2005News

Free zones are looking to 2006 for recovery

Carlos Manuel Alvarez, the head of the Santiago Free Zone Association, told reporters that despite the crisis that is affecting the sector, there is a feeling that 2006, with the DR-CAFTA treaty in place, will see a recovery. The industrialist said that 2005 has been a hard year for the Dominican Republic’s industrial free zones, and mainly for Santiago and the Cibao, where the principal industrial parks are located. The closure of businesses and the loss of jobs have been particularly hard for the free zones. Alvarez pointed out that the high cost of energy and high salaries for industrial workers are two issues that are affecting the growth of the free zones. With the DR-CAFTA agreement, Alvarez says that the 14,000 jobs that have been lost in Santiago may well be recovered, at least in part. This is good news for all who have small businesses near the industrial parks, since this has been a very difficult year with sales falling 50% to 60%.