DR said:
Japan don't have Haiti and government corruptions holding them back, they are more dedicated and educated, they don't hang in clubs listening to bachata or prostituting or hanging around resorts waiting on defenseless tourists to scam, and they definately won't be intimidated or manipulated by the USA. Intelectually, you cant compare a Jap and a Dom.

how's haiti holding the DR back? it would be like saying that mexico is holding US back.
 

Guatiao

El Leon de los Cacicazgos
Mar 27, 2004
474
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Let's Leave Haiti Out of This.

It's DR-CAFTA. Anyway can anybody answer these questions.
1) Is it so bad the exclusion of DR from the agreement?
2) How will this hurt the Dominican government & people?
3) Is 25% tax something really to fuss about?

Also does anybody have the current government budget & what percentage will go to education? It seems that is one of the main obstacles in DR is education & how much money is invested in it's people. If DR excludes this 25% tax they are getting bullied by big brother, It doesn't feel right, sugar lobbiests have more power than a country. Most interesting in todays news 'Sugar Daddy Decadence' "O'Grady emphasizes that "for an interest like the Fanjul family, the HFCS tax would be a win-win." Something to think about.
I think the DR should start taking notes on Japan & not let be bullied around by sugar people & should invest less in military, which we really don't need & invest more in education & culture.

Aint it interesting beer & alcohol prices drop, more drunk people in DR, great :rolleyes: .

Peace,
Capo
 

mountainannie

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Dec 11, 2003
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Free trade agreement?

Will this mean that the factories in the Free trade zones will close? If CAFTA is not approved? I know that they provide a lot of jobs - does anyone know how many? I had also heard that they have 10 hour work days, is that true?

Here in this beach town, I see street vendors walking around trying to sell "free trade goods" - to tourists. Stuff they can easily get at home at Walmarts. Some sell palm hats and jewelry. But I haven't seen any of the really fine handwork - rope work lace hammocks, shawls, belts, bags, that abound in Haiti. Seems as if the people here don't have the skills to make them. They do make rope work chairs but that's a bit bulky to take home on a plane.

( Did see one snappy pair of young Dominicans set up a jewelery stand in the plaza one weekend. I bought a pair of earrings from him, like the ones I had from PR which were made from seashells- only to find that they were made from wood and dyed and the dye ran as soon as it rained - caveat emptor)..........

It's hard to compare the DR to Japan say or a nation with a long economic history - since this one has only been independent for a short while. Best to try to compare it to smaller nations in this hemisphere - Costa Rica might be a shining example. Don't think that they are a CAFTA signee, are they?

annie
 

Keith R

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Jan 1, 2002
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mountainannie said:
It's hard to compare the DR to Japan say or a nation with a long economic history - since this one has only been independent for a short while. Best to try to compare it to smaller nations in this hemisphere - Costa Rica might be a shining example. Don't think that they are a CAFTA signee, are they?

annie
Actually, Costa Rica is a signatory to CAFTA, as are El Salvador, Honduras, Guatemala & Nicaragua. These countries are the DR's rivals for many products in the US market, so the DR's exclusion from CAFTA indeed will affect its exports to that market.

Regards,
Keith
 

Chris

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Oct 21, 2002
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mountainannie said:
Will this mean that the factories in the Free trade zones will close? If CAFTA is not approved? I know that they provide a lot of jobs - does anyone know how many? I had also heard that they have 10 hour work days, is that true?

annie

Some factories will close or more likely, relocate. Those that cannot compete and have the US as its primary market. I don't have the latest numbers of ftz employment but the 10 hour workdays is a myth. The ftz's are regulated by legislation in terms of work hours and pay and if anyone is working 10 hours day, they are either taking the 5th day off or are on a big job and folks are raking in the overtime.

Cafta will hurt the DR - and the strange thing is, that not even the sugar lobby (whose sole fault this is) will benefit on the long run.