The US Senate passed the Trade and Development Act 2000, 77 votes in favor and 19 against yesterday. The House of Representatives had already passed the bill on 4 May with 309-110 vote count. The bill grants Dominican textile exports quota-free conditions, such as Mexican exports to the US have. The quota requirement caused many apparel contractors to move their operations to Mexico. The bill conditions duty-free apparel exports to those made from American materials. It will be effective for eight years time. Only pending is the signature of President Bill Clinton, one of the bill’s strongest supporters in the US. The bill would be effective 1 October 2000. President Leonel Fernández expects the bill to spur a new wave of US investments in the DR, especially in free zone industries. He called its passing "an extraordinary opportunity for the Dominican Republic." Fernando Capellán, president of the Dominican Free Zone Association estimated that the bill would result in around 30,000 new jobs in apparel industries, or 20% more than at the present time. He commented that now the country needs to make efforts to be competitive regarding other Central American countries that have been benefited by the new legislation. He said that wage and energy costs are higher in the DR. To read more about the bill, see http://brief.tradecompass.com/index.asp?page=today&briefDate=20000512#topstory
