2005News

IMF vs. DR-CAFTA

The Chairman of the Senate Commission on Industry and Commerce, Alejandro Santos, has complained that the government is giving priority to the agreement with the International Monetary Fund (IMF) instead of getting involved in the process of the Free Trade Agreement with the US and Central America (DR-CAFTA). As reported in today’s issue of El Caribe, he claims that the senators have requested more attention for the FTA process and all of the issues that will arise when the agreement comes into effect. “There is a series of institutional reforms such as in customs, which have to do with legislation on the administration of treaties and disloyal trade practices, and the Executive Branch has to make reforms regarding government purchasing and the contracting of infrastructure projects.” He said the government should have been working on these aspects months ago. Santos believes that if the DR-CAFTA is ratified by the US Congress before the Dominican Congress, there will be no excuse that could delay the local approval due to the economic and social implications it would have on this country. He informed that his Senate Commission has presented the suggestions made by productive sectors in its report on the DR-CAFTA. The industrial sector is demanding the reduction of the exchange rate commission for the import of capital goods and zero tariffs for these categories, whereas the agribusiness sector is requesting subsidies similar to those being applied in the US. Meanwhile, the Central General de Trabajadores labor union federation called on the government to identify how many medium and small businesses will close down as a result of not being able to compete. They are convinced there will be massive layoffs after the agreement becomes effective.