Ignacio Méndez, president of the Association of Industries of Herrera, one of the largest business organizations in the country, says that the DR would be better off if neither the DR nor Central America registered a list of products to be excluded from the tax exempt treatment of the Central American and DR free trade agreement. Méndez proposed that the government eliminate the list altogether. He said that the list being readied by Central American business sector includes the products in which the DR would be competitive in Central America. The DR and Central America signed a free trade agreement on 16 April. To finalize the agreement, both parties were given 120 days (through mid August) to submit a list of items to be exempt from tax free treatment. The agreements thereafter must be ratified by the individual congresses and are expected to be effective 1 January 1999. In August of this year, the DR is also expected to sign a free trade agreement with the English-speaking Caribbean, thus the DR would serve as a liaison between Central America and the Caribbean, creating a strategic alliance in the region. The Association of Industries of the Dominican Republic, known for its protectionism stance of traditional large Dominican industries, favors the list of goods to be excluded from the free trade treatment.
