Hoy newspaper publishes an update on trade negotiations of the Dominican Republic with Central America and the Caribbean. According to Ambassador Frederic Emam Zade, the greatest difficulty regarding the signing of the treaty with the Caribbean Community (Caricom) is that the Caribbean nations have not been receptive to trade reciprocity with the DR. The list of items submitted by Caribbean English-speaking nations that would not be included in the free trade agreement adds up to 900. The DR has presented only 15 items. The bill is also pending ratification by the Dominican Congress. President Leonel Fernandez and heads of government signed the free trade agreement on 22 August 1998. Emam Zade says that negotiations have stagnated due to the long list of restricted goods presented by Caricom. He said that the Caribbean nations are accustomed to non-reciprocal relations and seem to fear that DR companies would displace their own national firms. Emam Zade said that on the contrary, several nations within Central America are concerned that the DR Congress has not given the agreement green light. He mentions that a Costa Rican mission is visiting to lobby before Dominican legislators for the ratifying of the treaty. Prior to ratifying the agreement, Congress needs to pass the tariff reform act, which in turn depends on an increase in the ITBIS sales tax. This would compensate the government for a reduction in revenues due to the lower import taxes. Emam Zade said that Costa Rica, El Salvador and Guatemala are ready to implement the free trade agreement as soon as Congress passes it. Some details need to be worked out in relation to free trade with Honduras and Nicaragua. The DR excluded 23 products from the free trade agreement and Central America excluded seven. Emam Zade says the Central America and Caricom agreements are a first step for the DR in regards to regional integration.
