Industry and Commerce Minister Melanio Paredes says that the country has benefited from the DR-CAFTA agreement, because capital goods, including machinery and raw materials can now be purchased at lower prices. During a speech at the American Chamber of Commerce (AmCham) luncheon Paredes cited a report by the Ministry of Hacienda that indicated that of the US$982 million in untaxed imports to the DR, 23% was made up of capital goods, 54.7% represented raw materials and 22.3% represented consumer goods. Paredes also said that during the last 15 years, foreign direct investment in the DR has shown considerable growth, going from US$916.8 million in 2002 to US$1.7 billion in 2007. Foreign direct investment grew by US$238.7 million between 2006 and 2007. Paredes says that investment has been fortified by the confidence brought on by DR-CAFTA.
Although there have been many benefits from DR-CAFTA, Paredes did acknowledge that Dominican exports have decreased from 52.4% in 2005 to 43.3% in 2007. The Minister attributed this to the increased strength of the Chinese economy and the removal of textile quotas by the US.
Paredes said that total DR-CAFTA imports and exports, for all countries, went from US$32 billion in 2003 to US$41.2 billion in 2007, which represents a 28.9% increase. The minister also spoke of the way in which the agreement has strengthened competition, adding that DR-CAFTA is very important for the Dominican economy’s future development.
He also commented that DR-CAFTA strengthens Dominican institutions, contributes to the efficient development of the economy and strengthens the judicial system. Other benefits include the integration of the country into the world economy.