2008News

US protectionism restricts FTZs

Fernando Capellan, president of the Dominican Free Trade Zone Association (ADOZONA) says that US protectionist policies have prevented free trade zones (FTZs) in DR-CAFTA countries from making the most of the agreement. Capellan, quoted in Listin Diario, said that certain mechanisms like the 2×1 and the manufacturing accumulation program have not been put in place, even though they could make the sector more competitive. The accumulation program would allow DR-CAFTA countries to import 100 million squared meters of clothing into the US tariff-free while the 2×1 would allow DR-CAFTA countries to import two yards of US-made fabric for one yard of non-US fabric. Capellan says that the DR has not experienced any major advances through the DR-CAFTA because of Washington’s protectionist policies.