The business sector of the Dominican, almost in its entirety, has requested that the government remove tariffs and taxes on raw materials and capital goods. Their argument is that these goods and materials are receiving a much more favorable treatment in the Central American republics, where the industries pay between 1% and 15% on such imports, while in the Dominican Republic, industries are forced to pay at least 32%.
Thirty-three industrial associations and federations backed Yandra Portela, the president of the Association of Industries of the Dominican Republic, who announced that the group will submit a legislative proposal to remove the roadblocks that are keeping Dominican products from being competitive in the market places.
During the historic meeting, where 33 associations and industrial federations sat at the same side of the table, it was clear that the groups do not oppose the DR-CAFTA agreement.
But, as El Caribe newspaper reports, the industrialists are asking for zero tariffs on capital goods and raw materials in order to be competitive within the framework of the DR-CAFTA free trade agreement that will be discussed today in the US Congress. According to Portela, the idea is to place the local industrial sector on equal footing with their Central American peers.
While the US Congress debates the agreement, the Dominican Senate Committee on Commerce, Industry and Industrial Free Zones will meet to discuss possible solutions vis a vis the FTA with the United States.
Yesterday in Washington, DC, the ministers of commerce and industry from the Central American nations and the Dominican Republic agreed to push forward a program that would provide for more consistent application of the legislation in each of the countries. Among the points covered were guarantees for union activities, better protection for women in the workplace, and the eradication of child labor.
In a full page advertisement in several of today’s print newspapers, the associations put forth a five point program: 1) A tax reform package that places Dominican industry on an equal footing as their Central American counterparts.
2) The DR should adopt a developmental model based on industrial incentives and export orientation.
3) The group called for the executive and legislative branches of government to recognize the importance of industry to the society and the economic well being of the nation.
4) Recognition of the industrial sector as a creator of jobs that will lower poverty levels and contribute to a better life for all Dominicans.
5) The immediate implementation of new tax policies that will allow Dominican industries to produce and compete in the broadest of world markets.