The last word on the weekend was that neither the senators nor the government would budge on the issue of the 25% tax on soft drinks using High Fructose Corn Syrup (commonly called “corn syrup” or simply, HFCS). The tax is standing in the way of the much-debated DR-CAFTA agreement that will allow the Dominican Republic to liberalize trade with the United States. According to El Caribe, the negotiation session scheduled for Saturday was not held and has been rescheduled for today. While the senators have said that they are willing to be flexible on the issue, the government team is insisting that they will accept no other solution but the repeal of the tax. Last week, President Leonel Fernandez told the senators in a message sent to Congress, that he would not “tolerate” any changes to the 25% tax legislation, except its complete dismantling. He reminded the senators that the country’s future depends on commercial integration with the United States, and that nothing would be done to derail the free trade accord.
Reportedly, the senators are due to vote on the National Budget in their Tuesday session.