2005News

Forestry looks good for DR-CAFTA

The application of the terms of the free trade agreement with the United States is likely to adversely affect some sectors of the Dominican economy, but others, such as the forestry sector, could do well. The nation imports US$300 million is forest products each year and the local forestry sector supplies just 12% of the demand. In areas like Jarabacoa and Restauracion, there are large plantations of forests developed with wood harvesting in mind. According to Bernabe Manon, the head of the Dominican Forestry Board, forestry could become a major business in the DR. He is backed up by professor Alberto Rodriguez, the head of the National Association of Forestry Professionals, and Raul Risek, the head of the National Association of Forestry Enterprises (ANAFORE). According to these spokesmen, forest products are some of the few that can compete successfully because of the captive market of some US$300 million. However, Manon warns that changes are needed in order to make the most of the conditions presented by the DR-CAFTA. He cited the need for improved technology, driers and saw mills, as well as better seeds. One of the big advantages that local forests have is the quality of the wood, generally superior to imported varieties. The spokespeople point out that because of the tropical location, many of the woods produced here are not found in the United States, especially mahogany, considered to be one of the finest in the world. According to the experts, the local forestry industry has the capacity to supply 70% of local demand, promoting an economy of scale that is ecologically sustainable, that is continuous and that creates a positive chain reaction for society. Manon told reporters from Listin Diario that in order for the sector to “take off” it needed a legal framework that would guarantee investments made in the sector. He said that 27% of Dominican territory could be converted into forestry projects.