Caribbean Business reporter John Collins writes that Costa Rica is hard on the heels of the Dominican Republic and the DR could lose its position as the United State’s largest trading partner in the Caribbean. He points out that exports from Costa Rica to the US could surpass those from the DR by the end of this year. He cites an analysis carried out by Enterprise Florida, Florida’s economic development agency. Collins explained the slowdown can be attributed to the relationship between the DR and Puerto Rico because of the shared production concept between the two neighbors. Enterprise Florida indicates that a significant percentage of products completed in the DR with inputs from Puerto Rico are subsequently shipped to Florida directly for distribution in the US. According to the report, in 1999 the D.R. exported to Florida 22% of the total for the CBI region. In 1998, however, the D.R. exported 26% of the total for the region, a decrease of 4% from 1998 to 1999. On the other hand, Costa Rica registered a growth rate of 44.2% from 1998 to 1999. The EF analysis concludes that Costa Rica’s economy and exports are growing faster than those of the D.R. and, if the pace is maintained as expected, Costa Rica should surpass the D.R. and become No. 1 by the end of 2001. The bulk of Costa Rica’s exports are heavily dependent on one client (INTEL), while Dominican exports are more diversified.
