The northern region of the DR has consolidated itself as the leading receptor of industries destined to the industrial free trade zones. Currently, 46% of all free zone activity is taking place in the Cibao Valley, reports the bulletin ?Infoc?mara?, issued by the Chamber of Commerce and Production of Santiago. It says that 16 new businesses were established in the local free zones, going from 223 to 2239 industries currently operating under the free zone system. According the chamber?s note, 37% of free zone exports originate in that region, amounting to US$1.60 billion. The bulletin warns, however, that by 2005, with the removal of all quotas, local industries will face severe competition from China and Central America and urges the continuance of tax structures that facilitate entry of Dominican production to the US market.