The acting US ambassador Robert Copley calls for building upon the strengths of DR-CAFTA and tackling the obstacles to development and better relationships in his speech during the Thanksgiving Luncheon celebrated by the American Chamber of Commerce. He urged Dominicans to look to the example of the United States and the strength of its institutions that serve as the driving force for investor confidence and replicate this in the country.
Copley spoke of the contribution of the DR-CAFTA to improving best practices in the country. “The DR-CAFTA agreement is and will remain the cornerstone of our economic relationship, because it is mutually beneficial, but the progress we have achieved to date is not enough. Maybe not everyone will be completely in agreement with me, but since we are celebrating the tenth anniversary of the treaty, I consider it particularly appropriate that we pause to consider where we are today; and then contemplate what we, as two nations with deep historical, cultural and commercial ties, must do in the next ten years.”
On the positive side, Copley remarked that given the continued growth of the Dominican economy, at 4.75% the highest in the region, the DR-CAFTA has contributed significantly. “From its start in 2007, bilateral trade has increased US$2.1 billion,” he observed. He also mentioned that Dominican exports have increased, and foreign direct investment to the Dominican Republic has doubled (from 1 billion in 2005 to 2.2 billion in 2015).
The Gross Domestic Product has grown 44%. “During the last 10 years, the Dominican export sector has diversified significantly, all of you have advanced to improve the business climate, modernizing business practices and improving essential economic institutions,” he told his audience of business people.
Copley says there are gains in the institutional framework. He stated: “The implementation of DR-CAFTA has entailed substantial changes in Dominican laws. Laws related to conflict resolution, labor rights, environmental protection, government procurement processes, telecommunications, competition, taxes and fiscal transparency. With these legal changes, institutional changes came, which include a greater strengthening of property rights and labor protection. Likewise, more dynamics have been created on intellectual property rights and an antitrust office. These institutional changes should not be underestimated. The benefits that we have experienced to date, as a result of DR-CAFTA, are mainly perceived in institutional improvements.”
Copley says there is lots of room for continued growth in tourism. He said two million US citizens visit ever year. He highlighted the US investment in the Amber Cove cruise ship terminal in Puerto Plata.
He also spoke of the challenges ahead for the next ten years. “Although it is true that to date Dominican exports to the United States have not grown to the same extent as Dominican imports from the United States, it is also true that Dominican exports to the rest of the world have grown substantially, due in large part to the best business practices introduced by DR-CAFTA.”
He acknowledged difficulties found by Dominican exporters to the US. “Here I have to note that I can not say that the willingness to facilitate access to markets has always been reciprocated. Frequently, I hear examples of Dominican importers struggling to import dairy products and other US products due to technical and bureaucratic barriers that contradict the spirit of the agreement. However, we continue to believe in the strength of our collaboration as business partners.”
Taking advantage of the forum provided by the American Chamber of Commerce Thanksgiving luncheon, the US chief of mission stated:
“I am writing to you who are leaders in the private sector and the Dominican public sector, seeking your commitment and your help to answer three difficult questions. It is my opinion that the way in which the Dominican Republic responds to these questions will define how successful we can be and perhaps beyond the next 10 years. The first question is the most important, how can the Dominican Republic significantly reduce corruption? The second and third will not come as a surprise: how can the Dominican Republic increase its competitiveness and third, how to improve the security of its citizens?”
Copley acknowledged the role of the US is as a friend, ally and partner of the Dominican Republic. “It is not our place, although we do have an interest in helping them strengthen their institutions and we also have an interest in the health of their economy and democracy. In this situation, the only thing I can offer is that I know that the strength of institutions in the United States is what drives investor confidence,” he said.
“The polls, the news, and all the other indicators tell us that Dominicans are fed up with corruption. The Dominican Republic ranked 120 out of 176 on the 2016 Corruption Perception Index by a respected NGO. Corruption continues to be a major drag on growth, not only here, but throughout the region and the world. This robs businesses of the predictability of consumers and damages the government’s ability to promote good economic policy,” he stated.
Copley also focused on the collapse of the Dominican public education system. “We can not talk about competitiveness without talking about education. As a friend and partner of the Dominican Republic, it is worrisome to see that, according to the Global Competitiveness Report of the World Economic Forum, the Dominican Republic classified 123 of 138 countries in the quality of their primary education, obtaining a low score in competitiveness,” he wrote. He applauded new efforts of the Medina administration and Education Minister Andres Navarro to advance in this sector.
Copley also addressed the decline in security, while acknowledging rising drug consumption in the United States as the main cause of the rise in crime in the Dominican Republic. “Criminality endangers the Dominican economy at all levels. It is essential that everyone who lives or visits here can enjoy a safe and prosperous island; and the solution must be found as soon as possible,” he stated.
“This plague of insecurity is a systematic action of greater forces that must and can be eradicated collectively, including the reduction of the demand for drugs from the United States, which admittedly includes the very center of criminality in our region. It is worth noting here that the United States government spent more than US$9 billion last year on programs to reduce the demand for narcotics and drug treatment in the United States. In other words, we are making a great effort in my country.”
Copley mentioned US contributions to the 911 emergency system and professionalization of the National Police.
Copley ended his speech calling for the commitment of the business community to take advantage of the strengths. “I know that by working together, we can build on the solid foundation we have in DR-CAFTA and realize our aspirations in the next ten years,” he said.
Read more in Spanish:
2017 Thanksgiving Amcham Speech
23 November 2017
