Regional business and trade policy expert, David Lewis of the Washington, D.C.-based advisory firm, Manchester Trade Limited, Inc., at the American Chamber of Commerce during the monthly luncheon on Wednesday, 20 February 2019, gave Dominican businessmen insights on what to expect from the Trump administration, especially regarding the 15-year old DR-CAFTA and future trade.
Lewis said the focus needs to be on achieving competitive adjustments with greater gains for the country as protection is gradually removed for several sensitive products. DR-CAFTA calls for zero tariffs by 2026.
“Forget about renegotiating and focus on how competitive adjustment is achieved, with no major damage and possibly higher profits,” Lewis said. He made it clear the Dominican Republic was the success story for the US in the DR-CAFTA agreement. He highlighted the increase in total exports, the diversifying of these, an increase in US investment and the consolidation of a competitive export model based on national industrial exports, free zone exports, apparel, footwear, pharmaceuticals, medical devices, electrical and electronic devices and logistics. In his speech he spoke about the boom of services (tourism, ITC, and finances), highlighting that 65% of the GDP is services. He said the Dominican Republic had reported the best total exporter performance in the region.
And then he looked into the adjustments that are ahead as the tariff and quota protection that was intended to give local companies time to prepare their companies for US competition is gradually being phased out. Expect more US imports in stores as by 2020 the tariffs will be eliminated on nearly all agricultural goods by 2020. By 2026, powdered milk, rice, mozzarella and yoghurt will enter duty free.
Lewis said that the United States government is concerned that China might seek to position itself in the Dominican Republic to take advantage of trade privileges under DR-CAFTA.
“To position the Dominican Republic as an attractive commercial reference in the region, more and better products should be exported, more investments attracted by offering a better business environment,” he said. “No matter how good a free trade agreement or the development of foreign trade is, without these components there will be a serious problem in the sustainability of the sectors,” he said. He called for strengthening public-private alliances for stronger institutions and strengthening of trade and investment with the United States.
Lewis also stressed how because of its strategic geographical location, the Dominican Republic can play a crucial role participating in important agreements signed by Latin America with the United States.
In his talk, he shared what the United States Trade Representative (USTR) has on file for pending with the Dominican Republic. These include the technical barriers to trade in the regulation of steel rebar, food labeling, tariffs and quota allocations, management of import licenses and lack of transparency and anticorruption provisions for Dominican government procurement.
Read more:
El Dinero
El Dinero
Listin Diario
El Caribe
Hoy
USTR
28 February 2019