National Competitiveness Council member Celso Marranzini has spoken out in favor of industrial convergence, or the extension of business conditions enjoyed by export free trade zones to all the DR’s industries, as reported in the Listin Diario. He said that this industrial convergence is a necessary process if the country is to become an exporting nation. Marranzini spoke during a talk on “Paradigms of the Exporter Sector before the FTA” at the Center for Export and Investment (CEI). He said that following the signing of the free trade agreement with Central America the experience has caused much concern. He said that local industry needs a legal framework, and customs and tax conditions that allow it to compete with its regional rivals. He said that there is a need to abolish the 13% exchange rate commission, the 3% tax on machinery, and intermediate VAT taxes. There is also a need to abolish the tax on banking transactions and other indirect costs that come from paperwork charges, to transport surcharges, among other barriers to export.
He advocated that the authorities put aside their fiscal focus and consider the need to duplicate the conditions available for free zone companies for local industries so that these can also become exporting entities.
Marranzini compared the development of the free zones to the stagnating of national exports. Out of total exports from 1993 to 2004, 75% came from free zones.