2005News

Haiti and the DR poised for the leap

The Dominican Republic has managed to obtain a major concession within the framework of the DR-CAFTA agreements. According to Arturo Peguero, the head of the Dominican Association of Free Zones (ADOZONA), the deal involves allowing Dominican manufacturers to locate labor intensive manufacturing procedures in Haiti, thereby cutting costs and allowing Dominican companies to remain competitive in the marketplace. Both countries would benefit and Peguero told reporters from Hoy that joint manufacturing would allow both nations to flourish. The ability to outsource using Haitian facilities will allow Dominican manufacturers to access the US market under the DR-CAFTA framework in more favorable pricing conditions. The initial proposal was made at the behest of ADOZONA, but the benefits are not just limited to free zone companies, but to any Dominican manufacturing company that wishes to outsource labor intensive processes. The added benefit is that all products would enter the US under DR-CAFTA, according to Peguero.

Another benefit of the outsourcing permit is that it should reduce the pressure on Haitians to migrate to the Dominican Republic in search of jobs.