2004News

Free trade and Law 173

Few people know much about Law 173, but its function is to protect the right of Dominican companies to distribute foreign brands in the country. According to Mario Mendez, the economic editor of Hoy newspaper, an important business sector is deeply preoccupied with the current negotiations going on regarding the Free Trade Agreement with the United States. They feel that any modification of Law 173 could affect the interests of several of the members of the Dominican Association of Import Wholesalers. Yesterday the group handed over a document to the negotiating team requesting that Law 173 not be touched. When questioned about why the US team had brought up the subject of Law 173, the association president, Domingo Espinal, said simply, “The big fish eat the little fish.” He pointed out that in 18 of the 53 [sic] states of the union, there are protectionist laws similar to Law 173, and Puerto Rico has similar laws. For Espinal, Law 173 is the only guarantee for investment in publicity and marketing of the brands in the country. After many years of brand development, the association chief feels it is not fair to change the rules of business form one day to the next. Law 173 obliges foreign companies to compensate their local representatives and distributors in case they are substituted without cause.