Listín Diario newspaper reports on the diversification of the Dominican industrial free zones. After more than 30 years of dominance of textile assembly plants, now the growth pace of these has diminished, while the rate of installation of non-apparel plants is growing. From January to October 1999, the National Council of Export Free Zones authorized the installation of 57 new industries in free zone industries. Of these half are non-apparel manufacturers. They include a manufacturer of slot machines, graphic arts industries, office supplies and equipment industries, a plant for the assembly of rubber boats and another for the assembly of fiberglass boats. Several leather good manufacturers and suitcase assembly operations, as well as a company that will manufacture and assemble windows. The Listín Diario says that the US Congress will discuss the incorporating of a textile parity facility on 18 October. But Fernando Ceballos, president of the La Romana free zone industries association, told the newspaper that congressmen will only have 10 days to discuss the bill as the legislature closes 29 October. It is estimated the DR stands to lose 30% of its textile contracts if textile parity is not passed. The DR must use the more costly US fabric in its clothing exports, and suffers from quota restrictions which do not apply to Mexican exports. Thus, Dominican apparel exports can cost up to 25% more than Central American and Mexican exports. Central American garment manufacturers can purchase the lower cost Asian fabric.
